BLILF - Maricunga Lithium Resource Expansion

Criteria

JORC Code explanation

Considerations for Mineral Brine Projects

Sampling techniques

Nature and quality of sampling (eg cut channels, randomchips, or specific specialised industry standard measurement toolsappropriate to the minerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc). These examples shouldnot be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of any measurementtools or systems used.

Aspects of the determination of mineralisation that areMaterial to the Public Report.

In cases where ‘industry standard’ work has beendone this would be relatively simple (eg ‘reverse circulationdrilling was used to obtain 1 m samples from which 3 kg was pulverisedto produce a 30 g charge for fire assay’). In other cases moreexplanation may be required, such as where there is coarse gold thathas inherent sampling problems. Unusual commodities or mineralisationtypes (eg submarine nodules) may warrant disclosure of detailedinformation.

Drill cuttings were taken during rotary drilling. These are lowquality drill samples but provide sufficient information forlithological logging and for geological interpretation. The upper 200m of 400 m deep holes was drilled with rotary to speed up the drillingand reduce cost, and because sufficient porosity samples have alreadybeen collected through this interval.

Drill core was recovered in lexan polycarbonate liners every 1.5 mlength core run during the core drilling.

Brine samples were collected at 12 m intervals with a bailer device inthe recent 5 hole drilling program. Previous drilling and samplingused 6 m intervals during drilling (3 m in 2011 drilling). Thisinvolved purging brine from the drill hole and then taking a samplecorresponding to the interval between the rods and the bottom of thehole. Brine samples were taken using Fluorescein tracer dye todistinguish drilling fluid from natural formation brine.

The brine sample was collected in a clean plastic bottle and filled tothe top to minimize air space within the bottle. Each bottle wasmarked with the sample number and details of the hole.

Drilling techniques

Drill type (eg core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc) and details (egcore diameter, triple or standard tube, depth of diamond tails,face-sampling bit or other type, whether core is oriented and if so,by what method, etc).

Rotary drilling (using HWT size casing) – This method was used withnatural formation brine (from a low lithium concentration surfacebrine of known concentration) for lubrication during drilling, tominimize the development of wall cake in the holes that could reducethe inflow of brine to the hole and affect brine quality.

Rotary drilling allowed for recovery of drill cuttings and basicgeological description. During rotary drilling, cuttings werecollected directly from the outflow from the HWT casing. Drillcuttings were collected over two metre intervals in cloth bags, thatwere marked with the drill hole number and depth interval. Sub-sampleswere collected from the cloth bag by the site geologist to fill chiptrays.

Criteria

JORC Code explanation

Considerations for Mineral Brine Projects

Previous Sonic drilling (M1A, S2, S18 and S20) produced cores withclose to 100% core recovery. This technique uses sonic vibration topenetrate the salt lake sediments and produces cores without therotation and drilling fluid cooling of the bit required for rotarydrilling – which can result in the washing away of more friableunconsolidated sediments, such as sands.

Drill sample recovery

Method of recording and assessing core and chip samplerecoveries and results assessed.

Measures taken to maximise sample recovery and ensurerepresentative nature of the samples.

Whether a relationship exists between sample recoveryand grade and whether sample bias may have occurred due topreferential loss/gain of fine/coarse material.

Rotary drill cuttings were recovered from the hole in porous clothbags to retain drilling fines, but to allow brine to drain from thesample bags (brine is collected by purging the hole every 12 m and notduring the drilling directly, as this uses recirculated brine fordrilling fluid). Fluorescein tracer dye was used to distinguishdrilling fluid from natural formation brine.

Previous sonic drill core was recovered in alternating 1,.5m lengthlexan liners, and 1,5 m length BLY tubular plastic bags.

Geologic Logging

Whether core and chip samples have been geologicallyand geotechnically logged to a level of detail to support appropriateMineral Resource estimation, mining studies and metallurgicalstudies.

Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevantintersections logged.

