LKE, page-59

Lake Resources

Executive SummaryLake Resources (ASX: LKE) presents a rare, de-risked opportunity for a strategic investor, lithium offtaker, or global mining company to secure exposure to one of the world’s largest, near-production lithium brine projects—Kachi—located in Argentina’s Lithium Triangle. With regulatory approvals imminent, a completed DFS, and low-impurity, high-purity output, Lake is uniquely positioned to either:Be acquired outright at a value premiumForm a transformational joint ventureSell a controlling interest tied to offtakeSecure a strategic equity partner with downstream or OEM integration

Investment Highlights
✅ 1. World-Class Project, Late-Stage & De-riskedKachi Lithium Brine Project:Resource: 10.6 Mt LCE, expandableDFS Complete (Dec 2023)Production Target: 25,000 tpa LCE in Phase 1, scalable to 50,000+Environmental Impact Assessment expected mid‑2025Proven Direct Lithium Extraction (DLE) technology via Lilac Solutions partnership
✅ 2. Massive Strategic Value—Undervalued by MarketLKE’s enterprise value is deeply disconnected from asset quality due to broader lithium market volatility.This presents a unique value-arbitrage opportunity for an acquirer or JV partner to step in before full development de-risks the project.Comparable M&A transactions in Argentina have occurred at multiples of LKE’s current market cap.
✅ 3. Precedent for Strategic Involvement: SK OnConditional offtake for up to 25,000 tpa already signed with SK On, representing ~50% of Kachi’s Phase 1 production.Includes 10% equity stake—creating a model for strategic investors to:Lock in long-term supplySecure upstream controlInfluence development timelinesThis agreement can be expanded or mirrored by additional partners or converted into a majority stake.
✅ 4. Clean Balance Sheet & Governance~USD 9.5 million cash (as of March 2025)No debt; rationalised costs and non-core asset divestmentsBoard formed Special Committee to assess all strategic options—including acquisition, merger, JV, and asset sale—with Goldman Sachs engaged as financial advisorThis opens the door to serious negotiation with credible bidders and partners.

Strategic Pathways for SuitorsStrategyBenefits to Acquirer/InvestorFull Takeover (M&A)Control over Tier-1 asset; buy at deep discount pre-approvalJV or Farm-inShared capex; de-risk execution; upstream lithium accessOfftake + EquitySecure supply + internal rate of return (IRR) from equityMinority Strategic StakeOptionality for control later; seat at the table

Who Should Be Interested?Battery Manufacturers (SK On, CATL, Panasonic): Lock in high-purity lithium at sourceAutomakers (Ford, Tesla, GM): Secure raw material amid supply chain instabilityMajor Miners (Rio Tinto, Albemarle, SQM): Grow footprint in brine-rich ArgentinaEnergy Investors/Infrastructure Funds: Low-opex, high-IRR energy transition play

Lake Resources offers a high-leverage, low-cost entry into the global lithium supply chain—at a time when few advanced-stage brine projects are available for acquisition. With production on the horizon, lithium demand ramping back up, and a strategic review underway, the timing is perfect to engage in a takeover, JV, or cornerstone investment.Failing to act now risks missing one of the few shovel-ready, ESG-aligned lithium assets not yet absorbed by the majors.Let me know if you'd like this adapted into a formal investor deck or targeted pitch to a specific suitor class (e.g., battery OEMs or global miners).