E3 Metals Corp - A Petro-Lithium Company Forward … · Leduc Reservoir First Mover Advantage – Secured 1.4 million acres of lithium permits in the Leduc Reef Trend New vertical

E3 Metals Corp - A Petro-Lithium Company

ETMC

Alberta Petro-Lithium

This presentation contains forward-looking statements regarding E3 Metals Corp (“E3 Metals”)

and the potential of its current and future projects. Generally, forward-looking statements can

be identified by the use of forward-looking language such as “plans”, “expects”, “budgets”,

“schedules”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, or variations of such

words and phrases, and statements that certain actions, events or results “may”, “could”,

“would”, “might” ,“will be taken”, “will occur” or “will be achieved”. Forward-looking statements

are based on the opinions and estimates of E3 Metals as of the date such statements are made.

Forward-looking statements are subject to known and unknown risks, uncertainties and other

factors that may cause the actual results, levels of activity, performance or achievements of E3

Metals to be materially different from those expressed or implied by such forward-looking

statements, including, but not limited to, risks related to: E3 Metals’ ability to effectively

implement its planned exploration programs; unexpected events and delays in the course of E3

Metals’ exploration and drilling programs; changes in project parameters as plans continue to be

refined; the ability of E3 Metals to raise the capital necessary to conduct its planned exploration

programs and to continue exploration on its properties; the failure to discover any significant

amounts of lithium or other minerals on any of E3 Metals’ properties; the fact that E3 Metals’

properties are in the exploration stage and exploration and development of mineral properties

involves a high degree of risk and few properties which are explored are ultimately developed

into producing mineral properties; the fact that the mineral industry is highly competitive and E3

Metals will be competing against competitors that may be larger and better capitalized, have

access to more efficient technology, and have access to reserves of minerals that are cheaper to

extract and process; the fluctuations in the price of minerals and the future prices of minerals;

the fact that if the price of minerals deceases significantly, any minerals discovered on any of E3

Metals’ properties may become uneconomical to extract; the continued demand for minerals

and lithium; that fact that resource figures for minerals are estimates only and no assurances

can be given than any estimated levels of minerals will actually be produced; governmental

regulation of mining activities and oil and gas in Alberta and elsewhere, including regulations

relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and

environmental protection; environmental regulation, which mandate, among other things, the

maintenance of air and water quality standards and land reclamation, limitations on the general,

transportation, storage and disposal of solid and hazardous waste; environmental hazards

which may exist on the properties which are unknown to E3 Metals at present and which have

been caused by previous or existing owners or operators of the properties; reclamation costs

which are uncertain; the fact that commercial quantities of minerals may not be discovered on

current properties or other future properties and even if commercial quantities of minerals are

discovered, that such properties can be brought to a stage where such mineral resources can

profitably be produced therefrom; the failure of plant or equipment processes to operate as

anticipated; the inability to obtain the necessary approvals for the further exploration and

development of all or any of E3 Metals’ properties; risks inherent in the mineral exploration and

development business; the uncertainty of the requirements demanded by environmental

agencies; E3 Metals’ ability to hire and retain qualified employees and consultants necessary for

the exploration and development of any of E3 Metals’ properties and for the operation of E3

Metals’ business; and other risks related to mining activities that are beyond E3 Metals’ control.

Although E3 Metals has attempted to identify important factors that could cause actual results

to differ materially from those contained in the forward-looking statements in this presentation,

there may be other factors that cause results not to be as anticipated, estimated or intended.

There can be no assurance that such statements will prove to be accurate, as actual results and

future events could differ materially from those anticipated in such statements. Accordingly,

readers should not place undue reliance on forward-looking statements contained in this

presentation. E3 Metals does not undertake to update any forward-looking statements except in

accordance with applicable securities laws.

Chris Doornbos (P.Geo), President, CEO and a Director of E3 Metals Corp., is a Qualified Person

as defined by National Instrument 43-101 and has read and approved the technical information

contained in this presentation.

