Frontier Lithium - A Promising Lithium Exploration Company in Ontario's Great Lakes Region

About Frontier Lithium

Frontier Lithium is a Canadian exploration and development company focused on becoming an integrated strategic supplier of spodumene concentrates and high purity lithium chemicals in North America. Frontier's flagship project is the PAK Lithium Project located in northwestern Ontario, which contains North America’s highest grade lithium resource and is the second largest lithium deposit in North America. The company has been actively exploring and developing the PAK project since 2013.

Frontier Lithium’s Goal of Being a Major Lithium Supplier in North America

Frontier Lithium aims to capitalize on the rapidly growing demand for lithium, driven by the electric vehicle and energy storage markets. The company is working towards becoming a fully integrated lithium producer, supplying spodumene concentrate to the glass-ceramics industry and producing battery-grade lithium hydroxide for lithium-ion batteries.

Frontier’s deposits and resources provide the potential feedstock to achieve large-scale, low-cost production in a mining-friendly jurisdiction close to major battery manufacturers in the United States. The PAK Lithium Project could position Frontier as a major lithium supplier in the North American electric vehicle supply chain.

Latest Drilling Results Expand Mineralization at PAK Lithium Project

In September 2023, Frontier Lithium announced the latest drilling results from its PAK Lithium Project near Red Lake, Ontario. Four drill holes were completed at the Spark pegmatite deposit, with hole PL-133-23 intersecting 108.4 meters averaging 2.12% Li2O. This extended the high-grade northwest zone at Spark by 90 meters to the west.

The results also included several high-grade intercepts within the broader mineralized zone, including:

• 7.6 meters averaging 3.58% Li2O
• 6.1 meters averaging 3.16% Li2O
• 4.2 meters averaging 3.36% Li2O

This new high-grade intersection indicates potential for resource expansion at depth and along strike at Spark. According to VP of Exploration Garth Drever, the elevated lithium assays could suggest the drilling is approaching a more evolved section of the pegmatite with higher levels of fractionation. This is significant, as it opens up the possibility of discovering a premium “tier 1” technical grade spodumene zone.

In addition, channel samples at a potential western extension of Spark, located 1 kilometer away, returned 18 meters averaging 2.16% Li2O. This included a 6 meter section averaging 3.27% Li2O. While early stage, this highlights the potential for new discoveries and resource expansion around the known Spark deposit.

Overall, the latest results from Spark are encouraging for Frontier Lithium, demonstrating resource growth potential and possible discovery of higher-grade mineralized zones as drilling continues at depth and along strike.

Upgrading Spark Deposit and Advancing Towards Definitive Feasibility Study

The other three drill holes at Spark focused on upgrading the classification of near-surface mineralization to the Indicated resource category. These holes confirm the lithium-bearing pegmatite zone modelled in the southwest area of Spark, although grades were variable throughout with intersects of aplite.

This program advanced Frontier towards completion of a Pre-Feasibility Study for the PAK Lithium Project. The company released a PFS in May 2023 demonstrating strong economics for a 24-year open pit mining operation across the Spark and PAK deposits. The PFS showed an after-tax NPV of US$1.74 billion and 24.1% IRR based on $750/tonne spodumene concentrate pricing.

While the PFS mine plan only utilized Indicated resources from drilling up until 2022, Frontier intends to upgrade more of the Spark deposit to Indicated status. This would allow incorporation of these areas into a potential "starter pit" scenario, enhancing early cash flow for the project.

With the latest drilling, ongoing exploration, and advancing engineering studies, Frontier Lithium is steadily de-risking and optimizing its PAK Lithium Project.

The Spark of a Lithium-Rich District in Northwest Ontario

Frontier Lithium’s PAK Lithium Project is located in the Great Lakes region of northwestern Ontario, approximately 20 km north of the Manitoba-Ontario border. It is situated close to the Winnipeg River and power, rail, shipping and transportation infrastructure.

The project encompasses around 27,000 hectares with significant exploration upside across a vastly underexplored land package. Only 3% of the total claims have been drill tested so far. Since acquiring the project in 2013, Frontier has established the Spark and PAK deposits and made other lithium discoveries at Bolt and Pennock.

