REG - CleanTech Lithium - Positive Pre-Feasibility Study & Reserves Declared
31/03/2026 07:00
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RNS Number : 7179Y CleanTech Lithium PLC 31 March 2026
31 March 2026
CleanTech Lithium PLC ("CTL", CleanTech Lithium" or the "Company")
Positive Pre-Feasibility Study Completed and Reserves Declared for Laguna
Verde
Pre-Tax NPV(8) US$1.37bn and IRR of 24.2%
CleanTech Lithium (AIM: CTL, Frankfurt:T2N), an exploration and development
company advancing sustainable lithium projects in Chile, reports the results
of its independent Pre-Feasibility Study ("PFS") for the Laguna Verde project
(the "Project"). The PFS demonstrates positive technical foundations and
compelling economic outcomes of the Project at PFS level, marking a
significant milestone in the Company's development pathway. Completing the
PFS, which includes the first declared JORC (2012) compliant reserves, enables
CTL to accelerate engagement with potential strategic partners.
The Company is now in a position to share the results of the PFS with selected
parties after it was announced that CTL and the Chilean Government agreed the
contractual terms of the long-term Special Lithium Operating Contract ("CEOL")
for Laguna Verde, which is subject to final ratification by the
Comptroller General's Office, as announced on 10 March 2026.
Laguna Verde PFS Highlights:
· The PFS demonstrates production of 15,000 tonnes per annum ("tpa") of
battery grade lithium carbonate for an operating life of 25 years with
positive economic performance based on the assumptions applied in the PFS.
Key Economic Metrics:
Pre-Tax NPV(8) US$1.37bn
Pre-Tax IRR 24.2%
Post-Tax NPV(8) US$959 million
Post-Tax IRR 21.2%
Capex (including contingency of 20.6%) US$748 million
Opex US$5,768 per tonne
Payback Period 4 Years
· The economic results are based on preliminary engineering and economic
assessments and are subject to risks and uncertainties, including lithium
price variability, process performance, permitting outcomes and project
execution.
· The PFS, led by leading engineering firm Worley as study integrator
and supported by additional independent specialists, bases the Project´s
process design on a Direct Lithium Extraction ("DLE") technology with prior
commercial deployment experience and a standard downstream process to final
lithium carbonate product.
· The study demonstrates the Project's advantages with a high level of
optionality for plant design and power supply, very high-water recovery, which
is a critical path item for mining projects in Chile, and strong community
engagement and environmental progress.
Ignacio Mehech, Chief Executive Officer, CleanTech Lithium said: "The
completion of the PFS is a major achievement for CleanTech Lithium and the
work demonstrates the Laguna Verde Project has very strong technical merits
and highly favourable economics. The estimated Capex intensity of
approximately US$49,900 per tonne of battery grade lithium carbonate compares
favourably with DLE projects in development globally, and the estimated Opex
places the project in the lowest cost quartile for the industry, leveraging
Chile´s advantages in infrastructure, logistics and a large highly skilled
workforce. The depth of work completed to date places the Company in a highly
favourable position as we have the unique opportunity to become the next
lithium producer to come online in Chile after more than 30 years.
The Board believes that Laguna Verde is a highly attractive opportunity for
strategic partners seeking long-term lithium supply at a time when global
demand is growing rapidly and not enough projects are being developed to meet
forecast demand. Completion of the PFS allows us to kickstart the process of
selecting a strategic partner to fund and develop the Project, with our
already engaged consultant Cutfield Freeman & Co.
As promised, we end Q1 2026 very strongly after having agreed the long term
CEOL, released a PFS with very attractive economics and begun a strategic
partner selection process that we believe will be very competitive, given the
historical interest our project has drawn from such parties. What lies ahead
is an exciting period, as we will look to begin preparing the Environmental
Impact Assessment ("EIA"), seeking to dual-list on the ASX and begin preparing
for the Definitive Feasibility Study ("DFS"), all the while completing the
strategic partner selection process by year end.
I am really enthusiastic for CleanTech Lithium, our shareholders and me
personally, as we have delivered on our promises and can now finally begin the
next stage of development of Laguna Verde. I look forward to updating our
shareholders in the coming days on the merits of our PFS and our plans to
unlock the real potential of our flagship project."
Pre-Feasibility Study
The PFS was led by the study integrator, who coordinated the work of
third-party consultants and information provided by the Company.
Major third-party contributors to the study include:
· Montgomery & Associates - Geology, hydrogeology, resources,
reserve modelling and wellfield design
· Xi-an Lanshen New Material Technology Company ("Lanshen") - Process
design and engineering, process capital and operating cost estimates
· Ad Infinitum - Process design review, flowsheet development and
processing technical oversight (Competent Person - Processing)
· Benchmark Minerals Intelligence - Lithium product marketing studies
· Worley - Project infrastructure engineering and infrastructure
capital and operating cost estimates, construction planning and financial
modelling
Process design inputs were developed by Lanshen and reviewed and integrated by
Ad Infinitum, whose principal acted as the Competent Person responsible for
processing. Worley´s role was focused on infrastructure, engineering, and
cost estimation whereas Lanshen was primary responsible for process design.
The PFS incorporates inputs from third-party specialists, including process
design, hydrogeology and market analysis, which have been relied upon for the
purposes of the study. The study integrator has not independently verified all
third-party inputs and does not accept responsibility for such information.
Project Overview
The Laguna Verde Project is located in the Atacama Region, Chile, at
elevations exceeding 4,300 metres above sea level. The Project is situated
approximately 265km east of the regional mining centre of Copiapó. A paved
highway Route 31 which extends from Copiapó through to Argentina, runs
through the project area. The proximity to the international border and
established transport corridors supports logistics for equipment supply,
reagent importation, and export of finished product.
As part of the PFS process a plant location trade-off study was undertaken as
announced to the market on July 02, 2024 (Link
(https://www.londonstockexchange.com/news-article/CTL/pfs-plant-location-study-results/16547191)
). The study resulted in the decision to locate the downstream Lithium
Carbonation Plant ("LC Plant") in Copiapó, and the plant for the DLE and
eluate concentration stages which produce a concentrated lithium chloride
(LiCl) solution, at the Laguna Verde project site, as shown in Figure 1.
This configuration greatly reduces the footprint at the project site, from
power supply, storage, camp and plant facilities, along with construction
phase and environmental impacts. With approximately 70% of the operational
workforce employed at the carbonation plant, locating it in Copiapó provides
major advantages in accessing a skilled workforce, along with existing
infrastructure, power supply and other inputs. This carbonation plant could be
expanded to process LiCl from additional future projects in the region.
Figure 1: Regional Map and Plant Locations
Project Configuration and Recovery Method
The proposed development for production of 15,000 LCE comprises two project
sites:
Laguna Verde Site - LiCl Production:
o Lithium chloride (LiCl) production facility
o Brine extraction and reinjection wellfields
o Raw brine handling and DLE processing
o Concentration and purification to produce a transportable LiCl solution
Copiapó Site (conversion to 15,000tpa battery grade lithium carbonate):
o Lithium carbonate (Li₂CO₃) conversion facility
o Final product drying, micronizing and packaging
The Process Block Diagram further details this configuration by showing an
overview of the recovery method as presented in Figure 2 below.
Figure 2: Process Block Diagram
Laguna Verde LiCl Plant
At the Laguna Verde project site brine is extracted from the production
wellfield and pre-treated to control suspended solids prior to DLE processing.
For the PFS, the Company selected the DLE adsorbent provided by Lanshen after
extensive test-work on various adsorbents. Lanshen´s provides an
alumina-based adsorbent which is the most commercially established DLE
adsorbent, and it has been a leader in commercial deployment in the DLE
sector.
Figure 3: Lanshen Commercial DLE Unit in China
In the DLE process lithium is selectively recovered by passing the feed brine
through columns filled with the adsorbent. The columns are arranged in a
carousel system, a commercial scale example of which is shown in Figure 3.
Lithium is desorbed with demineralised water to produce a dilute LiCl eluate,
which is subsequently upgraded through a staged purification and concentration
circuit.
At the Laguna Verde site the plant will produce a LiCl solution that is
approximately 5.88% lithium, suitable for bulk transport to Copiapó for
carbonate conversion. Depleted brine and process effluents are managed through
integrated water recovery systems and reinjection into the basin aquifer to
minimize net freshwater consumption and aquifer depletion.
The key recovery parameters achieved at the Laguna Verde LiCl plant are:
· DLE lithium recovery: 90.0%
· Membranes recovery (RO-NF-ED) + IX: 98.4%
· LiCl Plant total recovery: 88.6%
Copiapó Lithium Carbonate (LC) Plant
The concentrated LiCl solution is transported to Copiapó and converted to
lithium carbonate using soda ash (Na₂CO₃) carbonation at approximately
85°C. The conversion process includes:
· Carbonation reactor,
· Solid-liquid separation,
· Hot washing,
· Drying and micronizing to meet battery-grade specifications,
· Mother-liquor recovery circuit for lithium recovery and recycling.
The recovery achieved in the carbonation stage is 87.2% however the design
achieves incremental recovery from the mother-liquor circuit that results in
total recovery from the Lithium Carbonation Plant of 96.5%.
Based on the total recovery rates of the LiCl plant of 88.6% and the total
recovery of the Lithium Carbonation plant of 96.5%, the global recovery rate
for the process is 85.5%. The flowsheet is designed around high internal water
recovery. Key features include:
· RO/NF/ED-based water recovery systems,
· Evaporation condensate reuse,
· Reinjection of depleted brine and treated effluents.
From an environmental perspective, the absence of conventional evaporation
ponds and reliance on reinjection represent a fundamental design feature
intended to reduce long-term disturbance.
Project Infrastructure
The infrastructure framework supporting the Laguna Verde Project comprises the
two primary sites and associated logistics corridors. Product export and most
reagent imports are expected to be routed via Angamos Port (Mejillones).
Various other port options were assessed, and it was considered based on
current available capacity to be the superior option. This will require
further evaluation.
Figure 4: Plants and Port Location
Laguna Verde Site Infrastructure
The LiCl Plant facilities will be situated northwest of the Laguna Verde, as
illustrated in Figure 5, with remaining infrastructure spread around the
periphery of the laguna, mainly being:
a) Brine extraction wells.
b) Industrial facilities area for reagent/utilities.
c) Concentrated LiCl brine storage tanks for truck
transport to the LC Plant. Two (2) tanks are considered, with a storage
capacity of 500 m(3) each (operational volume), from where the trucks are
loaded, to transport the brine to the LC Plant.
d) No solid discards are generated from this plant, and all
liquid discards are mixed with the spent brine for reinjection.
Figure 5: Area of the LiCl Plant infrastructure
For the production of concentrated LiCl eluate with a capacity of 15,000 tpa
LCE, the plant´s permanent installations are configured as depicted in Figure
6. The central area marked as DLE plant comprises the DLE modules which total
10 carousels each with 30 columns.
Figure 6: Main installations and facilities for LiCl Plant.
Electrical and Thermal Power
Electricity represents the primary energy input for the project. The
electrical consumption for the plants at the Laguna Verde site and at Copiapó
is estimated as below, with the former having a much larger requirement:
· Laguna Verde (LiCl plant): 175,200 MWh/year
· Copiapó (Li₂CO₃ plant): 19,200 MWh/year
Electricity and thermal energy consumption have been estimated based on data
supplied by Lanshen and supplemented with engineering estimates for auxiliary
equipment and plant utilities. The consumption values are used to calculate
annual electrical and thermal energy costs for the project. The energy basis
includes:
· Electrical demand for motors, pumps, compressors, wellfield pumping,
instrumentation, and general services.
· Thermal energy requirements, including LPG consumption for boilers
and saturated steam generation.
· Diesel usage for vehicles and mobile equipment at both plant sites.
· Market-based unit pricing, derived from Chilean energy market data
and preliminary supplier information for LPG and diesel.
A number of options were evaluated for the supply of electricity to the Laguna
Verde site. Based on the technical information provided by CleanTech Lithium,
a non-binding reference proposal was prepared by an established power
transmission company in Chile. The proposal is based on a
Build-Own-Operate-Transfer (BOOT) model.
The operating time of the electrical supply is considered for the years of
operational life of the project. The BOOT proposal would deliver the required
electrical supply to the Laguna Verde site via a 220 kV transmission lines and
a step-up substation. This will be a length of 130 km and follow the route
of the national highway 31, as shown in Figure 7, from a connection point near
the existing La Coipa substation to the Laguna Verde plant. Alternative routes
will be evaluated in future stages of development.
Figure 7: Route of Electrical Transmission Line based on Reference Proposal
The Chilean national electricity grid has one of the highest renewable energy
penetration rates globally. As a result, the Company will be well positioned
to secure a BOOT agreement for 100% renewable energy. In addition, the Company
undertook several studies or proposals to evaluate other options related to
the energy requirements of the project, across electrical supply, gas or
alternative heating technologies, and transport fuel. A major consideration
in undertaking this work was the potential to maximise the sustainability of
the energy input required for the project. These evaluations included:
· A study on utilising onsite renewables comprising a solar
photovoltaic power plant, wind turbines and a battery energy storage system to
provide the full electrical energy requirements at the project site
· Evaluation of solar thermal, or concentrated solar, technologies to
provide the heat and steam energy requirements at the Project site.
· A desktop study was completed on the potential for geothermal energy
to provide the heat and steam energy requirements at the Project site. Laguna
Verde is a recognised site for geothermal energy potential in Chile.
· A proposal was received for utilising electric trucks for the
transport of eluate from the project site to the downstream processing plant
at Copiapó. This would take advantage of a very large altitude gradient
between the two sites, which provides regenerative charging when transporting
heavy loads down gradient and a much lighter load on the return.
