Rock Tech Lithium Inc. (TSXV: RCK, Frankfurt: RJIA ... · estimate completed by Caracle Creek International Consulting, ... is Q4-2014. • A one-ton bulk sample has been collected

Investment Analysis for Intelligent Investors

Siddharth Rajeev, B.Tech, MBA, CFA Analyst

Michelle Wu, B.A.Sc (Mineral Engineering)

Research Associate - Mining

April 25, 2011

2011 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA, CFA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Rock Tech Lithium Inc. (TSXV: RCK, Frankfurt: RJIA) – Winter drilling at Georgia Lake intersected

10.9 m at 1.21% Li2O; Announces a $5.30 million financing

Sector/Industry: Junior Mining/Exploration www.rocktechlithium.com

Market Data (as of April 25, 2011)

Current Price C$0.25

Fair Value C$0.55 (↑)

Rating* BUY

Risk* 5 (Highly Spec)

52 Week Range C$0.08 - C$0.49

Shares O/S 68.30 mm

Market Cap C$17.08 mm

Current Yield N/A

P/E (forward) N/A

P/B 2.30

YoY Return 25.0%

YoY TSXV 36.5%

*see back of report for rating and risk definitions

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800,000

1,600,000

2,400,000

3,200,000

4,000,000

22-Apr-10 21-Aug-10 20-Dec-10 20-Apr-11

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0.10

0.20

0.30

0.40

0.50

Investment Highlights

• Rock Tech continues to aggressively develop its flagship Georgia Lake project.

• Winter drilling at Georgia Lake intersected grades as high as 1.21% Li2O over 10.9m.

• Historic resource has been recalculated to 9.8 million tons at 1.18% Li2O at Georgia Lake.

• The company expects an independent NI43-101 resource estimate completed by Caracle Creek International Consulting, for the Georgia Lake project by June 2011.

• Upon completion of the initial resource estimate, Rock Tech intends to start a Phase 2 drill program to update the initial resource and move the Georgia Lake project towards a pre-feasibility study in December, 2011. The target production date is Q4-2014.

• A one-ton bulk sample has been collected and sent to SGS Laboratories in Lakefield and the results of the metallurgical analysis is expected to be available by the end of May 2011.

• The company recently acquired the Lacorne property, which is adjacent to Canada Lithium’s project near Val d’Or, and the Kapiwak 2 and 3 properties, which are adjacent to Lithium One’s James Bay Project.

• On April 6, 2011, the company announced a $5.3 million financing.

Key Financial Data (FYE - Dec 31)

(C$) 2009 2010

Cash 97,413 2,098,038

Working Capital (185,548) 2,069,601

Mineral Assets 3,973,524 6,337,666

Total Assets 4,132,027 8,686,698

Net Income (2,815,481) (1,423,913)

EPS (0.19) (0.04)

Rock Tech Lithium is currently developing its flagship project, the Georgia Lake lithium project in Ontario, Canada. The project has

historic resources of 9.8 million tons grading 1.18% Li2O. The company is focused on bringing the historic resource estimates at the

Georgia Lake Lithium project to NI 43-101 standards and eventually towards production. The company has also planned exploration

work for 2011 and 2012 at its Lacorne and Kapiwak projects in Quebec.

Rock Tech Lithium Inc. (TSXV: RCK) - Update

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Georgia Lake

Exploration

Update

Drilling Update

Rock Tech continues to develop its flagship Georgia Lake property in the Thunder Bay Mining District. A winter diamond drilling program started in December 2010. The company completed 7,682 meters of drilling as of mid-March 2011. The best intercepts available so far from the winter drill program include 1.17% Li2O over 16.0 meters, 1.21% Li2O over 10.90 meters and 1.32% Li2O over 9.0 metres. The following table highlights some of the significant drilling intersections released so far.

