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Force Commodities Ltd | 6 Cheviot Way, Burns Beach, WA, 6028 | P: +61 8 6202 6530 | F: +61 8 6323 0418 web:forcecommodities.com.au | Email: [email protected] | ABN 12 145 184 667 | ASX:4CE 9 November 2017 ASX 152–158 St Georges Terrace Perth WA 6000 Australia KITOTOLO LITHIUM PROJECT UPDATE Force Commodities Limited (Force or the Company) (ASX: 4CE) is pleased to provide an update on its Kitotolo Lithium Project. Following a series of recent meetings in China and at London Metals Exchange Week, the Company has been requested by a number of Asian and Global Trading Groups to provide further background information on the Kitotolo Lithium Project and the Company’s proposed exploration plans and strategy. The attached presentation has been prepared to be provided to these groups. Yours sincerely FORCE COMMDITIES LIMITED MICHAEL FRY COMPANY SECRETARY For personal use only

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Page 1: 9 November 2017 For personal use only - ASX · 2017-11-09 · Test-pitting –11 lines at 100 metre intervals, with each line 1km long for a total of 121 test pits. Centred around

Force Commodities Ltd | 6 Cheviot Way, Burns Beach, WA, 6028 | P: +61 8 6202 6530 | F: +61 8 6323 0418 web:forcecommodities.com.au | Email: [email protected] | ABN 12 145 184 667 | ASX:4CE

9 November 2017

ASX 152–158 St Georges Terrace Perth WA 6000 Australia

KITOTOLO LITHIUM PROJECT UPDATE

Force Commodities Limited (Force or the Company) (ASX: 4CE) is pleased to provide an update on

its Kitotolo Lithium Project.

Following a series of recent meetings in China and at London Metals Exchange Week, the Company

has been requested by a number of Asian and Global Trading Groups to provide further background

information on the Kitotolo Lithium Project and the Company’s proposed exploration plans and

strategy.

The attached presentation has been prepared to be provided to these groups.

Yours sincerely

FORCE COMMDITIES LIMITED

MICHAEL FRY COMPANY SECRETARY

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KITOTOLO PROJECT HIGHLIGHTS

❖ 70% interest in joint venture over Kitotolo Lithium Project, being formalised.

❖ Along-strike from AVZ’s world-class Manono Project.

❖ Project area contains numerous historical artisanal workings, focussed on cassiterite and columbite-tantalum mining.

❖ Project area has not been subject to any modern exploration.

❖ Initial investigations have identified spodumene in pegmatites across significant areas within Project area which are open in all directions and are considered to potentially extend for kilometres along a NE-SW trend.

❖ Assays from rock and channel samples confirm high grade lithium mineralisation (up to 2.15% Li2O).

❖ Aggressive exploration planned, initial phase to comprise trenching, test pitting and auger drilling of fresh spodumene in pegmatite (CY2017).

“An exciting project comprising large land-holding with demonstrated lithium mineralisation and visible

pegmatite across significant areas of Project area in a field proven to host

large high grade ore-bodies.” James Sullivan, Head of Exploration

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PROJECT LOCATION, TENURE & ACCESS

Project area covers approx. 400 km2

Project located 40km SW of AVZ’s ‘world-class’ “Manona” lithium project.

~500kms due north of Lubumbashi, the capital of the Katanga Province in the south of DRC

Comprises Exploration Licence PR12453 and Mining License PE13247

Accessible by road, air(regular service from Lubumbashi to Manono)

Good infrastructure(airport, hospital, power)

Low Population DensityEstimated at ~30,000

Main Industry is Subsistence Agriculture

Government & Community supportive of Mining

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Lithium-rich LCT (lithium, caesium, tantalum) style mineralisation❖ Historical records suggest that the

pegmatite field extends over 500km from Kolwezi in the south-west to Kalemie in the north-east.

❖ Force’s Kitotolo Project interpreted to overlay a large section of the pegmatite field.

❖ Pegmatites in the field typically follow a NE-SW orientation.

❖ Pegmatites in the region already identified to extend over several kilometres and across hundreds of metres wide.

❖ Pegmatites are observed across significant areas of the Kitotolo Project Area.

PROJECT GEOLOGY

Along strike from AVZ’s ‘world-class’ Manona Lithium Project, which is considered to be potentially one of the

largest lithium-rich LCT) deposits in the world.

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❖ Due diligence investigation for acquisition purposes were undertaken in September 2017.

❖ Investigation was carried out by James Sullivan, who previously oversaw AVZ’s due diligence assessment.

