Frontier Lithium

“At a pivotal moment for clean energy transitions worldwide, we are encouraged by the rapid growth in the market for critical minerals, which are crucial for the world to achieve its energy and climate goals. Even so, major challenges remain. Much more needs to be done to ensure supply chains for critical minerals are secure and sustainable.”

- Fatih Birol, Executive Director, International Energy Agency, July 11, 2023

Mining is finally on the policy agenda of the world’s most advanced economies – the United States, Japan, Germany, France, the United Kingdom, Italy, Canada. Efforts are underway to cut reliance on China and Russia who dominate production of the critical minerals essential for green energy solutions. ‘Friendshoring’ is the word of the moment, encouraging these G7 countries to work together to secure and sustain responsible sources of critical minerals to help meet our net-zero ambition.

The most ‘critical’ mineral? Lithium. To feed lithium-ion batteries that power and recharge electric vehicles and energy storage systems.  Our ticket to unlock sustainable transportation.

Billions of dollars have been committed to build a robust North American EV supply chain - from the raw materials in Northern Canada, to the manufacturers along the US-Canada border, to the environment-conscious consumer across the continent and around the world.

With growing demand for electric vehicles and the race among battery manufacturers and automotive companies to secure a stable supply of raw materials, the lithium investment thesis is compelling. Most especially for high-quality lithium projects in Tier-1 jurisdictions like Canada, vertically integrated into this fledging North American EV supply chain. Just like Frontier Lithium’s PAK Project.

In 2020, a World Bank Group study found that the production of minerals, such as lithium, graphite, and cobalt, could increase by nearly 500% by 2050, to meet the growing demand for clean energy technologies.

The surging demand for lithium due to rapid growth in battery storage and the EV industry is driving demand for high-quality lithium projects.  The race is on to produce [more] lithium and the drive for North American sources of lithium has expanded the potential for responsible mining and extracting closer to market.

As EV production surges, there is an unprecedented level of competition emerging among OEMs for offtake agreements with high-quality lithium projects in Tier-1 jurisdictions like Canada.

Frontier Lithium’s PAK Project, located in the Great Lakes region of Northwestern Ontario, contains one of North America’s highest-grade, large-tonnage hard-rock lithium resources. The project is 2-3 years away from construction, a relatively short timeframe within the urgent need to feed the aggressive growth in EV production.

The PAK Lithium Project: favourably positioned to feed into the long-term demand for lithium and capitalize on its significance in the industry

Frontier Lithium’s PAK project contains an exceptional spodumene deposit, a mineral known for its high lithium content and high rate of extraction. This deposit, located within a vast 27,000 hectares lang package, has remarkable attributes:

• Substantial tonnage
• High-grade mineral content
• Low iron content
• Low stripping ratio
• Potential for extended mine life

Once in production, the PAK project aims to be among the top 3 in hard rock lithium on the continent, with high margin and high value to the lithium market. The low iron content is particularly desirable for producing battery-grade lithium chemicals, ensuring high purity and enhanced value of derived lithium products.

Currently, the pre-feasibility study includes just one-third of the identified resources on the property, with a post-tax NPV of US$1.74Billion.

Strategic Minerals in a Strategic Location

The PAK Project has favourable geology and proven metallurgy.  It is also in a favourable location.

The PAK project's location in the Great Lakes region, near the Ontario - Northern United States border, is an ideal site for both mining operations and downstream lithium processing facilities. It will enjoy access to robust and vital infrastructure; reliable, renewable, and affordable power supply; a skilled local workforce; and access to international transportation hubs, facilitating seamless integration into local supply chains.

The project's strategic advantage is its proximity to the lucrative markets of the United States and the European Union. This significantly reduces transportation costs and enables swift access to these high-demand markets for both lithium raw materials and manufactured lithium-ion batteries. With streamlined supply chain management and rapid response times, the project will feed into the escalating demand for lithium products in an operationally efficient and cost-effective manner.

Canada is a mining-friendly jurisdiction, with supportive and proactive governments at the municipal, provincial and federal levels. This support is demonstrated by over $20 billion in government commitments to attract and build an EV supply chain in Ontario and Quebec.  Over the past three years, new investments have been incentivized and secured by major automotive companies, including Canada’s first EV battery gigafactory in Windsor (LG Energy Solution/Stellantis JV), Umicore’s first cathode active materials (CAM/pCAM) production facility near Kingston, and VW/PowerCo’s first gigafactory in North America in St. Thomas.

Canada's recognition as a domestic source of critical minerals under the U.S. Defense Production Act, along with the potential eligibility for IRA incentives, further enhances the project's appeal.

A Management Team that is always moving forward

Frontier Lithium is led by a strong management team and Board of Directors with decades of experience in making resource discoveries, developing projects, operating mines and refineries, and raising capital in the public markets. With approximately 17% ownership, management and Board interests are completely aligned with shareholders and a shared commitment to the project’s success.

With its world-class lithium asset, the company has attracted highly knowledgeable team members with key experience in the lithium mining sector and seasoned professionals with extensive expertise in building and operating lithium chemical plants.

This Frontier Lithium team is acutely aware that every interaction and every decision has an impact on the environment, on local indigenous communities, and across the entire supply chain to the end consumer. Driven by a legacy determined by positive impact at the end of the day, the company is steadfast in its purpose to stimulate the growth and prosperity of Northern Ontario and actively contribute to the low carbon future we are striving for today and for future generations.

Frontier Lithium: A company well-equipped to thrive in the competitive lithium market

Frontier Lithium is a highly attractive investment opportunity, with its PAK Project containing one of North America’s highest-grade, large-tonnage hard-rock lithium resources in the form of an extraordinary low-iron spodumene, strategically located in the Great Lake Regions of Canada/Northern United States and led by a management team with expertise second to none.  It will be high-margin, low-cost producer.

The lithium market presents a compelling catalyst to invest today, given the immense potential from automotive OEMs and battery manufacturers looking to establish a steady and dependable supply of raw materials to support the booming EV market.