Table 1 Drill Highlights at Georgia Lake Project (Source: Company) Claim & From To Width Lithium Beryllium Cesium Niobium Tantalum Rubidium

Drill Hole ID (metres) (metres) (metres) Oxide Oxide Oxide Oxide Oxide Oxide

Li2O (%) PPM PPM PPM PPM PPM

(g/t) (g/t) (g/t) (g/t) (g/t)

Conway09-01 31.30 44.70 13.40 1.18 125.30 76.70 NA NA 960.50

Conway09-02 37.60 52.00 14.40 1.31 129.60 74.20 NA NA 991.10

CW11-01 137.00 144.98 7.98 0.94 343.92 52.74 39.28 20.29 972.62

CW11-02 112.00 117.15 5.15 0.69 250.02 108.12 31.48 23.16 942.81

CW11-03 77.55 88.45 10.90 1.21 355.58 63.60 52.59 47.62 985.80

CW11-04 124.70 130.70 6.00 0.78 376.42 48.76 38.16 26.31 802.27

Aumacho09-03 47.25 53.65 6.40 1.31 NA 1011.10 79.00 86.70 1196.30

AM10-01 21.03 27.05 6.02 NSV 541.71 899.94 95.88 59.83 6199.46

AM10-02 37.77 42.10 4.33 1.06 569.49 435.66 155.55 117.85 2211.19

L6-11-01 24.78 30.68 5.90 1.3341.03 47.43 6.40 1.08

Nama Creek North Dyke

NC11-01 132.04 141.04 9.00 1.32 494.48 63.26 41.18 31.01 883.60

NC11-02 117.34 126.20 8.86 0.96 462.73 54.32 37.26 27.18 882.47

153.25 158.10 4.85 1.18 542.32 62.49 56.11 66.96 918.54

NC11-03 195.33 198.58 3.25 1.34 599.40 50.92 71.55 75.57 639.78

249.98 252.96 2.98 1.16 447.78 56.28 53.63 45.24 807.96

268.30 274.21 5.91 1.29 419.21 52.26 40.05 24.27 846.70

NC11-04 9.54 13.38 3.84 0.84 421.59 61.47 61.73 106.55 792.46

NC11-04 67.05 69.27 2.22 1.32 400.87 75.71 100.07 140.75 868.56

119.10 135.10 16.00 1.17 400.73 54.80 28.71 27.30 789.15

NC11-05 83.91 90.91 7.00 1.43 442.10 75.41 46.20 50.44 881.71

NC11-09 34.85 37.20 2.35 1.07 520.18 85.29 104.18 96.42 1412.85

NC11-10 143.21 147.75 4.54 0.98 433.38 60.57 57.77 57.88 751.23

Nama Creek West Dyke

HW11-01 71.23 77.40 6.17 1.01 478.46 54.68 37.90 34.46 971.02

82.72 85.00 2.28 1.05 397.48 51.73 53.72 39.15 927.20

HW11-02 60.32 68.54 8.22 1.19 533.23 39.83 40.46 37.84 761.34

HW11-03 10.36 12.83 2.47 0.96 370.56 38.46 55.08 41.77 736.55

95.20 99.20 4.00 1.17 466.01 42.19 32.91 25.46 829.47

HW11-04 100.91 109.65 8.74 0.89 381.83 50.27 38.06 36.20 852.51

Conway

Nama CreekResults PendingResults Pending

Aumacho

*NSV = No Significant Value

Prior to Rock Tech’s exploration work, the Georgia Lake project has had 33,000 meters of historical drilling carried out by past operators. Rock Tech owns the entire historic


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database which is beneficial for the company’s exploration activities on this project going forward. Historic resources total 9.8 million tons grading 1.18% Li2O. The 2010-2011

exploration program is focused on bringing historical resources to NI 43-101

standards as well as expanding historical resources through drilling and data

compilation. In addition to the recently completed drill program, the company also plans to complete a minimum of 5,000 meters of drilling on the property for the rest of 2011. Drill holes on Nama Creek and Conway claim blocks were placed close to historic drill holes that intersected spodumene bearing pegmatite zones. The assay results from these

new holes so far have shown confirmation of historic drilling. Drilling on the

Aumacho zone returned elevated oxide content of rare metals including cesium,

niobium, tantalum and rubidium, which indicates potential for developing a multi-

element rare metal project in this zone. Historic Resource Estimate

Management advised us that the historic resource estimate has been recalculated to 9.8 million tons at 1.18% Li2O, from the previously stated 9.0 million tons at 1.14% Li2O. The company is working towards bringing this historic resource to NI 43-101 standards. Ongoing Resource Estimate

The company has engaged Caracle Creek International Consulting Inc. (CCIC) to perform 3D modeling of the deposit, a NI 43-101 resource estimate and other geological work on the project. CCIC also implemented QA/QC procedures for the Georgia Lake drilling and sampling program to meet NI43-101 standards. So far, the 3D model of the Nama Creek and Conway deposits has been completed and the 3D model development of other deposits at the Georgia Lake projects is ongoing. The independent NI 43-101 resource estimate will be based on the historic drill data from Nama Creek and Conway claim blocks and Rock Tech’s nearly 8,000 meters of drilling completed in the past two years. The company

expects a resource estimate for the Nama Creek and Conway claim blocks and leases

to be completed by June 2011.

