Tres Quebradas(3Q) Lithium Project Corporate Presentation Updated Resource Estimation July 2018 TSX.V:NLC; OTCQX: NTTHF; FSE:NE2 www.neolithium.ca
Forward-Looking and Cautionary Statements This presentation is strictly confidential and intended to be strictly informational. The Company reserves the right, at its sole discretion, to modify all or any part of this presentation without any liability or notification to any person. This presentation includes statements which may be considered forward- looking. These forward-looking statements are based largely on the expectations of management of the Company as at the date hereof and are subject to uncertain events and circumstances which are beyond the control of the Company. Actual results could differ materially from those anticipated. You acknowledge that any reliance on or use by you of this information shall be at your own risk. In no event shall the Company, its directors, officers, employees, agents or advisors be liable for any damages of any kind arising out of or relating to the use of this presentation, including, but not limited to, any of loss of income or profits, incidental, special, indirect or consequential or any similar losses or damages, whether or not advised of the possibility of damages, and on any theory of liability, arising out of or in connection with the use of the information contained herein. This document does not constitute, nor should be construed as, an offer or solicitation of an offer for the purchase of any securities of the Company, nor investment advice or an offering memorandum. No securities commission or similar authority or stock exchange in any jurisdiction has in any way passed on any of the information contained herein. The results described herein are exploratory in nature and there can be no assurance that they are indicative of Mineral Resources as defined in accordance with National Instrument 43-101. The technical contents of this presentation have been reviewed and approved by Dr. Waldo Perez, Ph.D., P. Geo., a qualified person pursuant to National Instrument 43-101 (“NI 43- 101”). Mr. Perez is CEO and President of the Company, and is a Ph.D in Geology with a technical background in mineral exploration, including lithium brines. Additional information on sample results and estimates at Tres Quebradas are available in the Company’s technical report titled “Technical Report on Tres Quebradas Lithium Project Catamarca Province, Argentina” with an effective date of June 6, 2016. 1
3Q: One of the Best Undeveloped Lithium Projects in the World • Fully owned / fully permitted • Resource: o 5th largest lithium brine project o 6th highest grade lithium brine project o Lowest impurity brine project • Pilot plant to produce Lithium Carbonate in Q4 • Proven solar evaporation technology • Historic PEA provides a US$1.2B NPV, US$490M CPAEX and US$2,791 OPEX • Historic PEA uses only 17% of the resource 2
Location • Project located 30km from the Chilean border with direct road to pacific ports • The company controls a total of 350km 2 up to the border with Chile • Project is easily accessed through a provincial highway and a recently upgraded project road • 100% ownership of the entire salar complex • Fully environmentally permitted to full feasibility • No inhabitants or aboriginal communities in the area • Surface easement for mine construction granted by mining authorities 3
3Q Project • Salar and brine reservoir complex that includes three brine reservoirs and three salars • There is only one example in the world of a brine lake: Zhabuye (in China) and is a producing lithium mine • Geothermal springs (yellow stars on map) feed the northern part of the project • The geothermal springs contain high grade lithium and feed into the lakes and salars • Full infrastructure already built by the Company • Environmental Base-line almost completed 4
Lithium Brine Reservoir and Salar Complex 5
Lithium Rich Hot Springs Feed the Northern Target • The northern target has the highest concentration of lithium and potassium grades and the lowest concentration of critical impurities • Inflow of hydrothermal springs add lithium to the salar and brine reservoirs 6
