ARGENTINA!VAMOS
Western Lithium USA Corp. January 2016
Argentina: Positive Economic and Political Change
“Argentina's [president], Mauricio Macri, has named
former Shell Argentina executive Juan Jose
Aranguren to be the country's energy minister.”
–Reuters, November 25, 2015
“Markets have high expectations for Mr. Macri,
their preferred candidate in the election, and are
now hoping for a new era of pro-growth structural
reforms that will clear the way for much-
needed investment to stimulate the flagging
economy.”
– Financial Times, December 10, 2015
“Juan Jose Aranguren, the next energy minister of
Argentina, said … he will seek to rebuild investor
confidence in the country by improving business
conditions after taking office December 10.”
–Charles Newbery for Platts.com, November 29, 2015
“Mr. Macri has promised to move from a largely
state-controlled economy under the leftist Ms.
Fernandez to one that is more free market-
orientated, easing trade and currency controls.”
– BBC, December 20, 2015
2
“Finance Minister Alfonso Prat-Gay today
announced a much anticipated end of currency
controls to allow increased access to US dollars.”
–Buenos Aires Herald, December 16, 2015
The Energy Revolution
Makes the Paris Commitment Possible
2 goalTarget temperature
increase by 2100
o $16.5T*
Investment requirement
by 2040:
• Solar
• Wind
• Transportation
• Infrastructure
* Source: Bloomberg, December 12, 2015; International Energy Agency estimates
4
Storage Critical Role in a $16.5 trillion energy revolution
• Powers hybrid and
electric vehicles
• Assists renewable
energy in solar and
wind applications
• Alleviates grid issues
in developed and
emerging nations$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
2011 2012 2013 2015 2020
$B
ILLIO
N
Lithium-Ion Battery Market*
*Source: Citi Research, Lithium – the Future is Electric, October 16, 2015; Jon Hykawy/Stormcrow, Industry Report // Lithium, May 29, 2015
40%
20%
13%
7%
4%
3%
3%
10%
Compelling Lithium Market Fundamentals
The future of lithium is in the battery
* Source: signumBOX
65%
14%
9%
4%2%
1% 1% 4%
2025 End Uses*
Batteries
Ceramics and
glass
Lubricating
greases
Metallurgy
Air
conditioning
Polymers
Medicine
Other
2014 End Uses*
5
Tesla’s Gigafactory: “Insane” Scale
PRODUCTION BY 2020
Sources: Tesla Motors, *Benchmark Mineral Intelligence Q3 2015, and internal estimates
Vehicle output 500,000/year
Cell output 35 GWh/year
Pack output 50 GWh/year
Space Requirements 10 MMft2
Lithium Requirements Up to 30,000 Mt/year*
• More lithium-ion
battery production in
1 year than all global
production in 2013
• Many Gigafactories
expected
• Will there be enough
lithium production?
6
Lithium-ion Battery Megafactories Are Coming
Li production must be increased to meet new demand
3X TOTAL BATTERY
CAPACITY
BY 2020
Source: Benchmark Mineral Intelligence 7
8
Lithium Prices Increasing: Inelastic Demand
In 2015:
• Carbonate price up 10-
15% on 2014 average
• Hydroxide up
20-25% on 2014
average
Lithium Carbonate Price Trend: 2005-2015 ($/tonne)
*Source: Benchmark Mineral Intelligence, March 2015
Lithium Production is Concentrated
Note: Albemarle owns 49% of material produced from Australia through a JV, with Tianqi Lithium, a Chinese entity, owning the remaining 51% Source: Roskill, JGL Partners Estimates
TIANQI LITHIUM /
ALBEMARLE
LITHIUM TRIANGLE
9
OF WORLD’S SUPPLY
4 COMPANIESPRODUCE OVER
89%
WESTERN LITHIUMPOSITIONED TO CAPITALIZE
ON MARKET
OPPORTUNITY
The New Western Lithium –
Combined With Lithium Americas
• Two large and low production
cost lithium deposits in the
Americas (Cauchari and
Kings Valley)
• Near Term (2017) lithium
production in Argentina
