November 2019

LITHIUM INDUSTRY PRIMER

TSX-V: PLU | OTCQB: PLUUF

Executive Summary
• Demand for lithium is growing +20% annually
• Lithium is a chemical element used in lithium-ion batteries
• Lithium-ion batteries are important in revolutionizing the transport market, renewable energy
storage systems and on-going use in electronics (electric vehicles, smart phones, laptops, build out
of Internet of Things)

• Lithium demand growth is a result of a global clean energy push

• Global push towards clean energy, carbon emissions reduction and reduced fossil fuels reliance
• Megafactory (battery production) ramping up with +$110 billion in investment out to 2028
• +100 “megafactories” in operation, in construction or planned
• Car manufacturers building out EV capabilities and models with +$300 billion in investments

• Investment likely focused on low risk lithium supply

• Car companies and megafactories continue to seek raw materials supply
• Ideal supply asset attributes include: long life (30+ years), scalable (to meet growing demand),
high quality product (low impurities), resilience (high margin), geopolitically stable sourcing
• Asset desirability is derived from ability to reliably produce a low impurity, battery-grade product

• Potential for strong risk-return profile given macro backdrop and committed capital

TSX-V:PLU
OTCQB: PLUUF Source: Benchmark Mineral Intelligence

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Executive Summary
Battery Supply Chain
• $400 billion in capital requires supply chain certainty
• Lithium-ion is the dominant battery technology
• Lithium is one of the lightest elements and has the best energy density, key
characteristics for mass market adoption
• Growth in demand driven by electric transport, energy storage, consumer electronics
and technological advances increasing lithium content

~$24 Billion >$400 Billion

capital required committed capital

Upstream Downstream

Core Raw Materials Semi Processed Products Batteries Battery Packs Mobile / EV / Utility
• Lithium • Cobalt • Anode • Cells • 4-7Wh • Smartphone
• Graphite • Nickel • Cathode • Various form • 7-10 kWh • Home
• Separators factors (18650) • 40-85 kWh • EVs
• >500 kWh • Commercial

TSX-V:PLU
OTCQB: PLUUF
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LITHIUM
DEMAND

TSX-V:PLU
OTCQB: PLUUF
Lithium Demand
• Lithium has a vast array of uses, including:
• Batteries. Best known application, and strongest growth prospect for lithium
• Lubricant Grease. Lithium-based greases make up 75% of the market. Lithium has good
stability, high temperature characteristics and water-resistance properties
• Glass. Provides energy savings for glass manufacturers due to increased melting efficiencies
• Ceramics. Used to produce glazes to improve ceramic’s shock absorption and stain resistance
• Health Products. Prescribed in small amounts for medical purposes

• Growth in demand is anticipated to be driven primarily by the batteries market

• Shift from primarily industrial purposes to batteries
• Lithium currently provides the best combination of energy density and price
• +80 different lithium-ion battery chemistries in production, with the varying chemistries providing
different characteristics (capacity, voltage, etc.)

2015 Demand 60% 25% 14% 1%

2025 Demand 30% 12% 38% 14% 6%

0% 20% 40% 60% 80% 100%

Non-Battery Batteries (Traditional Market) Electric Vehicles E-Bikes Energy Storage

TSX-V:PLU Source: Mining.com article from January 2017 (http://www.mining.com/web/lithium-supply-demand-story/). Article sources Deutsche Bank
OTCQB: PLUUF Markets Research - Lithium 101
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Lithium Content
Current Technology
• Lithium is a key component in current and future technology
• Lithium content is determined by battery capacity in kilowatt-hours (kWh)
• It is estimated that 0.7 - 0.9 kg of lithium carbonate equivalent (LCE) is required per kWh
• The larger the kWh battery pack, the greater the range, the more lithium is required

TSX-V:PLU
OTCQB: PLUUF Source: Visualcapitalist.com article from February 2017 (https://www.visualcapitalist.com/lithium-fuel-green-revolution/)
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Green Technology Growth
• Global shift towards green, environmentally friendly energy sources
• Lithium-ion batteries most widely used choice for energy storage
• Lithium is a key driver in the shift towards green power due to its extremely high electrochemical
potential and its weight (the lightest metal on the periodic table)

• Demand for lithium will be driven by energy storage and EVs

Energy Storage Electric Vehicles

As cost/kWh comes down, more affordable mass market
vehicles can be offered to consumers