Forward Looking StatementsDisclaimer For Forward-Looking Information


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About Petro-LithiumE3 Metals is a Petro-Lithium development company in Alberta with a large prospective land base

Petro-Lithium: A New Potential Source of Lithium

Ø Petro-Lithium refers to lithium that is dissolved in brines below and adjacent to oil and gas

reservoirs, providing significant advantages:

Ø Large volumes of brines available at surface

Ø Low finding cost from sampling of existing wells

Ø Possibility to leverage infrastructure existing for exploration, as well as any

development or eventual production

E3 Metals’ Value Creation Plan

Ø Already defined 2.83 million tonnes (Mt) lithium carbonate equivalent (LCE) Inferred

Resources1

Ø Testing and scale-up of extraction technology

Ø Optimization of resource, plan to upgrade to Measure and Indicated

Ø Future Steps: work towards demonstration of project feasibility aiming for 2021

production

Alberta Petro-Lithium


ETMC

Greenbushes, Australia

Salar de Atacama, Chile

Salars (Brines - Evaporative)

Hard Rock Mining (Spodumene)

UNCONVENTIONAL

Leduc Reservoir Alberta, Canada

Sources of LithiumCONVENTIONAL

Petro-Lithium (Brines – Direct Extraction)

• Conventional evaporation process for brine concentration

• Slow process with large environmental footprint

• Existing production & disposal infrastructure from legacy oil and gas

• Large available brine volumes

• Direct processing means faster process

• Environmentally responsible and energy efficient

• Energy and capital intensive • Large environmental footprint

Water

OilGas

Emulsion Fluid(Oil/Gas/Water)

E3’s Lithium Extraction Model

Li2CO3 or Li(OH)

LEDUC RESERVOIR(historic oil and gas)

Injection Wastewater


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Alberta Petro-Lithium Advantages

Well defined Leduc Reservoir with proven deliverability, lithium content and geothermal potential

Resource development primarily through brine sampling via oil & gas partnerships

Leveraging existing wells and pipelines to lower capital costs

Brownfield development with closed loop production system and significant geothermal potential

Friendly jurisdiction with mature regulatory environment, potential for grant funding

Major Advantages for E3 Metals


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Turning our Vision into RealityE3’s First Year Accomplishments

Early Mover

Advantage

• 1.4 million acres of

prospective MIM

permits

• Largest contiguous

land holder in

South-Central

Alberta

Oil and Gas

Partnerships

• 14 operational

collaborative

relationships

• Over 70 wells

sampled

• Access to oil and

gas subsurface

database

Low Cost

Subsurface

Delineation

• Leduc reservoir

exploration and

sampling with no

drilling

• Contiguous

resource with

proven deliverability

Defined

Resource

• 2.83 Mt LCE1 (NI

43-101) completed

at low cost

• <20% of land base

explored,

significant growth

potential

• Minimal work

expected to M+I

Extraction Testing

• Developing

concentration

technology with the

U of A

• Testing 3rd party

extraction

technology with E3

brine


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E3 Metal Petro-Lithium Focus: The Leduc ReservoirLithium in the Leduc Reservoir First Mover Advantage – Secured 1.4 million acres of lithium permits in the Leduc Reef Trend

New vertical well potentially capable of producing 10,000 m3/day.

Pressure Support: Active Water Drive

Clearwater Project Schematic• High density of producing and

suspended wells located within

project areas

• 1000’s of km of existing pipeline

network

• Easy access and available

infrastructure (highways, lease roads,

power, etc.)

• Prolific world class reservoir defined by oil and gas development

• Large producible brine volumes at high flow rates

• Consistent lithium concentrations

• Geothermal electric power potential (70oC – 100oC)


ETMC

E3 Metals’ 2.83 Mt LCE – One of the world’s largest

• Over 70 wells sampled • Low finding cost ($0.18/tonne LCE)

from existing O&G partnerships• 2 key resource areas defined <20% of

land base• E3 further expanding its resource

Clearwater: 1.9 Mt LCE1

• Pressure: 17.6 MPa

• Average Porosity: 6%

Rocky: 0.93 Mt LCE1

• Pressure: 18 MPa

• Average Porosity: 6.5%

1: The October 2017 Technical 43-101 reports for the Clearwater and Rocky inferred mineral

resources can be found on E3 Metals website (www.e3metalscorp.com) or SEDAR

(www.sedar.com)