• A lithium reserve and engineering
studies to support up to 66,000 tpa
of Lithium Carbonate Equivalent
or up to 2 “Gigafactories”
(Cauchari-Olaroz and Kings Valley
Combined)
• Significant expansion potential
ANTOFAGASTA
PORT
Approximate
property limits
CAUCHARI–OLAROZ
PROJECT
Cauchari-Olaroz Project
JUJUY, ARGENTINASTRATEGICALLY LOCATED IN
~81,000ha
“LITHIUM TRIANGLE” IN HEART OF
LARGE LAND PACKAGE
12
Cauchari-Olaroz Project
• Definitive Feasibility Study completed
in 2012 support reserve and resource
estimates based on conventional
evaporation technology
• ~$80 million spent on exploration
and development
• 10,000m drill program with pumping wells
• Full Decree approving project construction
obtained in 2012
• Upside exploration potential
3rd* LARGEST
LITHIUM BRINE
RESOURCE IN
THE WORLD
13
* Source: Roskill Information Services, 12th Edition 2013
Project Economics
14
Definitive Feasibility Study (based on traditional evaporation process)
Lithium Carbonate Production (tons/year) 20,000
Potash Production (tons/year) 40,000
Mine Life (years) 40
Capital Costs ($M) $314
Operating Costs/ton (net of potash credits) $1,627
Average Annual Revenues ($M) $175
Average Annual Net Cash Flows ($M) $117
NPV (post-tax) at 8% Discount Rate $464
Unlevered IRR (post-tax) 20%
43-101 compliant technical report provided strong investment rationale for Cauchari-Olaroz which has
further strengthened with higher lithium prices. Report highlighted excellent infrastructure including:
natural gas pipeline, paved highway, fresh water on site, access to labor and deep sea port.
*calculated NPV based on average assumed LCE price of $5,900 in first 10 years. Current LCE price in $7,000-8,000 range.
Technical and Market Study Advisors: ARA Worley Parsons, Aqua Resource (Matrix Solutions), Groundwater Insight, SignumBox
Excellent Infrastructure
De-risks project significantly
NATURAL GAS
PIPELINE
PAVED
HIGHWAY
FRESH WATER
ON SITE
ACCESS TO
LABOUR
ACCESS TO
DEEP SEA PORT(~550 KM)
Our Progress at Cauchari
Who is POSCO?
• POSCO is multi-national steel
company headquartered in Pohang,
South Korea, ranked 4th in the
world by output.
• Revenues in 2014 of $62 Billion.
Placed 146th on Fortune’s global
500 list in 2012.
• Forward-thinking on disruptive
technologies and energy
storage market.
• Developed a highly efficient
proprietary lithium extraction
technology that achieves higher
recovery rates and
lower production costs.
16
POSCO – Western Lithium Joint Venture
POSCO WLCRight to use Salar de Cauchari for 40 years
JVC
Lithium Phosphate/
Potassium ChloridePRODUCTION COMPANY
Lithium Carbonate/
Lithium HydroxidePRODUCTION COMPANY
KOREA ARGENTINA
Note: POSCO/LAC Joint Venture is in the commercial negotiation phase and there is no guarantee that a Joint Venture will be consummated 18
From Supply in Argentina…
STAGE 2
STAGE 1
19
The POSCO Process
Near-Term Scalable Production
2017PRODUCTION
99.99%PURITY RECOVERIES
90+%
Source: POSCO Estimates
Chauchari-Olaroz Project Demonstration Plant
Northern Nevada Lithium DevelopmentKINGS VALLEY PROJECT SITE
Kings Valley Project
Prefeasibility and demo plant
Planned production Phase I – 13,000 tpa LCE
Phase II – 26,000 tpa LCE (Est. starting in year 4)
Operating life 20 years (with expansion potential)
Cash operating costs* $968 per tonne LCE (after K2SO4 & NA2SO4 by-product credits)
Average annual cash flow* $124 million
Average annual revenue* $220 million
NPV (at 8% discount rate) $552 million
NPV (post-tax)* $373 million
IRR (pre-tax) 24%
IRR (post-tax) 20%
Capital costs Phase I – $248 million
Phase II – $161 million
22
*Once full lithium carbonate production of 26,000 tonnes per year is achieved.
