Western Lithium

Project: Kings Valley, Nevada

Quick Facts

Location	Humboldt County, northern Nevada
Lithium Deposit Size (Historical)	11 million tonnes lithium carbonate equivalent⁽¹⁾ (historical estimate based on exploration work by Chevron Resources during the 1970s and 1980s).
Lithium Resource Size (NI 43-101) at 0.40% Lithium cut-off grade Detailed Resource Table Conversion Table	Stage I Indicated Resources: 10 million tonnes grading 0.43% lithium Lithium carbonate equivalent (LCE) - 230,500 tonnes Inferred Resources: 10 million tonnes grading 0.42% lithium LCE - 231,000 tonnes Stage II Indicated Resources: 95 million tonnes grading 0.27% lithium Lithium carbonate equivalent (LCE) - 1,365,000 tonnes Inferred Resources: 47 million tonnes grading 0.26% lithium LCE - 650,000 tonnes
Lithium Deposit Layout	Spread over five mineralized lenses (Stages I to V) running approx. 30 kilometres from the southern to the northern edges of the lenses.
Development Plan	Stage I resource potentially supports production at 27,700 tonnes per year LCE and 115,000 tonnes per year of potassium sulphate. Stages II to V lithium bearing deposits envisioned to support staged development.
Stage I Preliminary Assessment and Economic Evaluation (PAEE) (NI 43-101)	Stage I average revenue estimated at US$263 million per year. Stage I pre-tax net present value (NPV) discounted at 8% of US$714 million⁽²⁾. Stage I Pre-tax internal rate of return (IRR) 28%. Stage I Cash operating costs estimated to be US$1,967 per tonne (US$0.89/pound) of lithium carbonate, after potassium sulphate by-product credit. Initial 18 year operating life with potential scalability to expand to multiple stages. Total Stage I capital costs estimated to be US$427 million. Chemistry and process selection indicative of high quality, low impurity product. Located near major transportation hubs in western United States.
Mining	Near surface deposit
Infrastructure	Paved highway to the site 115 kV power line over site Elevation 1500 m 600 kms to port at Sacramento, 700 kms to port at San Francisco
Planned Stage I Timeline	Permitting and Environmental Studies - ongoing Pilot studies and additional drilling results - 2010 Prefeasibility Study - 2011 Production - 2014
Advantages	One of the world's largest known lithium deposits Development stage project Staged and scalable development facilitates production increases matched with incremental demand growth Located to meet U.S. domestic market and good access to Asian markets Nevada is a mining friendly state with good infrastructure Timing of anticipated lithium production coincides with rising demand expected from the increased use of mobile electronics and hybrid/electric vehicles Experienced team of mine builders

(1) Based on a 1983 non NI43-101 compliant report prepared by Chevron Resources (the "Chevron Report"). Western Lithium cautions readers not to place undue reliance on the content and conclusions of the Chevron Report, which was not prepared in compliance with National Instrument 43-101. The Chevron Report uses terminology other than those approved by Canadian Institute of Mining Guidelines.
(2) The preliminary assessment is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.