Environmental Studies

An environmental baseline study was performed on the property in 2010 to facilitate future development work such as mine permitting and a pre-feasibility study. Studies included surface water sample collection, field water quality observations and other relevant ecological data collection. Further environmental field work will be conducted this

spring and results will be available 2 months thereafter. Metallurgical Testing

A one-ton bulk sample has been collected and sent to SGS Laboratories in Lakefield, Ontario. Metallurgical tests will be performed on the bulk sample to determine the

recovery rates using different separation methods and to test the potential to produce

battery-quality lithium carbonate. The company expects the metallurgical analysis

results to be available by the end of May 2011. The results will be significant for the

company’s ability to secure downstream partnerships, which is very critical for

lithium companies in the exploration and development stage.


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Quebec Projects

Long Term Development Timeline

Upon completion of the initial independent NI 43-101 resource estimate, Rock Tech intends to move the project towards a pre-feasibility in December 2011. The pre-

feasibility study is expected to be completed in Q2 2012 with an updated resource

estimate, potentially bringing all of its historic resources into the measured, indicated and inferred categories and expanding the resource. The company intends to perform pilot-scale metallurgical testing in Q3 2012, to facilitate the project’s development. A definitive feasibility study is expected to follow in Q2 2013, and construction of a mine, mill and process plant is expected in Q3 2013. The target production date is currently Q4 2014.

In December 2010, the company acquired all of the issued and outstanding shares of Brandon Exploration Ltd, a private BC company holding 50,875 hectares of lithium claims in Quebec. As a result of the acquisition, the company now has control over the Lacorne property near Val d’Or, and the James Bay properties adjacent to the company’s Kapiwak project. Kapiwak Projects

The Kapiwak Project is made up of three claim blocks: Kapiwak 1 was acquired in July 2009, while Kapiwak 2 and Kapiwak 3 were acquired in December 2010. The combined land package consists of 499 claims covering a total area of 26,259 hectares. Kapiwak 1

claims are located to the immediate south of Lithium One’s (TSXV: LI) James Bay

Lithium project (Cyr Deposit), which has an indicated resource of 11.75 million

tonnes at 1.30% Li2O. The resource is situated in the southern most part of the James Bay property, which borders the northern part of the Kapiwak 1 claims (as shown in the map on the next page). Kapiwak 3 consists of 256 claims located contiguously to the north of Lithium One’s James Bay project. Figure 1 below shows the locations of these two projects as well as adjacent properties.

The project area is also located in vicinity to several discoveries including Nemaska’s

(TSXV: NMX) Whabouchi lithium project, First Gold’s (now Critical Elements

Corp; TSX-V: CRE) Rose and Pivert discoveries, and Dios Resources (TSXV: DOS) /

Sirios Exploration’s (TSXV: SOI) Pontax showing. The Whabouchi is Nemaska’s flagship property with a 9.8 million tonne measured and indicated resource at 1.63% Li2O and 15.4 million tonnes inferred resource at 1.57% Li2O.


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Figure 1 Locations of Kapiwak Claims and Adjacent Properties (Source: Company)

Lacorne Project

The Lacorne project consists of 630 mineral claims covering an area of 31,049 hectares in the Val d’Or region, Quebec ( Figure 2). This project is an early stage exploration project located to the immediate

south of Canada Lithium Corporation’s (TSX: CLQ) Quebec Lithium project that has

measured and indicated resources of 47.0 million tonnes of 1.19% Li2O as

demonstrated by a recently completed feasibility study. (Currently, a new independent

NI 43-101 resource estimate on the Quebec Lithium project is being performed by AMC

Mining Consultants (Canada) Ltd; Canada Lithium believes there will be a material

reduction in the above mentioned resource.) In addition to the Canada Lithium project, there are several historical lithium prospects located within 1 to 3 kilometers from the Lacorne property, including Vallee Lithium, Valor Lithium, Duval Lithium, Lacorne Lithium, International Lithium and Moly Hill Mine. There are also historical pegmatite occurrences within the Lacorne Property that are reported to contain beryl, columbite-tantalite crystals. Historical exploration work in this area was performed on these prospects mainly in the 1950s, towards the discovery of lithium, molybdenum, gold and base metals in volcano sedimentary rocks.