Western Lithium NI 43-101 Technical Report, May 2014
All above figures in U.S. dollars. Based on lithium carbonate price of $6,000/tonne, potassium sulfate price of $600/tonne and sodium sulfate price of $75/tonne.
Additionally, the Company is subject to a corporate royalty of 4 to 8% with Orion. See Press Release Feb. 5, 2013.
Kings Valley Project Demonstration Plant
Western Lithium has produced 99.8% high quality lithium carbonate in its first
trial run at the demonstration plant in Germany.
GRANULATE
LITHIUM CLAY WITH
ANHYDRITE & DOLOMITE
ROAST
MIXED GRANULES IN
ROTARY KILN AT 1000 C
CRYSTALIZE
POTASSIUM & SODIUM
SULPHATE
WATER-LEACH
CALCINED GRANULES
(NO ACIDS)
PRECIPITATE
LITHIUM
CARBONATE
ELECTROLYSIS
OF LITHIUM
HYDROXIDE
Studies have been advanced to finalize the design of Western Lithium’s lithium
hydroxide circuit for production. The Company expects to test its lithium
hydroxide circuit in pilot tests in 2016.
Low Impurity Leaching Brine
24
Comparisons Of Brine Chemistry Major Salars Versus Kings Valley Raw Brine Before Evaporation
Salars Li K Mg/L Ca B Density Mg/Li
Atacama 1,835 22,626 11,741 379 783 1.223 6.4
Hombre Muerto 744 7,404 1,020 636 420 1.205 1.37
Rincon 397 7,513 3,419 494 331 1.22 8.6
Olaroz 796 6,600 2,289 416 822 1.211 2.88
Salinas Grande 775 9,289 2,117 1,450 232 1.297 2.73
Guayatayoc 67 2,185 115 628 144 – 1.72
Cauchari (Lac) 618 5,127 1,770 401 1,360 – 2.86
Uyuni 424 8,719 7,872 557 242 1.211 18.6
Silver Peak, Nv 245 5,655 352 213 85 1.297 1.43
Wlc Leach Brine 5,183 40,164 9 31 – 0.0017
*Western Lithium compiled data from public disclosures
Western Lithium’s wholly-owned subsidiary,
Hectatone Inc. manufactures organoclay products
used in complex oil and gas exploration, animal feed,
and other applications. Western Lithium made its first
shipment of organoclay products in January 2015.
Hectatone™ Organoclay Plant
Investment Summary
• Energy Revolution Underway
• Energy storage driving lithium demand
• Current producers lack supply expansion capacity
• WLC well positioned to meet expected supply deficit
• Benefits of WLC’s projects include:
• Scalable
• Sustainable
• High Grade
• Better Recovery
• Shovel Ready
27
WLC Capital Structure
Clean capital structure with no debt
Shares Outstanding 290 million
Fully Diluted 328.3 million
52 Week Range C$0.26 - C$0.96
Recent Price C$0.34
Market Cap C$85 million
Cash Position (as at September 30, 2015) US$5.5 million
28
Experienced Management
Tom Hodgson, Director & CEO
Tom Hodgson was Executive Chairman and a member of the Board of Directors
of Lithium Americas Corp. from pre-IPO to the merger with Western Lithium.
Before being actively involved with Lithium Americas, Mr. Hodgson had a career
in banking, finance, and money management, and has served as COO or CEO
on the Board of Directors of a number of public and private companies in
Canada and the United Kingdom, including Central Guaranty Trustco,
GlobalNetFinancial.com, Marathon Asset Management, and Magna
Entertainment Corp. Tom holds a Bachelor of Arts degree in Economics and
Law from Carleton University in Ottawa, Canada and a Master of Business
Administration in Finance and Accounting from Queen’s University in Kingston,
Canada.
Jay Chmelauskas, Director & President
Jay Chmelauskas has acted as President of the Company since October 2008 and
including Chief Executive Officer from September 2012 to November 2015. He was
most recently President and Chief Executive Officer of China Gold International
Resources Corp. Ltd. (formerly Jinshan Gold Mines), where he advanced the a major
gold deposit through funding, permitting, construction and commissioning to become
one of China's largest open pit gold mines. Prior to China Gold, Jay held consulting
engineering positions with Vancouver-based engineering consultant groups and also
worked at one of Placer Dome's largest open pit gold mines in Papua New Guinea.
