Key Points

Ready to start drilling under an old lithium* mine in Sweden.

Last mined in the 1940's by Boliden, to maximum depth of 30m.

Located 10kms from Skellefteå, 20kms from existing processing facilities and 50km from a base metals refinery.

Located 50kms from a port that is integrated into the European transport network.

Aiming to produce battery grade lithium chemicals and integrate them into the supply chain of European customers.

Strategy - Lithium

Critical Metals is applying the Western Australia (WA) hard rock lithium resource development model to its 100% owned Varuträsk lithium project.

If an economic resource is drilled at Varuträsk, Critical Metals has a number of options to develop a cost effective pathway to production because of the project's excellent location.

If transport of Lithium concentrate is needed, transport infrastructure (roads, rail and ports) are world class and the distances short relative to both WA and Canada.

If partnering with owner of electrolysis plant in Sweden to produce Lithium chemicals, cheap power can create cost advantage.

If Critical Metals converts the Varuträsk lithium project into an economic resource there is a clear pathway to the cost effective production of lithium chemicals in Sweden for customers in Europe.

Varuträsk Lithium - Timing is Everything

Sweden will offer 60% subsidy for residential battery storage costs

European Rivals Line Up Against Tesla in the Race to Build Gigafactories

Tesla's charging stations are full of energy from Skellefteå Kraft

New collaboration for new industrial opportunities in northern Sweden

Vision for Northern Sweden - Electric Vehicles and Storage

Lithium - Location Plan

Varuträsk Lithium is located ~10kms west of Skellefteå, ~20kms south-east of Boliden and ~50kms west of the Port of Skellefteå.

Critical Metals' field office is located in Malå, ~110kms west of Varuträsk and ~800km north of Stockholm

Pahtohavare Copper-Gold and Rakkuri Iron are located ~8km west of Kiruna.

Strategy Example – Drill Beneath an Existing Deposit

The black line highlights the approximate depth of the lowest mined level of the Varuträsk deposit. Every deposit is different and the geometry of one deposit can not be thought to be mirrored by other deposits. This slide is for illustrative purposes only. The message is, 'it is a sensible strategy to drill underneath an existing deposit'. The image above is one section from Area 2W. The Mt Marion Project comprises Area 1, 2, 2W, 4, 5 and 6.

In 2009 Neometals announced an Exploration Target for Mt Marion of 4-5Mt @ 1.5-2% Li2O.

In 2016 Neometals announced a JORC Mineral Resource for Mt Marion of 78.8Mt @ 1.37% Li2O.

Varuträsk LCT Mine – History

1933

Discovered

 

1936-46

 

1947 - 1982

No exploration

 

1983-84

 

1985 – 2015

No exploration

 

2016

Critical Metals granted exploration permit

 

Varuträsk Lithium – Location Location Location

Varuträsk is located close to major hydro power stations and a wind farm (100 turbines) owned by Skellefteå Kraft (electricity price ~ USD0.07 per kWh), concentrators owned by Boliden (base metals) and Mandalay Resources (gold), major roads, a City, a refinery (owned by Boliden) and a port.

Varuträsk Lithium – Easy Access

Varuträsk is located close to a major road (but not too close) and is outside nature reserves. The owners of the Skellefteå Adventure Park have approved the planned 5,000m of drilling beneath the historic lithium mine this winter 2016/2017. The permits outlined are owned 100% by Scandinavian Resources AB (a wholly owned subsidiary of Critical Metals Ltd) and all are granted.

Historic Drilling – EOH more than 40m, less than 80m

Historic Drilling – EOH more than 80m

Planned and approved drilling

These holes (green pins) are approved for drilling. Drilling can commence immediately. The planned drilling depth is 150m.

Varuträsk – Historical Sections

Drilling stopped within cms of penetrating the contact – EOH 32m – no drilling beneath the first contact

The majority of this ore has been mined out.

Strategy Example – Drill Beneath an Existing Deposit

The black line highlights the approximate depth of the lowest mined level of the Varuträsk deposit. The red line represents the depth of drilling planned for Varuträsk. Every deposit is different and the geometry of one deposit can not be thought to be mirrored by other deposits. This slide is for illustrative purposes only. The message is, 'it is a sensible strategy to drill underneath an existing deposit'. The image above is one section from Area 2W. The Mt Marion Project comprises Area 1, 2, 2W, 4, 5 and 6.

Knowledge & Technical Assistance Agreement

"In Neometals - which has grown from explorer to producer by developing its Mt Marion lithium deposit from 4Mt to 60Mt and patented a lithium chemical processes - we have found the ideal partner to assist us with implementing our European lithium strategy." - Damian Hicks, Chairman, Critical Metals Ltd

"We believe Neometals can add value to Critical Metals' lithium projects by leveraging off our technical expertise in the lithium industry. We believe Varuträsk has significant potential and we support Critical Metals as a Shareholder and Partner." - Chris Reed, Managing Director, Neometals Ltd

Neometals have the right (but not the obligation) to subscribe for at least 20% of future capital raisings undertaken by Critical Metals. Neometals have a 30 day pre-emptive right to match any third party offer to acquire an interest in Critical Metals' lithium projects located in Europe.

Varuträsk LCT Project – Next Steps