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Other Projects

Figure 2 Location of Lacorne Project and Adjacent Properties (Source: Company)

Development Timeline

Rock Tech plans to identify potential targets on the Lacorne and Kapiwak properties through a series of geogphysical work, geological mapping, and surface sampling. Once the targets are identified, a trenching and drilling program will be designed to test them.

The company expects to establish a NI 43-101 resource for the Kapiwak project 24

months from now and 36 months for Lacorne project. Saint Urbain Project

Saint Urbain is a titanium-iron-vanadium exploration project near Saint Urbain, Quebec (Figure 3). This property covers a total area of 6,668 hectares in 115 claims.


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Figure 3 Location of the Saint Urbain Project (Source: Company)

The western claim block of the Saint Urbain property is adjacent to several past

producing titanium mines including Mine Bignell, Mine Coulombe, Bouchard, and

Mine General Electric, which has historic production of over 500,000 tonnes of ore. The eastern claim block of the property, consisting of 22 claims, has 35 drill holes from the 1950s to 1970s completed by previous operators in the area. A historic estimate was performed for the eastern claim block in 1972 based mainly on geophysical data and some of the historic drilling results. The historic estimate stated 80.45 million tons grading

10.9% to 44.5% TiO2 and 23.66% to 35.2% Fe at an average of 40% Ilmenite. Rock Tech carried out a series of exploration work on the Saint Urbain project in 2008 to 2009, including prospecting, mapping and sampling, airborne magnetometer survey, ground gravity survey as well as a NI 43-101 technical report. Assays of surface sampling

returned as high as 42.08% TiO2 and 52.73% Fe2O3. The airborne magnetometer survey and ground gravity survey also led to positive outcomes and identified several targets for future drilling. The technical report completed in December 2008, suggested more extensive geophysic surveys as well as 15 drill holes totaling 3,000 meters at favorable locations. The company’s plan for developing this project in 2011, and 2012,

is to form a joint venture and drill out the identified targets on the property. Sibley Basin Project

The Sibley Basin property was originally acquired by Rock Tech in 2005 and now consists of 732 claim units covering 29,280 acres of area west of Lake Nipigon in the Thunder Bay Mining District of northwest Ontario (Figure 4).


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Management

Update

Figure 4 Location of the Sibley Basin Project (Source: Company)

The company conducted geophysic surveys and drilling on the property in 2007 to 2008. Drill results returned up to 6% copper and 1.22g/t palladium in separate sections. The property is also prospective for uranium because of its similarity in geological settings with the Athabasca Basin of Saskatchewan which accounts for about 30% of global uranium production. Currently, the company plans to seek a joint venture partnership and drill

out all potential targets on this property. Mr. John Anderson left the company’s board in August 2010. In November 2010, Rock Tech appointed Dr. Christian Schlag to the Board of Directors. Dr. Schlag’s biography as provided by the company follows.

Based in Swakopmund, Namibia, Dr. Schlag obtained his Doctorate of Natural Science

(Ph.D.) and his Masters of Science (M.Sc.) in Economic Geology from the Free University

of Berlin (Germany) in 1981 and 1979, respectively. For his doctorate, Dr. Schlag

completed his dissertation on the exploration of uranium in northeast Thailand (Kong

Kang, Thailand) and for his Masters, completed his thesis on the investigation of tin,

lithium and rare earth deposits in Bang Guanang, Phuket, Thailand.

Throughout his career, Dr. Schlag has served as the Senior Exploration Geologist for

Goldfields South Africa, the Economic Research Officer of the Geological Survey of SW

Africa (Namibia), a Senior Lecturer at University of Calaber (Nigeria), a Political Advisor


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Outlook on

Lithium

for Konrad Adenauer Foundation (Tanzania), a Consultant to the Indonesian Ministry of

Mines and Energy and United Nations Industrial Development Projects (Indonesia) and

was a member of the Deustche Forschungs Gemeinschaft (German Research Foundation)

serving as its Research Officer. Additionally, Dr. Schlag has experience as an Independent

Consultant on exploration projects for rare earth metals, uranium, gold, diamonds and

heavy minerals throughout Africa and Asia and was instrumental in the discovery of the

Marenica uranium project in northern Namibia.

