BMR:CC - Battery Mineral Resources

Overview

The global battery metals market is a rapidly growing billion-dollar industry. This market represents the raw materials used in the production of batteries such as lithium, nickel, cobalt, manganese and graphite. With the increasing popularity of electric vehicles, energy storage systems, consumer electronics and electric alternatives to everyday applications, the demand for these metals has seen unprecedented growth.

The global battery metals market value is expected to reach $20 5 billion in 2027 with a CAGR of 8.2 percent. A rapid surge in the renewable energy industry has many looking to the battery mineral and metal exploration and development companies to supply the demand, which shows robust projections across global markets.

Battery Mineral Resources (TSXV: BMR ,OTCQB:BTRMF) is a battery minerals company providing shareholders exposure to the global mega-trend of electrification while being focused on growth through cash-flow, exploration and acquisitions in favorable mining jurisdictions.

The company’s mission is the discovery, acquisition and development of battery metals (namely, copper, cobalt, lithium and graphite) in North America, South America and South Korea. It aims to become a leading low-cost producer of high-quality, ethically sourced battery metals from high-grade, low-impact mines in stable jurisdictions that are close to major consumer industries.

BMR is headquartered in Vancouver, British Columbia, with a portfolio of projects spanning Canada, the US, Chile and South Korea.

BMR stands as the largest claim holder across all minerals in the Ontario Cobalt Belt, which is one of the most richly endowed mining regions in the world. It currently has a robust asset portfolio, including its McAra, Gowganda, Iron Mask, Island 27 projects in Ontario and additional projects in the works across the province and Quebec. As a first-mover in the district, the company has led efforts in recognizing the potential of multiple new, at-surface and high-grade primary cobalt discoveries in this region.

In March 2021, BMR acquired the near-term cash flow Punitaqui Mine Complex in Chile, which consists of a centralized process plant fed by four satellite copper deposits — San Andres, Cinabrio, Dalmacia and Los Mantos. The past-producing mining operation leverages easy road access to local population centers and presents outstanding exploration opportunities across its classic IOCG and manto-style copper-gold-silver veins.

The company's cobalt reach extends into the prolific mining district of Idaho with its three 100-percent-owned properties covering 14 significant cobalt prospects in the state. Bonanza, Desert and East Fork properties are strategically positioned near the home of eCobalt Solutions’ Idaho cobalt project, the only advanced-stage, near-term, environmentally permitted, primary cobalt deposit in the US.

Another exciting addition to the BMR portfolio is its highly prospective graphite assets located in South Korea and lithium assets in prolific US mining districts. The Guemam and Taehwa projects are two past-producing graphite mines, which leverage close proximity to excellent lithium-ion industrial infrastructure and considerable yield and high-grade graphite potential.

BMR closed a sale-leaseback transaction on an industrial property located at 7102 West Sherman Street, Phoenix, Arizona. The property was previously held by Ozzie’s, Inc. subsidiary of BMR’s 100-percent-owned ESI Energy Services, Inc., which operates in the equipment rental and sales sector of the pipeline and renewable energy space. Ozzie’s also recently closed an equipment refinancing transaction worth US$2 million via a refinancing of 11 pieces of equipment owned by Ozzie's and is structured as a lease with a four-year term.

Battery Mineral Resources’ management team consists of leaders with extensive operational and development experience. Combined with a stellar and supportive shareholder portfolio, the company is primed for exceptional economic growth and well-funded development.

?Company Highlights

• Battery Mineral Resources (BMR) is a multi-commodity resource company focused on discovering, acquiring and developing battery metals projects (cobalt, lithium, graphite, nickel & copper), in North and South America and South Korea. It's poised to become a premier and sustainable supplier of battery minerals to the electrification marketplace.
• BMR is currently developing the Punitaqui Mining Complex and pursuing the potential near-term resumption of operations at the prior-producing Punitaqui copper-gold mine.
• BMR is the largest mineral claim holder in the historic Gowganda Cobalt-Silver Camp in Canada. It controls a robust portfolio of cobalt assets across the prolific Timmins & Sudbury and Rouyn & Val d'Or Quebec areas.
• Its Canadian cobalt portfolio consists of McAra and Gowganda with Elk Lake located about 150 km northeast of Sudbury
• Additional battery mineral exposure includes its strategically acquired graphite assets in South Korea and a lithium property in the prolific mining district of Nevada.
• BMR's management team combines seasoned experts across related industries in finance, resource development and battery mineral exploration.
• The company has filed a technical report for its NI 43-101 resource estimate at Punitaqui on SEDAR, authored by JDS Mining and Energy Inc.

