Geology

Salars are areas topographically depressed and surrounded by hills and mountains. The salar basins are filled with surface runoff and subsurface flow from the surrounding high terrain. The sediments are the product of erosion of the mountain around the salars, which are masking the actual size of the salt flats we see today.

Most of the advanced stage projects In Argentina are extending the resource below the alluvial fans.

Lithium Americas extended the resource below the Archibarca alluvial fan which divides the Olaroz and Cauchari salars. Archibarca is a large source of fresh water at surface, above concentrated brine beneath the fan sediments. Eramet in Centenario salar discovered that most of the Lithium resource is beneath the west alluvial fans. Lithium X in their Sal de los Angeles Project at the Diablillos salar is extending the resource to the North as stated in a Press Release from 30-Aug-2016, and the north portion of Diablillos salar is comprised of a large alluvial fan.

Geophysics

The geophysics profile shows very clearly that the body of brine extends toward the West beneath the alluvial fans on-trend with the Liberty One property.

This profile shows that the basin is at least 500 meters deep, and could be deeper, with brine indicated to at least 150 meters in depth, and that the higher resistivity could be massive halite, as is shown in the electrical profiles of salars nearby.

According to documented information released by nearby producers, beneath the massive halite body of the salar (with high resistivity indicated) it is possible to find an aquifer of gravel and sand with good hydraulic condition.

The resistivity profile shows towards the west a deep aquifer (target area 1) with lower resistivity which is interpreted as more concentrated brine in the west side of the salar.

The geophysics Profile showing very clearly the body of brine extending toward the West below the alluvial fans. The basin is a minimum 500 meters deep with brine indicated at least 150 meters in depth.

The Company is focused on the coincident relationship between the lithium-potassium anomalies and the geophysical target zone aquifers in confirming the Pocitos Property has significant brine resource potential.