Lithium Developer Ready to Start Production in Chile by 2025

• Lithium Power International is a lithium developer with assets in Australia and Chile. Their flagship project is the Maricunga lithium brine project in Chile, which they have been developing for over 7 years.
• The recent announcements by Chile's president to nationalize lithium do not actually change the legal status of lithium or companies' rights. It is more a set of guidelines and a willingness from the government to develop the industry.
• The new mining royalty bill also does not affect Lithium Power's project, as they already have full permits and ownership of their asset.
• The recent election resulted in right-wing parties gaining control of the Constitutional Council, which Garcia-Huidobro sees as positive - they will likely produce a business-friendly constitution.
• The Maricunga project is fully permitted and they are finalizing project financing. They aim to start construction by the end of 2022, with production in late 2025. This would make them the 3rd lithium producer in Chile.
• Longer-term, they hope to move up the lithium value chain by producing battery materials in Chile as well.

Lithium Power International is poised to become the third lithium producer in Chile by late 2025 with the development of its flagship Maricunga lithium brine project. Located in the lithium triangle of South America, Maricunga will diversify Chile's lithium production which has been dominated by only two companies for the past 40 years.

The company has spent over seven years advancing Maricunga to the brink of construction. As CEO Cristobal Garcia-Huidobro highlighted, “by far one of the most advanced and real projects in South America today.” The project is now fully permitted and the company aims to finalize project financing by the end of this year to start construction in 2023.

"By far one of the most advanced and real projects in South America today and we would expect to become a producer very soon."

Political Developments Create Certainty

Recent political developments in Chile have transformed uncertainties into positive conditions for Lithium Power and the mining industry according to the CEO.

In his words, “For us and I know my country very well, for us those uncertainties now are transformed.”

The Chilean president announced earlier this year a plan for the government to partner in lithium projects. While initially seen as a move to nationalize lithium, it is now clear this will not affect existing concessions and contracts. As Garcia-Huidobro explained, it is “really not a nationalization at all” but rather “a set of guidelines” to promote development of the industry.

Recent elections gave control of the Constitutional Council to right-wing parties supportive of economic development and the mining industry. The CEO sees this leading to a constructive constitution benefiting the private sector and economy. Political uncertainties have decreased as a result.

Strong Local Indigenous Support

A key strength of Maricunga is Lithium Power's strong relationships with indigenous communities in the area. They have been collaboratively working together since the project's inception.

As noted by the CEO, "We have been working with indigenous communities that are within our influence area in Mariconga since the first day this development."

The communities will be part of the project's benefits. Garcia-Huidobro highlighted that "a very significant part of the revenues of this project, those revenues will be administered, managed by them directly." This community acceptance was critical in the project receiving full environmental permits. Maricunga was only one of two mining projects in Chile to gain environmental approval in the past decade.

Near-Term Catalysts

With full permits in place, the remaining step is finalizing project financing. The company is working with Canaccord as a financial advisor and assessing options for a mix of equity and debt.

The CEO expressed confidence that financing will be secured before year-end: "We will expect to be able to close that process before year-end."

Once financing is completed, full-scale construction will begin. The project will take approximately two years to build. Garcia-Huidobro estimates the first commercial production from Maricunga in late 2025. This initial stage will be followed by expansions likely done in partnership with Chilean state mining companies. The CEO sees Maricunga's success as opening the door for new lithium projects and cementing Chile's position in the global lithium industry.

The Investment Thesis for Lithium Power International

• Maricunga will be the first new lithium project in production in Chile in over 40 years, diversifying production.
• The project is de-risked and fully permitted, on the cusp of construction pending financing.
• Chile's stability and support for mining make it an ideal jurisdiction. Recent political changes are positive.
• Strong local community relationships provide a strategic advantage.
• Near-term catalysts of financing and the start of construction could drive share price increases.
• Global demand for lithium is surging, especially from the EV battery market. Maricunga will be well-timed to capitalize on demand.
• Potential for downstream integration into lithium processing and Battery materials in Chile provides added upside.