Finniss Definitive Feasibility Study and Maiden Ore Reserve...

Finniss Definitive Feasibility Study and Maiden Ore Reserve Highlights

• Finniss Lithium Project (Project or Finniss) Definitive Feasibility Study (DFS) confirms that Core Lithium Ltd (Core) is well positioned to be the next lithium producer in Australia

• DFS focussed on the development of Ore Reserves within the first two orebodies at Finniss (Grants and BP33) over an initial 3.5 year period

• Mining high-grade Ore Reserves of 1.4% Li2O combined with exceptional spodumene metallurgy enable Core to produce high quality, coarse concentrate using simple gravity DMS processing

• Project comprises a low risk, open pit mining operation and DMS processing up to 180,000 tpa of high-quality lithium concentrate with robust margins

• Excellent DFS economics are reflected in the high Pre-Tax Nominal IRR of 80%, NPV of A$114 million and free cash flows of A$158 million from revenue of A$501 million

• Low start-up capital costs of A$73 million (including pre-production mining costs for Grants) and strong cash flows enable quick payback of 1.5 years and confirms Finniss as one of Australia’s lowest capital intensity projects

• C1 FOB Operating Costs of US$300/t concentrate (A$429/t) generates a robust operating margin of more than US$300/t on low case pricing assumptions

• Significant potential upside to economics remains through conversion of more Mineral Resources into Ore Reserves (including BP33) and through Core’s ongoing exploration in the broader Finniss Project

• Further Project expansion and increase of Mineral Resource category confidence and integration of the nearby Mineral Resources including Carlton, Hang Gong, Booths-Lees and regional exploration planned in 2019

• Financing discussions advancing with debt markets and strategic financiers • Over one third of Project Capex can be met with US$20 million pre-payment (A$29 million) commitment by Core’s largest shareholder - and major Chinese lithium producer - Yahua Group

• Regulatory approvals, Offtake and Finance discussions progressing to support rapid construction timetable commencing 2H 2019 toward ramping up commercial production 1H 2020