CleanTech Lithium

Overview

CleanTech Lithium (CTL) (AIM:CTL,FWB:T2N,OTC:CTLHF) is a resource exploration and development company with four lithium assets with an estimated 2.7 million tonnes (Mt) of lithium carbonate equivalent (LCE) in Chile’s Lithium Triangle, a world-renowned mining-friendly jurisdiction. The company’s mission is to be a leading supplier of ‘green’ lithium to the electric vehicle (EV) market by using direct lithium extraction (DLE) – a low-impact, low-carbon and low-water method of extracting lithium from brine – powered by renewable energy sources.

Lithium demand is soaring as a result of a rapidly expanding EV market. One study estimates the world needs 2 billion EVs on the road to meet global net-zero goals. Yet, the gap between supply and demand continues to widen. As the world races to secure new supplies of the critical mineral, Chile has emerged as an ideal investment jurisdiction with mining-friendly regulations and a skilled local workforce to drive towards a clean green economy.

With an experienced team in natural resources CleanTech Lithium holds itself accountable to a responsible ESG-led approach, a critical advantage for governments and major car manufacturers looking to secure a cleaner supply chain.

The company’s assets are all located in Chile and amenable to eco-friendly development. Laguna Verde, CleanTech’s flagship asset, is poised for near-term green lithium production by the end of 2025, with a resource estimate of 1.8 Mt of lithium carbonate equivalent (LCE). Approximately 100 kilometers south of Laguna Verde is the company’s second flagship asset, Francisco Basin, with a JORC-compliant inferred resource estimate of 0.5 Mt of LCE. Both projects are more than 4,200 meters above sea level posing minimal risk to biodiversity and impact on local communities.

The Llamara Project is a greenfields asset located in the Antofagasta region and is around 600 kilometers north of Laguna Verde and Francisco Basin. The area totalling 344 square kilometers is located in the Pampa del Tamarugal basin, one of the largest basins in the lithium triangle.

CleanTech Lithium is committed to an ESG-led approach and supporting its downstream partners by producing the greenest lithium in the market. In line with this, the company will use renewable energy and the eco-friendly DLE process across its projects. DLE is widely considered the best option for lithium brine extraction that makes the least environmental impact, with no evaporation ponds, no carbon-intensive processes and reduced levels of water consumption. In recognition, Chile’s government plans to prioritize DLE for all new lithium projects.

Chile is rapidly becoming a world-leader in renewable energy and has ambitious goals of converting 70 percent of its total energy consumption to renewables by 2030. This strategy provides CleanTech the opportunity to power its Chile operations with clean energy. The country has the most lithium reserves globally, with 9.3 million metric tonnes.

CTL’s experienced management team, with expertise throughout the natural resources industry, leads the company towards its goal of producing green lithium for the EV market. Expertise includes geology, lithium extraction engineering and corporate administration.

Company Highlights

• CleanTech Lithium is a lithium exploration and development company with four notable lithium projects in Chile, totaling more than 1,250 square kilometers of licensed areas and lithium resources exceeding 2.7 million tonnes of lithium carbonate equivalent.
• The company aims to become a leading supplier of ‘green’ lithium to the EV market through environmentally and socially sound practices across its assets and corporate culture.
• Chile is quickly becoming a global leader in clean energy, which enables the company to take advantage of the existing renewable power throughout its operations.
• The company will leverage direct lithium extraction (DLE), a proven* method for extracting lithium brine that minimizes environmental impact and reduces production time, resulting in high-quality, battery-grade lithium.
• The company has a DLE pilot plant being assembled at a warehouse facility in Copiapó, Chile, which will be up and running by early 2024.
• CleanTech Lithium’s flagship projects, Laguna Verde and Francisco Basin, are located near reliable renewable power sources and transport infrastructure that can support the scalability of each project.
• The company’s third highly prospective asset, Llamara, is undergoing exploration and represents blue-sky opportunities for additional lithium discoveries. The latest project area is in the Salar de Atacama which holds the largest lithium reserves in the world. Initial geophysical work is underway.
• An experienced management team with the right blend of expertise leads the company towards its goal of supplying the growing EV market with eco-friendly lithium,
• CleanTech’s operations are underpinned by an established ESG-focused approach - a critical priority for governments introducing regulations that require a cleaner supply chain to reach net-zero targets.

*DLE plants operating successfully in Argentina and China

Key Projects

Laguna Verde Lithium Project

The company’s flagship Laguna Verde asset covers 15.2 square kilometers with a prolific JORC-compliant resource estimate and is on course for near-term production by late 2025. The project is also ideally located for transporting lithium, with a paved highway running from the project to the major mining center of Copiapó.

Project Highlights:

• Near-term Production Path: CleanTech has completed a four-well drilling program in 2022 and is moving towards production by late 2025. A scoping study was completed in December 2022, and the company is now undertaking a pre-feasibility study (PFS).
• Prolific JORC-compliant Resource Estimate: As of July 2023, the asset's current JORC-compliant resource estimate has an indicated upgraded estimate of 1.8 million tonnes of LCE at a grade of 200 mg/L lithium. This upgrade includes a significant increase (39 percent) in the measured and indicated resource to 1.1 million tonnes LCE, including a large increase (174 percent) in the measured resource.
• Environmentally Friendly Extraction: The company’s asset is amenable to DLE. Instead of sending lithium brine to evaporation ponds, DLE uses a unique process where resin extracts lithium from brine, and then re-injects the brine back into the aquifer, with minimal depletion of the resources. The DLE process reduces the impact on environment, water consumption levels and production time compared with evaporation ponds and hard-rock mining methods.
• DLE Pilot Plant: CTL ordered the US$2-million DLE pilot plant from Sunresin in Q1 2023 designed for process optimization. The pilot plant also aims to produce a purified concentrated eluate that will feed the downstream process to deliver 1 tonne per month of LCE for product qualification by potential offtakers and strategic partners. Commissioning of the plant is expected to be finalized in Q4 2023.

