Lithium Australia NL : Diggers and Dealers Presentation

2 Corporate Position Statement, August 2017 Copyright © 2017, Lithium Australia NL

Advanced technologies for a sustainable lithium future

Corporate Position Statement, August 2017

Adrian Griffin Managing Director ASX: LIT

Corporate Position Statement, August 2017

1 Copyright © 2017, Lithium Australia NL

Lithium Australia - corporate snapshot

(ASX-listed: ticker LIT)

BOARD OF DIRECTORS

Price (AU$) as of 28 July 2017	0.13
Market capitalisation (AU$)	42.7 M
Shares outstanding (LIT)	296,931,239
Partly paid shares (LITCE)	132,850,148
Cash position (AU$)	2.57 M
Debt position (AU$)	NIL

George Bauk (non-executive chairman)

Expert in specialty metals, particularly rare earths - project management, marketing and financing.

Adrian Griffin (managing director) Exploration, production, mine management. Bryan Dixon

(non-executive director) Corporate, finance, mine development.

Investment portfolio includes AU$6 million equity in other lithium companies and a substantial exposure to gold exploration in Western Australia.

Top 10 holders at 28 July 2017	22.2%
JP Morgan Nominees	4.76
Citicorp Nominees	3.66
Adrian Griffin	3.01
Parkway Minerals NL	2.57
Horn Resources	1.97
Alan Jenks	1.32
Apollinax Inc.	1.15
TA Securities Berhad	1.1
Gasmere Pty Ltd	1.06
BNP Paribas	1.06

CONTACT INFO

Level 1, 675 Murray Street

West Perth 6005 Western Australia

PO Box 1088

West Perth 6872

Western Australia

Phone [phone]

Fax [phone]

[e-mail]

Lithium - what's all the fuss about?

It's about the biggest change in energy management since the Industrial Revolution …

The harnessing of energy has progressed from domesticating beasts of burden through steam power to internal combustion engines and portable nuclear reactors. And, while the latter systems can generate electricity, the ubiquitous power grid has constrained true power portability … until now: the 'age of lithium'.

The advent of lithium-ion batteries (LIBs) has created not only efficient energy storage but also a revolution in the portability of power. LIBs can be used in everything from ever-smaller electronic devices, including mobile phones, tablets and computers, to a wide array of electric vehicles (EVs) and earthmoving equipment, not to mention renewable power back-up and the provision of emergency power for entire cities. LIBs allow renewable energy to be distributed 24/7, placing portable power in the hands of consumers and turning progressive households into energy traders. Put simply, lithium is fuelling the Energy Revolution.

Right now, though, more lithium is rejected as waste than enters the lithium supply chain. Which is why Lithium Australia is focused on processing lithium minerals currently consigned to the too-hard basket. The Company is currently developing hydrometallurgical processes to recover lithium from ANY lithium-bearing silicate, including sources not presently exploited by others. Importantly, many such sources are considered waste and discarded during other mining operations (including mining for tin, tantalum and a range of industrial minerals). Generally, this waste material is a lithium mica - which, in the case of hard-rock lithium mining, may include contaminated or low-grade spodumene, the principal ore mineral of lithium.

Recycling is imperative

Currently, only about 100 tonnes (t) of lithium carbonate equivalent (LCE) of the 217,000 t consumed annually is reclaimed via recycling. Even then, next to none of the lithium that LIBs contain is recovered. Ultimately, this is unsustainable and could lead to the extinction of the LIB, the very innovation that's revolutionising power management worldwide. Also of immediate concern is the unsustainability of cobalt, another 'energy metal' essential to LIBs. Already demand for cobalt outstrips supply, and international protocols on the importation and use of this so-called 'conflict metal' are fast consigning it to the endangered list. But ever- expanding stockpiles of discarded electronic/battery waste might actually be the cheapest and best source of such energy metals, since they've already been mined and concentrated. All that's required is efficient recycling. Enter Lithium Australia.