Geophysical Seismic Work • 50-linear km seismic reflection survey (first of its kind in lithium brine exploration) along the entire 3Q salar and basins • The cross sections show the basin is tilted eastwards • The long section shows the salar is deeper in the central section • The main geological units are clearly identified in the survey • The deepest reflectors are located around 800m • The upper “porous” portion of the basin is very noisy 7
Drilling Program • A total of 9,334m drilled in 2 seasons • 6,208m diamond drill holes • 3,126m rotary holes • Total of 48 drill holes • Deepest hole: 647m 5,000 4,000 3,000 Meters 2,000 1,000 0 2016/2017 2017/2018 DDHH 2064 4144 Rotary 1169 1957 8
Hydrostratigraphic Model • Drilling and geophysical program allowed detailed High Porosity Halite reconstruction of the salar at depth Upper Sediments • Program defined 6 geological Units • Vulcan was used in the estimation • Inverse Distance Fanglomerates Weighting • Effective porosity Porous Halite defined by 307 Massive Halite samples analyzed Lower Sediments in Daniel Stephens Labs in Albuquerque, US 9
Cut-Off Analysis • There is a significant very high grade M+I resource in the north o This area could be mined first • There are few low grade blocks throughout the project • The 400 cut-off provides the largest resource with minimal impact on the grade 0 cut-off 200 cut off 400 cut-off 500 cut-off 600 cut-off 800 cut-off Measured Indicated Inferred 5.092 M t @ 3.315 M t @ 1.106 M t @ 7.211 M t @ 7.210 M t @ 6.921 M t @ Lithium Carbonate Grade 581 mg/L Li 671 mg/L Li 759 mg/L Li 1,106 mg/L Li 582 mg/L Li 602 mg/L Li 10
3Q Project 2018 Resource Estimation • Measured and indicated resource increased ~2.3 times from 2017 • Inferred resource increased by ~30% from 2017 • M+I grade increased by 8.3% and inferred grade increased by 3% • No significant change in impurities 400 mg/L Lithium Cut-off Resource Estimate Resource Estimate July 20, 2018 May 23, 2017 % Change Avg. Li 2 CO 3 Avg. KCl H 3 BO 3 Sulfate/ Avg. Li 2 CO 3 Mg/Li Li2CO3 Lithium Equivalent Potassium Equivalent Equivalent Li Lithium Equivalent Equivalent (mg/L) (tonnes) (mg/L) (tonnes) (tonne) (mg/L) (tonnes) (tonnes) Measured 701 568,673 6,479 1,881,620 807,730 2.7 0.5 792 52,569 980% Indicated 602 3,436,251 5,793 11,842,554 4,862,155 3.4 0.5 560 1,171,735 193% Total M&I 614 4,004,925 5,878 13,724,173 7,197,490 3.3 0.5 567 1,224,305 227% Inferred 584 2,916,997 5,650 23,838,108 5,670,084 4.5 0.6 567 2,237,803 30% Numbers Rounded-up for ease of reference 11
Depth of the Resource • More than 50% of the resource is hosted in the upper 100m of very porous rocks • 33% of the resource is hosted in the deeper sediments with large blue sky potential Effective Depth (m) Rock Type Resource % Porosity 100% 1.29 2 Lakes 14.7% 11.74 35 High Porosity Halite 9.1% 19.57 70 Upper Sediments 19.04 100 6.3% Porous Halite 15.21 > 100 Massive Halite 3.8% 10.21 >300 Deeper Sediments 5.2% >500 22.95 Fanglomerate 11.2% 12
Size and Enterprise Value Comparison • 3Q is now the fifth largest brine project worldwide, and of those it is the only project with low critical impurities that is not in production SQM/ALB - Atacama SQM $700 EV/Resource Uyuni High Mg and Sulfate, Significant portion of this resource was High OPEX Deposits Energi - Rincon mined out and remains unreported Zhabuye $14 EV/Resource NLC - 3Q Project ORE-Olaroz $159 EV/Resource LAC - Cauchari $100 EV/Resource GXY - Sal de Vida FMC - Hombre Muerto ML - Pastos Grandes $43 EV/Resource AAL - Cauchari $36 EV/Resource LSC - Rio Grande / Pozuelos $28 EV/Resource Citic - W. Taijinar Nextview - Diablillos Producing Li Brine Mine LPI - Maricunga $29 EV/Resource Lithium Brine Project 3Q Lithium Project ILC - Mariana $23 EV/Resource BRZ - Maricunga $40 EV/Resource ALB - Silver Peak ALB - La Isla 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Lithium Tonnes 13
Grade Comparison • 3Q is the sixth highest grade project worldwide SQM/ALB - Atacama LPI/Bearing - Maricunga Zhabuye GXY - Sal de Vida FMC - Hombre Muerto 3Q Project LAC - Cauchari LIX - Angeles ML - Pastos Grandes AAL - Cauchari LSC - Pozuelos LSC - Rio Grande High Mg and Sulfate, ALB - Antofalla High OPEX Deposits Uyuni Producing Li Brine Mine Lithium Brine Project Energi - Rincon 3Q Lithium Project ILC - Mariana Citic - W. Taijinar ALB - Silver Peak 0.0000 0.0200 0.0400 0.0600 0.0800 0.1000 0.1200 0.1400 0.1600 Lithium % 14
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