Li-FT Power - Everything You Need to Know August 2023

Li-FT Power is a Canadian mineral exploration company focused exclusively on consolidating and advancing hard rock lithium projects within Canada. The company was founded in 2021 and went public in early 2023 under the ticker LIFT on the Canadian Securities Exchange.

Li-FT Power aims to establish itself as a leading lithium exploration and development company in Canada through systematic exploration of its portfolio of lithium pegmatite projects. The company's assets demonstrate exceptional potential yet have seen limited modern exploration until now.

The surge in lithium demand driven by electric vehicles has sparked a global race to develop new lithium mines. Li-FT Power represents a unique opportunity to invest in the heart of this rapidly growing lithium industry through exposure to highly prospective Canadian lithium projects positioned to contribute to rising future supply needs.

Company Overview

Li-FT Power is headquartered in Vancouver, British Columbia and has assembled an experienced management team and board with backgrounds spanning mineral exploration, mining finance, and the lithium industry.

The company is led by CEO Francis MacDonald, an exploration geologist who previously worked with major mining company Newmont, and President Alex Langer who has raised over $500 million for mining projects throughout his capital markets career.

Advisor Martin Steinbild brings over 25 years of lithium industry experience including senior roles with Albemarle Corporation, the world's largest lithium producer. The team's blend of exploration experience and lithium expertise ideally positions the company to explore and develop its assets.

Li-FT Power's exploration strategy focuses on consolidating and advancing hard rock lithium pegmatite projects within Canada. Hard rock lithium refers to deposits containing the lithium-bearing mineral spodumene. The company sees an opportunity to apply modern systematic exploration techniques to known lithium districts and pegmatites to unlock value that historical work has only glimpsed.

The company's project portfolio currently consists of three projects located in the Northwest Territories and Quebec. Flagship assets include the Yellowknife Lithium Project where drilling is underway and the Pontax Project which has generated an 8km long lithium anomaly. The company is well-financed to continue advancing all projects concurrently.

Surging Lithium Demand

Lithium has emerged as a critical mineral in the global transition towards electric transportation. As a vital component in lithium-ion batteries, lithium demand is projected to experience exponential growth over the coming decade driven predominantly by surging adoption of electric vehicles.

Electric Vehicle Demand Driving Growth

Global production of Lithium Carbonate Equivalent (LCE) in 2022 was 737,000 tonnes. This is expected to reach 964,000 tonnes in 2023 and 1,167,000 tonnes in 2024, according to the Resources and Energy Quarterly Report by the Australian Department of Industry, Science and Resources in March. Due to proliferation of electric vehicles, most market forecasts expect lithium demand to expand 5 to 10 times by 2030.

Consultancy Benchmark Mineral Intelligence predicts lithium demand reaching up to 6 million tonnes by 2030 in their most aggressive forecast driven by electric vehicles. Mainstream automakers have announced plans to electrify large portions of their fleets over the next decade accelerating the impulse for lithium batteries.

Other demand forecasts vary but generally predict lithium demand growing 3 to 5 fold within the next 5-10 years. Achieving these growth trajectories will require enormous investment in new lithium projects worldwide in order to expand supply sufficiently.

Long-Term Supply Shortfalls

The lithium industry is facing structural supply shortfalls due to underinvestment in new projects for many years prior. Leading lithium producers such as Albemarle have suggested the industry needs over $10 billion in investment this decade to meet projected demand growth.

Very few new lithium projects are set to materially impact supply before 2025. With demand forecast to more than double within that timeframe, large supply deficits are expected to persist for years. This imbalance has driven lithium prices approximately 5 to 10 times higher over the past two years.

Surging prices have finally compelled major investment back into lithium project development. However, the lead time to discovery and production for new projects means shortfalls are likely for the foreseeable future. This anticipation of multi-year tightness has enthused capital markets about the lithium investment outlook.

Bullish Investment Outlook

Lithium exploration companies have attracted enormous investor interest due to the positive structural dynamics of the lithium market. Equity valuations have increased substantially as investors position for the impending growth trajectory.

The excitement has been focused on companies advancing projects with clear potential to contribute to future lithium supply. Hard rock lithium assets have become exceptionally sought after due to faster development timelines compared to brine projects.

Overall, the investment outlook for the lithium space remains supremely bullish supported by the irreversible energy transition megatrend toward electrification. For lithium exploration companies like Li-FT Power, demonstrating clear pathways to production can result in substantial shareholder returns in this environment.

