Pure Energy Minerals Ltd. · TSXV:PE

Pure Energy Minerals — Investor Presentation (December 2017)

30 slides from Pure Energy Minerals's investor presentation, December 2017

  1. Slide 1: Corporate Presentation December 2017

    CORPORATE PRESENTATION DECEMBER 2017

  2. Slide 2: Cautionary Statement

    CAUTIONARY STATEMENT Certain statements contained in this presentation, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws (“forward-looking information”). Such forward-looking in

  3. Slide 3: Cautionary Statement (cont.)

    CAUTIONARY STATEMENT (cont.) The PEA is based upon a process flow sheet that may change, which would impact all costs and estimates. Operating costs for the Project were based upon assumptions including future energy costs, water costs, labor, regulatory costs and other variables that are likely to

  4. Slide 4: What's Next? Accomplishments and Recent Milestones

    WHAT'S NEXT? FIRST LITHIUM BRINE RESOURCE IN NORTH AMERICA ACQUIRED TARGET ASSET SUPPLY AGREEMENT WITH RECRUITED TESLA NEW CEO ENGINEERED PROCESS FLOWSHEET FOR FASTER, GREENER, LITHIUM RECOVERY ADDED SECOND MAJOR LITHIUM PROJECT DELIVERED POSITIVE PEA CONSOLIDATED THE DISTRICT TRANSITIONED MANAGEMEN

  5. Slide 5: A New Management Team with the Right Experience to Deliver

    A NEW MANAGEMENT TEAM WITH THE RIGHT EXPERIENCE TO DELIVER PAUL ZINK WALTER WEINIG Chief Financial Officer MSc, CPG, PMP Paul has more than 35 years experience in project finance, VP Projects & Permitting financial analysis, strategic Walter has nearly 30 years of planning, royalties, mergers and ex

  6. Slide 6: Lithium Demand Is Driving Exploration and an Explosion of Companies

    LITHIUM DEMAND IS DRIVING EXPLORATION…AND AN EXPLOSION OF COMPANIES! 6

  7. Slide 7: Consensus Is Gathering Around 500K TPA by 2025

    CONSENSUS IS GATHERING AROUND 500K TPA BY 2025…BATTERIES ARE DRIVING DEMAND 7 Benchmark Mineral Intelligence, Lithium Hydroxide Market Forecast, April, 2017

  8. Slide 8: Global EV Business Is Just Starting to Make Waves

    GLOBAL EV BUSINESS IS JUST STARTING TO MAKE WAVES Global Auto Sales in 2016 at Are We Ready 88M Vehicles: for a $300B EV ~$2 Trillion Industry? 8

  9. Slide 9: Why Is This for Real This Time? Battery Costs Are Plummeting

    WHY IS THIS FOR REAL THIS TIME? BATTERY COSTS ARE PLUMMETING Average Battery Pack Price Average EV Battery Price (BEV & PHEV Battery Packs) Percentage Change Between Periods (2010 – H2 2015) $1,200 $1,200 -20% -14% -7% -7% -5% -5% -35% $1,000 $1,000 $800 $800 $ / kWh $ / kWh $600 $600 $400 $400 $200

  10. Slide 10: Advancing Lithium Projects = x2

    ADVANCING 2 LITHIUM PROJECTS = x2 a ae oo UNITED STATES CLAYTON VALLEY

  11. Slide 11: Clayton Valley, Nevada – A Home to an Old Producer and New Potential

    VALLEY,NEVADA CLAYTON VALLEY NEVADA––AHOME PRODUCTIVE TO AN OLD DISTRICT PRODUCER AND NEW POTENTIAL World-Class Infrastructure Power Lines, Roads, and North America’s Only Lithium Producer… 11

  12. Slide 12: The Clayton Valley Project Continues to Grow

    THE CLAYTON VALLEY PROJECT CONTINUES TO GROW New Acquisitions from Advantage Lithium: - Adjoins Albemarle’s Silver Peak Mine EXPANDED PURE ENERGY CLAIMS: - Includes 6 Exploration Wells on East Side - Average Lithium Grade: 204 mg/L Existing Claims: 24,600 ACRES - Maximum Lithium Values: 322 mg/L Cla

  13. Slide 13: Clayton Valley Project – Summary of Preliminary Economic Assessment (PEA)

    CLAYTON VALLEY PROJECT – SUMMARY OF PRELIMINARY ECONOMIC ASSESSMENT (PEA) Key Economic Indicators (Currency in US $) After Tax - Net Present Value (8% Discount) $264 million After Tax - Internal Rate of Return (IRR) 21% Average Annual Production (Lithium Hydroxide) 10,300 tonnes Average Annual Produ

  14. Slide 14: A First Pass Estimate of Construction Costs

    A FIRST PASS ESTIMATE OF CONSTRUCTION COSTS Description of Capital Costs US $ Basin Activities $ 29 M Plant Facilities & Equipment $ 100 M Infrastructure & Utilities $ 30 M Direct Costs $ 159 M Indirect Costs* $ 34 M Contingency $ 56 M Owner’s and Other Costs** $ 48 M Total Initial Capital Costs $ 2