Rotary (using HWT size casing) drilling was carried out for thecollection of drill cuttings for geologic logging and for brinesampling. Drill cuttings were logged by a geologist.

Sonic holes are logged by a geologist who supervised cutting ofsamples for porosity sampling then splits the plastic tube andgeologically logs the core.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all coretaken.

If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.

For all sample types, the nature, quality andappropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples.

Measures taken to ensure that the sampling isrepresentative of the in situ material collected, including forinstance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain sizeof the material being sampled.

Core samples were systematically sub-sampled for laboratory analysis,cutting the lower 15 cm of core from the core sample tube and cappingthe cut section and taping the lids tightly to the core. Thissub-sample was then sent to the porosity laboratory for testing.Sampling was systematic, to minimize any sampling bias.

Brine samples collected following the purging of the holes arehomogenized as brine is extracted from the hole using a bailer device.No sub-sampling is undertaken in the field Fluorescein tracer dye wasused to distinguish drilling fluid from natural formation brine.

The brine sample was collected in one-litre sample bottles, rinsed andfilled with brine. Each bottle was marked with the drill hole numberand details of the sample. Prior to sending samples to the laboratory,they were assigned unique sequential numbers with no relationship tothe hole number.

Criteria

JORC Code explanation

Considerations for Mineral Brine Projects

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assayingand laboratory procedures used and whether the technique is consideredpartial or total.

For geophysical tools, spectrometers, handheld XRFinstruments, etc, the parameters used in determining the analysisincluding instrument make and model, reading times, calibrationsfactors applied and the derivation, etc.

Nature of quality control procedures adopted (egstandards, blanks, duplicates, external laboratory checks) and whetheracceptable levels of accuracy (ie lack of bias) and precision havebeen established.

The Andes Analytical Assay laboratory was used as the primarylaboratory to conduct the assaying of the brine samples collected aspart of the drilling program. This was because Covid restrictionslimited operation of the previous primary laboratory University ofAntofagasta in northern Chile. This laboratory has been used toanalyse check samples. Andes Analytical also analyzed blanks,duplicates and standards, with blind control samples in the analysischain. The laboratory of the University of Antofagasta is not ISOcertified, but it is specialized in the chemical analysis of brinesand inorganic salts, with extensive experience in this field since the1980s, when the main development studies of the Salar de Atacama werebegun.

The quality control and analytical procedures used at AndesAnalytical, and the University of Antofagasta laboratory areconsidered to be of high quality and comparable to those employed byISO certified laboratories specializing in analysis of brines andinorganic salts.

Duplicate and standard analyses are considered to be of acceptablequality.

Samples for porosity test work are cut from the base of the plasticdrill tubes every 3 m.

Down hole geophysical tools were provided by a geophysical contractorand these are believed to be calibrated periodically to produceconsistent results. The use of the Borehole Magnetic Resonance toolprovides a check on laboratory porosity samples.

Verification of sampling and assaying

The verification of significant intersections by eitherindependent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures,data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data

A full QA/QC program for monitoring accuracy, precisionand to monitor potential contamination of samples and the analyticalprocess was implemented. Accuracy, the closeness of measurements tothe “true” or accepted value, was monitored by the insertion ofstandards, or reference samples, and by check analysis at anindependent (or umpire) laboratory.

Duplicate samples in the analysis chain were submitted to thelaboratories as unique samples (blind duplicates) following thedrilling process.

Stable blank samples (distilled water) were inserted to measure crosscontamination during the drilling process.

Criteria

JORC Code explanation

Considerations for Mineral Brine Projects

The anion-cation balance was used as a measure ofanalytical accuracy and was always considerably less than +/-5%, whichis considered to be an acceptable balance.

Location of data points

Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings andother locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

The hole was located with a handheld GPS in the field and subsequentlylocated by a surveyor on completion of the drilling program

The location is in WGS84 Zone 19 south.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficientto establish the degree of geological and grade continuity appropriatefor the Mineral Resource and Ore Reserve estimation procedure(s) andclassifications applied.

