Level-headed, blunt assessment of Lake Resources, page-9

Notes on the Lake Resources Webinar from 23 June 2023:

Essentially building a mine + refinery, hence the hefty price tag. Most lithium refineries are going to top $1b easily.

Building a chemical plant in remote part of Argentina: this is where DD’s prior experiences in gas and oil would ostensibly come in. Will not start spending heavily until 2025.

Prior to DD, Lake was really lacking in technical and operational capability, also on the leadership level.Brought in new drilling team, new hydro-geology team, to help with better understanding of resource base.

Scott Munro, SVP:

Existing power supply plan was not well-developed. Gaps there and in logistics and supporting infrastructure. Since Lake is in remote part, these gaps would be magnified into serious problems.

Rigorous analytical process now in place for decision-makings.

Felt that phased approach to building out Lake was significantly less riskier than going with big-bang approach. They are in it for the long run. This would actually be a faster and more profitable path with earlier returns.

DFS in December will be for first phase.

Building in smaller, more separate phases allows Lake to apply lessons learned from one phase, to the next. Avoid repeating the same mistakes, also allows for refining/improving technology for next phase.The 50kpta plant would have required an amount of power not realistically delivered. Smaller phase approach (25kpta) allows Lake to start work before grid connection is established.Smaller phases approach also allows for greater operational resilence- can take smaller plants offline for repair or upgrade without affecting entire production (less costly/harmful than taking 50kpta plant offline).

Delivery over 3-4 years.

Lake was drilling re-injection holes to the north and south of extraction areas but all they did was find more and more project quality brine. Plant design minimum requirement is 205ml/L and brine discovered was in excess of this requirement.

Reinjection process was mostly derisked by running two high-volume pump tests. More than 30 million liters of brine successfully reinjected back into the ground. Local provincial regulators were involved in this process.

Lake now has a process flow sheet (from brine to battery grade lithium carbonate) that not only works but demonstrates consistency. The lithium chloride being produced is exceptionally clean with very low levels of impurities.Samples will be available in July from Saltworks for offtakers to start testing, and for binding negotiations to start thereafter.

Could have aimed for in excess of 80% recovery rate, but felt 80% was good for finding balance between commercial production and environmental stewardship. Still far ahead of hard rock and evaporation in terms of environmental considerations.

Low-water usage becoming very critical in face of world-wide water shortages, gives Lake social license to operate on very long term basis.

Power solution plan was the least mature part of the Lake Resources strategy, but now grid modeling and route planning has been completed. Lake is engaging with very supportive regulator which is good because there is a lot of projects in the area competing for power supply.

DFS six-month delay is because they want it to be as bankable as possible, with all major questions answered. Don’t want financiers or offtakers asking questions that would force Lake back to the drawing board. Having as complete a DFS is very critical in having the upper hand in closing negotiations with offtakers, banks, and financiers. Level of detail in DFS is very important.

Project approval by 2025, EIA amendment 2026 (not EIA submission), first lithium 2027, full ramp up by or end of 2028.Modeling EBITDA with $24,000/t as opposed to current LC price of $45,000/t.

Timeline is primarily driven by access to power supply.

Opened provincial office to work with local government and people and getting the local population involved and understanding what Lake is all about.

Q & A’s:

What are hurdles to completing DFS and FID?
Need to finish water modeling, finalize re-injection locations. Biggest focus is power supply, infrastructure and logistics are secondary issues, but all three drive OPEX determinations.

Why has Lake not been more engaging with investors?
Last 6-9 months have basically been about redefining the project from the bottom up and there was pretty much nothing definitive to release to market per ASX disclosure rules.

Has Lilac completed all testing to date?
Lilac has hit all of their milestones, but Lake will continue to have ongoing dialogue to identify areas of optimization leading up to full project. Lilac will still be fully integrated, and working hand in hand with Lake to get CAPEX and OPEX numbers as low as possible.

What determines where you land in your projection range for Kachi (?) OPEX?
Still working on it, but want to tighten ranges into plus/minus 15% for DFS.

What about the other three projects?
Right now fully focused on Kachi. Other three projects still going through local permitting process. Think it’s more important to get Kachi fully off the ground before we even start thinking about the other three projects.

Why aren’t you producing a purity level as previously reported (being in excess of 99.8%)?
Battery grade lithium carbonate is acceptable at 99.5% and there is no commercial or financial benefit in exceeding this standard. This is not a scientific project, this is about delivering to commercial standards.