Lithium is used in several commercial products including glass/ceramics, batteries (both non-rechargeable and rechargeable), pharmaceuticals, lubricants, and other industrial applications. The following factors outline our outlook on lithium demand and supply drivers.

• We believe lithium demand growth will be primarily driven by batteries. Lithium use in batteries (as a percentage of total lithium demand) has increased from 10% in 2005, to 18% in 2010, and is forecasted to reach 47% by 2020 (source, TRU Group Industry Consultants).

• The growth in lithium battery demand is primarily driven by the electric car industry as well as portable electronic devices such as cell phones, iPODs and laptops.

• Lithium is attractive for use in portable electronic devices and vehicle batteries as - a) lithium is the lightest metal in the periodic table, b) lithium has the highest specific heat of any solid element, and c) lithium batteries have a slow loss of charge while not in use. Electric car producers are starting to adopt lithium batteries now due to the recent technological advances in part from the US Department of Energy. The Nissan LEAF and the Chevy Volt are two examples of cars using lithium batteries.

• Lithium has the potential for use in electrical grid storage as well as grid

stabilization. Lithium batteries could be utilized to store energy from alternate sources such as wind and solar power since the electricity production from these sources is inherently variable. Power consumption on electrical grids also varies throughout the day. Lithium could potentially store energy during non-peak times

for use when consumption is greater than production. This would provide more stable power demand allowing producers to rely less heavily on relatively expensive peak production power plants such as gas turbine plants.

• Currently SQM, FMC and Chemetell (three of the leading lithium producers)

together control about 8 million tons of lithium (about 64% of total global

reserves). One million tons of lithium is required to produce 395 million Chevy Volts or 250 million Nissan’s Leaf (source, Reuters, Keith Evans).

• The lithium industry is primarily controlled by three major producers (SQM, Chemetell and FMC account for about 60% of total production). We believe the

concentrated market allows these producers to control production, and possibly

influence prices.


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Financials

• We believe the market can absorb an increase in the price of lithium since the raw cost of lithium in vehicle batteries is a small fraction of the total cost to produce the battery.

• In early 2010, Toyota Tsusho (Toyota) and Orocobre announced a joint venture

to develop a lithium project in Argentina, called the Olaroz Lithium-Potash project. This is an encouraging development as it indicates Toyota's intentions to secure reliable and diversified long-term lithium supplies for its hybrid and electric vehicles.

• In 2010, global lithium demand was estimated at about 22,500 metric tons, while production was about 25,300 metric tons. (Source: SQM, Bloomberg and USGS).

• The TRU Group expects lithium demand to grow to about 47,000 metric tons of lithium (or 250,000 tonnes of Lithium Carbonate) by 2020, which reflects a CAGR of

8% from 2010 to 2020. Roskill also expects a similar growth in demand through 2020.

At the end of FY2010 (end of December 31, 2010), the company had $2.10 million in cash. Working capital was $2.07 million. In FY2010, the company reported a net loss of $1.42 million (EPS: -$0.04). We estimate the company had a burn rate (cash spent on operating and investing activities) of $0.18 million per month in FY2010. The following table shows the company’s cash and liquidity position at the end of FY2010.

(in C$) 2009 2010

Working Capital (185,548) 2,069,601

Current Ratio 0.44 10.16

Monthly Burn Rate (incl. exploration) (85,263) (175,826)

Cash from Financing Activities 825,889 4,110,542

LT Debt / Assets - -

According to management, the company currently has about $1.0 million in cash, with a CAPEX budget of $3 million for the rest of the year. In order to fund this CAPEX, the company recently announced the following financing.

Announces $5.3 million financing - On April 6, 2011, the company announced a brokered private placement of up to $5.30 million by issuing up to 14 million non flow-through units at a unit price of $0.25 (for gross proceeds of up to $3.50 million), and up to 6 million flow-through units at a unit price of $0.30 (for gross proceeds of up to $1.80 million).

Each non flow-through unit will consist of one non flow-through common share and one half of one share purchase warrant (exercise price - $0.60; maturity period - 2 years). Each flow-through unit will consist of one flow-through common share and one half of one share purchase warrant (exercise price - $0.60; maturity period - 2 years).

The agents also have an over-allotment option to purchase up to an additional 2.10


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Valuation &

Rating

million non flow-through units and 0.90 million flow-through units for gross proceeds of

up to $0.80 million.