These studies or proposals provided valuable ideas and insights that will be
further evaluated at the next stages of project feasibility studies.
LPG
Liquid petroleum gas (LPG) is to be used in the project as a heat energy
source, specifically for the boiler at the LiCl Plant and for the boiler and
dryer in the LC Plant. This utility will be obtained locally and transported
to the plant by trucks.
Process Water
Water mass balances were completed for each of the plants at the Laguna Verde
Site and at Copiapó, and the consumption of water is as follows:
· LiCl Plant: 160,800 m(3)/y (5.6 L/s)
· LC Plant: no industrial water is required during normal operation due
to recirculation of all water within the process. Water is specifically
required for start-up.
There are several options available for supply of process water under
evaluation. Firstly, surface water courses that contribute to the Laguna
Verde. The Peñas Blanca River flows from west to east and has a continuous
flow throughout the year, while to the east of the Laguna Verde, there are
intermittent surface water flows. Freshwater exploration wells also exist in
the western portion of the basin with demonstrated pumping rates that exceed
40 L/s (Hydro Exploraciones, 2020). Furthermore, a conceptual water balance of
the basin recharge has been prepared and indicates that the average estimated
freshwater recharge in the Laguna Verde Basin corresponds to 570 L/s (M&A,
2024a). Potential sources of freshwater for the Project include the
application for groundwater rights in the basin or the purchase of existing
water rights from third parties. Under normal conditions, the constitution of
water rights may require approximately one year from the date of filing.
The extracted process water at the project area will require treatment with a
low-pressure reverse osmosis unit to produce the required quality of
demineralized water for eluate washing and other process water requirements.
Figure 8: Identified Water Abstraction Points and Registered Water Rights
Laguna Verde and Laguna del Negro Francisco Areas
Mining Method
The mine plan is based on a 25-year Life-of-Mine (LOM) with an initial ramp-up
followed by steady-state production of 15,000 tpa LCE:
• Months 1 - 2:
70% capacity
• Month 3:
85% capacity
• Months 4 - 5:
90% capacity
• Month 6 onward: Full
capacity (15,000 tpa LCE)
The modelled average extracted lithium concentration over the LOM is
approximately 186 mg/L, with limited dilution over time. Modelled average
brine feed rates are:
• ~498 L/s during Year 1
• ~540 L/s from Year 2 onward
Wellfield Design
Full-scale production requires 36 vertical production wells, each designed to:
• Reach a total depth of approximately 400 m
• Be screened from 200-400 m below surface
• Target permeable unconsolidated and coarse tuff
units
• Be spaced on average approximately 400 m apart
Placing the top of the screen at a 200 m depth is intended to minimize
dilution from shallow freshwater or reinjected brine. Wells are projected to
be constructed with 10-inch stainless steel casing and equipped with 8-inch
submersible pumps. Brine will be conveyed through HDPE pipelines to a raw
brine receiving pond and then to the DLE facility.
Production well locations were selected to remain within Measured and
Indicated Resource zones, fall within the CEOL polygon (outside of the
exclusion zone) and within CleanTech's preferential licenses, and be located
in areas supported by aquifer testing (notably wells LV05 and LV06 which were
pump tested).
Figure 9: Well Field Layout
Mineral Resource Assessment and Reserves
The total Measured plus Indicated plus Inferred Resource estimate for the
Laguna Verde Project is estimated at 1.90 million tonnes LCE, with an average
lithium grade of 174 mg/L. Of this, Measured plus Indicated is 835,000 tonnes
LCE at an average lithium grade of 178 mg/L. This resource estimate was
completed on October 30 2025 and a detailed announcement was released on
November 10, 2025 (Link
(https://polaris.brighterir.com/public/cleantech_lithium/news/xml_rns/story/xjgz0gx)
). For further details on the estimate please refer to this announcement.
The Ore Reserve estimate is derived from the Measured and Indicated Mineral
resources and is based on:
- A calibrated 3D groundwater model (MODFLOW -USG),
- Variable density flow and transport,
- 25-year production simulation.
- A 36 well production wellfield
- Screens set at 200-400 m depth to limit dilution
Ore Reserves are reported at the point of reference of processed brine (rather
than from the production wellheads); the lithium mass extracted from the wells
was multiplied by a process efficiency factor of 90% based on conducted pilot
testing.
All Ore Reserves are classified as Probable.
The Probable Reserve Estimate for the Project corresponds to 378,000 tonnes of
LCE at an average grade of 186 mg/L, sufficient to support the ramp-up and
subsequent annual output of 15,000 tonnes LCE over the 25-year operating life.
A lithium cut-off grade of 100 mg/L was applied to the reserve estimate based
on the chosen direct lithium extraction processing method, as well as
conservative metrics for long term lithium prices, and capital expenditure and
operating expenses.
Category Gross Net attributable Operator
LCE (million tonnes) Lithium grade (mg/L) Contained lithium metal (tonnes) LCE (million tonnes) Lithium grade (mg/L) Contained lithium metal (tonnes)
Ore/Mineral reserves per asset CleanTech Lithium
Proved - - - - - -
Probable 0.38 186 71,000 0.38 186 71,000
Total 0.38 186 71,000 0.38 186 71,000
Mineral resources per asset
Measured 0.39 181 74,000 0.39 181 74,000
Indicated 0.45 175 84,000 0.45 175 84,000
Inferred 1.07 167 200,000 1.07 167 200,000
Total 1.90 174 358,000 1.90 174 358,000
Notes:
1. LCE = lithium carbonate equivalent.
2. The conversion factor used to calculate LCE from lithium is based on molar
weight. The equation is as follows: lithium x 5.323 = lithium carbonate
equivalent (Li2CO3).
3. Average grades were calculated from the division between lithium mass
(tonnes) and brine volume.
4. Lithium tonnages are rounded to the nearest thousand and grades are rounded
to the nearest whole number; minor discrepancies may exist when comparing
values due to the use of averaging methods and rounding.
5. A lithium cut-off grade of 100 mg/L was applied based on the chosen DLE
processing method, as well as anticipated capital expenditure and operating
expenses.
6. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability. Furthermore, not all Mineral Resources can be converted
into Mineral Reserves after application of the modifying factors, which
include but are not limited to mining, processing, economic, and environmental
factors.
7. Mineral Resources are reported inclusive of Mineral Reserves.
8. Mineral Reserves are reported at a point of reference of processed brine
using a recovery factor of 90% based on pilot testing results.
Table 1: Summary of Resources and Reserves by Category (Resource effective
date of 30 October 2025, and Reserve effective date of 09 March 2026)
Permitting and Environmental Considerations
A CEOL is required in Chile to exploit lithium. A decree was issued by the
Ministry Mining on 10 March 2026 granting a CEOL to the Company for the Laguna
Verde project for 40 years. This decree is, as required for all decrees,
undergoing review by the Comptroller General's Office to ensure it complies
with the Constitution and laws of Chile following which the CEOL will be
signed by the President of Chile and the Company.
The environmental and social assessment is aligned with Chilean regulatory
requirements and reflects the Project's development stage at the PFS level.
The Project incorporates DLE with reinjection of spent brine, significantly
reducing evaporative losses compared to traditional solar evaporation
operations with faster production rates and a higher rate of recoveries of
lithium with a smaller environmental footprint.
Environmental baseline studies have been initiated and form the foundation for
permitting. Key environmental considerations include:
· Hydrogeological management,
· Reinjection strategy,
· Water sourcing,
· Energy supply,
· Waste management, and
· Community engagement.
The Project remains subject to Chilean environmental permitting processes and
CEOL regulatory requirements. Permitting remains a critical path item.
The Project will require submission to Chile's Environmental Impact Assessment
System ("SEIA") and approval of a Resolution of Environmental Qualification
("RCA") prior to construction. The Project is not located within Sistema
Nacional de Áreas Silvestres Protegidas del Estado ("SNASPE") protected areas
but lies within a Zone of Tourist Interest ("ZOIT"). Exploration activities
have been designed to minimize impacts.
Community Engagement and Social Strategy
There are no communities within the area of influence of the project, however
six communities are present along transportation routes CH31 and CH601. The
Pastos Grandes, Runa Urka and Sinchi Wayra communities are located on the CH31
route, while the Pai Ote, Copiapó and Sol Naciente communities are present on
the CH601 route.
Figure 10: Location of Indigenous Communities
CleanTech Lithium frames lithium development in a manner that is
environmentally and socially sound. The Company is committed to a
sustainability strategy that positions it as a leader in sustainable lithium
development through early participation of indigenous communities and a broad
range of stakeholders.
A formal partnership agreement with the nearby indigenous communities, signed
in December 2024, supports baseline work and EIA participation through a joint
working group. Through this agreement, communities will provide vital local
knowledge for baseline studies and contribute directly to the overall EIA
process.
The Company's engagement strategy is built on the following principles:
· Early and participatory consultation
· Transparent information channels and ongoing dialogue mechanisms
· Focus on impact management, local employment and investment
· Commitment to free, prior and informed consultation processes
This approach is evidenced by multiple engagement activities, including
organised visits to the DLE pilot plant, drilling campaigns and numerous
consultation meetings. The Company's commitment to regional development is
further demonstrated by the opening of a community outreach office in Copiapó
and an employment and local skills strategy developed in partnership with the
Universidad de Atacama. The recent public endorsement by local communities
including from Indigenous Community President Ercilia Araya confirms that this
is not merely a statement of intent, but a clear path of engagement grounded
in cultural and environmental stewardship.
Figure 11: DLE Pilot Plant Inauguration Event with Indigenous Communities and
Local Government Representatives, May 2024
The social strategy aims to support long-term community acceptance and shared
value development. Early conversations on topics such as protocols,
participation, investments, local employment and follow-up of initiatives have
enabled the Company to identify areas to foster autonomy and acceptance of the
Project.
Project Financials and Economics
Capital Costs
The capital cost estimate has been prepared with an effective date of 1 March
2026. The capital estimate corresponds to an AACE Class 4 level of definition,
consistent with a PFS. The expected accuracy range is approximately -30% to
+45%, reflecting the current level of engineering maturity. Pricing is based
on Q4 2025 US dollar values in constant terms, with no escalation applied.
Mechanical works represent the largest discipline component within direct
costs, followed by concrete and structural works. This distribution reflects
the process-intensive nature of both the DLE-based LiCl plant and the lithium
carbonate conversion facility. From an area perspective, the Laguna Verde
salar site represents the largest share of direct capital expenditure, driven
by:
· The LiCl process plant;
· Production and reinjection wells;
· Infrastructure and energy systems;
· High-altitude construction requirements.
The Copiapó site capital is primarily driven by the lithium carbonate plant
and associated reception, storage and services infrastructure.
The base case assumes that the high-voltage transmission line will be
delivered under a third-party BOOT arrangement. Accordingly, the capital
estimate includes only on-site electrical infrastructure and connection
facilities.
Capital Cost Summary:
The PFS includes a detailed analysis of the direct and indirect costs based on
a CAPEX Report prepared by the study integrator. Key third-party and
client-supplied inputs incorporated into the estimate include:
· The Laguna Verde LiCl plant and the Copiapó Li₂CO₃ plant,
designed and budget-priced by Lanshen;
· Main buildings at both sites, costed by ISM Ingeniería (including
prefabricated structures and civil works);
· 36 production wells and associated booster pumps, costed by CTL based
on a budgeted quotation provided by Geotec Boyles SA, a company based in
Santiago, Chile;
· Brine pumping and transport infrastructure (civil, electrical
systems, transmission lines and pipelines), engineered by Agora Soluciones.
The capital estimate reports a Total Installed Cost (TIC) of approximately
US$748.2 million, including owner's costs and contingency. Capital costs are
shown by project area and Work Breakdown Structure (WBS) is provided in Table
2, distinguishing between the Salar site and the Copiapó site:
Description Cost USD Cost USD % TIC
SALAR
General Salar 39,579,065 5.3
Wells 40,837,235 5.5
Lithium Chloride Plant 160,020,694 21.4
Salar Reagents Products 4,571,284 0.6
General Services Salar 7,806,865 1.0
Infrastructure Salar 59,600,226 8.0
Energy Salar 33,112,829 4.4
Total Salar 345,528,198 46.2
COPIAPÓ
General Copiapó 10,745,834 1.4
LiCI Reception and Storage 8,899,206 1.2
Lithium Carbonate Plant 88,841,204 11.9
Copiapó Reagents Products 4,744,646 0.6
General Services Copiapó 7,309,295 1.0
Infrastructure Copiapó 6,342,715 0.8
Energy Copiapó 2,100,645 0.3
Total Copiapó 128,983,545 17.2
Total Direct Cost 474,511,741 63.4
Indirect Cost 129,604,435 17.3
Owner Cost 18,980,470 2.5
Contingency - 20% of other costs 125,109,805 16.7
Escalation - -
Total Installed Costs 748,206,451 100.0
CAPEX OUTFLOWS USD %
Construction Year 1 - 2029 261,872,258 35.0
Construction Year 2 - 2030 486,334,194 65.0
Total Outflows 748,206,452 100.0
Table 2: Project Cost Estimate Summary by Area
Direct costs total approximately US$474.5 million, representing approximately
63% of TIC. Indirect costs total approximately US$129.6 million, reflecting
execution strategy, high-altitude logistics and temporary facilities
requirements. Owner's costs total approximately US$19.0 million (approximately
3% of TIC), and contingency totals approximately US$125.1 million,
representing approximately 17% of TIC and approximately 20% of the base
estimate.
