Initial development of Grants lithium deposit generates NPV10 of...

Initial development of Grants lithium deposit generates NPV10 of A$140 million (pre-tax) with an IRR (pre-tax) of 142% at average LOM concentrate price of US$649/t (FOB) over LOM; • NPV10 increases to A$246 million (pre-tax) and IRR (pre-tax) increases to 202% using US$895/t (FOB) concentrate price (current spot price); • Project generates A$346 million in revenue and over A$168 million in free cashflow (pre-tax), driving rapid payback period of less than 12 months; • Initial operational mine life of 26 months, producing a high-quality spodumene concentrate of 5.0% Li2O; • 1Mtpa DMS processing plant, producing 225,000tpa1 concentrate grading 5.0% Li2O at nameplate capacity; • Low capital cost of A$53.5 million (including contingencies of 15%); • Operating costs of less than US$279/t concentrate (A$372/t), including royalties, generates a robust operating margin of more than US$370/t on low case pricing assumptions; • Simple DMS plant design will allow for rapid construction timetable; • Approximately 50% of the total development capital cost expected to be met with US$20 million pre-payment commitment by Core’s largest shareholder and major Chinese lithium producer Yahua Group; • Financing discussions advanced with strategic financiers, including global offtake companies; • Significant potential to enhance Finniss Project mine life and economics through the later integration of the nearby BP33 deposit, and discovery of additional deposits at Finniss; and • CXO Board approves commencement of Feasibility Study, with target completion date of late 2018, and ultimate objective to propel Core into the ranks of ASX lithium producers in 2019.