The macroeconomic trends reshaping global lithium demand offer a generational opportunity. Li-FT Power is well positioned to capitalize through systematic exploration of its highly prospective lithium pegmatite projects.

Yellowknife Lithium Project

The Yellowknife Lithium Project represents Li-FT Power's flagship asset located 50 kilometers east of Yellowknife, capital of the Northwest Territories. The project consists of 13 high-grade spodumene pegmatite deposits contained within a district spanning over 60 kilometers of strike.

The Yellowknife pegmatites were initially discovered in the 1940s with exploration in the 1950s and 1970s. This work returned exceptional lithium grades from sampling and limited drilling, confirming the district's immense potential. However, due to shifting company priorities at the time, the project saw little subsequent work leaving it underexplored compared to other lithium districts globally.

Li-FT Power assembled Yellowknife in 2022 and immediately commenced exploration to evaluate its world-class potential. The company aims to delineate an initial resource in 2024 that could position Yellowknife among the largest hard rock lithium deposits globally. Advancing this forgotten lithium district represents an exceptional opportunity to create significant value for Li-FT Power shareholders.

Exceptional Infrastructure

The Yellowknife Lithium Project benefits from proximity to first-class infrastructure by Canadian mining standards. The city of Yellowknife provides a skilled local workforce, camp accommodations, equipment and service providers to support exploration.

More critically, Yellowknife is linked by Highway #4 which passes within 10 kilometers of 7 of the lithium pegmatite deposits. This two-lane paved highway provides easy access directly to the largest pegmatites in the district. It continues 200 kilometers east to Hay River where rail facilities provide access to port facilities.

A seasonal barge route across Great Slave Lake directly links Yellowknife and Hay River during summer months. This exceptional transportation infrastructure positions Yellowknife favorably compared to remote Canadian lithium projects where access issues persist. Energy infrastructure also exists locally given Yellowknife's long mining history.

Yellowknife's turnkey access to road, rail, barging and energy provides a major advantage that will benefit downstream development. It fundamentally differentiates the project compared to lithium deposits across Canada lacking basic infrastructure.

World-Class Surface Expression

The lithium pegmatites at Yellowknife have near 100% exposure at surface which allows their full dimension and size potential to be clearly delineated. This exceptional exposure is unique compared to most lithium projects where the deposits are concealed under glacial overburden or at depth.

The largest pegmatite, known as Fi Main, extends continuously at surface for 1.8 kilometers in length and up to 20 meters in width based on mapping. The complete exposure allows even early stage estimates of tonnage potential by simply noting its surface dimensions.

In total, over 10 kilometers of aggregate pegmatite strike length is exposed at surface with individual dykes ranging from 500 meters to 1,800 meters long and 5 to 25 meters wide. This remarkable surface expression clearly highlights the immense size potential of the Yellowknife lithium district prior to drilling.

Historical Drilling Confirms High-Grades

Yellowknife is not an early stage grassroots project. Historical work from the 1950s to 1980s showed high lithium grades from sampling and limited drilling which confirms the exceptional prospectivity.

Canadian Superior Exploration completed the most extensive historical exploration in the 1970s. Their channel sampling across the pegmatites returned grades consistently ranging from 1% to 2% Li2O which are exceptional grades by global standards.

Limited drilling completed by Canadian Superior generally intercepted comparable grades and widths to the surface sampling. Overall approximately 3,400 meters has been drilled at Yellowknife historically in 23 holes. This work confirmed continuity of grade and thickness at depth but more importantly showed that the tremendous size potential evidenced at surface persists below the surface.

The historical work left no doubt that a district-scale lithium system exists at Yellowknife. Li-FT Power's drilling will focus on quantifying the sheer size based on the grades and thicknesses already demonstrated.

2022-2023 Exploration Program

Upon acquiring Yellowknife in 2022, Li-FT Power moved quickly to commence exploration. The company established a 49-person camp on site and signed agreements with local Indigenous groups who are supportive of the project's development.

The company also initiated environmental baseline studies and geotechnical surveys to support future permitting. However, the centerpiece was launching a 45,000 meter diamond drill program in mid-2023 to start quantifying the project's immense potential.

This drill program remains ongoing at the time of writing in mid-2023. Approximately 15,000 meters of drilling had been completed by August across several of the larger pegmatite targets. Initial results reported in July returned wide intercepts of pegmatite grading up to 1.5% Li2O.

These early results showcase the project’s tremendous size potential and continue validating the exceptional historic grades. The company remains on track to complete the program by late 2023. Once final results are received, Li-FT Power aims to deliver a maiden resource estimate by mid-2024 and a preliminary economic assessment by the end of 2024.