TSX-V:PLU
OTCQB: PLUUF Source: Visualcapitalist.com article from February 2017 (https://www.visualcapitalist.com/lithium-fuel-green-revolution/)
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All Automakers Developing EVs
Over $300 billion committed from major carmakers to developing electric vehicles
Chinese OEMs expected to
comply with 20% EV
penetration rate ruling by
10-12M 2025
VW Group plans to invest +$50Bn in zero-
emission vehicles by 2023; Will develop 80
EV models by 2025, want to offer an electric
version of each of its 300 models by 2030

Launching 12 EV models GM planning to

Total Annual Vehicle Production

by 2022 introduce at least 20 EVs Toyota sales target of ~1M

by 2023 EVs and fuel-cell vehicles by
2030; investment $13Bn to
develop and make batteries

5-9M

Ford planning to invest

$11Bn by 2022, will have 40 Aiming to develop 8 EV
hybrid and full EV models models by 2025, with 30
planned by 2030

Has set a target of two thirds

of vehicle sales EV by 2030
1-4M BMW plans to deliver 12
Daimler to bring pure EVs by 2025
10 pure EVs to the
market by 2022 PSA aims to develop at
least 40 electric vehicles by
2025

2022 2025 2030

EV Strategy Timeline
TSX-V:PLU
OTCQB: PLUUF Source: Benchmark Mineral Intelligence, February 2019 publication (Financing 2030: How Much Money & Material is Needed to Make the EV Supply
Chain Happen?) and CNN article from November 16, 2018 (Volskwagen to spend $50 billion on electric car ‘offensive’)
(www.cnn.com/2018/11/16/business/volkswagen-electric-cars/index.html) 8
EV Adoption Supported Globally
Several governments have come out in support of EV adoption

Israel
Proposal to end ICE sales by 2030

India
Canada Proposal to end ICE sales by 2030
Target of 30% penetration of EV
sales by 2030 (Quebec targeting UK & France China
100% zero emissions by 2050) Proposal to end ICE (internal combustion engines) Target of 5% penetration of EV sales
by 2040 by 2020, 20% by 2025
BC recently tabled Zero Emissions
Vehicles Act – 100% zero emission Norway & Netherlands Japan & South Korea
new vehicle sales by 2040, targets Proposal to end ICE sales by 2035 Target of 30% penetration of EV sales
starting 2025 at 10% by 2030
Germany
USA Proposal to end ICE sales by 2030
No federal target set, 10 states
have set targets for 100% zero Italy
emissions vehicles by 2050 Target of 30% penetration of EV sales by 2030

Mexico & Brazil Europe

Target of 30% penetration of Considerations for EU wide ban of ICE by 2030
electric vehicle sales by 2030

Government Policy Continues to Support Electric Vehicle Adoption

TSX-V:PLU
OTCQB: PLUUF Source: Benchmark Mineral Intelligence, February 2019 publication (Financing 2030: How Much Money & Material is Needed to Make the EV Supply
Chain Happen?)
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Energy Storage: Megafactories
• Battery cell manufacturing has also attracted significant capital
• +$110 billion in investment with +100 “megafactories” planned
• Significant build out of lithium-ion battery megafactories capacity out to 2028
• Aggressive expansion with planned capacity and number of plants dramatically
increasing since the first megafactory (Tesla’s) was announced in 2014

+222% +590%

Megafactory Capacity by Region

Benchmark Minerals – September 2019
TSX-V:PLU Source: Benchmark Mineral Intelligence, September 2019 publication (Rise of the lithium ion battery megafactories and the SA Energy Storage Case
OTCQB: PLUUF Study).
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Megafactories:
Aggressive Growth
Tesla’s factory in Nevada was the first megafactory to be announced in 2014
• Rapid growth in planned capacity additions has occurred since, with further ramp-up expected

2015 Megafactory
Capacity Additions

Current
Megafactory
Capacity Build out
to 2028

TSX-V:PLU
OTCQB: PLUUF Source: Benchmark Mineral Intelligence, January 2019 publication (Challenge Cobalt: The Major Supply Chain Issues Faced in 2019)
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Raw Material Demand Evolution
• Raw material required for batteries focused on lithium, graphite, cobalt & nickel
• Forecasts show 7.2x anticipated growth in lithium demand as a key component

• Raw material demand evolution (100% utilisation rate) shows strong lithium growth

2,027.1 GWh
2,500,000

Anticipated Growth:
2,000,000
✓ Lithium 7.2x
✓ Graphite 6.9x
1,234.8 GWh
1,500,000
✓ Cobalt 3.7x
Tonnes