Indirect Costs, Owner's Costs and Contingency:
· Indirect costs: (approximately US$129.6 million) include engineering,
procurement and construction management (EP/CM), temporary facilities, a
600-bed construction camp, freight and duties, spares and first-fill items
(including adsorbents, resins and membranes), third-party engineering
services, vendor representatives and commissioning support.
· Owner's costs: (approximately US$19.0 million) are estimated at
approximately 4% of direct costs and include project management support
functions and allowances for permitting, EIA preparation and community
engagement.
· Contingency: (approximately US$125.1 million) has been included to
address uncertainties inherent at PFS level, including design maturity,
quantity variability, productivity assumptions, logistics and high-altitude
construction risk. Contingency excludes scope changes and force majeure costs.
The following Figure 12 shows the capex profile of the project, including
first fill and sustaining capex:
Figure 12: Capital Expenditures and Timing
Capex Cost Intensity:
The capex costs of US$748m equates to a capex intensity of approximately
US$49,900 per tonne of battery grade lithium carbonate which compares
favourably with other DLE projects in development globally. The Company will
look to further optimise the project capex during the DFS stage and is
considering various technical options which could improve efficiencies in the
overall DLE process.
Key Qualifications and Exclusions:
Exclusions from the estimate include escalation, financing costs, foreign
exchange impacts, closure and rehabilitation costs, ramp-up operating losses,
sustaining capital and environmental or community expenditures beyond the
defined owner's allowance.
Sustaining Capex:
Sustaining capex is required after the initial project investment to maintain
ongoing operations. Sustaining capital for the Project primarily comprises the
first fill of consumable process materials supplied by Lanshen, including
adsorbents, resins, and membranes. The sustaining capital costs for
adsorbents and resins, which are required to commission and operate the
facilities, total US$42.83 million.
Ongoing sustaining capex is required throughout the remaining 24-year life of
the project, amounting to an average of approximately US$9 million per annum,
although costs vary year on year, depending on facility requirements.
Operating Costs
The operating cost estimate has been prepared at PFS level, primarily based on
an OPEX Report prepared as part of the study. The estimate integrates process
definitions, mass balances, and reagent and consumable consumption data
provided by CTL and Lanshen, combined with Worley's cost databases and
prevailing Chilean and international pricing for labour, energy, reagents,
consumables and logistics.
The operating model assumes steady-state production of 15,000 tpa of
battery-grade Li₂CO₃, with continuous operation across both the Laguna
Verde salar facilities and the Copiapó lithium carbonate plant. The basis
assumes approximately 8,000 operating hours per year.
The estimate excludes escalation, financing costs, corporate overhead beyond
the Project General Manager level, technology licensing fees, and government
royalties (which are incorporated separately in the economic model).
Operating Cost Structure:
Operating costs are classified into direct and indirect components, consistent
with Worley's PFS methodology. The total operating cost combines Laguna Verde
and Copiapó direct costs plus local G&A.
· Total production cost: US$ 5,768/t Li₂CO₃ (approximately US$
86.516 million per year)
Table 3: Project Total OPEX - 15,000 tpa Li(2)CO(3)
Indirect operating costs include General and administrative (G&A)
expenses, Insurance, communications and security, personnel transport between
urban centres and operating sites.
Economic Analysis
The economic evaluation for the Laguna Verde Project PFS was completed in
accordance with JORC and written to be consistent with the disclosure
requirements of NI 43-101, with an effective date of March 1, 2026. The
evaluation was based on a discounted cash flow (DCF) model prepared for the
study that integrated the CAPEX and OPEX estimates, a production schedule
constrained by hydrogeology and process design (Montgomery & Associates
and Lanshen inputs), and long-term lithium carbonate pricing assumptions from
Canaccord Genuity (Nov 2025). The model produces annual cash flows and
calculates NPV, IRR, and payback on both a before-tax and after-tax basis.
Evaluation Criteria:
The analysis evaluates an approximately two-year construction period followed
by 25 years of operations. Results are stated in real (constant dollar) 2026
US dollars with no inflation escalation applied to costs or revenues. Cash
flows are discounted at an 8% real discount rate, and NPVs are calculated as
of the start of construction in 2029 (cash flows discounted to this 2029
date).
Cashflow & Economic Analysis:
The economic analysis carried out in the study included the following basic
assumptions:
CAPEX Schedule 2029 - US$261.9 million
2030 - US$486.3 million
Total - US$748.2 million
Production Schedule Annual production of 15,000 tonnes per annum commencing in 2031
Production ramp-up projected at 50% in Year 1 with full capacity being
achieved in Year 2.
50% of initial production will be battery grade, reaching 95% in Year 2 and
Grade 100% by Year 4
Lithium Carbonate Sales Prices Annual Prices 2031 - US$22,500 per tonne
Long-term - US$22,500 per tonne
Source: Canaccord Genuity Forecast (Nov. 2025)
Opex Cost per tonne US$5,768
Financing Project Funding Analysis assumes entire project funded by the Company from its own capital.
No debt or financing costs included.
Taxes & Royalties Corporate Tax First Category Tax as currently defined in the Chilean tax regime for mining
industries - 27% on net profits (after royalties)
Specific payments to the Chile State and other parties - Based on the CEOL
Royalties (CEOL) terms agreed in March 2026:
§ Annual Operating Margin Payment: a progressive table which increases
from 0% where the operating margin is below 20% maximum rate of 15.5% when the
operating margin exceeds 99%.
§ Contributions to local indigenous communities: Payments are made to
designated indigenous communities in accordance with the provisions of the
Laguna Verde CEOL and related private agreements. Contributions are calculated
at 0.4% of gross annual lithium sales revenue.
§ Contributions to Local Government: Payments are made for regional and
municipal development in accordance with the CEOL provisions. These payments
are allocated to the Regional Government and local municipalities. Calculated
at 0.4% of gross annual lithium sales revenue.
§ Ad Valorem Royalty: Applies to lithium product sales and is calculated
on a progressive, marginal basis according to the realized sales price per
metric tonne of lithium product. The royalty is applied marginally across each
price band, including the following examples:
o US$0-US$10k per tonne sales price - 1% marginal rate
o Over US$10k-US$15k per tonne - 2.5%
o Over US$20k-US$25k - 7.5%
o Over US$30k-$35k - 30%
o Over US$40k - 50%
o Under this scenario, the effective weighted average royalty rate is
approximately 2.9% of gross sales revenue for the period
§ Contributions to Sustainable Productive Development: Contributions to
the State and designated institutions to support sustainable productive
development under the CEOL. The contribution is calculated as 15% of the ad
valorem royalty component. The amount, when calculated, is deductible from
the Ad Valorem royalty payment for that period
With foreign companies or investors, the additional tax that companies must
pay when distributing their profits and dividends overseas is 35%, in which
case, the First Category Tax operates as a credit. In the PFS, the tax
rate of 27% is used as the applicable rate on a project economics basis. PFS
also assumes CleanTech Lithium will establish tax arrangements in Chile and
elsewhere to manage the additional 8% net withholding tax which may be payable
in the event that dividends are distributed outside Chile.
Withholding Tax
Table 4: Key Assumptions in Economic Analysis of Laguna Verde project
Revenues:
Based on annual production of 15,000 tpa LCE:
Table 5: Production Revenues
Cash Flow Projection:
The cash flow forecast integrates capital expenditures, operating costs,
revenues, taxes, royalties, CEOL-related payments, depreciation, amortization,
and working capital movements to generate annual before-tax and after-tax cash
flows.
The resulting Project cash flow projection forms the basis for the calculation
of economic indicators, including NPV, IRR, and payback period:
Annual cashflows are strong throughout the life of the project as shown in
Figure 13 below:
Figure 13: Project Annual Cash Flows - 15,000 tpa Li(2)CO(3)
Figure 14: Cumulative Cash Flows - 15,000 tpa Li(2)CO(3)
During steady-state operations, annual royalty payments are approximately
US$18 million. Based on an assumed production rate of 15,000 tpa of lithium
carbonate and a lithium sales price of US$22,500 per metric tonne, the
combined weighted average royalty burden over the evaluation period is
estimated at approximately 6.1% of gross revenues.
Economic Evaluation Results:
Based on the assumptions described above, the Laguna Verde Project
demonstrates strong economic performance. On a before-tax basis, the project
generates an NPV (8%) of approximately US$ 1.37 billion, with an IRR of
approximately 24.2% and a payback period of approximately 3.9 years from
commencement of commercial production.
On an after-tax basis, the project generates an NPV (8%) of approximately
US$0.96 billion, with an IRR of approximately 21.2% and a payback period of
approximately 4.0 years.
BEFORE TAX AFTER TAX
MM US$
NPV 0% 4.599 NPV 0% 3.354
NPV 6% 1.830 NPV 6% 1.306
NPV 8% 1.366 NPV 8% 959
NPV 10% 1.020 NPV 10% 699
IRR 24,2% IRR 21,2%
PAY BACK 3 Y & 11 M PAY BACK 4 Y & 0 M
Table 6: Summary of Economic Results
Sensitivity Analysis:
A post-tax sensitivity analysis evaluates the effect of varying CAPEX, lithium
carbonate price, production rate, and OPEX independently to 80%, 90%, 110%,
and 120% of base case, measuring impacts on NPV (8%) and IRR. The results show
NPV is most sensitive to price, followed by production, while CAPEX and OPEX
have comparatively smaller impacts on NPV within the tested ranges. Similar
results are obtained for the IRR sensitivity.
DRIVER VARIABLE BASE CASE VALUES PROJECT NPV (8%) - MMUS$
80% 90% 100% 110% 120%
CAPEX MUS$ 748 1,094 1,026 959 891 824
Price US$/Tonne 22,500 546 757 959 1,158 1,357
Production TPA 15,000 635 798 959 1,120 1,279
OPEX US$/Tonne 5,768 1,063 1,010 959 905 852
Table 7: Project After Taxes - NPV 8% Sensitivity
Figure 15: Project After Taxes NPV 8% Sensitivity
The results indicate that, as expected, the project's NPV is highly sensitive
to lithium carbonate price levels. A ±20% variation in lithium carbonate
price results in an approximate 42% change in NPV, making price the most
influential driver on project value.
The project is also materially sensitive to production levels, with a ±20%
variation in production rate resulting in an approximate 33% change in NPV.
This reflects the strong leverage of production throughput on revenue
generation and overall project economics.
By comparison, the project's NPV is less sensitive to variations in CAPEX and
OPEX. A ±20% variation in CAPEX results in an approximate 12% change in NPV,
while a ±20% variation in OPEX leads to an approximate 11% change in NPV.
This reflects the relative scale of operating margins and long-term revenue
generation compared to upfront and ongoing cost variations.
The economic results are based on preliminary engineering and economic
assessments and are subject to risks and uncertainties, including lithium
price variability, process performance, permitting outcomes and project
execution.
The PFS is based on preliminary engineering and economic assessments and
incorporates information provided by CleanTech Lithium PLC and third-party
consultants. While Worley has acted as study integrator and provided
engineering and cost estimation services, it has not independently verified
all third-party inputs and does not accept responsibility for such
information. The results presented are subject to risks and uncertainties
typical of projects at this stage of development.
Funding the Development
CleanTech Lithium announced in early January 2026 that it had appointed
Cutfield Freeman & Company Limited ("Cutfield") as its Financial Advisor
for the purposes of supporting the Company in selecting a strategic partner
for the next phase of development at the Laguna Verde project and in
structuring the financing pathway towards commercial production.
The Company has been working closely with Cutfield since their appointment and
they are confident the economics of PFS are sufficiently robust to elicit real
interest from the many parties of scale they have on the target list agreed
with the Company, including relevant supporting banks. This includes OEMs,
international traders, battery manufacturers, industry players and other
entities. This is in addition to parties the Company has had under NDA for
some time and who have been awaiting the approval of the CEOL and release of
the PFS.
Cutfield will now commence their process to select a strategic partner. The
CTL Board believes that Laguna Verde will be a very attractive project for
parties looking to secure long-term lithium carbonate supply at a time where
demand is forecast to increase substantially in the coming years and supply
becomes increasingly constrained.
Competent Persons Statement
The following professionals act as competent persons, as defined in the AIM
Note for Mining, Oil and Gas Companies (June 2009) and JORC Code (2012):
Mr. Michael Rosko is a Registered Member of the Society for Mining, Metallurgy
and Exploration, member #4064687. He graduated from the University of Illinois
with a bachelor's degree in geosciences in 1983, and from the University of
Arizona with a master's degree in geosciences in 1986. Mr. Rosko is a
registered professional geologist in the states of Arizona (#25065),
California (#5236), and Texas (#6359). Mr. Rosko has practiced his profession
for 40 years and has been directly involved in design of numerous exploration
and production well programs in salar basins in support of lithium
exploration, and estimation of the lithium resources and reserves for many
other lithium projects in Argentina and Chile. Mr. Rosko is a Vice President
and Senior Hydrogeologist at Montgomery & Associates.
Mr. Brandon Schneider is employed as a Senior Hydrogeologist at Montgomery
& Associates. He graduated from California Lutheran University in 2011
with a Bachelor of Science degree in Geology (with Honors) and obtained a
Master of Science in Geological Sciences (Hydrogeology focus) from the
University of Notre Dame in 2013. He is a professional in the discipline of
Hydrogeology, and is a Registered Professional Geologist in Arizona (#61267)
and SME Registered Member (#4306449). He has practiced his profession
continuously since 2013. His relevant experience includes: (i) from 2013 to
2016, consulting hydrogeologist specializing in hydrogeological
characterizations, aquifer test analyses, groundwater modeling, and pumping
well optimization for mining projects and sedimentary basins in Arizona,
United States; (ii) since 2017, consulting hydrogeologist in Chile
specializing in lithium brine projects in Argentina and Chile with relevant
and continuous experience in brine exploration, lithium brine resource and
reserve estimates, resource and reserve reporting, variable density flow and
transport modeling, and optimization of groundwater pumping.
