LSC Lithium Corporation - Properties - Pozuelos

Date Download

March 5, 2018 Mineral Resource Estimate & Technical Report on the Salar de Pozuelos Project, Salta Province, Argentina Dated February 28, 2018

March 4, 2018 Technical Report on Pastos Grandes Lithium Project, Dated October 25, 2018

Project Overview

Combined brine resources at Pozuelos and Pastos Grandes to provide significant scale for target production.
Complementary brine chemistry between Pozuelos and Pastos Grandes provides process optimization opportunities.
Simple connection between the two salars: 17km apart with Pozuelos 20m below Pastos Grandes.
Right conditions exist at Pozuelos for installing a production system, leveraging the exceptional evaporation rates at Pozuelos.
Local infrastructure is good and close.
- Gas pipeline located ~20km west of Pozuelos salar.
- Railway located ~55km north-west of Pozuelos salar.
40-person camp at Pozuelos that is scheduled to be completed by August, 2018.
Own a 7ha easement in Salar de Pocitos with access to gas, electricity and railway.
Deliver the PPG PEA by Q4 2018.
Fast-track work for delivery of a PFS in mid-2019.
Environmental Baseline Studies completed at both salars.

Pozuelos

The Pozuelos property is located in the Puna region of northwest Argentina, in the western Salta province. On February 2, 2018, LSC issued its Mineral Resource statement for Pozuelos; the NI 43-101 Mineral Resource estimate includes 1,296,344 tonnes of lithium carbonate (Li2CO3) equivalent (LCE) in the Measured and Indicated Mineral Resource category and 312,942 tonnes in the Inferred Mineral Resource category. This NI 43-101 Resource doesn not currently extend to the salar basement.

The exploration program included 13 resource delineation drill holes amounting to 1,789m and 2 pump test wells with associated piezometers. The resource delineation drill holes were spaced at approximately 1.0km to 1.5km east/west and approximately 2.0km north/south. Drill cores were recovered at HQ size via a triple tube core barrel wireline system. The depths of holes varied from between 58.1m in drill hole SP-2017-11 to 322.27m in drill hole DDH-400.

An updated NI 43-101 Resource Estimate is planned for Q4, 2018.

For further information, please see LSC press release dated February 2, 2018.

Table 1 – Pozuelos Resource Statement as at January 31, 2018

Mineral Resource	Brine Vol	Avg Li	In situ Li	LCE²	Avg Ca	Avg Mg	Avg K	Avg SO₄
Category¹	(1000m³)	(mg/l)	(tonnes)	(tonnes)	(mg/l)	(mg/l)	(mg/l)	(mg/l)
Measured	544,496	372	202,326	1,076,979	1,667	2,053	3,164	5,125
Indicated	84,741	486	41,211	219,364	1,373	2,621	4,318	8,671
Measured & Indicated	629,237	387	243,536	1,296,344	1,627	2,129	3,319	5,602
Inferred	181,833	323	58,790	312,942	644	1,215	1,719	3,549

Figures are rounded.
¹ Mineral resources are not mineral reserves and do not indicate economic viability.
² LCE (Li₂CO₃) equivalent.

Table 2 – Key Chemical Ratios

Mineral Resource Category	Mg:Li	Ca:SO₄	K:Li	SO₄:Li	Ca:Li
Measured & Indicated	5.5	0.29	8.58	14.48	4.20
Inferred	3.76	0.18	5.32	10.99	1.99

The Mineral Resource estimate includes assay data sourced from brine packer samples acquired from lithologically selected locations down hole, specific yield data from Relative Brine Release Capacity analyses and assay data from pump test wells.

LSC has been continuing exploration on Pozuelos in connection with an Updated Mineral Resource and ongoing work on the PEA. The exploration work includes several pump tests, acquisition of seismic data and drilling exploration holes. For further information, please see LSC press release dated August 7, 2018.

Overview of Pozuelos

The Pozuelos property is located approximately 230km west of the city of Salta and 150km east of the Chilean border. The Pozuelos property is comprised of two main mining groups, Lithea Norte and Lithea Sur, covering 10,787 hectares and centered in Salar de Pozuelos. In addition to the above mining groups, LSC holds several other mining tenements on Salar de Pozuelos which are prospective for fresh water.

