HIGHEST QUALITY LITHIUM RESOURCE IN NORTH AMERICA
Corporate Presentation February 2021
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Forward Looking Certain statements in this presentation may contain “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. It is uncertain if further work will in fact lead to production of a mineral resource and of lithium compounds. Frontier has filed on SEDAR a NI-43-101 compliant Technical Report, "PAK prefeasibility study, Spark resource estimation" updated on March 23, 2020. All technical information should be reviewed according to this resource estimate.
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Frontier at a Glance Rare Metal focus since 2010 Hydroxide for Electric Vehicles sourced from Top 3 Quality Deposits Globally Partnered with XPS, a Glencore Company, developing innovative Hydroxide Technology
Technical Spodumene for High-end Glass to Break Monopoly Proximate to USA & EU Markets to address China’s Market Dominance $1B NPV with upside potential from low cost/high purity operations Mining/Industry/Infrastructure rich Ontario (Sudbury) Frontier Lithium
TSX.V
OTCQB
Ticker FL
LITOF
Shares 176M
176M
Price (19/2/2021) CAD 1.04 90-day Average Volume 633,370 Market Cap CAD 183 Cash CAD 2.5M
USD .83 311,205 USD 144 USD 2M
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Lithium Market
The convergence of three multi-trillion-dollar industries
Lithium Chemical Supply/Demand to 2028 (LCE) 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0
61% 59% 56% 54%
2018
35%
41%
45%
50%
24% 76%
30% 70%
65%
59%
55%
50%
46%
44%
2019
2020
2021
2022
2023
2024
2025
2026
Carbonate battery demand
Hydroxide battery demand
41%
2027
Grease/Ceramics etc
39%
2028 Supply
Source: RK Equity
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Strong Lithium Demand Driven by EVs
Source: Albemarle
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EV Adoption IS DRIVEN BY ECONOMICS
Source: Bloomberg New Energy Finance https://about.bnef.com/blog/behind-scenes-take-lithium-ion-battery-prices
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Spodumene is the Preferred Feedstock Spodumene is the Low-Cost Source for Lithium Hydroxide
Measured and Indicated Resource Grade %Li2O 2.02% 1.59%
1.45%
1.40% 1.12% 0.85%
PAK - FRONTIER
SPARK FRONTIER
WHABOUCHI NEMASKA
ROSE - CRITICAL ELEMENTS
JAMES BAY GALAXY RESOURCES
PIEDMONT
BOARD OF DIRECTORS Rick Walker
Stephen J.J. Letwin
Rick Walker has been the owner/operator of Consbec Inc. since 1975. Consbec is the largest surface drilling and blasting contractor in North America and the only private Canadian company who
Mr. Letwin is a Director of Hess Midstream (2018) and of Margaux
Chairman
manufactures and transports bulk explosives.
John Kelly, P.Eng. Director
Mr. Kelly was Vice President of Mining, Ontario Division, Inco Ltd. before he retired at 1998.
Mike Koziol, P.Geo, P.Eng. Director
Mr. Koziol is a geologist with over 35 years of experience exploring for gold and base metals in the Canadian Shield.
Director
Resources and also is the President and CEO of Mancal Corporation. Mr. Letwin was President and CEO of IAMGOLD Corporation for ten years and was also a member of their Board of Directors.
Ernest (Ernie) Marcotte, P. Eng, FCIM Director
Mr. Marcotte has over 40 years of experience in the mining industry involving metallurgical and mining operations, environmental control, mineral processing, research and development, design engineering, plant commissioning and corporate management.
Bruce Barker, LLB Director
Mr. Barker is a Partner of Bennett Jones LLP, a leading Canadian law firm. Mr. Barker practices corporate law, with an emphasis on mergers and acquisitions, banking and corporate finance, and recently co-chaired the firm’s Corporate Department.
John R. Didone, CPA, CA, CMA Director
Mr. Didone is a Partner at SRWC LLP, Chartered Professional Accountants based out of Sudbury, Canada. He has been with the firm since 1980 and over this time has gained considerable insight of business affairs, in particular his demonstrated experience offering professional advice on the expansion of national companies. 8
EXECUTIVE LEADERSHIP TEAM Trevor R. Walker, MBA
President & Chief Executive Officer Trevor R. Walker is the President and CEO of Frontier Lithium. Walker joined Frontier Lithium in 2010, and since then he has played a key strategic role in focusing the company on its PAK Lithium deposit in Northwestern Ontario.
Dr. Naizhen Cao
Vice President Technology Dr. Cao is an industry veteran having worked both in China and Canada as senior technical leader with expertise in lithium and battery materials. During his career, he held several key positions within the lithium industry including: Chief Scientist at Tianqi Lithium and most recently as Chief Technology Officer for a subsidiary of CATL.
Garth Drever, P.Eng, P.Geo
ADVISORY BOARD Mike Tamlin Advisory Board
Michael Tamlin has more than 25 years of expertise in lithium and tantalum concentrates and chemicals. His lithium experience covers the development of the Chinese chemical and global technical spodumene markets for the Greenbushes Mine in Western Australia, the Zhangjiagang Lithium Carbonate Project and the Rincon Brine Project. He is currently the Chief Operating Officer for Neometals, an ASX-listed company which is preparing for the start of production of its Mt. Marion Lithium Mine in Western Australia
Vice President Exploration
Garth Drever is a geologist with over 35 years of mineral exploration experience primarily with Cameco Corporation. He specializes in innovative technologies for detecting ore bodies and has worked on many uranium deposits worldwide.
