Frontier Lithium - North America's Most Advanced Lithium Company

About Frontier Lithium

Frontier Lithium is a Canadian mining company focused on becoming a fully integrated lithium producer in North America. The company is advancing its 100% owned PAK Lithium Project, located in northwestern Ontario, which hosts one of the largest and highest grade hard rock lithium resources in North America. The PAK project has probable reserves of 22 million tonnes (Mt) at 1.55% Li2O, making it a top tier lithium asset globally. Frontier Lithium's goal is to produce premium spodumene concentrates and ultimately lithium chemicals for the growing electric vehicle and battery storage markets in North America.

Interview with President & CEO, Trevor Walker

Advancing Towards Production

In recent months, Frontier Lithium has made significant progress advancing the PAK Lithium Project towards production. The company completed a positive Pre-Feasibility Study (PFS) in May 2023, outlining a two-phased development plan for the project. The PFS demonstrated robust economics for an initial spodumene concentrate operation, including an after-tax NPV of C$1.7 billion at an 8% discount rate and IRR of 24.1% over a 24 year mine life.

Encouraged by the PFS results, Frontier Lithium is now working to complete a Definitive Feasibility Study (DFS) and secure strategic partners to derisk project development. The company has commenced environmental baseline studies and permitting work streams in preparation for the DFS. Frontier also plans to engage engineering firms to optimize process design and site infrastructure as part of the study.

The DFS Phase 1 is expected to be complete within the next 12-18 months. This will pave the way for Frontier Lithium to make a Final Investment Decision on developing the spodumene concentrate operation at PAK after DFS Phase 1.

Funded to Construction Decision

An important aspect of Frontier Lithium's strategy is maintaining a strong financial position to see the PAK Project through to production. With C$22.3 million in cash and no debt as of June 2023, the company is fully funded to complete the upcoming DFS and make a construction decision.

The modular, staged development approach outlined in the PFS also provides flexibility from a financing perspective. This phased approach allows for efficient resource allocation, minimizes upfront capital expenditure, and de-risks project execution. The first phase will focus on producing spodumene concentrate to generate revenue supporting concurrent infrastructure development for the mine-to-lithium hydroxide chemical plant.

Implementing a phased development enables a streamlined, controlled process to thoroughly understand the resource base and optimize the refining process before chemical plant construction. This ensures the subsequent refinery build-up is efficient, well-informed, and aligned with market demand.

The modular, staged development approach provides flexibility from a financing perspective as PAK moves towards production.

Frontier Lithium's cash position removes dilution risks in the near term as the company advances PAK to the construction stage. Its concentrated share structure with management holding ~17% of shares also aligns interests with shareholders on the path to production.

Strategic Advantages

The PAK Lithium Project holds several strategic advantages that make it a premier development asset:

• High grades: PAK contains a top 1% deposit grade globally of ~2% Li2O, resulting in low costs and high product quality.
• Scale: PAK has proven reserves to support a long mine life and allows for significant production expansion over time.
• Existing infrastructure: The project benefits from proximity to roads, power and rail, reducing upfront infrastructure costs.
• Location: PAK is situated in a tier-1 mining jurisdiction and can supply the growing North American EV supply chain.
• By-product credits: Low impurity concentrates allow for production of glass-grade spodumene, capturing higher prices.
• Experienced team: Frontier has proven technical expertise to successfully develop and operate the project.

These attributes provide Frontier Lithium with key differentiators as an emerging lithium producer compared to exploration-stage peers.

Conclusion

Frontier Lithium represents a unique investment opportunity in the lithium sector. The company offers exposure to one of the top undeveloped lithium resources in a low-risk mining jurisdiction, with a clear path towards production in the next 2-3 years to meet surging lithium demand.

The PAK Lithium Project checks all the boxes in terms of its high grade, scale, existing infrastructure and strategic location proximal to the US electric vehicle supply chain. The recent PFS gives investors confidence in the project's strong economics and upside potential as lithium markets continue to tighten.

With its concentrated share structure and cash balance, Frontier Lithium is fully funded to advance PAK to a construction decision in 2024-2025. Near term catalysts include the completion of permitting, DFS study and securing strategic partners - all of which can drive a significant re-rating in the company's valuation.

For investors seeking leverage to the accelerating energy transition and electrification trend, Frontier Lithium represents a lower risk way to gain exposure compared to early stage explorers. As PAK moves down the development timeline towards production, Frontier's position as a future low-cost producer of lithium chemicals in North America will come into clearer focus - making it a compelling investment in the lithium space today.