A Large and

Expanding

Resource

Rocky

Clearwater

http://www.e3metalscorp.com/

http://www.sedar.com/


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Planned Development Timeline

• Ongoing sampling to grow

E3’s 2.83Mt resource and

continued definition of a

potentially expanding

resource base

• Achieving efficient concentration

is the main focus; perfecting the

chemical process

• The remaining components of

the extraction process (polish

and production) have been

proven on a commercial scale

• E3’s planned lab-scale and field

demonstration of extraction

technology can lead to a

prefeasibility study

• E3 aims to develop a

commercial production plant

• Initial target is to produce

10,000 tonnes/year LCE

• Potential to scale up

production across the

reservoir

Resource Extraction Technology Production

Completed 2018-2019 2020-2021

E3’s Value Creation Plan


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Why Concentration is Key

• Larger volumes of brine to process with lower grades (vs. salars)

• Efficient concentration ➢ lower costs and higher production rates: low total operating costs

• Commercially proven technologies exist for purification and production of battery-grade lithium hydroxide or

lithium carbonate

E3 Metals’ Objective

• Concentration step that achieves: 10x concentration with >90% lithium recovery & <10% impurities

• Continued development of E3's concentration technology in partnership with U of A

• Also reviewing other third party concentration technologies under

development

The Key to Commercial Viability: Concentration

E3’s Lithium

Concentration

Technology

Proven

Purification

& Polishing

Technology

Production of

High Grade

Lithium Products

Brine Production

Extraction Technology will Unlock the Value of our Vast Resource

E3’s Current Focus


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Extraction Technology Demonstration: Timeline

• Developing and perfecting

concentration technology

• Continue to evaluate

technology options

• Partnerships with University of

Alberta and with national

laboratories

Optimized chemical concentration

• Operate demonstration plant

• Design of commercial

production facility

Demonstration Facility

• Integrate concentration

development with proven

commercial technology

• Development & field testing of

extraction prototype

• Prefeasibility study

• Optimize plans for scaled up

(1000 L/h) demonstration

plant with engineering

development & oil/gas partner

Lab scale prototype & prefeasibility study

MID-2018 to EARLY 2019EARLY TO MID-2018 MID to LATE 2019

Relatively

Short

Timeframe to

Feasibility


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The Goal: Lithium Production • Low cost development leveraging existing infrastructure

• Scalable, high rate direct-brine extraction technology

• Multiple production feed streams using a central production facility (hub-and-spoke approach)

• Geothermal power co-generation to lower OPEX; grid power readily available

• 10,000 tonnes/year LCE, scalable to 50,000 tonnes/year LCE

E3 Metals'

Lithium Concentration

Technology

Purification&

Production

Concentrated

Lithium Brine

Petro Lithium

Brine Production

70 to 100ºC

Lithium Free

Brine Injection

High-Grade

Lithium Products for

Battery Production

Re-Purposing Energy Infrastructure


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Lithium Demand

• Continued demand from growing consumer tech sector

• Significant growth expected due to the shift in the transportation sector to the electric vehicle

• Largest growth expected in grid scale energy storage that bridges the gap between generation and electricity consumption

Source: Bloomberg, BMO Capital Markets

Growing Demand for Lithium

• Total lithium demand growth expected to be 14% annual growth to 2025 and 26% for the EV market.

Source: BMO Capital Markets 2018CAGR: Compound Annual Growth Rate


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Key Sector Valuation Metrics for Developers2:Average industry market value for developers: $271/tonne LCE ➤ E3 Metals: $2/tonne LCE

Investing in E3 Metals

E3 Metals: A Deep Value Play in the Lithium Sector

2: Based on comparable company’s publicly available data from March 2018. E3 Metals is not responsible the accuracy of this data.

