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Lithium Power International Announces Definitive Feasibility Study Confirms Positive Outcome for Maricunga Lithium Brine Project

Highlights

- The Maricunga Lithium Brine project’s Definitive Feasibility Study (DFS) supports 20,000 tonnes per annum (t/a) production of Lithium Carbonate Equivalent (LCE) over 20 years.

- Project NPV1 (leveraged basis) of US$1.302B before tax at 8% discount rate, providing an IRR of 29.8% and a 3.5 year Payback.

- Project operating cost places Maricunga among the most efficient producers, with OPEX of US$3,772 per tonne (/t) without credits from a potassium chloride (KCl) by-product. KCI production was not considered in the DFS.

- Project’s direct development cost estimated at US$456M, with indirect costs of US$45M and contingency costs of US$63M, providing a total CAPEX of US$563M.

- Maiden Mining Reserve estimate, reported in accordance with JORC and NI 43-101 guidelines, accounts for a total pumping extraction of 742,000 tonnes of LCE2 prior to processing, exceeding the project mine life production estimate.

- Project infrastructure, including water rights, are secured through long term contracts for project construction and operation. Access to the National Power Grid has been granted by the Chilean authorities, thus future power supply is assured.

- DFS completed by Tier-1 engineering consultancy WorleyParsons to international standards (the Reserve estimate was prepared by FloSolutions). Accuracy of operating and capital cost estimates expected within a +/- 15% range.

- Discussions with major Chilean and international financial institutions to secure project development finance have commenced and are expected to be finalized during 2019. Approaches from international companies have been received regarding off-take agreements and future participation.

- The Company continues to work closely with the Chilean Government and other corporate bodies to finalize all remaining licenses, agreements and operational relationships.


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