Jay also worked in the corporate development group with chemical manufacturer
Methanex Corporation. His experience in both the chemical and mining industries is
well suited to lead Western Lithium through the development, product marketing and
production phases of its businesses with a focus on its Kings Valley Lithium Project
and Hectatone™ Clay business . Jay has a Bachelor of Applied Science in Geological
Engineering from the University of British Columbia and a Master of Business
Administration from Queen's University.
Franco Mignacco, Director & President - Minera Exar S.A.
Franco Mignacco, has been the President of the Company's wholly owned
subsidiary Minera Exar S.A., since May 2013. He was the Vice Chairman of
Lithium Americas Corp., from June 25, 2013 to September 2015 . Franco
holds an MBA from San Andres University, Buenos Aires, Argentina and his
honours in mining at Universidad Austral, Buenos Aires, Argentina.
Frank B. Wright Jr., brings 40 years of domestic and international experience in the
clay industry. As Director of Business Development for Egypt-based Rasheed
Performance Minerals, from 2008 to July 2014, Frank has been involved with the
development of a startup organoclay producer, IDIC Specialty Drilling Chemicals,
that is now a leading international and US supplier of organoclay and organolignite
products for the drilling industry. He has previously served as President of American
Colloid Company, one of the world’s leading producers of bentonite clay, and
President of Volclay International, where he lead strategic initiatives to open new
plant operations in China, India, and Thailand. He also served as Vice President of
AMCOL International Corp. (now Mineral Technologies), a leading producer and
marketer of diverse specialty materials. He was also President and Chief Executive
Officer of Bentonite Performance Minerals, LLC (now a subsidiary of Halliburton
Company).
Frank B. Wright Jr., President - Hectatone Inc.
29
John Kanellitsas, Director & Vice Chairman
John is primarily responsible for business development and capital markets
strategies. Mr. Kanellitsas served as the CEO of Lithium Americas Corp until its
September 2015 merger with Western Lithium USA Corporation. He has over
twenty years of experience in investment banking and fund management. John
was a founder and partner of Geologic Resource Partners, LLC and served as its
Chief Operating Officer from 2004 until 2014. Prior to Geologic, John was
employed by Sun Valley Gold, LLC and Morgan Stanley & Co. in New York and
San Francisco. John has an MBA from the University of California at Los Angeles
and a BS degree in Mechanical Engineering from Michigan State University.
Experienced Management
Silvio Bertolli, Senior Vice President, Project Development
Silvio Bertolli is a chemical engineer, who holds a Bachelor of Science
degree in Industrial Chemistry from the Institute of Technology S.
Cannizzaro, Italy, with over 37 years of experience in project management,
process design and technology development in the chemicals,
petrochemicals, mining and oil and gas industries. He leads Western
Lithium’s engineering and development team, and has been involved with
the Kings Valley Lithium Project since 2008. Silvio has held various
technical and executive positions at U.S. and international operating
companies and major EPC (engineering, procurement and construction)
contractors, such as the ENI Group of Companies, Agip SpA, Snamprogetti,
Westinghouse Electrical, CF Chemicals and Washington Group
International. His experience includes engineering design, construction and
operations; project development; economic analysis; technology
development; product marketing; project financing; and business
development.
Dennis Bryan brings over 35 years of experience to Western Lithium from the industrial
minerals industry. He has been involved in all aspects of the industrial minerals field
including exploration, product marketing, mine development as well as expertise with
mining laws concerning mining claims, National Environment Policy Act, permitting and
reclamation at both the U.S. federal and Nevada state level. Dennis is the appointee of
the Governor to the State of Nevada Commission on Mineral Resources, representing
the small miner's interests including that of the industrial minerals industry. He has been
actively associated with the Kings Valley Lithium Project since 2007 as Project
Consultant prior to his appointment as Senior Vice President. Dennis holds a Bachelor
of Science in Geological Engineering from the South Dakota School of Mines and
Technology and a Master of Science, Geology from the Mackay School of Mines,
University of Nevada.