Mr. Marcelo Bravo, Chemical Engineer (Universidad Católica del Norte), has a
Master's Degree in Engineering Sciences major in Mineral Processing,
Universidad de Antofagasta. He currently works as a Senior Process Consulting
Engineer at the Ad-Infinitum company. Mr Bravo has relevant experience in
researching and developing potassium, lithium carbonate, and solar
evapo-concentration design processes in Chile, Argentina, and Bolivia. Mr
Bravo, who has reviewed and approved the information contained in the chapters
relevant to his expertise contained in this announcement, is registered with
No. 412 in the public registry of Competent Persons in Mining Resources and
Reserves per the Law of Persons Competent and its Regulations in force in
Chile. Mr Bravo has sufficient experience relevant to the metallurgical tests
and the type of subsequent processing of the extracted brines under
consideration and to the activity being carried out to qualify as a competent
person, as defined in the JORC Code. Mr Bravo consents to the inclusion in the
press release of the matters based on his information in the form and context
in which it appears.
For further information contact:
CleanTech Lithium PLC
Ignacio Mehech/Gordon Stein/Nick Baxter Office: +44 (0) 1534 668 321
Mobile: +44 (0) 7494 630 360
Email: info@ctlithium.com
Beaumont Cornish Limited (Nominated Adviser) +44 (0) 20 7628 3396
Roland Cornish/Asia Szusciak
Istar Capital Limited (Joint Broker) +44 (0) 20 3884 8450
Daniel Fox-Davies daniel@istarcapital.com (mailto:daniel@istarcapital.com)
Canaccord Genuity (Joint Broker) +44 (0) 20 7523 4680
James Asensio
Tables included in this RNS have been sourced directly from the PFS or are
based on data that is from the PFS.
Investors can sign up to Investor Meet Company for free and add to meet
CleanTech Lithium Plc via:
https://www.investormeetcompany.com/cleantech-lithium-plc/register-investor
(https://www.investormeetcompany.com/cleantech-lithium-plc/register-investor)
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
Glossary
CaCl(2) calcium chloride
CaCO(3) calcium carbonate
CAPEX Capital Cost Estimates
CAPEX intensity Annual revenue ratio
CEOL Special Operation Contracts for Lithium in Chile
Cl chlorine
CP competent person
DLE direct lithium extraction
DFS Definitive feasibility study
EIA Environmental Impact Assessment Study
IRR Internal Rate of Return
JORC Code (2012) a professional code of practice that sets minimum standards for Public
Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves
published by the Australasian Joint Ore Reserves Committee
IX ion-exchange
km kilometre
km(2) square kilometre
l/s litres per second
LCE lithium carbonate equivalent
Li lithium
LiCl lithium chloride
LiOH*H(2)O lithium hydroxide
Li(2)CO(3) lithium carbonate
LCE lithium carbonate equivalent
LOM Life-of-mine
LV Laguna Verde
m metre
m(3) cubic metres
mg/L milligram per litre
Na sodium
Na(2)CO(3) sodium carbonate (soda ash)
NPV Net Present Value
OPEX Operating Cost Estimates
PFS Pre-feasibility study
QP Qualified Person
RCA Resolution of Environmental Qualification
RO-NF-ED RO (Reverse Osmosis), NF (Nanofiltration), and ED (Electrodialysis)
t tonnes
tpa tonnes per annum
TIC total installed costs
US$ United States dollar
ZOIT Zone of Tourist Interest
Notes
CleanTech Lithium (AIM:CTL, Frankfurt:T2N) is an exploration and development
company advancing lithium projects in Chile for the clean energy transition.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and
Viento Andino, and exploration stage project in Arenas Blancas (Salar de
Atacama), located in the lithium triangle, a leading centre for battery grade
lithium production. CleanTech Lithium and the Mining Ministry in Chile have
agreed the contractual terms for the Special Lithium Operating Contract
("CEOL") for Laguna Verde, subject to final ratification.
CleanTech Lithium is committed to utilising Direct Lithium Extraction ("DLE")
with reinjection of spent brine. Direct Lithium Extraction is a transformative
technology which removes lithium from brine with higher recoveries, short
development lead times and no extensive evaporation pond construction. For
more information, please visit: www.ctlithium.com (http://www.ctlithium.com)
**ENDS**
JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or
specific specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or handheld XRF · Sub-surface brine samples were obtained using six different methods:
instruments, etc). These examples should not be taken as limiting the broad Packer sampling, PVC airlift sampling, disposable bailer sampling, electric
meaning of sampling. valve bailer sampling, Hydrasleeve sampling, and composite brine sampling
during pumping tests.
· Include reference to measures taken to ensure sample representativity
and the appropriate calibration of any measurement tools or systems used.
· Aspects of the determination of mineralisation that are Material to · Brine water samples were taken from the surface of the lagoon, in an
the Public Report. 800 m sampling grid, including eight sampling duplicates at random locations.
The samples were taken from a 0.5 m depth, and for positions with a depth
· In cases where 'industry standard' work has been done this would be above 5 m, a bottom sample was also obtained.
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or · In the field, electrical conductivity and temperature were measured
mineralisation types (eg submarine nodules) may warrant disclosure of detailed for every sample with a Hanna Multiparameter device. All materials and
information. sampling bottles were first flushed with brine water before being filled.
· For every sample, 2 liters of brine were obtained with a 1-liter
double valve bailer, using a new bailer for each sampling position. All
materials and sampling bottles were first flushed with 100 cc of brine water
before receiving the final sample. Electrical conductivity was measured for
every sample with a Hanna Multiparameter model HI98192. The last two samples
that had similar stabilized electrical conductivity values were identified as
the primary and duplicate samples.
· For the packer sampling, a packer bit tool provided by the drilling
company (Big Bear) was used. Once the sampling support was sealed, a purging
operation took place until no drilling mud was detected. After the purging
operation, a half an hour waiting period took place to let brine enter to the
packer tool before sampling with a double valve bailer.
· Successive 1-liter samples were taken every 30 minutes with a double
valve bailer.
· Packer samples were obtained approximately every 18 m.
· PVC casing suction brine samples were extracted after well
development. Once the well was clean and enough water was purged (at least
three times the well volume), the PVC casing suction samples were taken from
bottom to top while the 2-inch PVC was extracted from the well. A 20-liter
bucket was filled with brine and samples were obtained from the bucket once
the remaining fine sediments were decanted.
· Brine airlift samples were taken every 6 m.
· Disposable bailer samples were obtained by JCP Ltda. specialists
in water sampling. Samples were taken from the interest depths with a double
valve disposable bailer. The bailer was lowered and raised with an electric
cable winch to maintain a constant velocity and avoid bailer valves opening
after taking the sample. A new bailer was used for each well.
· Disposable bailer samples were obtained every 6 m.
· In the first quarter of 2023, electric bailer samples were taken
from wells LV05, LV06, and LV02 after their proper development. Depth-specific
samples were obtained with a 1-liter electric bailer. This sampling process
was undertaken by Geodatos.
· On all sampling procedures the materials and sampling bottles were
first flushed with 100 cc of brine water before receiving the final sample.
· Packer samples were taken in wells LV01, LV02, LV03, LV07, and LV11.
Airlift samples were obtained from wells LV01, LV04, LV05, and LV06.
Disposable bailer samples were taken in wells LV01 and LV02. Electronic bailer
samples were obtained from wells LV02, LV05, and LV06. Hydrasleeve samples
were taken from LV04 and LV11. Composite brine samples from pumping tests were
taken at wells LV05 and LV06.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit or other type, · Diamond drilling with a PQ3 diameter was used to drill wells LV01 and
whether core is oriented and if so, by what method, etc). LV03 to a depth of 320 m. Below that depth, the drilling diameter was reduced
to HQ3.
· At wells LV02 and LV04, diamond drilling with a PQ3 diameter was used
to their final depth.
· For both diameters, a triple tube core barrel was used for the core
recovery.
· Except for drillhole LV04, custom-made packer bits provided by Big
Bear were used to obtain brine samples.
· Drillholes LV01, LV02 and LV04 were cased with 3" PVC and silica
gravel. LV03 was not cased due to well collapse and tool entrapment.
· Wells LV05 and LV06 were drilled using the flooded reverse drilling
method with a 14 ¾ inch diameter to their final depths. Both wells were cased
with 8-inch PVC and gravel pack.
· Diamond drillholes LVM05a and LVM06c were drilled with a HQ3 diameter
from surface to the final depth. LVM05b was drilled with Tricone 3 7/8"
diameter from land surface to 41.5 m.
· Diamond drillhole LV07 was drilled with PQ3 diameter from land
surface to 300 m, and with HQ3 diameter from 300 to 650 m.
· Diamond drillhole LV11 was drilled with PQ3 diameter from land
surface to 254 m with no recovery in the first 50 meters, and it was drilled
with HQ3 diameter from 254 to 412.85 m.
Development operations
· After PVC casing and silica gravel installation took place at the
exploration wells, a development process was undertaken to ensure clean
aquifer water was available during sampling. The well development included
injection of a hypochlorite solution to break the drilling additives, and
purging via airlifting of a minimum three well volumes was undertaken to clean
the cased well from drilling mud.
· The developing process was made using a small rig, a high-pressure
compressor and 2-inch threaded PVC that can be coupled to reach any depth. The
purging/cleaning operation was made from top to bottom, injecting air with a
hose inside the 2-inch PVC and "suctioning" the water to emulate a reverse
circulation (airlift) system.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Diamond core recovery was ensured by direct supervision and
results assessed. continuous geological logging in the field.
· Measures taken to maximise sample recovery and ensure representative · For wells drilled using the flooded reverse drilling method, drill
nature of the samples. cuttings were collected in 10 kg sample bags for geological logging and tests
purposes. Direct supervision and continuous geological logging were applied to
· Whether a relationship exists between sample recovery and grade and ensure reliable recovery and descriptions
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
Logging · Whether core and chip samples have been geologically and · Geological logging took place continuously during drilling in the
geotechnically logged to a level of detail to support appropriate Mineral field. Descriptions were done by CleanTech and M&A.
Resource estimation, mining studies and metallurgical studies.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · Logging forms were prepared prior to field work and were used to
ensure the same information and style was used regardless of the field
· The total length and percentage of the relevant intersections logged. geologist.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · During the brine batch preparation process, the samples were
taken. transferred to new sampling bottles. Quality control samples, including
standards (internal standards composed of a known stable brine), duplicates,
· If non-core, whether riffled, tube sampled, rotary split, etc and and blank samples (distilled water) were randomly included in the batch. After
whether sampled wet or dry. quality control sample insertion, all samples were re-numbered before
submitting to laboratory. Before transferring each sample, the materials used
· For all sample types, the nature, quality and appropriateness of the for the transfer were flushed with distilled water and were then shaken to
sample preparation technique. remove water excess, avoiding contamination.
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.
· Measures taken to ensure that the sampling is representative of the
in situ material collected, including for instance results for field
duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the
material being sampled.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Brine samples were assayed by ALS Life Science Chile laboratory
laboratory procedures used and whether the technique is considered partial or (ALS), for Li, K, B, Mg, Ca, Cu, and Na using the ICP-OES method described on
total. QWI-IO-ICP-OES- 01 Edition A, Modification 0 EPA 3005A; EPA 200.2.
· For geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. · For density measurements, the method described by Thompson and
Troeh Y "Los suelos y su fertilidad." 2002. Editorial Reverté S.A. Cuarta
· Nature of quality control procedures adopted (eg standards, blanks, Edición. Págs.75-85, was used.
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established. · Chlorine determination was done based on Standard Methods for the
Examination of Water and Wastewater, 23rd Edition 2017. Método 4500-Cl-B
QWI-IO-Cl-01 Emisión B, mod. 1. SM 4500-Cl- B, 22nd Edition 2012.
· Total Dissolved Solid (TDS) determination was done using the
method described on INN/SMA SM 2540 C Ed 22, 2012.
· Sulfate was analyzed according to the method described in INN/SMA
SM 4500 SO4-D Ed 22, 2012.
· Duplicates were obtained randomly during brine sampling. Also,
blanks (distilled water) and standards were randomly inserted during the
laboratory batch preparation.
· The 2022 standards were prepared by the Universidad Católica del
Norte, Chile using a known stable brine. Standard nominal grade was calculated
in a round-robin process that included four laboratories. The ALS laboratory
was validated during the round-robin process.
· Check samples composed by standards, duplicates, and blanks were
inserted at a rate of one for each 20 original samples during the year 2022.
· After the year 2023, quality control samples were inserted at a
rate of one every 10 original samples. For the 2023 QA/QC process, a new set
of standards was internally prepared using 200 liters of brine obtained from
well LV02 during the development process. Standard nominal lithium grade was
calculated in a round-robin process that included four laboratories.
· For the 2024 sampling campaign, duplicates, standards, and blanks
were utilized during brine sampling and were submitted for analysis. Standards
for the 2024 campaign were prepared in the University of Antofagasta. Quality
control samples were inserted at a rate of approximately one every 10 original
samples.
Geophysics:
· To measure the lake bathymetry, a Garmin Echomap CV44 and Eco
Probe CV20-TM Garmin were used. The equipment has a resolution of 0.3 ft and
maximum depth measurement of 2,900 ft. The bathymetry data was calibrated
using a density of 1.14 g/cm(3).
