FEBRUARY 2019 ASX : LTR

Kathleen Valley Lithium Project Scoping Study Outcomes

Important Information

Forward Looking Statements

This Presentation may include statements that could be deemed "forward-looking statements". Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those expected in the forward-looking statements or not take place at all.

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This Presentation is not, and should not be considered to, constitute any offer to sell, or solicitation of an offer to buy, any securities in Liontown Resources Limited, and no part of this Presentation forms the basis of any contract or commitment whatsoever with any person. Liontown Resources Limited does not accept any liability to any person in relation to the distribution or possession of this Presentation from or in any jurisdiction.

Disclaimer

Whilst care has been exercised in preparing and presenting this Presentation, to the maximum extent permitted by law, Liontown Resources Limited and its representatives:

  • • make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this Presentation;

  • • accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this Presentation; and

  • • accept no responsibility for any errors or omissions from this Presentation.

Competent Person Statement

The Information in this report that relates to the Scoping Study for the Kathleen Valley Project is extracted from the ASX announcement "Kathleen Valley Scoping Study confirms potential for robust new WA lithium mine development" released on the 29th January 2019 which is available onwww.ltresources.com.au.

The Information in this report that relates to Mineral Resources for the Kathleen Valley Project is extracted from the ASX announcement "Maiden 21 million tonne Lithium-Tantalum Mineral Resource sets strong growth foundation for Liontown at Kathleen Valley" released on the 4th September 2018 which is available onwww.ltresources.com.au.

The Information in this report that relates to Metallurgy for the Kathleen Valley Project is extracted from the ASX announcement "Highly encouraging results from initial metallurgical test work at the Kathleen Valley Lithium-Tantalum Project, WA" released on the 12th November 2018 which is available onwww.ltresources.com.au.

The Information in this report that relates to Exploration Targets is extracted from the ASX announcement "Major resource expansion drilling program commences at Kathleen Valley Lithium Project, WA" released on the 29th January 2019 which is available onwww.ltresources.com.au.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.

Next Generation Lithium Producer

Maiden Mineral Resource:

  • • 21.2Mt @ 1.4% Li2O and 170ppm Ta2O5

  • • 75% Measured and Indicated

  • • Located on granted mining leases

  • • Close to established infrastructure

  • • Scoping study confirms potential for a commercially robust mining operation

  • • Resource expansion drilling in progress aimed at significantly extending mine life

  • • Comprehensive test work ongoing to optimize grade and recoveries

  • • Feasibility studies scheduled for completion by Q1 2020

Base Case

2Mtpa (Li & Ta)

NPV(8%, real, post tax)

A$421M

(Range of A$316 to A$526M)

IRR

38%

Payback

<3 years

Mine Life

9 years

Average LOM Opex

~A$428/t conc. (net of Ta credits)

Annual Production

~360kt concentrate

LOM Spodumene Price

A$900 (US$650/t) FOB

Capex

~A$232M

conc.

Scoping study prepared by Lycopodium Minerals Pty Ltd 4

Spodumene Base Case Price (US$550-750/t)

Financial Sensitivity - Robust Project

Kathleen Valley Project - NPV Sensitivity Analysis (A$M)

Exchange Rate (AUDUSD$0.80-0.64)

Li Grade Flex (+/-10%)

Operating Cost Flex (+/-15%)

Li Recoveries (74-84%)

Capital Cost Flex (+/-15%)

Ta Recoveries (40-60%)

200

250

300

350

400

450

NPV (A$M)

500

550

600

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Disclaimer

Liontown Resources Limited published this content on 29 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 January 2019 00:18:02 UTC