Clear Pathway to Tier 1 Resource

Li-FT Power acquired Yellowknife because of its demonstrated potential for a world-class lithium resource despite limited modern exploration. Based on the company's early work, this potential is rapidly being confirmed.

Preliminary modeling by the company suggests Yellowknife could potentially host over 100 million tonnes grading 1% Li2O or higher based on the continuity of surface mineralization observed. This scale would rival the top hard rock lithium resources globally. As drilling progresses, the company may ultimately prove up something significantly larger.

The grades and thicknesses reported historically and in early drilling provide a strong indication of what is achievable. The sheer size will come down to drill density across the 14 kilometers of aggregate strike length identified to date. The exceptional exposure means the drill targets are clearly defined.

In summary, Li-FT Power has a clear pathway at Yellowknife to potentially delineate a top 10 global lithium resource. Drilling will focus on executing this program systematically. Delivering such a sizable maiden resource would re-rate Li-FT Power as a marquee lithium exploration story in the mining space. The scale potential at Yellowknife warrant such ambitious targets.

Quebec Lithium Projects

In addition to Yellowknife, Li-FT Power controls over 2,300 km2 of highly prospective lithium properties in the James Bay region of Quebec proximal to the world-class Whabouchi lithium deposit. The projects were acquired to target lithium pegmatites concealed beneath glacial sediments.

Two main project areas called Rupert and Pontax have been the focus of early exploration. Systematic geochemical sampling programs in 2021-2022 generated large lithium anomalies that are interpreted to represent buried lithium pegmatite deposits. The company has commenced drilling at Rupert and will mobilize an initial drill program at Pontax in coming months.

The early success generating such large drill targets highlights the prospectivity of Li-FT Power's Quebec lithium portfolio. While still early stage, these projects provide significant blue sky potential to the company as exploration ramps up in the world's best mining jurisdiction.

Rupert Project

The 1,000 km2 Rupert project represents Li-FT Power's most advanced Quebec lithium asset. The project completely surrounds the Whabouchi lithium deposit which hosts a world-class resource of 37 million tonnes at 1.4% Li2O based on NI 43-101 reports.

Whabouchi demonstrates that Rupert encompasses a highly fertile lithium district. However, unlike Yellowknife, the lithium pegmatites at Rupert are concealed below glacial till necessitating geochemical strategies to identify drill targets.

From 2021 to 2022, Li-FT Power collected over 8,000 till samples across Rupert to analyze for lithium. This sampling outlined 7 distinct lithium anomalies believed to represent buried lithium pegmatite deposits. The two most robust anomalies became the focus of an initial 5,000 meter drill campaign launched in early 2023.

Results from this maiden drill program are pending at the time of writing. The drilling is testing if the large lithium anomalies correlate with lithium pegmatites as interpreted. Due to the early stage of exploration, the potential size of the targets remains unknown. However, confirmation of buried pegmatites would highlight Rupert's prospectivity and warrant significant follow up drilling.

The scale of the lithium anomalies identified to date combined with Rupert's proximity to Whabouchi provides encouragement that Li-FT Power could delineate its next major lithium discovery at Rupert through systematic exploration techniques. Rupert will be a key Quebec project to watch in 2023.

Pontax Project

The Pontax lithium project lies along trend from known lithium deposits including Whabouchi, James Bay, and Rose. This favorable geology makes it highly prospective for additional buried lithium pegmatites.

Li-FT Power collected over 2,600 till samples across Pontax in 2022. Analysis of these samples outlined a substantial 8 by 7 kilometer lithium anomaly in the central portion of the project representing the largest target currently defined on the company's Quebec properties.

The size and intensity of the Pontax anomaly is interpreted to represent a buried lithium pegmatite field. Due to the overburden cover, geophysical surveys are planned to refine targets ahead of a maiden drill program in 2023. Confirmation of the source of this anomaly will be a major catalyst for the project.

The sheer size of the Pontax anomaly highlights the exceptional early stage potential across Li-FT Power's Quebec lithium portfolio. Quebec is regarded as one of the top mining jurisdictions globally. Unlocking a major lithium district here would be transformative for the company. The initial sampling results provide encouragement that Pontax could ultimately fulfill that potential.

Cali Lithium Project

The Cali lithium project provides Li-FT Power with a third asset that adds further optionality to its project portfolio. Cali encompasses a historical lithium pegmatite occurrence in the Northwest Territories 50 kilometers north of the former Cantung tungsten mine.