Tracy Hansen, Vice President and Corporate Secretary
Tracy Hansen is a securities paralegal with over 17 years of experience in providing
regulatory and management services to public and private companies, primarily in
mining and resource development. Most recently she was Vice President and
Corporate Secretary of Concordia Resources Corp. (now Kaizen Discovery Inc.), a
TSXV listed natural resource company. Prior to this Tracy worked with a number of
exploration and development companies focused on uranium, copper, zinc and gold in
Nevada, Canada and Mexico.
30
Eduard Epshtein is a Chartered Accountant and holds a Diploma of Technology with
Honours in Financial Management from the British Columbia Institute of Technology.
He started his accounting career with PricewaterhouseCoopers LLP, specializing in
providing audit and assurance services to medium to large public companies during
which time he gained valuable exposure to the industry's best practices for
governance, disclosure and accounting. Later Eduard moved to senior management
positions with public companies in natural resource sectors (mining and oil & gas) and
experienced in strategy, business and project development, regulatory compliance,
corporate structuring, venture capital, treasury, IPOs, financings, M&As, joint ventures
and acquisitions. He currently serves as a Director of Bearing Resources Ltd. and
Financial Executives International Canada -- Vancouver Chapter.
Dennis Bryan, Senior Vice President, DevelopmentEduard Epshtein, Chief Financial Officer
Cautionary Statement
31
Qualified Persons
The scientific and technical information regarding Western Lithium contained in this presentation has been approved by Dennis Bryan, Western Lithium’s Senior Vice President of Development who is a Qualified Person as
defined in National Instrument 43-101 (“NI 43-101”). The scientific and technical information regarding Lithium Americas contained in this presentation has been approved by Marcela Casini, who is a Qualified Person as defined
in NI 43-101.
For further information about the Kings Valley project and the reserves thereunder, please refer to the NI 43-101 technical report of Western Lithium dated May 9, 2014 and entitled “Updated NI 43-101 Technical Report on the
Kings Valley Property, Humboldt County, Nevada”, available on SEDAR under the profile of Western Lithium. For further information about the Cauchari-Olaroz Project, including a description of the reserves thereunder and
applicable data verification matters, please refer to the NI 43-101 technical report of Lithium Americas dated July 11, 2012 and entitled “Feasibility Study – Reserve Estimation and Lithium Carbonate and Potash Production at the
Cauchari-Olaroz Salars, Jujuy Province, Argentina”, available on SEDAR under the profile of Lithium Americas.
Forward-Looking Statements
This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation, and “forward-looking statements” within the meaning of the United States Private Securities Litigation
Reform Act of 1995 (collectively referred to as “forward-looking information”). All statements, other than statements of historical fact, may be forward-looking information. Forward looking information can be identified by the use of
statements that include words such as "anticipate", "plan", "continue", "estimate", "expect", "exceed", "may", "will", "project", "predict", “propose”, "potential", "targeting", "exploring", “scheduled”, “implementing”, "intend", "could",
"might", "should", "believe" and similar words or expressions. Information provided in this presentation is necessarily summarized and may not contain all available material information.
Forward-looking information in this presentation includes, but is not limited to: information concerning the proposed business combination between Western Lithium and Lithium Americas; the business, operations and financial
performance and condition of the combined company; synergies and the financial impact of the business combination; potential benefits of the business combination and the development potential of the properties of Western
Lithium and Lithium Americas; expected completion and implementation of the business combination; the nature of Western Lithium’s operations and Western Lithium’s business outlook following completion of the business
combination; plans and objectives of management for future operations; the potential to become a supplier of lithium products to battery manufacturers and a supplier of specialty drilling additive, Hectatone™ and potentially other
organoclays for the oil and gas and other industries; timing and amount of future production; future cash costs of production, capital and operating and exploration expenditures; cash flow estimates; estimation of mineral
resources and mineral reserves; development of deposits (including expansion of mineralization), mineral resources and mineral reserves; treatment under regulatory regimes; ability to realize value from Lithium Americas' core
assets; work plans and development plans; and optimizing operating performance and costs, the effect of new technology on lithium production processing times and costs.