Francisco Basin Lithium Project

CleanTech Lithium’s secondary asset covers 110 square kilometers, with a current resource estimate indicating high-grade lithium for the global battery market. The company will soon begin its second drill campaign to extend known deposits further.

Project Highlights:

• New 2022 Lithium Discovery: Recently completed brine samples from the initial drill campaign indicate an average lithium grade of 305 mg/L.
• JORC-compliant Estimate: Based on completed assays, the inferred resource estimate was recently upgraded from 0.5 Mt to 0.92 Mt of LCE at an average grade of 207 mg/L lithium, which now includes 0.44 million tonnes at an average grade of 221 mg/L lithium in the indicated category.
• Additional Drilling Scheduled: CleanTech Lithium will soon begin its second drill campaign to extend known deposits and will then proceed with a pre-feasibility study.

Llamara Lithium Project

The Llamara project is one of the largest greenfield basins in the Lithium Triangle, covering 344 square kilometers of claims that have never been drilled. However, historical exploration results indicate blue-sky potential, prompting the company to pursue additional exploration.

Project Highlights:

• Promising Historical Exploration: The asset has never been drilled; however, salt crust surface samples indicate up to 3,100 parts per million lithium. Additionally, historical geophysics lines indicate a large hypersaline aquifer. Both of these exploration results indicate potential for significant future discoveries.
• Close Proximity to Existing Operations: The Llamara project is near other known deposits:
  • Atacama (SQM / Abarmale): 18,100 square kilometers
  • Hombre (Muerto Livent): 4,000 square kilometers
  • Pampa del Tamarugal (CleanTech): 17,150 square kilometers

Management Team

Steve Kesler - Executive Chairman and Interim CEO

Steve Kesler has 45 years of executive and board roles experience in the mining sector across all major capital markets including AIM. Direct lithium experience as CEO/director of European Lithium and Chile experience with Escondida and as the first CEO of Collahuasi.

Gordon Stein - Chief Financial Officer

Gordon Stein is a commercial CFO with over 30 years of expertise in the energy, natural resources and other sectors in both executive and non-executive director roles. As a chartered accountant, he has worked with start-ups to major companies, including board roles of six LSE companies.

Tommy McKeith - Independent Non-executive Director

Tommy McKeith is an experienced public company director and geologist with over 30 years of mining company leadership, corporate development, project development and exploration experience. He's held roles in an international mining company and across several ASX-listed mining companies. McKeith currently serves as non-executive director of Evolution Mining and as non-executive chairman of Arrow Minerals. Having worked in bulk, base and precious metals across numerous jurisdictions, including operations in Canada, Africa, South America and Australia, McKeith brings strategic insights to CTL with a strong focus on value creation.

Jonathan Morley-Kirk - Senior Independent Non-executive Director

Jonathan Morley-Kirk brings 30 years of experience, including 17 years in non-executive director roles with expertise in financial controls, audit, remuneration, capital raisings and taxation/structuring.

Maha Daoudi - Non-executive Director

Maha Daoudi has more than 20 years of experience holding several Board and senior-level positions across commodities, energy transition, finance and tech-related industries, including a senior role with leading commodity trader, Trafigura. Daoudi holds expertise in offtake agreements, developing international alliances and forming strategic partnerships.

Dermot Boylan - Group Financial Controller

Dermot Boyla is a fellow of the Institute of Chartered Accountants Ireland. Dermot brings extensive international, technical, corporate and commercial finance experience from the natural resources sector and more recently from within the small-cap AIM-listed corporate environment.

Alvaro Florez - Legal Manager

Alvaro Florez Keim joins CTL as legal manager in Chile. Alvaro is a lawyer qualified in Chile and Australia, with 12 years of experience focused on mining, corporate matters and project development in Chile and Australia.

Marcela Sepúlveda - Community Relations Manager

Marcela Sepúlveda is a professional with more than 15 years of experience in areas related to community development, with focus on the development of local skills, promotion of territorial development and the creation of public, private and community alliances. Worked in the mining industry, mainly in the Atacama Region and in the NGO sector.

Rodrigo Rivas - DLE Processes Manager

Rodrigo Rivas is a metallurgical engineer with extensive experience in quality management, processes and production of lithium carbonate and hydroxide plants. He was directly responsible for the start and development of battery-grade lithium production at SQM and Orocobre.

Geraldine Carmona - Finance Manager

Geraldine Carmona joins CTL as finance manager in Chile and is a certified public accountant in both Venezuela and Chile. Geraldine gained extensive experience from her time at PwC and KPMG. Since moving from practice to industry, Geraldine has focused on working with environmental and renewable energy companies in Chile.

Sabine Macaya - Operations Manager

Sabine Macaya is an industrial engineer and mathematician with more than 25 years of experience in operations of multinational companies from different industries such as mining, retail, pharmaceuticals, achieving successful results leading to an ascending career to corporate level.