LRS General Discussion, page-12081

1. Lithium explorers are in high demand: As the demand for lithium, a key battery material, is increasing, the share price gains of lithium explorers are also surging. Some stocks have seen tenfold or even twentyfold increases.

2. Valuation of lithium resources: According to analysts at Euroz Hartleys, the market is currently valuing lithium resources in the following way:

• Every 10 million tonnes (10Mt) of potential spodumene resource creates $80-$100 million of exploration value.
• Every 10Mt of resource that has a clear pathway to production creates $150-$300 million of speculative development value.
• Once in production, every 10Mt of mining inventory is valued at about $1.2 billion at spot prices.

3. Potential for value creation: Even a "small" discovery of a 10Mt resource can significantly create value. The speed at which a 10Mt resource can be defined with drilling compared to gold or base metals is one of the main attractions of lithium exploration.

4. Investor challenge: For investors, the challenge is to find the next junior lithium explorer that could see significant share price gains due to promising exploration results.

This shows that the valuation of lithium explorers can be quite complex and dynamic, and it's influenced by many factors, including the stage of the company's development, the size and quality of its resources, the potential for production, and market demand for lithium.