· For the TEM geophysical survey, a Zonge multipurpose digital
receiver model GDP-32 and TEM transmitter model ZT-30 were used.
· For the first survey campaign in May 2021, a coincident
transmission/reception loop was utilized with 11 lines and a 400 m separation.
167 stations were designated with a 100x100 m(2) loop and four stations with a
200x200 m(2) loop; a survey depth of 300 m and 400 m was reached,
respectively.
· For the second TEM geophysical survey in March 2022, 32 TEM
stations were surveyed which utilized six lines and a 400 m separation. A
coincident loop Tx=Rx of 200 x 200 m(2) allowed for the investigation to a
depth of 400 m.
· For the third TEM geophysical survey in January 2023, 14 TEM
stations were surveyed with two lines and a 400 m separation. A coincident
loop Tx=Rx of 200x200 m(2) allowed for investigation to a depth of 400 m.
· The equipment used for the gravity survey was a Scintrex portable
digital model CG-5 Autograv, "microgravity meter", with a 0.001 mGal
resolution as well as a tidal, temperature, pressure, and automatic level
correction system.
· The topographic data measured during the gravity survey was
acquired with a double frequency differential positioning equipment, brand CHC
NAV, model I-80 GNSS, that consists of two synchronized instruments, the first
of which was fixed at a known topographic station, and the other that is
mobile through the surveyed gravimetric stations.
· In January 2023, a gravity survey was made consisting of 111
stations, with a separation of 200 m to 300 m, and arrangement through four
lines around the lagoon area.
Verification of sampling and assaying · The verification of significant intersections by either independent · The assay data was verified by M&A and C. Feddersen based on the
or alternative company personnel. assay certificates.
· The use of twinned holes. · Data from bathymetry and geophysics was used as delivered by
Servicios Geológicos Geodatos SAIC.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data. · Geological logs were managed by the geology contractor GEOMIN and
were checked by the Competent Persons.
· Brine samples batches were prepared personally by the competent
person, JCP Ltda., Geomin SpA or according to Competent Person's instructions.
All data was stored in Excel files.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Sample coordinates were obtained with a non-differential hand-held
and down-hole surveys), trenches, mine workings and other locations used in GPS unit.
Mineral Resource estimation.
· The bathymetry coordinates in Laguna Verde were obtained by a Thales
· Specification of the grid system used. Navigation differential GPS system, which consists of two GPS ProMark3 devices
designed to work in geodesic, cinematic, and static modes of high precision,
· Quality and adequacy of topographic control. where one of the instruments was installed as a base station and the other on
board of the craft.
· The TEM geophysical survey coordinates were obtained with a
non-differential hand-held GPS unit.
· Drillhole collars were obtained with a non-differential hand-held GPS
unit. Positions were verified by the mining concession field markings.
· Gravity stations were located with a double frequency differential
positioning equipment, brand CHC NAV, model I-80 GNSS, that consists of two
synchronized pieces of equipment, one fixed at a known topographic station,
and the other mobile at the surveyed gravimetric stations.
· The coordinate system is UTM, Datum WGS84 Zone 19J.
· Topographic control is not considered critical as the lagoon and its
surroundings are generally flat lying and the samples were definitively
obtained from the lagoon.
Data spacing and distribution · Data spacing for reporting of Exploration Results.
· Whether the data spacing and distribution is sufficient to establish · The geochemical lagoon sample spacing was approximately 800 m,
the degree of geological and grade continuity appropriate for the Mineral covering the entire lagoon area.
Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Packer brine samples were taken vertically every 18 m.
· Whether sample compositing has been applied.
· PVC bailer samples (disposable and electric) were taken vertically
every 6 m.
· For bathymetry, two grids were used, one of 400 m and the other of
200 m in areas where the perimeter has more curves.
· For TEM geophysical surveys, the distance between stations was 400 m.
· For the gravimetric survey, the distance between stations was 200 -
300 m.
· The author believes that the data spacing and distribution are
sufficient to establish the degree of geological and grade continuity
appropriate for the resource estimate.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The lagoon in Laguna Verde is a free water body, and no mineralized
possible structures and the extent to which this is known, considering the structures are expected in the sub-surface deposits.
deposit type.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Sample security · The measures taken to ensure sample security. · All brine samples were marked and kept on site before
transporting them to the Copiapó warehouse where the laboratory sample batch
was prepared and stored in sealed plastic boxes. Subsequently, the Laguna
Verde samples were sent via courier to the ALS laboratory in Antofagasta. The
transport of samples was directly supervised by the Competent Person.
· ALS laboratory personnel reported that the samples were received
without any problem or disturbance.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · The assay data was verified by M&A and C. Feddersen against
the laboratory certificates.
· The July 2021 JORC technical report was reviewed by Montgomery
& Associates Vice President and CP Michael Rosko, MS PG, SME Registered
Member #4064687. In the report, he concludes that "The bulk of the information
for the Laguna Verde exploration work and resulting initial lithium resource
estimate was summarized Feddersen (2021). Overall, the CP agrees that
industry-standard methods were used, and that the initial lithium resource
estimate is reasonable based on the information available".
· The September 2022 JORC Report Laguna Verde Updated Resource
Estimation Report, and data acquisition and QA/QC protocols were audited in
October 2022 by Don Hains, P. Geo. from Hains Engineering Company Limited (D.
Hains October 2022 QA/QC Procedures, Review, Site Visit Report).
· Hains concluded that "The overall QA/QC procedures employed by
CleanTech are well documented and the exploration data collected and analysed
in a comprehensive manner. There are no significant short comings in the
overall programme."
· With respect to the exploration program, Hains stated that "the
overall exploration program has been well designed and well executed. Field
work appears to have been well managed, with excellent data collection. The
drill pads have been restored to a very high standard. The TEM geophysical
work has been useful in defining the extensional limits of the salar at Laguna
Verde".
· With respect to specific yield, Hains stated that "RBRC test work
at Danial B. Stevens Associates has been well done. It is recommended
obtaining specific yield data using a second method such as centrifuge,
nitrogen permeation or NMR. The available RBRC data indicates an average Sy
value of 5.6%. This is a significant decrease from the previously estimated
value of approximately 11%. The implications of the lower RBRC value in terms
of the overall resource estimate should be carefully evaluated".
· Several recommendations were made by Mr. Hains in his report to
improve the QA/QC protocols, data acquisition, assays, presentation, and
storage. His recommendations have been considered and included in the
exploration work schedule since October 2022.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · In Laguna Verde, CleanTech, through Atacama Salt Lakes SpA, has 88
agreements or material issues with third parties such as joint ventures, pedimentos constituidos which cover an area of 22,800 hectares, 8 solicitudes
partnerships, overriding royalties, native title interests, historical sites, de mensura which cover an area of 1,332 hectares, and 61 pertenencias which
wilderness or national park and environmental settings. cover an area of 9,758 hectares. CleanTech also has additional pedimentos en
trámite. Drilling and sampling for lithium can occur where the CleanTech has
· The security of the tenure held at the time of reporting along with preferential licenses, which covers a majority of their concessions.
any known impediments to obtaining a licence to operate in the area.
· In Laguna Verde, CleanTech is also in the application process for a
Contrato Especial de Operation de Litio (CEOL) from the Chilean Government,
which would grant them the sole right to explore and exploit lithium in the
basin.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · In Laguna Verde, exploration work has also been done by Pan American
Lithium and Wealth Minerals Ltda.
Geology · Deposit type, geological setting and style of mineralization. · Laguna Verde is a hypersaline lagoon that is classified as an
immature clastic salar. The deposit is composed of a surface brine resource,
including the brine volume of the surface lagoon. The sub-surface resource
formed by brine water hosted in volcano-clastic sediments that lie beneath the
lagoon.
Drill hole Information · A summary of all information material to the understanding of the · The following drillhole are in the WGS84 zone 19S coordinate system:
exploration results including a tabulation of the following information for
all Material drill holes: · LV01 E549,432 N7,027,088
o easting and northing of the drill hole collar ELEV 4,429 m a.s.l.
Azimuth 0°, dip -90°, Length 474 m
o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar · LV02 E 553,992 N 7,024,396
o dip and azimuth of the hole ELEV 4,354 m a.s.l.
Azimuth 0°, dip -90°, Length 339.4 m
o down hole length and interception depth
· LV03 E 549,980 N 7,028,434
o hole length.
ELEV 4,402 m a.s.l.
· If the exclusion of this information is justified on the basis that
Azimuth 120°, dip -60°, Length 547.5 m
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why · LV04 E 556,826 N 7,024,390
this is the case.
ELEV 4,350 m a.s.l.
Azimuth 0°, dip -90°, Length 311 m
· LV05 E 550,972 N 7,027,908
ELEV 4,355 m a.s.l.
Azimuth 0°, dip -90°, Length 434.6 m
· LV06 E 555,912 N 7,026,004
ELEV 4,335 m a.s.l.
Azimuth 0°, dip -90°, Length 405 m
· LVM05a E 550,921 N 7,027,908
ELEV 4,355 m a.s.l.
Azimuth 0°, dip -90°, Length 221.5 m
· LVM05b E 550,946 N 7,027,951
ELEV 4,355 m a.s.l.
Azimuth 0°, dip -90°, Length 41.5 m
· LVM06c E 555,959 N 7,026,032
ELEV 4,335 m a.s.l.
Azimuth 0°, dip -90°, Length 40 m
· LV07 E 552,561 N 7,025,296
ELEV 4,345 m a.s.l.
Azimuth 0°, dip -90°, Length 650 m
· LV11 E 555,582 N 7,024,793
ELEV 4,345 m a.s.l.
Azimuth 0°, dip -90°, Length 413.9 m
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · For the surface brine resource, no low-grade cut-off or high-grade
maximum and/or minimum grade truncations (eg cutting of high grades) and capping has been implemented due to the consistent nature of the brine assay
cut-off grades are usually Material and should be stated. data.
· Where aggregate intercepts incorporate short lengths of high grade · For the sub-surface resource, no low-grade cut-off or high-grade
results and longer lengths of low grade results, the procedure used for such capping has been implemented.
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralization widths and intercept lengths · These relationships are particularly important in the reporting of · In Laguna Verde, the relationship between aquifer widths and
Exploration Results. intercept lengths are direct with vertical wells, however LV03 was inclined
with a dip of -60°.
· If the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Locations of the Laguna Verde Exploration Drillholes
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
· Generalized Stratigraphic Column for Laguna Verde Area (based on
wells LV01 to LV06)
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Reported results have not been filtered based on the exclusion of low
practicable, representative reporting of both low and high grades and/or or high grades.
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Pumping tests were conducted at wells LV05 and LV06.
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of · A 50 hp submergible electric pump, and piping with flowmeters were
treatment; metallurgical test results; bulk density, groundwater, geotechnical used for the pump tests. The tests consisted of a variable rate pumping to
and rock characteristics; potential deleterious or contaminating substances. verify the aquifer and pump capacity, as well as subsequently constant rate
(48-hour to 7-day) pumping tests to obtain aquifer parameters and monitor
observed water levels and the extracted brine chemistry.
· In LV05, the pump was installed at 156 m and in LV06, at 150 m.
Further work · The nature and scale of planned further work (eg tests for lateral · Exploration drilling and testing will continue in the next project
extensions or depth extensions or large-scale step-out drilling). phase. Areas of additional exploration will include the western and
northern/northeastern portion of the current property concessions. A future
· Diagrams clearly highlighting the areas of possible extensions, long-term pumping and reinjection test is also planned.
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to
this section.)
Criteria JORC Code explanation Commentary
Database integrity · Measures taken to ensure that data has not been corrupted by, for
example, transcription or keying errors, between its initial collection and
its use for Mineral Resource estimation purposes. · For the previous resource estimate (Feddersen, 2023), all databases
were built from original data by Competent Person C. Feddersen and were
· Data validation procedures used. checked by project personnel.
· For the resource estimate detailed in this report and the previous
resource report (M&A, 2025), databases were reviewed by M&A staff and
the CPs.
Site visits · Comment on any site visits undertaken by the Competent Person and the · A site visit was undertaken by Competent
outcome of those visits.
Person C. Feddersen from June 2nd to June 4th, 2021. The outcome of the visit
· If no site visits have been undertaken indicate why this is the case. was a general geological review and the lagoon water brine geochemical
sampling that led to the July 2021 JORC Technical Report.
· Competent Person M. Rosko conducted a site visit in October 2021 to
review the exploration activities.
· The January to May 2022 drilling campaign was continually supervised
by the Competent Person C. Feddersen, that led to the September 2022 updated
JORC Technical Report.
· The October 2022 to May 2023 drilling campaign was also supervised by
Competent Person C. Feddersen.
· The 2024 campaign was supervised by M&A Competent Persons and
staff.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological
interpretation of the mineral deposit.
· For the surface brine resource, an average lithium grade was used for
· Nature of the data used and of any assumptions made. the entire surface water body based on the consistent values obtained; thus,
there is a high certainty.
· The effect, if any, of alternative interpretations on Mineral
Resource estimation. · For the sub-surface resource, the geological interpretation was made
based on the TEM and gravity surveys conducted by Geodatos. The lithological
· The use of geology in guiding and controlling Mineral Resource interpretation was confirmed by the January - May 2022 diamond drillhole
estimation. campaign (LV01 to LV04), December 2022 - May 2023 drillhole campaign (LV05
& LV06), and 2024 campaign (LV07 & LV11).
· The factors affecting continuity both of grade and geology.
· Low resistivities are associated with volcaniclastic sediments
saturated in brines, but also with tuff, very fine sediments, or clays. The
direct relationship between the low resistivity layer with the overlying
hypersaline lagoon raises the confidence that the low resistivities are
associated with brines.