*Adjusted market cap = Market cap adjusted to account for lithium asset ownership

Company Symbol Project type Resource Res. typeAdj. Mkt

cap.* Resource ProductionLCE Mt M+I/Inf. $M (CAD) $ LCE t $M LCE 10000 t

E3 Metals Corp. ETMC Brine - Unconv. 2.8 0.0/2.8 6 2

Standard Lithium Ltd. SLL Brine - Unconv. - - 109 -

LSC Lithium Corp. LSC Brine - Conv. 4.0 1.3/2.7 145 36

Millennial Lithium Corp. ML Brine - Conv. 3.0 2.1/0.9 154 51

Bearing Lithium Corp. BRZ Brine - Conv. 2.1 1.7/0.4 175 83

Neo Lithium Corp. NLC Brine - Conv. 2.1 0.7/1.4 189 90

Advantage Lithium AAL Brine - Conv. 0.5 0.0/0.5 259 519

Nemaska Lithium Inc. NMX Spodumene 1.3 1.1/0.2 500 385

Lithium Americas Corp. LSC Brine - Conv. 13.2 13.2/0.0 9,702 735

Average 271Producer

Orocobre Limited ORL Brine - Conv. 6.4 6.4/0.0 2,060 322 17,500


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Chris Doornbos (P.Geo) President, CEO, Director

Seasoned industry professional managing exploration and development companies in Canada and across the globe. Specializing in project advancement

Liz Lappin (P.Geo)

VP Project Development

Professional Geologist with over 14 years experience in Alberta’s Energy industry working for some of Canada’s largest oil and gas producers

Paul Reinhart Director

Early stage project financing and startup advisor Developing successful business from the early stages

Mike O’Hara (P.Eng) Director

Professional Engineer founding and developing growth oriented companies. Managing resource and technology businesses and capturing shareholder value

Peeyush Varshney LL.B Director

Industry executive and corporate advisor

Founding and funding mineral exploration companies in Vancouver

Simon Geoghegan MBA Manager Corp. Development Professional Biologist with over 18 years experience in corporate planning & development in the energy & resource sectors.

The Right Team


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E3 Metals Advisory BoardThe E3 Metals TeamThe E3 Metals Team

Jean CroteauAfter beginning his career in auditing at Deloitte Touche, Jean Croteau has honed his acumen in the

financial markets since 1986 as a portfolio manager and financial analyst in various positions held at

large Canadian financial institutions in Toronto and Montreal. Now semiretired, his focus is on

investing privately; mostly in the resource sector which remains his true passion. Jean also has an in-

depth knowledge of the global macroeconomic and geopolitical backdrops and their incidence on the

financial markets.

Kevin ReinhartKevin was part of the executive team for 20 years at Nexen, a publicly listed major upstream oil and gas

company with an enterprise value of over $20 billion. As CEO, he led the assessment and negotiation of

the sale of the company to CNOOC Ltd in 2013.

Wayne Monnery, PhDWayne is E3 Metals’ Chief Technical Advisor for extraction and process engineering. Wayne has a PhD

in Process Engineering specializing in fluid flow and has 30+ years’ experience in chemical process

engineering development and design. This includes advising on the scale-up from bench scale to pilot

and ultimately commercial scale process facilities with Xergy Processing Inc. and MEC Resource.

The Right Team


ETMC

Why invest in E3 Metals

1. E3 holds the world’s eighth largest lithium resource at 2.83Mt1,2, working to add low cost, value-added resource definition in 2018

2. Ability to leverage existing infrastructure reduces environmental footprint and reduces development cost and risk

3. Near-term focus on advancing concentration and extraction technologies should unlock resource value

4. Compelling valuation: undervalued relative to our resource size2

5. Stable and attractive jurisdiction for resource development

6. Significant geothermal power potential

7. The right management team, directors and advisors

E3 is a leader in Petro-Lithium Development Unlocking Canada’s Petro-Lithium Potential


ETMC

Chris Doornbos

President | CEO | Director

[email protected]

Simon Geoghegan

Manager Corporate Development

[email protected]

Corporate Information

• TSXV: ETMC

• Share Price: $0.40*

• Shares Outstanding: 17.0M

• Market Cap: $6.9M

Capital Structure*

TSXV: ETMC

FSE: OU7A

OTC: EEMMFUnlocking

Canada’s

Petro-Lithium

Potential

*Data as of March, 2018

Documents

E3 Metals Corp - A Petro-Lithium Company Forward … · Leduc Reservoir First Mover Advantage – Secured 1.4 million acres of lithium permits in the Leduc Reef Trend New vertical