Valuation Considering the highly strategic position and quality of LKE’s tenement holding across its portfolio of four projects, and the 2018 drilling and exploration programs, we consider that LKE should reach a market value in the order of $160 million within the next twelve months. Assuming all in-the-money options being exercised, the resulting number of shares will be 292 million by the end of November 2018, resulting in a price target of $0.55. Lake Resources NL (ASX:LKE) Project Assessment Likely to Lead to Tremendous Value Uplift Page 6 We also have derived a sum of the parts valuation for Lake Resources as follows: LKE Valuation Asset Area (ha) Value Range Preferred $/share Basis Cauchari/Olaroz brine project 18,010 US$50-74m $80m $0.27 Transactions Kachi brine project 54,111 US$30-60m $40m $0.14 Transactions Paso brine project 29,626 US$18-50m $25m $0.09 Transactions Catamarca pegmatite project 79,500 $15-60m $15m $0.05 Market peers Cash $1.5m $0.01 Exercise of options $3.9m $0.01 Debt ($1.7m) ($0.01) Corporate & exploration costs ($2.3m) ($0.01) NPV Total $161.4m $0.55 Source: Terra Studio. Australian dollars, except otherwise indicated. While highly subjective, the valuation is supported by the recent transactions in the area and the current value of market peers.
LKE Price at posting:
86.0¢ Sentiment: Sell Disclosure: Not Held