· Drillholes confirm the geological interpretations.
Dimensions · The extent and variability of the Mineral Resource expressed as
length (along strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resource. · For the surface brine resource, the lagoon dimensions are 14,682,408
m(2) of area with depths ranging from 0 m to 7.18m with an average depth of
4.05 m.
· The sub-surface brine resource is a horizontal lens closely
restricted to the lagoon perimeter with an area of approximately 55 km(2) and
depths of more than 400 m, from approximately 4,309 m a.s.l. to the deepest
exploration well (LV07; 650 m deep).
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied · For the surface brine resource, the surface lake brine water
and key assumptions, including treatment of extreme grade values, domaining, volume is directly obtained by the bathymetry study detailed on Section 4.2.
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used.
· Lithium sample values are in general homogeneously distributed
· The availability of check estimates, previous estimates and/or mine along the lagoon, thus the lithium content in the lake was not estimated via
production records and whether the Mineral Resource estimate takes appropriate kriging or another geostatistical method. The average lithium value of 246
account of such data. mg/L was used for the surface brine resource estimate.
· The assumptions made regarding recovery of by-products.
· Estimation of deleterious elements or other non-grade variables of · The subsurface resource was updated using a block model in the
economic significance (eg sulphur for acid mine drainage characterisation). Leapfrog software (Seequent, 2023). During the resource estimation process,
the CPs considered the Canadian Institute of Mining (CIM, 2012) Best Practice
· In the case of block model interpolation, the block size in relation for Reporting of Lithium Brine Resources and Reserves as well as the Houston
to the average sample spacing and the search employed. et al. (2011) guidelines for brine deposits.
· Any assumptions behind modelling of selective mining units.
· Any assumptions about correlation between variables. · Leapfrog is an industry-standard software program which uses a
3-D implicit modelling approach (Seequent, 2023); with Leapfrog Geo, the
· Description of how the geological interpretation was used to control geological model was created, and subsequently, the resource block model
the resource estimates. construction and mass calculations were undertaken using the Edge extension.
Considering the horizontal and vertical spacing of obtained field samples, the
· Discussion of basis for using or not using grade cutting or capping. block model discretization was 150 m by 150 m (horizontal spacing), with a
vertical spacing of 5 m, and the total number of blocks corresponds to
· The process of validation, the checking process used, the comparison 1,926,123.
of model data to drill hole data, and use of reconciliation data if available.
· Lithium brine concentration results obtained from sampling were
utilized as an input for the resource block model; original ALS results from a
variety of sampling methods (including packer, airlift, and pumping tests)
were used for a majority of the wells. Packer samples were prioritized for the
resource estimate, as they result in depth-specific concentrations, and other
methods were used where packer samples were not available.
· Drainable porosity values for the hydrogeologic units in Laguna
Verde were estimated based on the results of Daniel B. Stephens &
Associates, Inc. (DBS&A) laboratory (LV01, LV02, LV03 and LV04) and GSA
Laboratory (LV07 and LV11) testing, and their reasonableness was confirmed
based on lithology of the unit.
· Prior to the resource block modelling, an exploratory data
analysis (EDA) phase was undertaken for lithium concentrations to identify
trends such as univariate statistics and histograms, box plots, and spatial
correlations.
· Ordinary kriging was employed for the interpolation of lithium
concentrations within the subsurface block model.
· The resource block model was validated by visual inspection and
comparison of the measured and block model concentrations. Swath plots were
also utilized.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Moisture content is not relevant for the estimation of brine
moisture, and the method of determination of the moisture content. resources.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · A lithium cut-off grade of 100 mg/L was applied to the resource
applied. estimate based on the chosen DLE processing method, as Lanshen has reportedly
recovered lithium content as low as 80 mg/L from raw brine. Furthermore, the
applied cut-off grade of 100 mg/L is conservative based on a projected LCE
price of US$22,500, as well as a capital expenditure of US$748 million and
operating expenses of US$5,768 per tonne of LCE. Only blocks with interpolated
lithium grades equal to or greater than the applied cut-off grade (100 mg/L)
were considered for the resource estimate.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Mining will be undertaken by pumping brine from vertical production
dimensions and internal (or, if applicable, external) mining dilution. It is wells and re-injection of spent brine will subsequently occur back in the
always necessary as part of the process of determining reasonable prospects aquifer.
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
· Pumping tests conducted to date support individual well flow
rates of up to 15 L/s.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical
amenability. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider potential · Based on pilot testing, the metallurgical capacity of lithium
metallurgical methods, but the assumptions regarding metallurgical treatment recovery in the process has been estimated at 90% to obtain battery grade
processes and parameters made when reporting Mineral Resources may not always lithium carbonate.
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made.
· The planned process for obtaining lithium carbonate considers the
following stages:
o The lithium is obtained using selective adsorption of lithium-ion from
Laguna Verde brine using the DLE process.
o The spent solution (without lithium) will be reinjected back into the Laguna
Verde aquifer.
o The DLE process allows impurity removal waste to be minimal.
o The diluted lithium solution recovered from the DLE process is concentrated
using reverse osmosis water removal. The removed water is recovered and
returned to the process to minimize the water consumption requirements.
o Ion exchange stages remove minor impurities such as magnesium, calcium, and
boron to obtain a clean lithium solution.
o Lithium carbonate is obtained with a saturated soda ash solution to
precipitate it in the carbonation stage.
o The lithium carbonate obtained is washed with ultra-pure water to obtain
battery grade product with minimum impurities.
o From the carbonation process, a remaining solution (mother liquor) is
obtained, which is treated to concentration utilizing evaporators to
recirculate in the carbonation process and ensure the greatest possible
recovery of lithium. The removed water is recovered and reintegrated into the
process.
· The selected DLE process has been tested by Beyond Lithium LLC at its
facilities in the city of Salta, Argentina. The stages of removal of
impurities and carbonation have been tested, obtaining a representative
sample. The sample was analyzed in Germany by the laboratory Dorfner Anzaplan
showing 99.9% pure Li(2)CO(3).
· The process has been modelled by Ad infinitum using the SysCAD
simulation platform and their AQSOL thermodynamic property package. With the
model, simulations of the process were made to obtain the appropriate mass
balances.
Environmen-tal factors or assumptions · Assumptions made regarding possible waste and process residue · The main environmental impact that could occur at Laguna Verde is a
disposal options. It is always necessary as part of the process of determining reduction of the surface water features due to brine pumping; however,
reasonable prospects for eventual economic extraction to consider the reinjection will be aimed to sustain the surface water features and limit
potential environmental impacts of the mining and processing operation. While impacts from production pumping. Other potential environmental factors may be
at this stage the determination of potential environmental impacts, associated with the main plant installation.
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk density · Whether assumed or determined. If assumed, the basis for the
assumptions. If determined, the method used, whether wet or dry, the frequency
of the measurements, the nature, size and representativeness of the samples.
· The bulk density for bulk material must have been measured by methods
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit.
· Discuss assumptions for bulk density estimates used in the evaluation · Bulk density is not relevant to brine resource estimation.
process of the different materials.
Classification · The basis for the classification of the Mineral Resources into
varying confidence categories.
· The preferential concession area used for the resource calculation,
· Whether appropriate account has been taken of all relevant factors which corresponds to licenses held by CleanTech as the preferential holder
(ie relative confidence in tonnage/grade estimations, reliability of input (with no conflicting applications or concessions from other mining companies).
data, confidence in continuity of geology and metal values, quality, quantity The area outside the preferential licenses that could be converted to
and distribution of the data). CleanTech's control (based on the Government CEOL polygon) was considered as
potential upside.
· Whether the result appropriately reflects the Competent Person's view
of the deposit.
· The areal extent of the resource categories was largely based on the
suggestions of Houston et al. (2011) for immature salt flats:
o Measured resources were limited to within 1.25 km from the exploration
well
o Indicated resources were limited to within 2.5 km from the exploration
well
o Inferred resources were limited to within 5 km from the exploration well
· The determination of the Indicated resource areas was dependent
on the availability of depth-specific brine analyses, drainable porosity
measurements and QA/QC. Differentiation between these areas and Measured areas
was largely dependent on the well spacing, amount and reliability of field
data, pumping test results, and overall lithologic and grade continuity
between wells.
· An extension of the Inferred resources to 5 km is supported by
the conducted geophysics which indicates probable brine in sediments
underlying the young volcanic outcrops surrounding the lake. Furthermore,
inclusion of the lower volcanic rock unit is supported by the following: (i)
it was possible to obtain packer samples in the deepest portion of LV07; (ii)
the density contrast used to set the upper contact of the lower volcanic rock
(-0.35 gr/cc) was intermediate and not the deepest density contrast; (iii)
conceptually, Laguna Verde is found in a tectonically active region with
fractures in the host rock, as indicated by hydrothermal activity along the
eastern side of the lake.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates.
· The July 2021 JORC technical report were reviewed by Montgomery
& Associates Vice President Michael Rosko, MS PG SME Registered Member
#4064687.
· In the report he concludes that "The bulk of the information for
the Laguna Verde exploration work and resulting initial lithium resource
estimate was summarized by Feddersen (2021). Overall, the CP agrees that
industry-standard methods were used, and that the initial lithium resource
estimate is reasonable based on the information available".
· The September 2022 JORC Report Laguna Verde Updated Resource
Estimate, and data acquisition and QA/QC protocols were audited in October
2022 by Don Hains, P. Geo. from Hains Engineering Company Limited (D. Hains
October 2022 QA/QC Procedures, Review, Site Visit Report).
· In the report, Hains concludes that "The overall QA/QC procedures
employed by CleanTech are well documented and the exploration data collected
and analysed in a comprehensive manner. There are no significant short comings
in the overall programme".
· With respect to the exploration program Hains' comments are "The
overall exploration program has been well designed and well executed. Field
work appears to have been well managed, with excellent data collection. The
drill pads have been restored to a very high standard. The TEM geophysical
work has been useful in defining the extensional limits of the salar at Laguna
Verde".
· With respect to the specific yield estimates, Hains' comments are
"RBRC test work at Daniel B. Stevens Associates has been well done. It is
recommended obtaining specific yield data using a second method such as
centrifuge, nitrogen permeation or NMR. The available RBRC data indicates an
average Sy value of 5.6%. This is a significant decrease from the previously
estimated value of approximately 11%. The implications of the lower RBRC value
in terms of the overall resource estimate should be carefully evaluated".
· Several recommendations were made by Mr. Hains in his report to
improve the QA/QC protocols, data acquisition, assays, presentation and
storage. His recommendations have been considered and included in the
exploration work schedule since October 2022.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The estimated tonnage represents the in-situ brine with no recovery
level in the Mineral Resource estimate using an approach or procedure deemed factor applied. It will not be possible to extract all the contained brine by
appropriate by the Competent Person. For example, the application of pumping from production wells. The amount which can be extracted depends on
statistical or geostatistical procedures to quantify the relative accuracy of many factors including the permeability of the sediments, the specific yield,
the resource within stated confidence limits, or, if such an approach is not and the recharge dynamics of the aquifers.
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate. · No production data is available yet for comparison.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include · Potential sources of uncertainty related the resource estimate
assumptions made and the procedures used. include:
· These statements of relative accuracy and confidence of the estimate · Potential permitting restrictions, including the approval of the
should be compared with production data, where available. CEOL and environmental limitations related to eventual extraction of the
surface brine resource in the lake.
· The modeled concentration distribution and lower lithium grades
associated with hydrothermal upwelling to the east of Laguna Verde.
· The assigned drainable porosity of the lower volcanic rock (1%),
which is based on limited core testing of that unit; additional deep
exploration and sampling would help resolve uncertainty regarding the Inferred
Resource at depth.
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also
apply to this section.)
Criteria JORC Code explanation Commentary
Mineral Resource estimate for conversion to Ore Reserves · Description of the Mineral Resource estimate used as a basis for the · The lithium resource estimate consists of Measured, Indicated and
conversion to an Ore Reserve. Inferred resources. A detailed geological and resource block model was created
in Leapfrog (Seequent, 2023) using obtained well lithologies, discrete-depth
· Clear statement as to whether the Mineral Resources are reported values for brine chemistry, drainable porosity values, and geophysical
additional to, or inclusive of, the Ore Reserves. profiles. Lithium concentrations were interpolated using ordinary kriging,
specific yield was assigned to each hydrogeological unit, and the mass
calculations within the resource block model were undertaken using the
Leapfrog Edge extension.
· In accordance with the Canadian Institute of Mining (CIM) Best
Practice for Reporting of Lithium Brine Resources and Reserves (CIM, 2012), a
calibrated groundwater flow and solute transport model was used to estimate
the lithium reserve because brine extraction is based on physical pumping from
a wellfield. Projected production locations were based on the following
criteria: (i) all production wells and screened intervals are located within
Measured and Indicated Resource zones at depth; (ii) extraction wells are
found within the proposed CEOL polygon (outside of the exclusion zone) and
within CleanTech's preferential licenses; (iii) extraction wells were placed
in areas with previous aquifer testing.
· The lithium reserve was estimated for the Laguna Verde Project
considering the modifying factors for converting Mineral Resources to Mineral
Reserves, including the production wellfield design and simulated dilution
during the projected mine life. Metallurgical losses were also considered as a
modifying factor.
· Mineral resources are reported inclusive of mineral reserves.
Site visits · Comment on any site visits undertaken by the Competent Person and the · Competent Person M. Rosko conducted a site visit in October 2021 to
outcome of those visits. review the exploration activities.
· If no site visits have been undertaken indicate why this is the case.
· The 2024 campaign was supervised by M&A Competent Persons and
staff.