✓ Nickel 11.3x
1,000,000

500,000
293.7 GWh

-
2018 2023 2028

Lithium Graphite Cobalt Nickel

TSX-V:PLU
OTCQB: PLUUF Source: Benchmark Mineral Intelligence, January 2019 publication (Challenge Cobalt: The Major Supply Chain Issues Faced in 2019)
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Supply Attribute Checklist
• OEMs and megafactories require supply with strong attributes

✓ Quality. Consistent product quality with low impurity characteristics

✓ Supply Security. Geopolitically stable source, responsible mining practices
✓ Longevity. Long life assets to enhance supply chain security
✓ Economic Resilience. Assets with resilience to shifting chemical prices

• Projects with these attributes will reduce End Use Suppliers of

supply risks and will attract investment Application
(EV, ESS)
Raw Materials

• Assets that are interconnected → control risk

factors → ensure a lower risk return on the R&D Battery Cell Processing/
invested Manufacturing Refining
• Relationships are being developed across the
supply chain to reduce risk Cathode
Production

TSX-V:PLU
OTCQB: PLUUF
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LITHIUM
SUPPLY

TSX-V:PLU
OTCQB: PLUUF
Lithium Supply

TSX-V:PLU
OTCQB: PLUUF
Source: USGS 2019 and publicly listed company resource statements
15
Lithium Supply
• Lithium is abundant globally but tends to be deposited in low concentrations
• Lithium supply currently produced from brine deposits or traditional hard rock deposits
• Key challenge is finding high enough concentrations to make it cost efficient to produce

• Most of known supply comes from Latin America, Australia and China
• Supply currently oligopolistic in structure: three countries (Chile, Australia, China) account for
~85%, and four companies (Talison, SQM, Albemarle, Livent) control most output
• Brine assets are in Latin America, hard rock predominantly Australia while China has both

• New supply challenges

• Construction challenges are hindering the rate of new supply entering the market
• Technical challenges and capacity constraints involved with processing and producing a high
quality battery grade product are dampening supply forecasts

• Battery grade produced in two forms – lithium carbonate and lithium hydroxide
• Brines first produce a lithium carbonate, with further processing required for lithium hydroxide
• Hard rock spodumene deposits produce a concentrate followed by a conversion to hydroxide

TSX-V:PLU Source: Visualcapitalist.com article from January 2015 (https://www.visualcapitalist.com/lithium-key-ingredient-powering-todays-

OTCQB: PLUUF technology/) and McKinsey publication from June 2018 (Lithium and Cobalt – a tale of two commodities)
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Battery Materials Makeup
• The value of a project’s revenue stream is tied to its final lithium product
• End product specifications differ by application, but most contaminants must be reduced below
certain limits to achieve a material that is considered battery grade

• +99.5% considered battery grade, <99.5% considered technical grade

• Value also impacted by impurities and buyers’ needs (product technical specifications)
• Technical-grade lithium carbonate is cheaper to produce but rarely meets specifications required
for battery manufacturers (rather tends to be used for industrial applications)

• Lithium carbonate and lithium hydroxide

both have a future cathode requirements
• Both are needed for different variations of
battery cells that are currently commercialized
or near-term commercial
• Lithium metal is needed for solid state batteries
(no commercial applications are viable at scale
yet)

TSX-V:PLU Source: August 2018 article What is Lithium Carbonate by A. Kay and Benchmark Minerals January 2019 article
OTCQB: PLUUF (https://www.benchmarkminerals.com/lithium-supply-revisited/)
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Brine Deposit Overview
• Lithium brine deposits currently represent ~66% of global lithium resources
• Form in salars (salt lakes), basins where water has leached lithium from the volcanic rocks
• Lithium is extracted by pumping the brines into a series of evaporation ponds, crystallizing the
other salts out of the brine, leaving a lithium-rich liquor (~18-month process)
• Further processing is required to remove impurities prior to conversion into a lithium carbonate
(Li2CO3) which contains ~19% lithium. Further conversion to a higher-grade hydroxide is possible,
although the process can be expensive

TSX-V:PLU Source: Visualcapitalist.com article from January 2015 (https://www.visualcapitalist.com/lithium-key-ingredient-powering-todays-

OTCQB: PLUUF technology/) and McKinsey publication from June 2018 (Lithium and Cobalt – a tale of two commodities)
18
Brine Deposit Overview (Cont’d)
• Found primarily in the salt flats of Chile, Argentina, Bolivia, China and Tibet
• The “Lithium Triangle” in Latin America holds ~70% of global reserves and is a major industrial
producer of lithium
Lithium Triangle