Forward-looking information expresses, as at the date of this presentation, plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. All such forward-looking information is based on certain
assumptions, estimates, expectations, analyses and opinions made by management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors
management believes are appropriate in the circumstances. Assumptions upon which such forward-looking information is based include, without limitation: that shareholders of Western Lithium and Lithium Americas will approve
the business combination; that all required third party, regulatory and governmental approvals to the business combination will be obtained and all other conditions to completion of the business combination will be satisfied or
waived; the business combination will be completed; no significant event occurring outside of the ordinary course of business of Western Lithium and Lithium Americas; legislative and regulatory environment; impact of increasing
competition; current technological trends; prices of lithium and potash; costs of development and production; anticipated results of exploration and development activities; Western Lithium’s and/or Lithium America’s ability to
operate in a safe and effective manner; and ability to obtain financing on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive.
Western Lithium’s and Lithium Americas' actual results, programs and financial position could differ materially from those anticipated in such forward-looking information as a result of numerous factors, risks and uncertainties,
many of which are beyond Western Lithium’s and Lithium Americas' control. These include, but are not limited to: possible variations in mineral resource and reserve estimates; grade/concentration or recovery rates; lithium or
potash prices; operating or capital costs; changes in project parameters as plans continue to be refined; legislative changes that impact the operations in which Western Lithium and Lithium Americas conduct business; results of
exploration activities and development of mineral properties; interpretation of geological data; receipt and security of mineral property titles; failure of plant, equipment or processes to operate as anticipated; accidents; labour
disputes; the inability to obtain key personnel and parts related to operations; receipt of licenses to conduct mining activities; country and political risks; civil unrest; community relations; timing and possible outcome of pending
litigation; liabilities and risks, including environmental liabilities and risks inherent in the development and production of Western Lithium’s and Lithium Americas' properties; cost overruns or unanticipated costs and expenses; the
availability of funds; currency fluctuations; general market and industry conditions; competition; the business of the companies not being integrated successfully or such integration proving more difficult, time consuming or costly
than expected; failure of Lithium Americas to enter into an agreement with POSCO to put the Cauchari-Olaroz project into commercial production using POSCO’s proprietary lithium and potash extraction technology; the fact that
POSCO’s extraction technology tested at the Cauchari-Olaroz project is secret and proprietary to POSCO and not subject to any independent economic study; risk of putting a project into production without first completing a
feasibility study; and delays in obtaining shareholder, governmental and regulatory approvals, as well as those factors more fully described under the heading “Risk Factors” in Western Lithium’s annual information form and most
recently filed management discussion & analysis, and described under the heading “Risk Factors” in Lithium Americas' annual information form, available on SEDAR. There is no assurance that forward-looking information will
prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. Western
Lithium and Lithium Americas do not intend, and expressly disclaim any obligation to, update any forward-looking information whether as a result of new information, future events or otherwise, except as, and to the extent
required by, applicable securities laws.
APPENDIX
32
Trends in Energy, Infrastructure & Transportation
Battery costs will continue to rapidly decline
faster driven by steady technology
improvements and economies of scale.
Nearly all ground vehicles will evolve toward
battery electric vehicles as battery costs
drop.
Bulk battery energy storage on the grid will
grow rapidly and further accelerate battery
cost reduction and scale increase.
Nearly completely (95%) autonomous,
connected vehicles will become the new
norm improving safety, efficiency and utility.
The growing EV fleet will integrate with
growing (intermittent) renewables on the grid
to allow 100% non-carbon energy for
electricity and transportation. 33
“Batteries are at a unique intersection
between technology and energy.” – Bernstein & Co., Hong Kong, The Long View:
The Future of Energy Storage Technologies, April 2015.
“Critical materials will be “critical”
in the next 30 years – driven by
spending on renewable energy,
infrastructure, transportation,
and green technologies”
– Rocky Mountain Institute,
“Re-Inventing Fire”
“Advances to the electric grid must
maintain a robust and resilient
electricity delivery system, and energy
storage can play a significant role in
meeting these challenges”
– U.S. Dept of Energy
“Lithium is considered a key,
strategic energy metal in the clean
technology economy.”
– Critical Materials Strategy, US Dept of Energy
34
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