Whether sample compositing has been applied.

Lithological data was collected throughout the drilling. Drill holeshave a spacing of approximately 2 km.

Recent brine samples have a 12 m vertical separation and lithologicalsamples are on 1 m intervals (in 2011 drilling samples were takenevery 3 m and 2017 program every 6 m). Porosity samples were takenevery 3 m in sonic core holes.

Orientation of data in relation to geologicalstructure

Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to which this is known,considering the deposit type.

If the relationship between the drilling orientationand the orientation of key mineralised structures is considered tohave introduced a sampling bias, this should be assessed and reportedif material.

The salar deposits that host lithium-bearing brinesconsist of sub-horizontal beds and lenses of halite, sand, gravel andclay. The vertical holes are essentially perpendicular to these units,intersecting their true thickness.

Sample security

The measures taken to ensure sample security.

Samples were transported to the analytical laboratories (primary,duplicate and QA/QC samples) for chemical analysis in sealed 1-litrerigid plastic bottles with sample numbers clearly identified.

The samples were moved from the drill site to secure storage at thecamp on a daily basis. All brine sample bottles are marked with aunique label.

Audits or reviews

The results of any audits or reviews of samplingtechniques and data.

No audits or reviews have been conducted at this pointin time.

Criteria

JORC Code explanation

Considerations for Mineral Brine Projects

Mineral tenement and land tenure status

Type, reference name/number, location and ownershipincluding agreements or material issues with third parties such asjoint ventures, partnerships, overriding royalties, native titleinterests, historical sites, wilderness or national park andenvironmental settings.

The security of the tenure held at the time ofreporting along with any known impediments to obtaining a licence tooperate in the area.

The Maricunga property is located approximately 170 km northeast ofCopiapo in the III Region of northern Chile at an elevation ofapproximately 3,800 masl.

The property comprises 1,438 ha in six mineral properties known as Litio 1 -6 . In addition, the Cocina 19-27 properties, San Francisco, S alamina and Despreciada properties (1,125 ha) were purchased between 2013 2013 and2015. Work in this program was only conducted on the old code miningproperties – which excludes the Litio properties.

The properties are located in the northern section of the Salar deMaricunga.

The tenements/properties are believed to be in good standing, withpayments made to relevant government departments.

Exploration done by other parties

Acknowledgment and appraisal of exploration by otherparties.

SLM Litio drilled 58 vertical holes in the Litio properties on a 500 m x 500 m grid in February 2007. Each holewas 20 m deep. The drilling covered all of the Litio 1– 6 property holdings.

Those holes were 3.5” diameter and cased with either 40 mm PVC or 70mm HDPE pipe inserted by hand to resistance. Samples were recovered at2 m to 10 m depth and 10 m to 20 m depth by blowing the drill holewith compressed air and allowing recharge of the hole.

Subsequently, samples were taken from each drill hole from the top 2 mof brine. In total, 232 samples were collected and sent to Cesmec inAntofagasta for analysis.

Prior to this the salar was evaluated by Chilean state organizationCorfu, using hand dug pit samples.

Minera Salar Blanco conducted a drilling program in 2017, drilling to200 m and one hole to 360 m) following on from and earlier sonicdrilling program

Geology

Deposit type, geological setting and style ofmineralisation.

The sediments within the salar consist of halite, sand, gravel,volcanic clastic units (volcanic pumice and ash) and clay which haveaccumulated in the salar from terrestrial sedimentation andevaporation of brines within the salar. These units are interpreted tobe essentially flat lying, with unconfined aquifer conditions close tosurface and semi-confined to confined conditions at depth

Criteria

JORC Code explanation

Considerations for Mineral Brine Projects

Brines within the salar are formed by solar concentration, with brineshosted within the different sedimentary units.

Geology was recorded during drilling of all the holes.

