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TSX-V: AALADVANTAGE LITHIUM CORP
ADVANTAGE LITHIUM CORP.CAUCHARI JV LITHIUM PROJECT
INVESTOR PRESENTATIONNovember 2019
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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.
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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 LCE1 in M&I2 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 & Indicated3
Successful Track Record
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
Q4, 2017
Phase 1 Drilling Completed
Q3, 2018
Updated Inferred Resource & PEA
Q1, 2019
M&I Resource Expansion
Q4, 2019
PFS & 2P Reserve
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Summary
Project located in heart of Argentine Lithium Triangle
Exploration success from inferred resource to 2P Reserve in 30 months
Large M&I1 Mineral Resource Base established = 4.8Mt LCE2
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
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Strategic Location Close to Infrastructure
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Geological Setting
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Typical Pumping Test
Surface Hydrogeology
Source: November 2019 PFS and Updated Resource, April 2019
Resource Open to DepthSE Sector Cross-Section
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Drill holes did not reach Deep Sands Limit
Source: November 2019 PFS and Updated Resource, April 2019
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
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Mineral Reserves
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Reserves Derived from M&I of 4.8 Mt LCE
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
LOM Wellfield Pumping Profile
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Product Mix and Pricing
Year Technical Grade
Tpa
Battery Grade
tpa
Total
tpa
1 5,000 0 5,0002 5,000 12,000 17,0003 1,500 18,500 20,000
4-18 0 25,000 25,00019-25 0 21,000 21,00026-30 0 20,000 20,000
31 0 8,000 8,000Total 11,500 660,500 672,000
Technical and Battery LCE Grade Product Mix
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.
Note: Process Recovery 66%
Project EconomicsKey Metrics
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• Battery Grade Lithium Carbonate Product• Li Price /Operating cost Margin• Ramp up rate
Key Drivers
After Tax Before TaxNPV IRR NPV IRR
US$ million % US$ million %6% $959
20.9$1,609
26.28% $671 $1,15810% $468 $841
Initial CAPEX, MUSD
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Item US$ 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
Competitive OPEX
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Cauchari JV Opex Ranking in Lowest Quartile (AISC Basis)
Note: AISC = All In Sustaining Cost
Community RelationsA Corporate Commitment
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COMMUNITY RELATIONS
SHARED VALUES
CORPORATE IDENTITY BUSINESS MODEL
COMMUNITY-COMPANY RELATIONS
CULTURAL RESPECT
SHARED VALUES
Win-Win Growth
SUSTAINABILITY: SOCIAL, ENVIRONMENTAL, CULTURAL Y ECONOMIC
Dedication to a business strategy based on both social and economic value-added for
the communities where we operate
Environmental protection is a primary consideration
A key directive is commitment to inclusive and sustainable development based on global
UN principles and human rights
Richard Seville Non-Executive Director• Director of Orocobre Ltd., previously
CEO until late 2018• Richard is a mining geologist and
geotechnical engineer and has over 30 years’ experience in exploration, development and production.
Rick Anton Non-Executive Director• General Counsel and Joint Company
Secretary at Orocobre.• Rick is a practicing lawyer with over 30
years’ experience in both corporate and commercial law.
David SidooNon-Executive Director• Track record of advancing resource
companies from start-up to sale.• Appointed to the Order of British
Columbia (2016).• One of founding shareholder of
American Oil & Gas (sold to Hess Corp in a stock transaction).
Miguel PeralDirector & VP Exploration• Professional geologist with 10 years
experience focused on Lithium Brine deposits.
• Lead role in the discovery of the Salarde Olaroz which he saw to production as part of Orocobre’s executive team.
Dave CrossCFO, Director• Mr. Cross is a CPA, CGA and has over 21
years of accounting experience.• He has extensive knowledge of
complex accounting and reporting formats in both oil and gas of specialty minerals sectors.
Callum Grant Director and Interim CEO• Professional geologist/engineer with
over 40 years experience and a broad perspective of the minerals industry in Argentina.
• Project expertise from exploration to production in a wide range of commodities including the Lithium Triangle of NW Argentina.
Directors
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References
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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
CONTACT INFORMATION
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Head Office
789-999 West Hastings St.
Vancouver BC, Canada
V6C-2W2
Phone
604 423 4499 OFFICE