?Key Projects

BMR’s current focus is the restart of its Punitaqui copper mine in Chile, as well as the exploration and development of its cobalt, lithium and graphite assets in North America and South Korea. The company also continues to identify and evaluate new project opportunities in its operating jurisdictions.

Its current portfolio includes:

Chile - Copper

BMR’s 100 percent-owned Punitaqui copper mine, acquired in March 2021, has the potential to generate an annual EBITDA of up to $50 million at or above a copper price of $4.25/lb. The company’s flagship project, the Punitaqui mine has been the subject of numerous milestones in recent months, including:

• BMR funded and completed a successful 32,526-meter resource drill program in 2022. Metallurgical test work has confirmed the ability to produce excellent copper concentrates from each of the five zones tested, including recoveries ranging from 81 percent on the low end at Cinabrio Norte up to 96.5 percent at the Dalmacia deposit.
• The company in August 2022 reported the results of its first-ever NI 43-101-compliant resource estimate for the underground deposits at its Punitaqui copper mining complex of 6.2 million tonnes grading 1.14 percent copper in indicated category, along with 3.1 million tonnes grading 0.93 percent copper in the inferred category. This resource estimate greatly exceeded management goals.
• In September 2022, BMR announced the approval by the Chilean Environment Assessment Service for the Environmental Impact Declaration (DIA) pertaining to mining at the company’s Cinabrio mine and San Andres deposit. The approval of the DIA allows BMR to move forward with starting mining operations in 2023 and restarting the mill at its Punitaqui copper mining complex soon after.
• BMR is focused on securing the final funding for the restart of mining and resumption of copper concentrate production at Punitaqui. Once this funding is received, BMR aims to complete mine rehabilitation and development in four to six months, with the ramp up from first production to the full production rate of 20 to 25 million pounds of copper in concentrate per annum to require a further four to six months.

“From exploration, engineering, community and permitting successes to realizing several non-dilutive means of funding to allow BMR to advance the project, our team looks forward to taking advantage of the renewed positive market sentiment for near-term copper pricing and placing ourselves in a strong position to participate in a robust copper sector in 2023,” CEO Martin Kostuik stated in a news release .

Canada – Cobalt/Silver

Between 2016 and April 2018, BMR acquired through claim staking, option, joint venture and direct purchase the largest regional land holding in the historic home of high-grade cobalt-silver veins in Canada, known locally as the Cobalt Embayment.

As of February 2023, BMR controlled a land package totaling nine properties with 4,086 tenements that encompass an area of 84, 003.39 hectares. The key projects within the land package include McAra , Gowganda , Elk Lake, Fabre and Wilder . Between 2017 and 2022, a total of 412 holes / 51,452.34 meters were drilled on eight projects / 20 targets. In addition, a total of 26,709 line-km of airborne geophysical surveys and 1,324.84 sq km of LiDAR topography was flown. Follow-up ground geophysical surveys resulted in a total of 37 surveys (514.64 Line-Km) being completed.

Initial NI 43-101 compliant resource defined at McAra (M&I Resource of 1,124,000lbs Co) was detailed in “Technical Report on Cobalt Exploration Assets in Canada,“ dated February 5, 2021 with an effective date of October 31, 2020, prepared by SRK Consulting – G Cole PGeo (APGO#1416).

Idaho – Cobalt

BMR holds the Bonanza and East Fork properties located in the historic cobalt-copper-gold Blackbird mining district (Blackbird Mine from 1902 to 1963 produced 17 Mt grading 0.7 percent cobalt, 1.4 percent copper, and 1 g/t gold) located about 30 kilometers west of Salmon, Idaho. The Bonanza project is immediately adjacent to Jervois Global’s Idaho Cobalt Operations, the United States' only operating primary cobalt mine. At Bonanza, seven mineralized sites within an area over 3 kilometers wide extend along a gabbro dyke striking continuously for over six kilometers northward from Noranda's historic Blackbird Cobalt/Copper mine. The showings on the project are: Bonanza Copper Tunnels, Tinker's Pride, Bonanza Copper #25, Indian Creek, Gray Copper, Blackrock #4 and Papoose #'s 1-4.