• Brine deposits have been the dominant source of production due to lower costs
• Typically easier to explore, shorter timeline to production, and require less upfront capital
(although longer working capital cycles)

TSX-V:PLU Source: Visualcapitalist.com article from January 2015 (https://www.visualcapitalist.com/lithium-key-ingredient-powering-todays-technology/)

OTCQB: PLUUF and McKinsey publication from June 2018 (Lithium and Cobalt – a tale of two commodities)
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Hard Rock Deposit Overview
• Lithium hard rock deposits are primarily spodumene deposits
• Most lithium hard rock minerals are found in pegmatites of which spodumene is the most prevalent
• Most spodumene projects today produce a spodumene concentrate of at least 6% Li2O via crushing,
milling and flotation/gravity concentration
• The spodumene concentrate is then sold to a conversion plant and processed, primarily in China. A
concentrate below 6% results in a steep discount on pricing
• Conversion then involves crushing and heating of the concentrate at ~1050C with soda ash
(calcination step). Post calcination, the product is quenched in a sulfate solution (sulfuric acid), then
precipitated as a high purity lithium hydroxide/carbonate
• Approximately 7-8 tonnes of 6% concentrate are required to convert to 1 tonne of lithium carbonate
or hydroxide. The conversion process adds approximately $2,000/t to the total cost of battery grade
product and the remaining is profit to the converter

• Other hard rock lithium deposits exist today

• ‘Soft rock’ – clay deposits existing primarily in Nevada and Northern Mexico, lithium chemical
product (not a concentrate)
• Tuff – volcanic rock, similar to the primary source material for liquid brines prior to water leaching,
lithium chemical product (not a concentrate)
• Other – lithium-boron deposits, tend to be lower grade lithium, relying on boron revenue

Source: McKinsey publication from June 2018 (Lithium and Cobalt – a tale of two commodities) and July 2018 article Not All Lithium Mining is
TSX-V:PLU
Equal: Hard Rock (Pegmatites) vs. Lithium Brine by N. LePan
OTCQB: PLUUF
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Hard Rock Deposit Overview
• Australia is the largest global producer of spodumene concentrate
• Hard rock deposits are less dependent on a changing climate/environmental factors for production
when compared to brine assets

• Cost of producing lithium hydroxide is competitive versus brine deposits

• Spodumene can be directly transformed into hydroxide while brine deposits must first produce a
carbonate product prior to conversion to hydroxide
• Cost of producing lithium carbonate from spodumene is more expensive than from brines
• Operating cost highly dependent on re-agent consumption and price (sulfuric acid, soda ash)
Source: McKinsey publication from June 2018 (Lithium and Cobalt – a tale of two commodities) and July 2018 article Not All Lithium Mining is
TSX-V:PLU
Equal: Hard Rock (Pegmatites) vs. Lithium Brine by N. LePan
OTCQB: PLUUF
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Brine vs Hard Rock Comparison
Brine Deposits:
+ Lower operating costs, quicker timeline to initial production
- Longer ramp-up to full production (evaporation in large ponds in unique climates), expansion
and producing a battery grade product versus technical grade has been challenging
Hard Rock Deposits:
+ Faster processing rate, a more reliable and consistent product
- Getting to production can take longer and be costlier, no value added product (concentrate)
unless fully integrated
Brine Deposits Hard Rock Deposits
ADVANTAGES ✓ Widely accepted, dominant source of production currently ✓ Reliable and consistent production (“truck and shovel mining”)
✓ Easier and quicker permitting process ✓ Quick processing durations
✓ Typically found in flat and arid areas making exploration easier ✓ Geographically dispersed
✓ Decreased environmental impact ✓ Less dependent on changing climate for production
✓ Softer rock, less geological complexity ✓ Cost of producing lithium hydroxide competitive
✓ Typically shallower than hard rock mines ✓ Final product better suited to the higher quality (low impurity)
✓ Smaller scale requires less capital upfront product specifications required to achieve battery grade material