Study status · The type and level of study undertaken to enable Mineral Resources to · The current study level is Pre-Feasibility, with preliminary options
be converted to Ore Reserves. related to the mine design, mineral processing, and permitting (CRIRSCO,
2019). A future update at the Feasibility level will include a more confident
· The Code requires that a study to at least Pre-Feasibility Study level mine plan and schedule, confident management of spent brine, as well as
has been undertaken to convert Mineral Resources to Ore Reserves. Such studies optimized mineral processing.
will have been carried out and will have determined a mine plan that is
technically achievable and economically viable, and that material Modifying · A Probable Reserve was estimated at the Pre-Feasibility Study level
Factors have been considered. considering the modifying factors for converting Mineral Resources to Mineral
Reserves. The modifying factors for lithium brine deposits include but are not
limited to the production wellfield design, future dilution over the projected
mine life, and recovery of lithium during the processing phase.
Cut-off parameters · The basis of the cut-off grade(s) or quality parameters applied. · A lithium cut-off grade of 100 mg/L was applied to the reserve
estimate based on the chosen direct lithium extraction (DLE) processing
method, as Lanshen has reportedly recovered lithium content as low as 80 mg/L
from raw brine. Furthermore, the applied cut-off grade of 100 mg/L is
conservative based on a projected LCE price of US$22,500, as well as a capital
expenditure of US$748 million and operating expenses of US$5,768 per tonne of
LCE.
· Pumped brine is ultimately stored in a collection pond and
transferred to the receiving ponds near the DLE plant. Thus, a composite grade
is present prior to processing. During the 25-year reserve simulation, the
average extracted lithium grades vary from approximately 188 and 184 mg/L over
the LOM, and the average lithium grade of Probable Reserves corresponds to 186
mg/L. Average extracted grades are above the 100 mg/L cut-off grade,
demonstrating that production is projected to economically viable at the
current study level.
Mining factors or assumptions · The method and assumptions used as reported in the Pre-Feasibility or · The LCE production process for the Laguna Verde Project will operate
Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. through vertical brine extraction wells. Based on the results available to
either by application of appropriate factors by optimisation or by preliminary date from conducted pumping tests, it has been determined that brine
or detailed design). extraction will be carried out through the installation and operation of a
conventional brine production wellfield. It is anticipated that extracted
· The choice, nature and appropriateness of the selected mining method(s) brine from each production well will be stored in a collection/transfer pond,
and other mining parameters including associated design issues such as from where it will be pumped through a main pipeline directly to the receiving
pre-strip, access, etc. ponds located near the DLE plant in Laguna Verde.
· The assumptions made regarding geotechnical parameters (eg pit slopes, · The considerations adopted for the estimation of the production plan
stope sizes, etc), grade control and pre-production drilling. are the following:
· The major assumptions made and Mineral Resource model used for pit and o A Life-of-Mine (LOM) duration of 25 years.
stope optimisation (if appropriate).
o A ramp-up period during the first year of production, followed by
· The mining dilution factors used. full-scale production of 15,000 tonnes of LCE per year (below).
· The mining recovery factors used. o 70% production capacity in the first two months of year 1.
· Any minimum mining widths used. o 85% production capacity in the third month of year 1.
· The manner in which Inferred Mineral Resources are utilised in mining o 90% production in the fourth and fifth months of year 1.
studies and the sensitivity of the outcome to their inclusion.
o Full-scale production from month 6 of year 1 though year 25.
· The infrastructure requirements of the selected mining methods.
o A process efficiency factor of 90% is assumed between the production
wellheads and generation of LCE product based on pilot testing results.
· Geotechnical parameters are not directly relevant for lithium
brine deposits.
· Future dilution over the projected mine life was modelled with
production pumping.
· It is anticipated that the production wells will be completed
with 10-inch diameter stainless steel casing, and they will be equipped with
an 8-inch submersible pump. Permanent power will be supplied to the production
area through electric generators connected to each well. Pumped brine from the
wells will be delivered to the raw brine receiving pond located in the
southern sector of the well field via 8" High Density Polyethylene (HDPE)
pipelines, from where it will be pumped through a main pipeline directly to
the receiving ponds near the DLE plant.
Metallurgical factors or assumptions · The metallurgical process proposed and the appropriateness of that Selected process:
process to the style of mineralisation.
The recovery process assumed for the Laguna Verde Project is a two-stage
· Whether the metallurgical process is well-tested technology or novel in integrated flowsheet designed and supplied by Lanshent:
nature.
• Stage 1 - Laguna Verde site (>4,300 m.a.s.l.): Direct Lithium
· The nature, amount and representativeness of metallurgical test work Extraction (DLE) using selective Li-201 adsorbent in a 30-column rotary
undertaken, the nature of the metallurgical domaining applied and the carousel, preceded by multimedia brine pre-filtration, followed by a
corresponding metallurgical recovery factors applied. sequential membrane train (NF → RO → HPRO), Electrodialysis (ED), Ion
Exchange (IX) resins for Ca²⁺, Mg²⁺ and B removal, and Mechanical Vapour
· Any assumptions or allowances made for deleterious elements. Recompression (MVR) evaporation, to produce a 5.88% w/w LiCl solution.
· The existence of any bulk sample or pilot scale test work and the • Stage 2 - Copiapó plant (industrial site): Conversion of the
degree to which such samples are considered representative of the orebody as a concentrated LiCl solution to battery-grade Li₂CO₃ by carbonation with
whole. Na₂CO₃ at 85°C, centrifugation, hot washing, drying, micronisation, and
mother-liquor lithium recovery circuit.
· For minerals that are defined by a specification, has the ore reserve
estimation been based on the appropriate mineralogy to meet the Design capacity: 15,000 tonnes per year Li₂CO₃ (LCE basis).
specifications?
Recoveries confirmed by test work:
• DLE (adsorption + desorption): 88% - confirmed by semi-industrial pilot
trial in Copiapó (Mar-Jun 2024): 14 cycles, 1,196 m³ of actual Laguna Verde
brine, 384 continuous hours of operation. Adsorption recovery: 95%; desorption
recovery: 93%; total production: 1.085 tonnes LCE.
• Membrane system + IX (NF/RO/HPRO/ED): 98.4% - based on Lanshent supplier
specifications and pilot testwork results.
• LiCl Plant total recovery (Laguna Verde): 88.6% - consolidated from
testwork and process mass balance.
• Carbonation recovery (Copiapó, excluding mother-liquor circuit): 87.2%
- Conductive Energy trials, Chicago/Dallas, USA (Nov-Dec 2024).
• Mother-liquor recovery circuit: +9.3 percentage points of additional
lithium recovery.
• Li₂CO₃ Plant total recovery (Copiapó): 96.5% - combining
carbonation and mother-liquor recovery circuit.
• Global LCE recovery (Laguna Verde × Copiapó): 88.6% × 96.5% = 85.5%.
Hierarchy of evidence used:
• Semi-industrial pilot trial - Copiapó, Chile (2024): 1,196 m³ of
actual Laguna Verde brine, 384 continuous operating hours, 14 complete DLE
cycles. This represents the highest-weight experimental evidence supporting
the DLE assumptions.
• Laboratory-scale trial - Santiago, Chile (2024): 7.8 m³ of actual
brine, 10 cycles on a Lanshen laboratory carousel unit. Basis for the
optimistic recovery scenario (~90% global).
• Li₂CO₃ conversion trial - Conductive Energy, Chicago/Dallas, USA
(Nov-Dec 2024): 88 m³ of concentrated eluate (4 shipments). Production of ~50
kg Li₂CO₃ at pilot scale. Basis for carbonation stage assumptions.
• Supplier specifications (Lanshen): Li-201 adsorbent design parameters,
impurity rejection rates, loading capacity (3.5 g Li/kg measured; target 4.6 g
Li/kg), carousel configuration and mass balances.
• Analogous commercial reference: Lanshen DLE carousel units in commercial
operation in China, in a configuration similar to the Laguna Verde design.
Environmen-tal · The status of studies of potential environmental impacts of the mining · This subsection summarizes the environmental baseline, permitting
and processing operation. Details of waste rock characterisation and the pathway, water and energy management strategy, and community engagement
consideration of potential sites, status of design options considered and, framework for the Laguna Verde Project. Baseline investigations are ongoing to
where applicable, the status of approvals for process residue storage and support submission of an Environmental Impact Assessment (EIA) currently
waste dumps should be reported. targeted for 2026-2027, subject to CEOL timing.
· The environmental and social assessment is aligned with Chilean
regulatory requirements and reflects the Project's development stage at
Pre-Feasibility Study (PFS) level.
· The Project strategy is based on adsorption-based Direct Lithium
Extraction (DLE), which differs
materially from conventional solar evaporation pond operations. Key
environmental design features include:
• No evaporation ponds;
• Reinjection of depleted brine into the aquifer;
• Extraction of lithium directly from unconcentrated brine;
• Higher lithium recovery relative to evaporation methods.
· Baseline environmental studies have been underway since mid-2022
and will continue through the EIA phase. A formal partnership agreement with
nearby Indigenous communities (December 2024) supports baseline work and EIA
participation through a joint working group.
· Baseline data integrates:
• MYMA site-specific environmental studies (2022-2023);
• Review of historical reports;
• Public datasets and desk-based research.
· Further seasonal baseline campaigns are planned beginning Q2 2026
as part of the EIA submission process.
· The Project will be submitted to Chile's EIA system (Law 19,300)
prior to exploitation and processing within the CEOL polygon.
· EIA schedule is dependent on CEOL grant. Typical timelines after
CEOL is granted are:
• ~12 months for EIA preparation;
• ≥18 months for regulatory processing.
· The Company will measure, monitor and mitigate against key
environmental metrics and ensure that project development, production, and
project closure meet the required standards and regulations.
Infrastructure · The existence of appropriate infrastructure: availability of land for · Areas for the locating of plant and associated infrastructure have
plant development, power, water, transportation (particularly for bulk been appropriately studied at the project site, where the Lithium Chloride
commodities), labour, accommodation; or the ease with which the infrastructure plant is planned to be located, and in the regional mining centre of Copiapó,
can be provided, or accessed. where the Lithium carbonate plant is planned to be located
· The project site is connected to Copiapó via a paved highway
providing a well-established transport route between the projects two key
infrastructure sites
· Power and water supply options have been studied in detail and
assessed at a PFS level
· Infrastructure for storage of bulk commodities and the provision of
suitable labour and accommodation, have been assessed at a PFS level, with the
project benefiting from locating the carbonation plant, which forms
approximately 70% of the operations labour requirement, in Copiapó which has
an established skilled workforce
Costs · The derivation of, or assumptions made, regarding projected capital · The capital cost estimate has been prepared to support a
costs in the study. Pre-Feasibility Study (PFS) for the Laguna Verde Project, with an effective
date of 1 March 2026. The estimate has been developed to align with the
· The methodology used to estimate operating costs. disclosure expectations of the JORC Code (2012 Edition) and, where applicable,
NI 43-101 style reporting structure, while maintaining consistency with
· Allowances made for the content of deleterious elements. international cost estimation standards.
· The source of exchange rates used in the study. · The estimate includes:
· Derivation of transportation charges. • Direct costs (equipment supply, construction and installation
labour, bulk materials, construction equipment, and contractor overhead and
· The basis for forecasting or source of treatment and refining charges, profit);
penalties for failure to meet specification, etc.
• Indirect costs (engineering, procurement and construction
· The allowances made for royalties payable, both Government and private. management support, temporary facilities, commissioning support and related
services);
• Owner's costs; and
• Contingency appropriate to a PFS-level estimate.
· Costs explicitly excluded from the estimate include financing
costs, interest during construction, escalation beyond the pricing basis,
closure and rehabilitation costs, sustaining capital, and foreign exchange
impacts. The estimate has been prepared on a full equity basis.
· The capital estimate corresponds to an AACE Class 4 level of
definition, consistent with a PFS. The expected accuracy range is
approximately -30% to +45%, reflecting the current level of engineering
maturity. Pricing is based on Q4 2025 US dollar values in constant terms, with
no escalation applied.
· The operating cost estimate has been prepared at Pre-Feasibility
Study (PFS) level, primarily based on Worley's OPEX Report. The estimate
integrates process definitions, mass balances, and reagent and consumable
consumption data provided by CTL and Lanshen, combined with Worley's cost
databases and prevailing Chilean and international pricing for labour, energy,
reagents, consumables and logistics.
· The operating model assumes steady-state production of 15,000
tonnes per annum (tpa) of battery-grade Li₂CO₃, with continuous operation
across both the Laguna Verde salar facilities and the Copiapó lithium
carbonate plant. The basis assumes approximately 8,000 operating hours per
year.
· The estimate excludes escalation, financing costs, corporate
overhead beyond the Project General Manager level, technology licensing fees,
and government royalties (which are incorporated separately in the economic
model).
· Operating costs are classified into direct and indirect
components, consistent with Worley's PFS methodology.
Revenue factors · The derivation of, or assumptions made regarding revenue factors · Revenues are generated from the sale of lithium carbonate
including head grade, metal or commodity price(s) exchange rates, products and are calculated based on the applicable pricing assumptions and
transportation and treatment charges, penalties, net smelter returns, etc. annual production volumes. Revenue projections reflect the product mix during
the ramp-up period and steady-state operations and apply constant real pricing
· The derivation of assumptions made of metal or commodity price(s), for assumptions over the Project life.
the principal metals, minerals and co-products.
· The information regarding lithium market research was provided to
CleanTech Lithium by Benchmark Minerals Intelligence (Benchmark) in a report
dated July 2025.
· For long-term lithium carbonate price forecast used in the
project's financial modelling more up to date information is used based on
forecasts from Canaccord Genuity provided in November 2025.
