On February 15, 2018, LSC announced the issue of its maiden Mineral Resource on its Rio Grande lithium project. This initial NI 43-101 Mineral Resource estimate includes a total of 2,190,000 tonnes of lithium carbonate (Li2CO₃) equivalent (LCE) in the Inferred Mineral Resource category with the top 50m of the deposit amounting to 1,375,435 tonnes grading at 338mg/l Li and the lower 50m to 100m amounting to 814,582 tonnes grading at 410mg/l Li (See Table 1). Lithium grades tend to improve between 50m to 100m below surface and this trend indicates potentially improved grades at depth.

An eight hole drill program was completed by the Company to verify the historical results reported for 33 holes drilled across the salar by ADY Resources Ltd. by twinning selected holes. The historical drill hole spacing was on a grid of approximately 1.5km east/west by 2km north/south with the eight hole verification program twinning historical holes within 5m of the original collars. The historical drill results and the subsequent verification drill results reported by LSC have been used for this mineral resource estimate.

The Rio Grande resource is planned to be upgraded to a Measured and Indicated Mineral Resource as soon as possible as LSC will conduct further drilling to test the depth extensions and porosity levels. For further information, please see LSC press release dated February 15, 2018.

Table 1 - Rio Grande Resource Statement as at February 15, 2018