Announcement PDF WATCH PRESENTATION HERE A person in a suit and tie Description automatically generated UPSTREAM | MINE SUPPLY • +40 companies Quebec • >500Mt +1% Li2O resource • Transatlantic supply – Canada, Brazil, Africa THE LITHIUM GAP DOWNSTREAM | DEMAND • Nth America battery manufacturing • +20 manufacturers • Add 1,000GW by 2028 • Tenfold increase in current capacity • 850,000t LCE per year THE LITHIUM GAP THE LITHIUM GAP CURRENT CONVERSION DOWNSTREAM | REGULATION • Cut Chinese battery material reliance • Chinese firms ordered to exit • 25% tariffs on Chinese LCE • Canada needs downstream solutions THE LITHIUM GAP LITHIUM | CONVERTORS • No current lithium converters • Only 100 Ktpa of converters planned • No lithium refining experience THE LITHIUM GAP CLOSING PROBLEMS FILLING THE GAP • Complex chemical business • Many failures, technical difficulties • Existing Lithium producers • Technology and People Proven Technology Experienced Operators EXPERIENCED LITHIUM OPERATORS • Ran Greenbushes Li in 1995 • Commissioned Li Carb Plant • Galaxy - First mine to refinery project • Built Mt Cattlin Spod Mine (137 ktpa) • Built Jiangsu Li Carb Plant (17 ktpa) • GXY MCap <$10 m $2.5b at merger Iggy Tan Chairman THE DREAM TEAM GREENBUSHES LITHIUM VETERAN INTERNATIONAL DOWNSTREAM EXPERT • Ran Greenbushes Mine for 25 years • Ex-Galaxy GM Technology • Leading technical expert in the Lithium Industry • Oversaw expansion from 200 Ktpa to 1.4 Mtpa Patrick Scallan OAM Non-Executive Director THE DREAM TEAM • Largest spodumene & highest grade operating mine in the world Dr Jingyuan Liu PhD Non-Executive Director • Designed & Operated worldclass Jiangsu Lithium Carbonate Refinery THE LITHIUM DREAM TEAM Terry Stark Head of Mining Ex Galaxy GM Operations Roger Pover Head of Processing Ex Galaxy Plant Manager John Loxton Head of Li Refinery Ex Hatch Li Carb Plant John Sobolewski Chief Financial Officer Ex Galaxy CFO & Co Sec FAILED CANADIAN Li PROJECTS North American Lithium • Shutdown 2015 • Spent circa CAD 250m • Produced 109 t LC THE COMPETITION Nemaska Lithium • DFS completed 2018 • Spent CAD 411 m • Failed to start up 2019 TROUBLED LiOH PLANTS Tianqi Kwinana LiOH • • • • 8 Years so far Capital Cost Blowout > A$1 billion < 20% of design THE COMPETITION Albemarle Kemerton LiOH • • • • 5 years so far Still <20% of design rate Shut trains 2,3,4 Write down US$1.5 billion Alkaline Pressure Leach • • • • New Technology Unproven 1995 Greenbushes 5Ktpa Failed due to scaling WHY HAVE THESE PROJECTS FAILED? • Lack of operating supervision - design • Chinese batch → Western continuous • Use of unproven technology Our Lithium Dream Team are Operators DESIGN DREAM TEAM TRACK RECORD Jiangsu Li Carbonate Plant 2 Years to Commercial Production Ground Breaking 21 Feb 2010 Start of Construction 1 May 2010 • Capital Cost – US$120 m • At design rate 20,000 tpa • Highest quality LC worldwide Project Completion 6 Dec 2011 (19 months) 6 May 2012 (6 months Commissioning) Jiangsu Lithium Carbonate Plant CLOSING THE LITHIUM GAP BÉCANCOUR LITHIUM REFINERY • Replicate the success at Jiangsu • 18,270 tpa green BG lithium carbonate plant • Bécancour, Quebec’s Battery Hub • Same flow sheet, same equipment, same suppliers BECANCOUR LITHIUM REFINERY STRONG POSITIVE ROBUST PFS 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” WHY? THE BIG WHY’s • build a plant – low price environment? • build a plant - others closing theirs? • can you compete with China? • lithium carbonate not hydroxide? LU7 LITHIUM STRATEGY COUNTER CYCLICAL STRATEGY Why build a plant in a depressed-price environment? • Been through 3-4 lithium cycles • Prices have and will always recover • Li demand from EVs and BESS growth strong • Develop a project ready for price recovery LU7 LITHIUM STRATEGY SUPPLY DEMAND BALANCE • Impact of supply reduction • Dramatic reduction 17%, 21% next year • Demand is severely underestimated • Focus on EV’s only, BESS dark horse • 1.8 TWh of batteries - 600 GWh solar plants PRICES WILL RECOVER QUICKER THAN EXPECTED LU7 LITHIUM STRATEGY NEW CAPACITY IS REQUIRED Why build a plant when others are closing theirs? • Higher costs operations being closed • Operations not performing, shutting