Access to the Pozuelos area from the city of Salta is via high quality paved and secondary gravel roads. The total driving distance between Salta and the Pozuelos property is approximately 220km, and the driving time is approximately 4.5 hours.

Local infrastructure is good and close. There is a gas pipeline located ~15km west of the Salar. Approximately 30km to the east of the project site, a railway crosses from northern Argentina to Chile, providing potential access to a number of ports in northern Chile.

In April 2018, LSC commenced the construction of a 40 person exploration camp at the Pozuelos salar. The camp will simplify future exploration logistics, support the construction and operation of pilot ponds and has been designed to be expanded for future mine operations.

Once the PPG Project has progressed from construction and production, it is intended that this camp will be expanded and utilized for mine administration offices and as an operational camp.

History of the Pozuelos Property

The mining concessions, which make up the Pozuelos property, are currently registered under the name LitheA Inc. S.A., a branch of LitheA Inc., a wholly owned subsidiary that LSC acquired in June 2017.

Salar de Pozuelos had been subject to extensive exploration by LitheA since 2008. This work included surface sampling, geophysics, diamond core and reverse circulation drilling, development of pumping wells to 90m depth for both short and long-term porosity testing, brine sampling and pumping tests.

Overview of Pastos Grandes

Salar de Pastos Grandes is located in the province of Salta and lies at an elevation of about 3,700m above sea level. The salar has a basin surface area of approximately 25 square kilometres.

The Pastos Grandes property is close to major National and Provincial. The salar is located approximately 10km from a village; it is situated immediately north of Salar de Pozuelos and west of Salar de Pocitos.

LSC’s ownership package consists of tenements and applications for tenements covering 2,683 hectares (100% interest).

EXPLORATION PROGRAM AT PASTOS GRANDES

LSC commenced a planned 7-hole drill program on Salar de Pastos Grandes in Q3 2017. The hole locations for the drill program were based on the results of a VES geophysical survey completed by LSC in late 2016. All planned drill holes have target depths of 400m. Packer samples and porosity samples (RBRC samples) are being collected as part of the drill program.

The 2018 development work on the Pastos Grandes section includes additional drilling in the form of two 500m deep drill holes to complete the five hole program prior to producing a Mineral Resource estimate. The first of these two holes was collared on April 22, 2018 and is located in the eastern half of the property. Steady progress has been made with this hole without any major disruptions. A 16km seismic survey just been completed with the data processing phase now ongoing. A three hole pump test work program is planned for completion on the Pastos Grandes section and the delivery of a NI 43-101 Mineral Resource is planned for Q4 2018.

A large mineralised foot print has been established on the Pastos Grandes section of the PPG Project. Drill hole SPG-2017-2B returned a peak value of 511mg/l Li with three main mineralised zones including 91m at 377mg/l Li from 57m, 38m at 459mg/l Li from 354m, 14m at 466mg/l Li from 466m with mineralization being present to 512m and is open at depth. Drill hole SPG-2017-4A returned a peak value of 528mg/l Li with three principal mineralised zones including 62m at 500mg/l Li from 342m, 110m at 388mg/l Li from 192m and 83m at 326mg/l Li from 9m. Drill hole SPG-2017-5B delivered results which included an average of 569mg/l Li over 430m and a range of between 543mg/l Li and 637mg/l Li.

History of the Pastos Grandes Salar

LSC acquired the Pastos Grandes Property in 2016.

Prior work completed by Eramine Sudamerica S.A in 2011 and 2012 on adjacent tenements showed good grades at depth and good pumping rates. No assurances can be made that similar results will be obtained on the Salar de Pastos Grandes tenements held by LSC.

Qualified Person/Data Verification

The scientific and technical information is based upon information prepared and approved by Donald H. Hains, P.Geo. Mr. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC. Mr. Hains has verified all sampling, analytical and test data underlying the information by on-site inspection during drilling, brine sampling, and selection of RBRC samples; review of drill core photographs to verify lithology; review of certified assay certificates against the assay data base; review of pump test data; and review of RBRC results received from DBSA. There are no drilling, sampling, recovery or other factors that could materially affect the accuracy and reliability of the data.

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