Between 2018 and 2021, BMR’s Bonanza exploration included: 550 line-kilometer of airborne magnetics and radiometrics followed up by surface exploration that included rock sampling, soil sampling, channel sampling of historic workings, and 3.6 kilometer of time domain-induced polarization geophysics.

The two properties cover 12 significant cobalt-copper prospects within the known mineralized zone. Both of the BMR Idaho cobalt belt properties host excellent high-grade discovery potential.

South Korea – Graphite

BMR has 100 percent ownership of the Guemam and Taehwa graphite exploration projects containing high-purity flake graphite deposits. Both assets are past-producing mines with existing local infrastructure and near-term production potential.

Nevada – Lithium

The company’s Amargosa lithium project is in the southern Basin & Range province and central Mojave Desert of Nevada. It is an early-stage exploration opportunity in a favorable region that hosts numerous lithium occurrences, including the Clayton Valley lithium deposit owned by Cypress Development Corp., as well as a major nearby lithium brine mine currently in production called the Silver Peak mine held by Albermarle Corp., one of the world's largest lithium producers.

Market Opportunity

Near-term forecasts for the copper sector are extremely bullish, with stalwart Wall Street firms such as Goldman Sachs and Bank of America projecting record-highs in the coming months. A combination of short-term supply deficits and long-term energy transition demand is expected to buck the downward pressures that have impacted copper prices in recent years.

Goldman in December 2022 forecast a 178,000 metric ton deficit in the copper market in 2023, causing the firm to raise its 12-month target to $11,000/ton and its average price for calendar 2023 to $9,750/ton.

With China likely to continue accelerating efforts to restock depleted inventories in the wake of its COVID-19 reopening and a sustained push toward electrification around the globe placing a strain on supply , BMR is uniquely positioned to capitalize through the anticipated restart of operations at its Punitaqui copper mine.

?Management Team

Martin Kostuik - CEO and Director

Martin Kostuik is CEO and a director of BMR. He brings to the company nearly three decades of diversified experience in the mining industry as a mining engineer and senior executive. Prior to joining BMR, Kostuik served as president and director of Arizona Gold Corporation and as CEO and director of Rupert Resources Limited. He built a broad base of experience in operations, engineering, exploration and capital projects with various companies including Luna Gold (Equinox), Barrick Gold Corporation, Taseko Mines Limited and DMC Mining Services. Kostuik earned his BS in Mining Engineering from Queen’s University and his MBA from the University of Tennessee.

Max Satel - CFO

Max Satel is the company’s CFO. He has over 18 years of experience as a successful natural resources-focused executive, most recently serving as EVP corporate development and investor relations for Arrow Exploration Corp., a TSX Venture- and AIM-listed oil & gas company with operations in Colombia and Canada. Prior to joining Arrow, Satel was principal and co-founder of Bordeaux Capital Inc., a Toronto-based advisory firm focused on the capital needs of companies across the natural resources sector, where he led and executed project financing advisory mandates involving global financial institutions and private equity funds. He earned a Bachelor of Commerce in Finance and Economics from the University of Toronto.

Jacob Willoughby - VP Corporate Development and Strategy

Jacob Willoughby is VP corporate development and strategy for BMR. He brings to the company nearly 17 years of diversified experience in mining capital markets, including over eight years as a mining analyst covering exploration and development companies globally in both precious and base metals. Willoughby was most recently vice-president of research and analyst at Red Cloud Securities in Toronto. He spent two years as president and director of Aldridge Minerals, a former Canadian-based public exploration and development company with assets in Turkey and Papua New Guinea. Willoughby earned both a BS in Geology and a Masters in Business Administration from the University of Windsor.

Investment Considerations

• Battery Mineral Resources is focused on the discovery, acquisition and development of battery metal projects in North America, South America and South Korea.
• The company’s flagship Punitaqui mine has the potential to generate an annual EBITDA of up to $50 million at or above a copper price of $4.25/lb. with production targeted for H2 of this year.
• BMR is working to secure final funding for the restart of mining and resumption of copper concentrate production from its Punitaqui complex; it’s in advanced discussions with several parties and has the goal of closing a funding agreement in the coming months.
• In the second half of 2022, BMI made significant progress toward increasing and improving its human and financial resources, as well as permitting, metallurgy and ESG initiatives.
• The company is strategically positioning itself to take advantage of renewed positive market sentiment for near-term copper pricing.