down • New efficient capacity is required for the growth • World needs non-Chinese conversion • Build conversion that works LU7 LITHIUM STRATEGY QUEBEC LITHIUM CONVERSION Why can you compete with China? • Access to Cheap Green Power • 2.6 cents per kWhr (5 times cheaper) • Nearby feedstock - Canada, Brazil and Africa • Decrease in transport costs of spodumene • End market North America • Eliminate 25% tariff on Chinese Li chemicals LU7 LITHIUM STRATEGY BÉCANCOUR COST ADVANTAGE Why can you compete with China? Comparison to Chinese Conversion US$/t Transport +US$600/t US$3,250 /t Tariffs +US$960/t Canada 15% CHEAPER LU7 US$3,970 /t USA Africa Brazil LU7 LITHIUM STRATEGY Li CARBONATE WILL DOMINATE Why Lithium carbonate not hydroxide? • Track record in Li Carbonate • Li Carb feed for LFP lithium batteries • Switch to LFP battery - safety and costs • LFP 67% of EVs, 87% of BESS LU7 LITHIUM STRATEGY GOOD LOCATION THE LITHIUM REFINERY THE LITHIUM REFINERY BECANCOUR LITHIUM REFINERY GOOD LOCATION 30,000 Spodumene Shipments Bécancour Lithium Refinery THE LITHIUM REFINERY LITHIUM REFINERY FLOW SHEET Cooler Calciner Spodumene Alpha Spodumene Sulphuric Acid Beta Spodumene Cooler Sulphating Kiln Ball Milling Hydrated Lime Hydrated Lime Water Filter Process Liquor Leaching Tank Wash Water Sodium Sulphate Product Polishing Filter Alumina Silicate Centrifuge Sodium Sulphate Crystalliser Dryer Mg Precipitation Ca Precipitation PolishingFi lter Sodium Carbonate Sulphuric Acid Natural Gas o/flow Ion Exchange Li2CO3 Precipitation Li Carb Slurry Tank Repulp CO2 Battery Grade Lithium Carbonate Product LiC Microniser Dryer Battery Centrifuge Grade Steam LC Crystalliser CO2 Polishing Filter Bicarbonate Digestor PURIFICATION PLANT LITHIUM REFINERY DESIGN ß Spod Storage Sulphation Kiln Calciner Spodumene Storage Leaching Sodium Sulphate Plant Residue Storage Residue Processing Boilers Cooling Towers Process Water Treatment Product Warehouse LiC Production & Purification THE LITHIUM REFINERY Reagents Storage Maintenance Building Admin Building Impurity Removal ROBUST PROCESS • Refinery to process all types of spodumene • Sampled - international sources of spodumene • Imports while Canadian Li industry develops • Achieve battery grade specs 99.5% Li2CO3 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” THE LITHIUM REFINERY PROJECT ADVANCEMENTS • Application 22.5 MW electricity, Hydro Quebec • Environmental survey – no showstoppers • Co-operation with W8banaki First Nation • Previous farm land • Permitting should be straight forward THE LITHIUM REFINERY BECANCOUR LITHIUM REFINERY CONSERVATIVE PRICE FORECAST SC6 US$1,170/t LC $20,970/t 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” BECANCOUR LITHIUM REFINERY 8% NET PRESENT VALUE US$ 779 MILLION 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” BECANCOUR LITHIUM REFINERY IRR PAYBACK 23.5% 3.5 YEARS 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” BECANCOUR LITHIUM REFINERY EBITDA CAPEX US$ 147M US$ 494M Quebec Lithium Refinery Pre -Tax Cashflows 500,000 400,000 300,000 200,000 US$'000 100,000 - (100,000) (200,000) (300,000) (400,000) (500,000) (600,000) Capex Spodumene Costs 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” Processing Costs Revenue Net Cashflow FUNDING STRATEGY Project Ownership • Sell 49% project to 1-2 strategic partners • Target OEM with spodumene offtake • Equity from sale injected to project • Debt and Equity of 50/50 • Appointment of debt adviser • Discussions with various banks Partner 2, 25 Partner 1, 25 THE LITHIUM REFINERY LU7 , 51 BECANCOUR LITHIUM REFINERY BECANCOUR NPV BREAKEVEN SC6 US$780/t LC $14,000/t 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” BECANCOUR LITHIUM REFINERY ALL UPSIDE – 25% PRICE INC NPV US$1.24 Billion EBITDA Sensitivity to Lithium Carbonate Price 600 EBITDA (US$ MILLIONS) 500 400 300 200 100 $14,000 $16,000 $18,000 $20,000 $22,000 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” $24,000 $26,000 $28,000 $30,000 LITHIUM CARBONATE PRICE / TONNE $32,000 $34,000 $36,000 $38,000 $40,000 DFS AND OFFTAKE DISCUSSIONS • Strategic Investors at Project Level • Offtake Discussions with OEMs • Complete full Definitive Feasibility