Drilling and Sampling

Liberty One Lithium has done no drilling on the Utah property to-date. Within a 50-square mile area, there have been approximately 55 oil and gas wells completed over the years. At least 32 of them penetrated the Paradox Salt and intersected its potash beds and brines. Lithologic and geophysical logs and other data including pressures and temperatures for nearly all of these wells are available from the Utah Geologic Survey’s log library. Very little information has been preserved regarding drilling or sampling techniques used in the drilling of these wells. However, location data are well preserved.

Metallurgical Testing

There has been no metallurgical testing done by Liberty One Lithium. However, the Cane Creek potash mine, immediately southeast of the property, has been in operation for over 50 years using similar techniques for potash recovery. Lithium is readily recovered from similar brines in many locations around the world. No significant metallurgical problems are anticipated, but the commonly used methods may need to be adjusted slightly to meet the needs of these specific brines or solution mined fluids. The raw product resulting from either collecting the super-saturated brines or solution mining the potash beds will be nearly the same. It will be a fluid with a very high content of dissolved solids, principally potassium chloride, magnesium chloride, and calcium chloride along with lithium, boron, bromine and other minerals, with a total of perhaps as much as 30 to 40% total dissolved solids.

There are two basic standard approaches to recovery of the dissolved solids. In most potash operations worldwide, including the adjacent Cane Creek potash mine, the mineral-bearing water is pumped to large shallow ponds where most of the water is removed by solar evaporation. The precipitated salts are then harvested from the ponds using belly-scrapers. The salts are then ground finely and mixed with saturated brine, which is pumped in slurry form to the treatment plant. The material is then processed by selective flotation to produce a potash concentrate. This is dried and shipped. Alternatively, the individual minerals can be removed by chemical precipitation under controlled pressure and temperatures. Some of the elements such as bromine and boron may be collected from the concentrated brines using absorptive resins. It will be necessary to do metallurgical testing to determine the appropriate recovery techniques for the Liberty One Lithium project.

Mineral Resource Estimate

There are currently no N.I. 43-101 compliant resources or reserves at the Liberty One Lithium property. There are numerous oil and gas test wells in the project area that define the presence of a very large tonnage of potash in several beds underlying the area. One 1964 letter suggests that there may be 9 million tons of K2O under the White Cloud area (Liberty One Lithium area of interest) in just one of the several identified beds.