  15. Slide 15: First Pass Estimate of Direct Operating Costs – Very Encouraging

    FIRST PASS ESTIMATE OF DIRECT OPERATING COSTS – VERY ENCOURAGING Unit Cost Unit Cost Description of Steady State Operating Costs (US $) % of Total LiOH∙H2O LCE Labor $ 427 /t $ 485 /t 14 Power $ 394 /t $ 447 /t 12 Operating Supplies & Services $ 2,227 /t $ 2,528 /t 69 Maintenance Supplies $ 169 /t $

  16. Slide 16: New Tech = High Margins

    NEW TECH = HIGH MARGINS 200 180 KEY ASSUMPTIONS: 160 140 100% Equity Financing 120 Production Ramp-up over ~15 months: MILLIONS (USD) 100 4,100 tonnes LiOHH2O in 2021 80 10,800 tonnes LiOHH2O in 2022 60 11,400 tonnes LiOHH2O in 2023 REVENUE 40 Construction Commencing in 2019 DIRECT COSTS 20 NON-O

  17. Slide 17: Lithium Hydroxide Base Case Pricing Model for Clayton Valley Project

    LITHIUM HYDROXIDE BASE CASE PRICING MODEL FOR CLAYTON VALLEY PROJECT A Dynamic Pricing Model Based on Real Market Analysis Base Case Pricing used in PEA Financial Model 17

  18. Slide 18: Very Competitive Direct Production Costs

    VERY COMPETITIVE DIRECT PRODUCTION COSTS PURE ENERGY Estimated Direct Costs $3,217/tonne Slide borrowed from Nemaska Lithium 18

  19. Slide 19: Pure Energy Minerals

    DE, PURE ENERGY MINERALS

  20. Slide 20: Phase 3 Drill Program – Important Inputs to New Resource

    PHASE 3 DRILL PROGRAM – IMPORTANT INPUTS TO NEW RESOURCE Li=209 mg/L Li=175 mg/L Higher Grade at Depth Strong Pump Test Li=134 mg/L Li=70 mg/L 20

  21. Slide 21: Clayton Valley Project: Host Aquifers

    CLAYTON VALLEY PROJECT: HOST AQUIFERS Variable drainable porosity with geology and depth; assigned a conservative 6% to the model Porosity 4 – 10% Porosity Highly Variable Porosity 10 – 20% 21

  22. Slide 22: Total Inferred Resources

    HIGHER CONFIDENCE, BETTER UNDERSTOOD IN 3D, POISED FOR GROWTH IN FY 2018 RESOURCES & KEY TECHNICAL PARAMETERS 218,000 123 TOTAL INFERRED RESOURCES WORLD-CLASS CHEMISTRY Magnesium* Avg Calcium Sulfate* to Lithium Content to Lithium Ratio: (mg/L)*: Ratio: 2.9 1,536 18.2 * Chemistry derived from global

  23. Slide 23: There Is a Better Way: Preliminary Flowsheet for New Lithium Process

    THERE IS A BETTER WAY: PRELIMINARY FLOWSHEET FOR NEW LITHIUM PROCESS LiP™ LiSX™ LiEL™ No Real Time Evaporation Recovery Ponds 23

  24. Slide 24: There Is a Better Way: Making It a Reality with a Pilot Plant

    THERE IS A BETTER WAY: MAKING IT A REALITY WITH A PILOT PLANT Preliminary 3D Perspective Drawing of Clayton Valley Pilot Plant 24

  25. Slide 25: Clayton Valley Execution Schedule

    CLAYTON VALLEY EXECUTION SCHEDULE Realistic and Aggressive - It’s all about the Pilot Plant Clayton Valley South Execution Schedule 2017 2018 2019 2020 2021 2022 Project Activity Duration Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental Baseline Studies 12 months Permi

  26. Slide 26: Terra Cotta Project, Argentina – World Class Discovery Potential

    TERRA COTTA PROJECT, ARGENTINA – WORLD CLASS DISCOVERY POTENTIAL TERRA COTTA PROJECT, ARGENTINA SALAR DE ATACAMA FÉNIX MINE LITHIUM TRIANGLE LITHIUM TRIANGLE 26

  27. Slide 27: Terra Cotta Project – Favorable Geology and New Geophysical Targets

    TERRA COTTA PROJECT – FAVORABLE GEOLOGY AND NEW GEOPHYSICAL TARGETS Large and deep closed structural basin with multiple aquifers Major structures – faults and folds Pocitos Salar Recent volcanism and active hydrothermal systems Complex metasedimentary and volcanic rocks in basin Lithium indicated i

  28. Slide 28: Terra Cotta Project – VES Results

    TERRA COTTA PROJECT – VES RESULTS: “THERE’S SALT WATER DOWN THERE” Interpreted conductive material (red) is the prime drill target 28

  29. Slide 29: Terra Cotta Project – The Anomaly Has Huge Scale: Next Steps

    TERRA COTTA PROJECT – THE ANOMALY HAS HUGE SCALE NEXT STEPS Surface Sampling Underway: Lithium anomalies Zonation of brine chemistry Geological mapping Environmental Impact Report Underway Planning for 5 to 10 drill holes: Mixture of core and rotary Scheduling with Drilling Companies Drilling Expect

  30. Slide 30: www.PureEnergyMinerals.com

    TSXV:PE OTCQB:PEMIF Patrick Highsmith, President & Chief Executive Officer [email protected] 303.317-6857 30 www.PureEnergyMinerals.com

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