Study • Project Permitting • Funding Plan Underway THE LITHIUM REFINERY LITHIUM DREAM TEAM Proven Lithium Track Record PROVEN TECHNOLOGY Derisking Lithium Conversion Technology BÉCANCOUR LITHIUM REFINERY Competitive & Closing the Conversion Gap INVESTOR HIGHLIGHTS CAUTIONARY STATEMENTS Information Required by Listing Rules The Becancour Lithium Refinery Preliminary Feasibility Study (PFS) does not rely upon estimated ore reserves / and or mineral resources. The spodumene concentrate feedstock for the proposed refinery has been assumed to have been purchased directly from spodumene miners currently producing spodumene concentrates or marketing agents or traders currently purchasing spodumene concentrate and selling to the downstream processors. Accordingly, the JORC Code is not relevant to this study nor are Listing Rules 5.16 and 5.17 to the extent to which they relate to matters concerning JORC. Forward Looking Statements This release contains “forward-looking information” that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to studies, the Company’s business strategy, plan, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations. Generally, this forward looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘likely’,’ believe’, ’estimate’, ‘expect’, ’intend’, ’may’, ’would’, ’could’, ’should’, ’scheduled’, ’will’, ’plan’, ’forecast’, ’evolve’ and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to general business, economic, competitive, political and social uncertainties; the actual results of current development activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; failure of plant, equipment or processes to operate as anticipated; accident, labour disputes and other risks of the chemical industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. Neither the Company, nor any other person, gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statement will actually occur. Except as required by law, and only to the extent so required, none of the Company, its subsidiaries or its or their directors, officers, employees, advisors or agents or any other person shall in any way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatever nature arising in any way out of, or in connection with, the information contained in this document. The Company disclaims any intent or obligations to or revise any forward-looking statements whether as a result of new information, estimates, or options, future events or results or otherwise, unless required to do so by law. Cautionary Statement The PFS is based on the material assumptions outlined including that it has been completed in accordance with AACE Principles to a Class 5 level with a nominal level of accuracy of ± 35%, that the financial forecasts rely upon the purchase of third party spodumene concentrate as the feedstock for the plant. The PFS referred to in this announcement has been undertaken to assess the potential technical feasibility and economic viability of constructing and operating facilities capable of producing battery grade lithium carbonate for use in lithium-ion batteries from those units of operations and provide baseline financial metrics to consider future investment decisions. The Preliminary Feasibility Study (PFS) is based on the material assumptions. These include assumptions about the availability of funding. While Lithium Universe considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the PFS will be achieved. To achieve the range of outcomes indicated in the PFS, funding of in the order of US$500 million will likely be required. Investors should note that there is no certainty that Lithium Universe will be able to raise that amount of funding when needed. It is also likely that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Lithium Universe’s existing shares. It is also possible that Lithium Universe could pursue other ‘value realisation’ strategies such as a sale, partial sale or joint venture of the project. If it does, this could materially reduce the Company’s proportionate ownership of the project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the PFS. Authorised for release by Iggy Tan, Chairman of Lithium Universe Limited.