Drill hole Information

A summary of all information material to the understanding of theexploration results including a tabulation of the followinginformation for all Material drill holes:

easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above sealevel in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth

hole length.

If the exclusion of this information is justified onthe basis that the information is not Material and this exclusion doesnot detract from the understanding of the report, the Competent Personshould clearly explain why this is the case.

Lithological data was collected from the holes as they were drilled asdrill cuttings, and at the geological logging facility for cores, withthe field parameters (electrical conductivity, density, pH) Measuredon the brine samples taken on 12 m intervals.

Brine samples were collected at 12 m intervals and sent for analysisto the University of Antofagasta, together with qualitycontrol/quality assurance samples.

Drill hole collars, surveyed elevations, dip and azimuth, hole lengthand aquifer intersections will be provided in tables with the resourceupdate. All holes were drilled vertically.

Data aggregation methods

In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum grade truncations (eg cutting ofhigh grades) and cut-off grades are usually Material and should bestated.

Where aggregate intercepts incorporate short lengths ofhigh grade results and longer lengths of low grade results, theprocedure used for such aggregation should be stated and some typicalexamples of such aggregations should be shown in detail.

The assumptions used for any reporting of metalequivalent values should be clearly stated.

Brine samples taken from the holes every 12 m representbrine over the sample interval. Previous more shallow drillingundertook sampling every 3 and 6 m and showed that the brine lithiumconcentration is relatively homogeneous, supporting the change to 12 msampling.

No outlier restrictions were applied to the concentrations, asdistributions of the different elements do not show anomalously highvalues

Relationship between mineralisation widths andintercept length

These relationships are particularly important in thereporting of Exploration Results.

If the geometry of the mineralisation with respect tothe drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths arereported, there should be a clear statement to this effect (eg ‘downhole length, true width not known’).

T he lithium-bearing brinedeposits extend across the properties and over a thickness of > 400m, limited by the depth of the drilling. Mineralisation in brine isinterpreted to continue below the depth of the resource, as suggestedby geophysics previously carried out in the salar.

The drill holes are vertical and essentially perpendicular to thehorizontal sediment layers in the salar (providing true thicknesses ofmineralisation)

Criteria

JORC Code explanation

Considerations for Mineral Brine Projects

Diagrams

Appropriate maps and sections (with scales) andtabulations of intercepts should be included for any significantdiscovery being reported These should include, but not be limited to aplan view of drill hole collar locations and appropriate sectionalviews.

Diagrams will be provided in the resource update announcement anddiagrams of the salar geology have previously been provided inTechnical report on the Maricunga Lithium Project Region III, Chile NI43-101 report prepared for Minera Salar Blanco in December 2018.

Balanced reporting

Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting of both low andhigh grades and/or widths should be practiced to avoid misleadingreporting of Exploration Results .

This announcement presents representative summary data from drillingat the Maricunga salar, such brine concentrations and chemistry data,and information on the thickness of mineralisation.

Other substantive exploration data

Other exploration data, if meaningful and material,should be reported including (but not limited to): geologicalobservations; geophysical survey results; geochemical survey results;bulk samples – size and method of treatment; metallurgical testresults; bulk density, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminating substances.

Refer to the DFS results announcement by Lithium Power in January2019.

Refer to the information provided in Technical reporton the Maricunga Lithium Project Region III, Chile. NI 43-101 reportprepared for Li3 Energy May 23, 2012 forprevious geophysical and geochemical data.

Information on pumping tests has been provided by thecompany following the completion of pumpingtests at holes P4 and P2.

Further work

The nature and scale of planned further work (eg testsfor lateral extensions or depth extensions or large-scale step-outdrilling).

Diagrams clearly highlighting the areas of possibleextensions, including the main geological interpretations and futuredrilling areas, provided this information is not commerciallysensitive.

The company is undertaking additional engineering on the project. Thebrine body remains open at depth below 400 m which could potentiallybe incorporated into future resources subject to positive drillingresults.