Bora Ugurgel
Manager, Investor Relations & Communications Bora Ugurgel has close to 10 years of experience in the mining research and service and supply industry. Most recently, he was the Managing Director of the Ultra-Deep Mining Network (UDMN) and the Chief Operating Officer for
Peter Vanstone, P.Geo Advisory Board
Peter Vanstone maintains specialized experience in rare metals with over 30 years of lithium, tantalum, and cesium exploration and mine production in the Canadian Shield. He is a former Chief Geologist for the Tantalum Mining Corporation of Canada (Tanco). The Tanco Mine is located in southeastern Manitoba and was a lithium mineral concentrate producer from 1986 until operations were suspended in 2009
the Centre for Excellence in Mining Innovation (CEMI). 9
PROJECT The Electric Avenue is geologically similar to the world-famous Greenbushes tin belt in Western Australia. They both host high grade and high purity spodumene pegmatites. The Project encompasses 26,774 hectares along 65 km of Ontario’s Electric Avenue. Four spodumene-bearing pegmatites have been discovered on what remains largely unexplored. Currently 150 km of adequate seasonal winter road provide infrastructure and skilled labor access to the PAK site. Zero carbon energy sourced power line is under construction for the region. The Port of Thunder Bay, located at the head of the Great Lakes/St. Lawrence Seaway System, makes PAK Lithium Project readily accessible to the world.
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Preliminary Economic Assessment Highlights
Project Life
Includes measured, indicates and inferred resource to produce 556,200 tonnes of LiOH from the PAK and Spark deposits- conventional open pit mining only.
PAK
Spark
26
Years
Production - LiOH-H2O
23,174
Tonnes/year
Life of Project Revenue
8.52
Billion USD
Post-tax net “undiscounted” Cash Flow
3.75
Billion USD
Average Selling Price
13,500
USD/tonne
Cash Operating Costs
4,083
USD/tonne
Total Initial Capital Cost (CAPEX)
685
Million USD
Sustaining Capital
117
Million USD
Contingency
22.5
%
Average Annual EBITDA
225
Million USD
Pre-Tax NPV8%
1.62
Billion USD
Post-Tax NPV8%
974.6
Million USD
Pre-Tax IRR
27
%
Post-Tax IRR
21
%
Payback Period (After-Tax)
4.5
Years
Underground constrained mineral resources available at the PAK deposit for future consideration. PAK and Spark deposits are open in all directions and could provide potential resource expansion.
Assets Deposits
PAK Deposit • 9.3 Mt resource, average grade 2.04% Li2O, < 0.1% Fe2O3 • 500m strike length 300m deep estimated true width varying from 10 to 125m with a sub-vertical orientation (est. average of 45m) • Deposit remains open to depth and along strike to the northwest and southeast. • Produced a rare 7.2% concentrate similar to Albemarle’s premium product. • Life of Mine sample product qualified by glass/ceramics market.
Spark Deposit • At surface at least 2 times larger than the PAK pegmatite, • Widths greater than 100m, strike length of more than 300m. • Mineral grades and composition are similar to PAK Deposit and they are 2.3 km apart. • 3.3 million tonnes averaging 1.59% Li2O in the Indicated category • 15.7 million tonnes averaging 1.31% Li2O in the Inferred category • Deposit remains open in all directions • Current In-Fill drilling underway 12
Assets Discoveries
Resource Upside Bolt
• The pegmatite has been traced for over 600 m with zones up to 50 m wide. • Initial channel sampling has resulted in 1.5% Li2O over 36.4 m. • It is concordant with host rock and appears to be vertically emplaced.
Pennock A historical LCT Pegmatite showing 30 km northwest of the PAK Lithium Deposit was confirmed by channel sampling. • The outcrop (30mx16m) consists entirely of spodumene and quartz intergrowth (SQUI); • The entire channel of 16 metres grades 2% Li2O with a 12 m zone averaging 2.35% Li2O and averaged less than 0.1% Fe2O3 • The channel is part of a 1.5 km long pegmatite dyke; • Substantiates fertility of Ontario’s Electric Avenue for high-quality LCT pegmatites hosting rare low-iron spodumene. 13
Lithium Concentrates
High Quality, Low Impurity In 2020 Frontier produced a high quality spodumene concentrate product with an average grade of 7.2% lithium oxide (“Li2O”) and low impurities from the PAK Deposit composite sample. Lithium Rich Mineral Spodumene)
Lithium Mineral Concentrate
Chemical Conversion Plants
Direct Sales
Lithium Chemicals
Technical Market
Chemical Markets Glass Ceramics Continuous Casting
Fiberglass Glass-Ceramics Other
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Lithium Chemicals
Strategic Partners
Frontier has entered into a strategic partnership agreement with XPS Expert Process Solutions, a Glencore company, and a private hydrometallurgical expert, to develop a patent pending process for refining spodumene concentrate into battery quality lithium hydroxide.
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PAK Lithium Project
Accelerated Production Plan Vertically Integrated Lithium Chemicals
25 Year Project Life USD 225M run rate EBITDA $1.6B Pre-tax NPV 27% IRR
*The project timelines are estimates and subject to adverse developments in business and economic conditions in the principal markets. The optimized timeline is under study during 16 Pre-Feasibility Study.
Frontier belongs in your portfolio Great Asset North America's highest-grade, large tonnage hard-rock lithium resource in the form of a rare low-iron spodumene. In development stage with two deposits and significant exploration upside in the Great Lakes region. The Right Team Management and directors with approximately 30% ownership and decades of experience in resource extraction, refining and capital markets. A strategic technology partnership with XPS, a Glencore company, developing a lithium chemicals production process. Growing Market The Electric Vehicles lithium demand is expected to grow 10-fold this decade and it is in short supply of North American production. Post Covid policy related stimulus efforts supporting Northern US and Southern Ontario auto OEM manufacturers, are further advancing the EV adoption rate. 17
Frontier’s objective is to become a strategic regional supplier. www.frontierlithium.com 18