Stock Options and Warrants: We estimate the company currently has 1 million stock options outstanding (weighted average exercise price of $0.46) and 28.67 million warrants (weighted average exercise price of $0.28) outstanding. 23.31 million warrants and 0.75 million options are currently in the money. RCK can raise up to $5.99 million if all these

in the money warrants and options are exercised. Our revised valuation on RCK is $0.55 per share, up from our previous estimate of $0.28 per share. A summary of our valuation is shown below.

Valuation Summary

Georgia Lake $0.20

Saint Urbain $0.29

Book Value of Other Projects $0.05

Working Capital $0.01

Fair Value $0.55 Georgia Lake - Our revised valuation is $13.62 million ($0.20 per share) versus our previous estimate of $6.46 million ($0.20 per share).

EV /

Resources (Li lbs)

1 Canada Lithium $0.19

2 Nemaska Exploration Inc $0.12

3 Western Lithium $0.11

4 Critical Elements Corp. $0.10

5 Pan American Lithium $0.06

Average EV / Resources ($/lb) $0.12

Fair Value of Georgia Lake ($) $0.20

* Resources include all measured and indicated, and half of inferred and historical resources

Company

Valuation increased primarily because we did not apply any discount to the company's historic resource due to the significant progress on the project since our previous report. In our previous report, we had discounted the resource by 50%. Our value per share estimate was maintained at $0.20 as the number of shares has increased by 114% since our previous report. Saint Urbain: We started valuing this project based on its historic resource mentioned earlier in this report. In our previous report, we had valued this project solely based on its book value - which, we believe, was overly conservative. Based on a peer average EV/resource ratio of $0.85 per tonne Fe, we valued Saint Urbain's historic resource


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Risks

(discounted by 50%) at $0.29 per share.

Adding the book value of RCK's other projects and working capital to our valuation

on Georgia Lake and Saint Urbain, we arrived at a fair value of $0.55 per share.

We reiterate our BUY rating and raise our fair value estimate from $0.30 to $0.55 per

share.

The following risks, though not exhaustive, may cause our estimates to differ from actual results:

• The company currently has no operating mines.

• The value of the company depends on lithium prices.

• The value of the company is dependent on the success of drilling and the determination and expansion of favourable resource estimates.

• Access to capital and share dilution.

• The company does not have a NI 43-101 compliant resource estimate at this time. However, note that an initial NI43-101 resource estimate is expected within the next few months.

We rate the company’s shares a RISK of 5 (Highly Speculative).


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Fundamental Research Corp. Equity Rating Scale:

Buy – Annual expected rate of return exceeds 12% or the expected return is commensurate with risk Hold – Annual expected rate of return is between 5% and 12% Sell – Annual expected rate of return is below 5% or the expected return is not commensurate with risk Suspended or Rating N/A— Coverage and ratings suspended until more information can be obtained from the company regarding recent events. Fundamental Research Corp. Risk Rating Scale:

1 (Low Risk) - The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is conservative with little or no debt. 2 (Below Average Risk) - The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash flows (though current free cash flow may be negative due to capital investment). The company’s capital structure is conservative with little to modest use of debt. 3 (Average Risk) - The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and coverage ratios are sufficient. 4 (Speculative) - The company has little or no history of generating earnings or cash flow. Debt use is higher. These companies may be in start-up mode or in a turnaround situation. These companies should be considered speculative. 5 (Highly Speculative) - The company has no history of generating earnings or cash flow. They may operate in a new industry with new, and unproven products. Products may be at the development stage, testing, or seeking regulatory approval. These companies may run into liquidity issues, and may rely on external funding. These stocks are considered highly speculative.

Disclaimers and Disclosure

The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp. “FRC” does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by RCK to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, RCK has agreed to a minimum coverage term including an initial report and three updates. Coverage can not be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. The performance of FRC’s research is ranked by Investars. Full rankings and are available at www.investars.com. The distribution of FRC’s ratings are as follows: BUY (72%), HOLD (7%), SELL (4%), SUSPEND (17%). To subscribe for real-time access to research, visit http://www.researchfrc.com/subscribe.php for subscription options. This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter. Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO. This REPORT is solely for informative purposes and is not a solicitation or an offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise stated, and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional information is available upon request. THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting information from this report. The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.

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Rock Tech Lithium Inc. (TSXV: RCK, Frankfurt: RJIA ... · estimate completed by Caracle Creek International Consulting, ... is Q4-2014. • A one-ton bulk sample has been collected