✓ Cost of producing lithium carbonate much lower, however needs

additional refining
DISADVANTAGES  Limited to select climates and regions due to processing
methodology, therefore processing is weather dependent
 Achieving low impurity battery grade (+99.5%) carbonate
requires additional refining
 Longer processing duration (~16 months)
 Smaller scale operations (scalability a challenge)
 Process to convert lithium carbonate to hydroxide expensive
 Significant freshwater requirement for operations
 High progressive royalty rates (Chile, Argentina)
TSX-V:PLU
OTCQB: PLUUF
Source: July 2018 article Not All Lithium Mining is Equal: Hard Rock (Pegmatites) vs. Lithium Brine by N. LePan
 Longer timeline from first discovery to production
 Deposit style tends to lend itself to higher mining costs later in
the life of mine
 Typically higher upfront capital cost requirement
 Higher cost to produce lithium carbonate than brines
 Challenges with achieving modelled recoveries
 Significant pricing differential dependent on product
 ~40% of value chain not retained by concentrate only producers
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Comparison -
Plateau’s Falchani Lithium project
Falchani Lithium
hard rock lithium project potential to be scalable fast to product cycle
high value end-product (not a concentrate) 100% of the value chain
1

For illustrative purposes only

TSX-V:PLU
OTCQB: PLUUF For illustrative purposes only
1. See news release date July 18, 2019
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Trends & Observations
• Spodumene Vertical Integration:
Spodumene projects are realizing the need to become fully integrated to capture 100% of the value
chain. However, capital costs may be a limiting factor.

• Limitations on Brine Expansion & Quality:

Brine projects are experiencing the challenges of expanding production, and achieving battery grade
carbonate without further, and costly, refining.

• Lithium Carbonate and Lithium Hydroxide both have a place:

Lithium hydroxide may be the faster growing segment as its much smaller today, but lithium carbonate
will remain strong. Both chemicals have a strong role in the foreseeable future.

• Strategic Assets Can Scale:

Assets with characteristics that can readily scale production are desirable. The “lens” the supply chain is
looking through now is projects with potential to expand to 50,000 tpa LCE and then to 100,000 tpa LCE.

• Impurity Reduction to ppb:

The trend to lower and lower impurity levels is critical to better batteries (safety and efficiency). Projects
that can produce a low impurity product are optimal as it requires less refining before being suitable.

TSX-V:PLU
OTCQB: PLUUF
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Summary
• The key attributes for lithium project success
• Long life Asset. 20+ years desirable
• Scalable. Ability to grow alongside demand
• Battery Grade Product. high quality lithium chemical product with product flexibility
• Economic Resilience. Lower half of the cost curve supports supply security
• Responsible Mining Jurisdictions. Responsible mining practices mandated by governments
with a history of stable local and foreign investment

• Falchani can potentially meet what OEMs and megafactories seek1

✓ Longevity. 6th largest hard rock lithium project today with room to grow2

✓ Scalability. Amenable to open pit mining and conventional, scalable processing

✓ Quality. 99.74% lithium carbonate with low impurities demonstrated to date

✓ Cost Competitive. Targeting lower half of cost curve

✓ Supply Security. Peru is a mining nation ranked 14th (out of 83) by Fraser Institute3

TSX-V:PLU 1. Source: McKinsey publication from June 2018 (Lithium and Cobalt – a tale of two commodities)
OTCQB: PLUUF 2. Based on the Company’s review of publicly available data, as at March 4, 2019
3. Fraser Institute – 2018 Annual Survey of Mining Companies
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Contact Information

Alex Holmes, CEO & Director

Alex@PlateauEnergyMetals.com
(416) 628-9600
PlateauEnergyMetals.com
@pluenergy

Disclaimer: The research in this presentation is provided for general informational purposes only and the opinions expressed are based upon Plateau Energy Metals Inc.’s (“Plateau” or the “Company”) analysis and
interpretation and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. The particulars contained herein were obtained from sources which Plateau believes to be reliable
and current as of October 2019 but are not guaranteed by Plateau and may be incomplete. This presentation may include forward-looking information or forward-looking statements concerning the future
performance of Plateau’s business and operations, as well as management’s current objectives, strategies, beliefs and intentions that involve risks, uncertainties and other factors that could cause actual results to
be materially different from those expressed or implied by such forward-looking statements. Although the Company believes that the current opinions and expectations reflected in such forward-looking statements
are reasonable based on information available at the time, undue reliance should not be placed on forward-looking statements since the Company can provide no assurance that such opinions and expectations
will prove to be correct. Actual events or results may differ materially from those projected in the forward-looking statements and Plateau cautions against placing undue reliance thereon. Neither Plateau nor its
directors or management assume any obligation to revise or update these forward-looking statements, except as required by securities laws. This presentation summarizes information about the Company and
readers are encouraged to review Plateau’s complete public disclosure including Risks and Uncertainties, as described in more detail in the Company’s MD&A filed on August 22, 2019 and recent securities filings
available at www.sedar.com. All dollars noted in this presentation are in US dollars unless otherwise noted.