About American Lithium

American Lithium is developing significant lithium projects in the Americas, as well as one of the planet's largest undeveloped uranium projects.

The Company looks to play a key role in the shift to a secure, sustainable new energy paradigm. With a focus on Nevada and Peru, the Company has the advantage of both geographic and geological diversity in developing significant, scalable projects.

The Company’s core assets are its TLC Lithium project in Nevada, the Preliminary Economic Assessment (PEA) / Pre Feasibility Study (PFS) level Falchani Lithium project, and the PEA-level Macusani Uranium project in Peru.

Summary

American Lithium’s TLC and Falchani Lithium projects are both advanced stage and are operating in mining friendly, tier-1 jurisdictions. With both projects combined, the Company has one of the world’s largest Lithium resource bases.

Led by an accomplished management team with a proven track record of value creation, American Lithium has a strong treasury that will help them execute the business plan, with many near-term catalysts and value drivers helping underpin a potential re-rating.

The TLC project, a near surface, claystone lithium deposit is strategically located in the heart of Nevada’s premier lithium trend and is within a 3-hour drive of Tesla’s Giga Factory. The project has significant environmental advantages, with access to water and no threatened or protected plants or wildlife. A comprehensive drill program is underway to expand and high-grade the large existing resource.

Falchani, located in Peru, is a large scale, high purity and hard rock near surface lithium deposit. The project has a robust PEA (published in 2020) with strong community support and no environmental risk (No endangered species, or archaeological or water issues). Work has recently commenced on an updated PEA and an Environmental Impact Assessment, and the Company will soon be launching a discovery drill program on several key additional targets.

The Macusani project is currently the world’s 5th largest undeveloped uranium deposit, and is a large, at surface resource with a low-cost profile and CapEx. The project offers numerous additional opportunities for expansion and discovery drilling, with a large drill program planned for late 2022, and an updated PEA thereafter.

Thesis

American Lithium is focused on building significant shareholder value by continuing to advance its three development stage projects– all of which exhibit robust supply/demand fundamentals and strong commercial potential.

Falchani’s base case discounted Net Present Value - at US$1.5 billion is well out of date on lithium pricing alone. However, with several accretive near-term milestones and value drivers, American Lithium has the prospect of a share price re-rating in near-term  

Macusani’s discounted NPV - at US$603 million - and its low-cost profile of US$17lb of uranium, one of the lowest in the industry, is highly compelling and has further growth potential through additional extension and infill drilling. As it is hard for a uranium project to attract an appropriate valuation/profile within a lithium developer, management is evaluating the best approach to maximize value from this Project for the benefit of the Company and its shareholders.

TLC’s maiden PEA will be a major milestone for the Company and is expected to reflect strong economics and strategic value based on its large resource, strategic location and benign environmental footprint.

Sector Dynamics

The lithium demand/supply imbalance bodes well for the continuation of robust lithium spot and contract prices and the need for new sources of supply as soon as possible. Currently, existing lithium production in the United States is limited to one sole mine producing approximately 4,000 tonnes per year of lithium by Albermarle, located in close proximity to TLC. This represents less than 1% of overall global lithium production and underscores the critical need for significant additional domestic production. Future development at TLC could help satisfy this urgent need.

Additionally, the M&A (Mergers & Acquisitions) space in the lithium sector has continued to be highly active with several large transactions and increasingly high prices being paid for quality assets.

Elon Musk recently pleaded for more investment in lithium: "If those other sources of lithium are not developed relatively quickly, in the latter half of the decade, we definitely run a very high risk of not having sufficient lithium,". And according to the International Energy Agency’s July report, “we need hundreds of new mines ASAP to meet EV battery metals demand by 2030.”

Risks

The ownership of 32 of 151 concessions held by the Company’s Peruvian subsidiary, Macusani, are subject to Administrative and Judicial Processes.  Recent court rulings in the Company’s favour provide confidence that this dispute will ultimately be resolved in its favour, but if it is not, there would be a material impact on the PEA’s.

Political Risk: Falchani and Macusani projects are located in Peru, even though it is a constitutional republic with a well-established legal system and supportive mining code, there has been recent political instability which has caused delays and uncertainty.  

Execution Risk: The Company is attempting to advance the development of all three projects which can be a complicated undertaking, including the possibility of unanticipated events causing delays in project timelines.  

Commodity price risk: Any sustained weakness in the price of lithium and uranium has the potential to negatively impact values; however, long-term price forecasting suggests lithium carbonate spot prices and long-term contract prices will remain very robust for years to come with analysts also predicting a sustained period of strong uranium prices  

Legislative/technical risk: Lithium demand is being driven by legislation focused on reducing carbon footprints globally. Any change to this approach could impact the pace of EV adoption, which could negatively impact lithium demand. Similarly, should a viable alternative to lithium-ion batteries be developed, that could also have longer-term impacts on lithium pricing.

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