Mapping undertaken in the 1970s outlined 600 meters strike length of spodumene bearing pegmatite at Cali. Li-FT Power performed initial field work at Cali in 2023 which generated high-grade spodumene boulder samples that confirmed the historic mineralization.

The company is currently permitting to support a maiden drill program in 2024. The field observations and historic data showcase Cali's strong early stage potential. The project can be flexibly advanced by the company as a secondary priority behind Yellowknife and the Quebec projects.

Cali provides further optionality for future value growth within the company's robust project pipeline. Li-FT Power's diversified portfolio sets it apart from junior lithium exploration companies with singular assets. The expanding project portfolio provides greater leverage to exploration success as the company systematically advances projects.

Conclusion: A Unique Lithium Exploration Opportunity

Li-FT Power represents a unique opportunity for investors to gain exposure to the booming lithium space through a portfolio of highly prospective Canadian lithium projects.

The company is leveraged to multiple assets that demonstrate clear potential for world-class lithium discoveries. This is evidenced by the exceptional exposure of mineralization at Yellowknife and the immense lithium anomalies generated from early sampling at the Quebec projects.

Successful delineation of a top 10 global lithium resource at Yellowknife alongside new discoveries in Quebec would position Li-FT Power at the forefront of Canadian lithium developers. The experienced leadership team is methodically building the company into a marquee lithium exploration story in the mining space.

Demand forecasts suggest lithium demand from electric vehicles will grow up to 10 times by 2030. Li-FT Power’s projects have potential to provide the enormous volumes of new lithium supply that will be required this decade as demand accelerates.

The lithium industry is entering a generational bull market supported by profound electrification trends reshaping global energy needs. Li-FT Power represents an investment opportunity to participate in this growth at the exploration stage through potential access to multiple world-class lithium districts within mining-friendly Canada.

Backed by a tight share structure and ample capital, Li-FT Power's aggressive exploration across its diversified project portfolio will provide steady news flow and milestone catalysts in 2023 and beyond. The company is primed to aggressively unlock the immense potential systematically identified across its assets. Exposure to discovery-stage lithium projects does not get much better than Li-FT Power today.

Risks

• Exploration Risk - As a mineral exploration company, there is no guarantee that economically viable lithium deposits will be discovered and developed into producing mines. Exploration is an inherently risky endeavor with a low overall success rate. Li-FT Power's projects require significant additional drilling to fully evaluate their potential.
• Commodity Price Risk - The company's value is linked to the lithium price which is cyclical and subject to volatility based on macroeconomic trends, supply/demand dynamics, and market sentiment. A prolonged downturn in the lithium market would negatively impact the company's prospects.
• Funding Risk - Exploration and development of mining projects requires significant capital. As a junior explorer, Li-FT Power will need to raise additional funds in the future through equity issuances or other means. Accessing capital is not guaranteed, particularly if market conditions are weak.
• Permitting Risk - The company's projects will require various permits and environmental assessments from territorial and federal regulators in order to advance to production. Permitting delays are common in the mining sector and could hamper the development timeline if encountered.
• Logistical Challenges - Northern Canada presents logistical hurdles including harsh weather, remote access, shortage of infrastructure and seasonal windows. Challenges could hamper exploration activities and future project development.

Opportunities

• Exceptional Lithium Assets - Li-FT Power's projects demonstrate clear evidence of significant lithium potential based on early work. Systematic exploration could prove up world-class lithium resources to create substantial value for shareholders.
• Strengthening Lithium Market - Lithium demand is projected to grow exponentially driven by surging electric vehicle adoption. Supply shortfalls are expected to persist long-term which should maintain strong lithium pricing to benefit miners.
• Scarcity of Lithium Assets - There are a limited number of lithium pegmatite deposits globally. Li-FT Power controls districts that are as prospective as any undeveloped lithium assets globally. Consolidating scarce lithium resources creates inherent value.
• World-Class Infrastructure - The Yellowknife Lithium Project possesses turnkey road/rail infrastructure, enhancing economics. Many lithium projects lack basic infrastructure, giving Yellowknife a major advantage.
• High Impact News Flow - Systematic exploration should generate steady news flow including drill results. Discovery of lithium deposits would be major value catalysts. Li-FT Power's tight share structure amplifies impact of results.
• Strong Leadership - The experienced management team has track records of success in exploration, mining finance, and lithium. Their expertise improves the odds of exploration success.

Li-FT Power offers leveraged exposure to potentially world-class lithium assets within a rapidly growing lithium market. The risks are typical of junior explorers, while the opportunities stem from the scarcity and prospective nature of the company's lithium pegmatite projects.