ADVANTAGE LITHIUM CORP. CAUCHARI JV LITHIUM PROJECT INVESTOR PRESENTATI ON November 2019 1 ADVANTAGE LITHIUM CORP TSX-V: AAL
DISCLAIMER Cautionary Note Regarding Forward-Looking Information Certain information contained in this presentation constitutes “forward -looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward- looking terminology such as "is expected", "intends", or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Advantage that involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. The forward-looking statements included in this presentation are made as of the date of this presentation and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. The PFS completed in 2019 and referred to in this presentation has been prepared by independent consultants FloSolutions and Worley with the required Qualified Person review and approval. 2
Highlights Advantage Lithium Corp. is a publicly-traded company on the TSX-V Exchange with symbol AAL 2016: agreement with Orocobre to acquire 75% interest in the Cauchari JV property plus 100% interest in other exploration-stage properties 2017: Phase 1 drill program commences at Cauchari JV (28,000ha) Increased Inferred Resource defined 2018: Preliminary Economic Assessment (PEA) completed 2019: Resource Expansion to 4.8Mt LCE 1 in M&I 2 categories November 2019: Preliminary Feasibility Study (PFS) published Proven & Probable Reserve: 1.02Mt LCE Sufficient for a long-life project Economic Viability established Optional Start-up Scenarios Notes 1: Lithium Carbonate Equivalent. 2: Measured & Indicated 3
Successful Track Record Q3, 2018 Q1, 2019 Q4, 2017 Q4, 2019 M&I Resource Updated Inferred Phase 1 Drilling PFS & 2P Reserve Expansion Resource & PEA Completed 21 diamond drill and rotary holes completed by AAL since 2017 * Technical and economic viability established with a 2P reserve base (CIMM definitions and NI43-101 Disclosure Standards) Permitting well advanced Brine chemistry similar to nearby Olaroz deposit, compatible for conventional extraction process Regional infrastructure allows for accelerated development Partnership with Orocobre provides experience background *Note: excludes 2011/12 6-hole campaign by others 4
Summary Project located in heart of Argentine Lithium Triangle Exploration success from inferred resource to 2P Reserve in 30 months Large M&I 1 Mineral Resource Base established = 4.8Mt LCE 2 Proven & Probable Reserves = 1.02Mt LCE based on PFS Long Life Asset Upside to Resources and Reserves Excellent infrastructure & Access November 2019: Preliminary Feasibility Study (PFS) completed to Canadian NI43-101 standards of disclosure PFS demonstrates the project’s technical and economic viability Positive NPV with operating costs in low quartile Note 1: Measured & Indicated (CIMM standards) Note 2: LCE = Lithium Carbonate Equivalent 5
General Location NW Argentina 6
Strategic Location Close to Infrastructure 7
Geological Setting Surface Hydrogeolo gy Typical Pumping Test Source: November 2019 PFS and Updated Resource, April 2019 8
Resource Open to Depth SE Sector Cross-Section Drill holes did not reach Deep Sands Limit Source: November 2019 PFS and Updated Resource, April 2019 9
Preliminary Feasibility Study Highlights 2P Mineral Reserves of 1.02Mt of LCE grading 480 mg/l Li Sufficient for 25,000kpta Battery Grade LCE production over 30 years Positive Economic Parameters & Valuation (after tax basis): US$ 671 million NPV at 8% discount rate IRR of 20.9 % INITIAL CAPEX & OPEX: US$ 446 million Initial CAPEX Average OPEX of US$ 3,560/tonne LCE Upside on Resources/Reserves: Conversion of ~1 Mt of Inferred resources in the lower sand units into M+I resources West Fan M&I of ~900,000t contained LiCE not modelled as reserve yet 10
Mineral Reserves Reserves Derived from M&I of 4.8 Mt LCE LOM Wellfield Pumping Profile Note: Reference point for the reserve is wellfield discharge to the evaporation ponds before process recovery. See PFS report for full set of notes to the Reserve Statement 11
Product Mix and Pricing Technical and Battery LCE Grade Product Mix Technical Grade Battery Grade Total Year Tpa tpa tpa 1 5,000 0 5,000 2 5,000 12,000 17,000 3 1,500 18,500 20,000 4-18 0 25,000 25,000 19-25 0 21,000 21,000 26-30 0 20,000 20,000 Note: Process Recovery 66% 31 0 8,000 8,000 Total 11,500 660,500 672,000 Roskill Price Forecasting A weighted average price of US$ 12,162 per tonne of lithium carbonate Battery Grade was used over the life of mine. 12
Project Economics Key Metrics After Tax Before Tax NPV IRR NPV IRR US$ million % US$ million % 6% $959 $1,609 8% $671 20.9 $1,158 26.2 10% $468 $841 Key Drivers • Battery Grade Lithium Carbonate Product • Li Price /Operating cost Margin • Ramp up rate 13
Initial CAPEX, MUSD Item US$ Million Direct Capital Costs $318 Brine wellfield $13 Evaporation Ponds $120 Liming Plant $8 Lithium Carbonate Plant $60 General Services including power supply $88 Infrastructure $30 INDIRECTS $53 Contingency (20%) $74 TOTAL CAPEX $446 14
Competitive OPEX Cauchari JV Opex Ranking in Lowest Quartile (AISC Basis) Note: AISC = All In Sustaining Cost 15
Community Relations A Corporate Commitment SUSTAINABILITY: SOCIAL, ENVIRONMENTAL, CULTURAL Y ECONOMIC COMMUNITY- COMPANY Dedication to a business strategy based on COMMUNITY RELATIONS RELATIONS both social and economic value-added for CULTURAL SHARED VALUES the communities where we operate RESPECT CORPORATE IDENTITY BUSINESS MODEL SHARED VALUES Environmental protection is a primary Win-Win consideration Growth A key directive is commitment to inclusive and sustainable development based on global UN principles and human rights 16
Directors Dave Cross Callum Grant CFO, Director Director and Interim CEO • Mr. Cross is a CPA, CGA and has over 21 • Professional geologist/engineer with years of accounting experience. over 40 years experience and a broad • He has extensive knowledge of perspective of the minerals industry in complex accounting and reporting Argentina. formats in both oil and gas of specialty • Project expertise from exploration to minerals sectors. production in a wide range of commodities including the Lithium Triangle of NW Argentina. Miguel Peral David Sidoo Director & VP Exploration Non-Executive Director • Professional geologist with 10 years • Track record of advancing resource experience focused on Lithium Brine companies from start-up to sale. deposits. • Appointed to the Order of British • Lead role in the discovery of the Salar Columbia (2016). de Olaroz which he saw to production • One of founding shareholder of as part of Orocobre’s executive team. American Oil & Gas (sold to Hess Corp in a stock transaction). Richard Seville Rick Anton Non-Executive Director Non-Executive Director • Director of Orocobre Ltd., previously • General Counsel and Joint Company CEO until late 2018 Secretary at Orocobre. • Richard is a mining geologist and • Rick is a practicing lawyer with over 30 geotechnical engineer and has over 30 years’ experience in both corporate years’ experience in exploration, and commercial law. development and production. 17
References Website: www.advantagelithium.com Sedar Filings: 2019: Preliminary Feasibility Study, published November 29th. 2019: Updated and Upgraded Resource to Measured & Indicated categories 2018: Preliminary Economic Assessment (PEA) 2018: Updated Inferred Resource 2016: Initial Inferred resource 18
CONTACT INFORMATION Head Office 789-999 West Hastings St. Vancouver BC, Canada V6C-2W2 Email info@advantagelithium. com Phone 604 423 4499 OFFICE 19
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