· Based on data current as of November 2025, Canaccord forecast a
long-term lithium carbonate price of US$22,500 per tonne of battery grade
lithium from 2030 onwards. This price forecast was used for determining the
forecast revenues in the project economic modelling with sensitivities being
run around this of +/- 20%.
· As the Canaccord projection extends only to 2030, prices have
been assumed to remain constant, in real terms, at the 2030 level for the
remainder of the evaluation period.
· Prices are treated as real, constant-dollar values and are
applied consistently throughout the life of the project.
· During the production ramp-up period, a portion of product is
assumed to be sold as technical-grade lithium carbonate, with the balance sold
as battery-grade material. The former commands a slightly lower price in the
international market. Once steady-state production is achieved, the product
mix stabilizes at 100% battery grade.
Market assessment · The demand, supply and stock situation for the particular commodity, · Lithium is a specialty chemical product that is central to the
consumption trends and factors likely to affect supply and demand into the energy transition. Lithium ion is the dominant battery cathode chemistry for
future. electric vehicles and battery energy storage systems. Battery-quality lithium
carbonate is not a fungible product; specifications vary by producer. Most
· A customer and competitor analysis along with the identification of buyers require rigorous qualification testing before accepting a new supplier.
likely market windows for the product.
· The information regarding lithium market research was provided to
· Price and volume forecasts and the basis for these forecasts. CleanTech Lithium by Benchmark Minerals Intelligence (Benchmark) in a report
dated July 2025. This included future supply and demand forecasts through to
· For industrial minerals the customer specification, testing and 2040.
acceptance requirements prior to a supply contract.
· For long-term price forecast used in the project's financial
modelling more up to date information is used based on forecasts from
Canaccord Genuity provided in November 2025.
· Based on data current as of November 2025, Canaccord forecast a
long-term lithium carbonate price of US$22,500 per tonne of battery grade
lithium from 2030 onwards. This price forecast was used for determining the
forecast revenues in the project economic modelling with sensitivities being
run around this of +/- 120%.
Economic · The inputs to the economic analysis to produce the net present value · The economic analysis has been prepared in support of a Pre-
(NPV) in the study, the source and confidence of these economic inputs Feasibility Study (PFS) completed in accordance with the JORC Code and written
including estimated inflation, discount rate, etc. to be consistent with the disclosure requirements of NI 43-101.
· NPV ranges and sensitivity to variations in the significant assumptions · The effective date of this economic analysis is March 1, 2026.
and inputs.
· The evaluation is based on a discounted cash flow (DCF) model
developed by Worley. Inputs to the model include capital and operating cost
estimates summarized in Section 21, the production schedule derived from
hydrogeological and process design work carried out by Montgomery, and
long-term lithium carbonate pricing assumptions obtained from a Canaccord
Genuity publication dated November 2025. The model produces annual cash flows
from which Net Present Value (NPV), Internal Rate of Return (IRR), and payback
period are calculated, on both a before-tax and after-tax basis.
· An economic model was developed to estimate annual pre-tax and
post-tax cash flows over the full evaluation period, comprising approximately
two years of pre-production construction followed by 25 years of operations
based on the current mine plan and production schedule.
· The economic analysis has been prepared on a real
(constant-dollar), non-escalated basis in 2026 United States dollars. No
inflation escalation has been applied to costs or revenues. Capital and
operating cost estimates were developed specifically for the Project and are
expressed in constant 2026 US dollars.
· Projected annual net cash flows are discounted at an 8% real
discount rate to reflect the time value of money. The 8% real discount rate is
considered appropriate for a project of this type and development stage,
taking into account commodity exposure, technical considerations,
jurisdictional setting, and overall project risk.
· All Net Present Values (NPVs), including the primary economic
indicator of NPV at an 8% real discount rate, are calculated as of the
beginning of Project construction in 2029. Cash flows are discounted to this
2029 construction start date, which represents the commencement of capital
deployment and project execution. NPVs at additional discount rates have also
been calculated for reference and sensitivity purposes.
· The analysis has been conducted on a 100% equity-funded
(unlevered) basis. No debt financing, leverage, or financing costs have been
included. All capital expenditures, including pre-production capital and
working capital, are assumed to be funded by CTL equity.
· The financial evaluation covers the period from the commencement
of construction in 2029 through the end of the operating life supported by the
defined production assumptions.
· Post-tax cash flows incorporate applicable fiscal obligations and
tax assumptions based on the current regulatory framework. Tax calculations
are inherently subject to variability and may differ from actual outcomes
during operations. Accordingly, post-tax results represent model-based
estimates derived from currently available information.
· For clarity, the cash flow analysis and reported economic results
do not incorporate the potential impact of Chilean dividend withholding taxes
that may apply in the event that distributable earnings are remitted to the
Company's parent entity in the United Kingdom or other foreign jurisdictions.
The economic model reflects project-level taxation within Chile only and does
not consider shareholder-level taxation or cross-border tax effects. Any
withholding taxes applicable upon distribution of dividends would be
determined based on the prevailing Chilean tax regime and applicable
international tax treaties at the time of distribution and are therefore
outside the scope of this Project-level evaluation.
Social · The status of agreements with key stakeholders and matters leading to · On December 18, 2025, through Exempt Resolution No. 2826 of the
social licence to operate. Ministry of Mining, the publication of the administrative act entitled
"Establishes internal procedure for the submission and processing of
applications for Special Operating Contracts for the Exploration, Exploitation
and Processing of Lithium (CEOL) in the Laguna Verde sector" (hereinafter,
"Resolution No. 2826/2025") was ordered. This act establishes, among other
requirements, the obligation to consider the existing registry of mining
concessions, the number of concessions held by a given holder, and the area
covered by said concessions with respect to the CEOL polygon, requiring for
these purposes the maintenance of at least eighty percent (80%) or more of the
preferred area.
· The Company filed its application for the Laguna Verde CEOL on 29
December 2025, evidencing that it held well in excess of the 80% of the
preferred CEOL polygon, and CleanTech Lithium was able to announce on 10 March
2026 that the terms for that CEOL had been agreed between the Company and the
Chilean Mining Ministry. With a term of 40 years, the CEOL will start from the
date on which the administrative act (the "Decree") issued by the Ministry of
Mining approving the CEOL has been reviewed and approved by the Comptroller
General's Office. Consistent with all other decrees in Chile, a final review
is required by the Comptroller to ensure the Decree complies with the
Constitution and laws of Chile. CleanTech Lithium anticipates ratification
will take place in Q2 2026.
· CleanTech Lithium is committed to respect the rights of
indigenous peoples and will protect those rights. In this sense, the Company
has designed an early engagement process that aims to manage its social and
environmental impact in a participatory manner, emphasizing the need and
commitment to promote community participation in proactive and timely
information about the Project in all its phases and decision making.
· The Company will ensure that information is accessible to all and
that participation channels are appropriate and designed in conjunction with
the community. This recognizes the value of the community's knowledge and
leadership, traditions and history in the territory.
· This commitment will establish a permanent, proactive,
transparent and open dialogue that will guide free, prior and informed
consultation and participation. Early conversations about protocols,
involvement, impacts, investments, social employment, follow-up of
initiatives, etc., can make the difference between generating dependence and
promoting autonomy and acceptance of the Project.
· This is evidenced by the multiple engagement activities the
Company has undertaken to involve community members, such as organizing visits
to the DLE pilot plant, drilling campaigns and numerous consultation meetings.
· Guided by international standards, the Company takes an approach
that adopts free, prior and informed consent before project activities. CTL is
also a signatory of the UN Global Compact and adheres to the 10 guiding
principles
· The Company also has an agreement with the local university to
support students in their academic development by loaning equipment for
research projects and fostering a culture of collaboration.
Other · To the extent relevant, the impact of the following on the project · The Company filed its application for the Laguna Verde CEOL on 29
and/or on the estimation and classification of the Ore Reserves: December 2025, evidencing that it held well in excess of the 80% of the
preferred CEOL polygon, and CleanTech Lithium was able to announce on 10 March
· Any identified material naturally occurring risks. 2026 that the terms for that CEOL had been agreed between the Company and the
Chilean Mining Ministry. With a term of 40 years, the CEOL will start from the
· The status of material legal agreements and marketing arrangements. date on which the administrative act (the "Decree") issued by the Ministry of
Mining approving the CEOL has been reviewed and approved by the Comptroller
· The status of governmental agreements and approvals critical to the General's Office. Consistent with all other decrees in Chile, a final review
viability of the project, such as mineral tenement status, and government and is required by the Comptroller to ensure the Decree complies with the
statutory approvals. There must be reasonable grounds to expect that all Constitution and laws of Chile. CleanTech Lithium anticipates ratification
necessary Government approvals will be received within the timeframes will take place in Q2 2026.
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss
the materiality of any unresolved matter that is dependent on a third party on · The Company does not have any marketing arrangements at present
which extraction of the reserve is contingent. and will look to establish such arrangements in future.
· Water use is governed by Chile's Water Code. Groundwater
abstraction requires authorization from the General Water Directorate (DGA).
Freshwater permitting and the purchase of water rights from third parties are
being explored, and some water supply alternatives will depend on the CEOL
award. The Project may also source operational water from wells located at the
edge of the salar, incorporating reuse, recycling, and reinjection strategies
to minimize net freshwater consumption.
· The Project will require submission to Chile's Environmental
Impact Assessment System (SEIA) and approval of a Resolution of Environmental
Qualification (RCA) prior to construction.
· The Project is not located within SNASPE protected areas but lies
within a Zone of Tourist Interest (ZOIT). Exploration activities have been
designed to minimize impacts.
· Lithium production and commercialization require authorization
from CCHEN following CEOL grant. Once the CEOL is ratified, the Company
intends to apply for the regulatory license to produce, market and export
lithium products from the Laguna Verde Salar, following the JORC resource
estimate of 312,000 tonnes of Lithium Carbonate Equivalent (LCE) in the
Measured category, which excludes the surface resource, and 445,000 tonnes of
LCE in the Indicated category. The extension of the CCHEN license to produce
the indicated initial quantity of LCE will be for a period in years that the
entity estimates.
Classification · The basis for the classification of the Ore Reserves into varying · The Mineral Reserve was classified by the Competent Person (CP) based
confidence categories. on industry standards, potential future factors that could affect the
estimation, and the confidence of the model predictions. The CP classified all
· Whether the result appropriately reflects the Competent Person's view mineral reserves as Probable Reserves for the following reasons:
of the deposit.
o The Special Operating Contract for Lithium (Spanish abbreviation: CEOL)
· The proportion of Probable Ore Reserves that have been derived from required for lithium production in Chile has not yet been fully granted to
Measured Mineral Resources (if any). CleanTech.
o Only one long-term pumping test has been conducted to date (LV06).
Additional long-term testing will aid in understanding the feasibility of
longer pumping durations in other areas of CleanTech's mine concessions and it
will also improve the numerical model calibration. Additional brine sampling
is required from long-term pumping tests to understand potential differences
between previous depth-specific sampling.
o Reinjection testing in the field has not yet occurred, and it is uncertain
if there will be environmental restrictions related to spent brine reinjection
in Laguna Verde.
o Freshwater permitting and the purchase of water rights from third parties
are being explored, and some water supply alternatives will depend on the CEOL
award. Expected average freshwater demand for the processing plant is
approximately 5.6 L/s for full-scale production. As of the effective date of
the reserve estimate, freshwater pumping has not been simulated in the
numerical model.
o The current study level is Pre-Feasibility, with preliminary options
related to the mine design, mineral processing, and permitting (CRIRSCO,
2019). A future update at the Feasibility level will include a more confident
mine plan and schedule, confident management of spent brine, as well as
optimized mineral processing.
· Despite uncertainties, in the opinion of the CP, each phase was
conducted in a logical manner, and results are supportable for Probable
Reserves at the current study level.
· Most projected production wells were placed and screened in
Measured Resource zones; thus a majority of the extracted brine is sourced
from Measured Mineral Resources.
Audits or reviews · The results of any audits or reviews of Ore Reserve estimates. · No audits of the Ore Reserve estimate have been undertaken to date.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The reserve estimate could be affected by the following sources of
level in the Ore Reserve estimate using an approach or procedure deemed uncertainty:
appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of o Assumptions regarding assignment of aquifer parameters where empirical
the reserve within stated confidence limits, or, if such an approach is not data does not exist.
deemed appropriate, a qualitative discussion of the factors which could affect
the relative accuracy and confidence of the estimate. o The lack of a long-term pumping test in the western portion of the project
concessions to strengthen the model calibration and projections in that area.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be o Differences between measured and simulated lithium concentrations during
relevant to technical and economic evaluation. Documentation should include the LV05 and LV06 pumping tests; regardless, depth-specific brine sample
assumptions made and the procedures used. results (Fedderson, 2023) are consistent with the simulated extracted
concentrations, and differences could be resolved with additional sampling and
· Accuracy and confidence discussions should extend to specific analysis.
discussions of any applied Modifying Factors that may have a material impact
on Ore Reserve viability, or for which there are remaining areas of o The linear fit between TDS and water density, and extrapolation outside of
uncertainty at the current study stage. the measured data.
· It is recognised that this may not be possible or appropriate in all o The numerical model grid discretization, which could affect transport
circumstances. These statements of relative accuracy and confidence of the results.
estimate should be compared with production data, where available.
· Despite these sources of uncertainty, a steady-state and
transient calibration was conducted with the current data to support a
Probable Reserve estimate at the current study level. Future calibration
efforts and numerical model improvements will strengthen subsequent
projections.
· No production data is available yet for comparison.
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