The Spark and PAK pegmatites are part of the larger Paint Lake pegmatite field. Exploration by Frontier and historical work has revealed a district-scale lithium-cesium-tantalum (LCT) pegmatite belt substantial enough to support a multi-generational mining operation.

Spark Discovery Leads to Highest-Grade Resource in North America

Spark was discovered through grassroots exploration and prospecting by Frontier Lithium in 2014. It quickly emerged as a high-grade lithium deposit, despite its small surface exposure.

With continued drilling, Spark has grown to be the highest grade lithium resource in North America at 2.1% Li2O Indicated and 2.2% Li2O Inferred.

Located just 2.3 km east of PAK, Spark also benefits from its proximity to the main deposit that forms the basis for Frontier’s development plans. Metallurgical test work has shown Spark material performs exceptionally well, producing a high-quality spodumene concentrate.

Spark has an estimated resource of 14.7 million tonnes Indicated and 25.5 million tonnes Inferred, making it the second largest lithium deposit at PAK after the main PAK deposit. With continued exploration and resource expansion, Spark provides significant additional tonnage and upside potential to complement PAK within a centralized mining operation.

PAK Deposit: Among the Largest and Most Valuable in North America

The PAK Lithium Deposit was discovered in the early 2000s and acquired by Frontier Lithium in 2013, when it contained an initial Inferred resource estimate of 9.5 million tonnes averaging 2% Li2O.

Through several phases of drilling, Frontier has delineated PAK into a much larger deposit with higher grades. The current resource estimate stands at 15.5 million tonnes of 2.3% Li2O Indicated and 18.6 million tonnes of 2.1% Li2O Inferred, ranking PAK as the second largest lithium resource in North America.

With its size, grade, advanced project status and central location, the PAK deposit will form the crux of Frontier’s production plans as an open-pit mining operation. PAK hosts premium technical-grade spodumene, with metallurgical testwork achieving concentrate grades up to 6.3% Li2O.

Low-cost production of a high-purity spodumene concentrate from PAK will position Frontier as a competitive supplier to lithium conversion facilities and the glass-ceramics industry. Furthermore, the deposit has shown potential to produce battery-grade lithium hydroxide through further processing on site.

Fully Integrated Production to Capitalize on Lithium Market Growth

A May 2023 Pre-Feasibility Study outlined a 24-year open-pit mining project at PAK, producing 175,000 tonnes per year of spodumene concentrate. This integrated project scope includes an on-site lithium hydroxide chemical plant, adding significant value through downstream processing.

The PFS base case evaluated producing 5,000 tpa lithium hydroxide from 26,000 tpa of spodumene. However, Frontier is also evaluating an expansion scenario to produce 20,000 tpa lithium hydroxide.

With top North American battery makers like GM and Ford driving demand growth right on Frontier’s doorstep, the PAK Project is strategically positioned to capitalize on rising lithium prices and become a key domestic supplier.

Conclusion

As a pre-production lithium company, Frontier Lithium represents an attractive investment opportunity to capitalize on the surging lithium market, driven by the global energy transition and electric vehicle boom.

With its flagship PAK Lithium Project, Frontier controls a premier lithium resource with the potential to become a long-life, low-cost producer. PAK contains the highest grade lithium deposit in North America along with mineralization amenable to simple processing into both spodumene concentrate and lithium hydroxide.

The project benefits from its proximity to key infrastructure in northern Ontario's Great Lakes region, with easy access to road, rail, power and a skilled local workforce. Expanding high-grade resources, positive metallurgy and advanced engineering studies continue to derisk PAK and enhance its fundamental value.

As an early mover poised to achieve fully integrated lithium production, Frontier Lithium is in a strong position to take advantage of rising prices and demand growth from the surging EV and battery storage markets. With continued exploration success and project development milestones, Frontier has visible catalysts that could drive substantial shareholder value growth.

For investors looking to gain exposure to the lithium sector, Frontier Lithium offers an attractive risk-reward opportunity. With its clear path towards production in a premier mining jurisdiction, Frontier has the potential to emerge as a leading lithium supplier feeding the booming battery industry in North America.