Mr Sullivan reported visible pegmatite and spodumene mineralisation across large sections of the Project area.

“Generally the pegmatite was observed as being near to surface, and underlying a regional lateritic cover, of between 0 and 6 metres in thickness.”

“Pegmatite style and mineralisation is extremely similar to that observed at AVZ’s Manono Project and my strong recommendation is to proceed with the acquisition notwithstanding that assay results from rock chip and channel samples had not been received at that time.”

POSITIVE DUE DILIGENCE FINDINGS

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❖ In early October 2017, assay results were received for the samples taken by Mr Sullivan during the due diligence site investigation.

❖ The assays confirmed high grade lithium mineralisation (up to 2.15% Li2O).

❖ The rock and channel samples were largely taken from a large artisanal pit in the north of the Project area.

❖ Pegmatite occurrences were observed several hundred metres away from the pit both to the NE and SW and will be the subject of future testing.

HIGH GRADE LITHIUM IDENTIFIED

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INITIAL ASSAY RESULTS

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EXPLORATION PLAN – CY2017

Phase 1:

❖ Test-pitting – 11 lines at 100 metre intervals, with each line 1km long for a total of 121 test pits.

❖ Centred around the large artisanal pit in the north of the Project area where spodumene in pegmatite observed and assays confirmed high grade lithium mineralisation.

❖ Designed to cover a large area quickly and to expose bedrock geology for geochemistry sampling and gain structural information under the lateritic cover.

❖ Assist in determining the length and width of strike extensions of the identified pegmatite, which is currently open in all direction and considered to potentially extend for several kilometres along a NE-SW trend.

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EXPLORATION PLAN – EARLY 2018

Phase 2:

❖ Follow-up infill trenching to add continuous geological understanding of in situ pegmatites and for sampling mineralisation across the exposed and inferred strike of the pegmatite trend.

Phase 3:

❖ Further regional test-pitting and trenching using wider step-outs based on the results of Phases 1 and 2, also on the NE-SW trend.

❖ This to assist in determining the regional strike length potential of the pegmatite mineralisation within the Project area.

❖ The aim of the test pits and trenching will be to assist in reaching in situ bedrock below the lateritic cover for logging and geochemistry sampling, and to provide invaluable information to assist in future exploration phases, including drilling in 2018.

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NEXT STEPS AND FUTURE ACTIVITIES

Calendar Year 2017

❖ Formalisation of Joint Venture.

❖ Commencement of Maiden Exploration Program (Phase 1).

❖ Trenching, test-pitting and auger drilling to determine length and width of pegmatite evident in large artisanal pit in north of Project area, and lithium content of fresh spodumene in the pegmatite.

Calendar Year 2018

❖ Exploration results from Maiden Exploration Program.

❖ Initial determination of strike length potential of the pegmatite mineralisation within the Project area.

❖ Estimation of initial Exploration Target for the Kitotolo Lithium Project.

❖ Maiden Drilling Program: to determine depth and lithium grade of pegmatites.

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Manono lies just 40 kilometres north-east of the Kitotolo

Project.

AVZ’s Manono Lithium Project is potentially one of the largest

lithium-rich LCT (Lithium, Caesium, Tantalum) pegmatite

deposits in the world.

AVZ RESOURCE’S MANONO PROJECT

“To understand the potential of Force’s Kitotolo Project,one should look at AVZ’s

‘world class’ ManonoProject.

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❖ Work performed to date by AVZ has demonstrated that the Manonopegmatites extend for a strike length of 13km+ and are more than 200m wide and more 240m thick in places.

❖ AVZ announced on 12 September 2017 that it had upgraded its exploration target to between 1Bt and 1.2Bt of between 1.25% and 1.5% Li2O.

❖ AVZ’s Manono Project contains many pegmatites. The two largest of these, Carriere de L’est and Roche Dure, are considered to be the two largest pegmatites in the world, and both larger than the famous Greenbushes Pegmatite in Western Australia.

❖ Initial samples taken from outcrops of highly weathered pegmatite contained relatively low concentrations of lithium.

❖ Subsequent trenching and more recently drilling of fresh pegmatite have returned extremely high concentrations of lithium.

❖ AVZ’s Manono Project is thought to lie in a much larger pegmatite field extending as far as Kolwezi in the south-west to Kalemie in the north-east.

AVZ’S MANONO PROJECT: DETAILS

40kilometres north-east of Kitotolo

$434mAVZ Market

Capitalisation

13km+Pegmatite Strike

length

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ADVANTAGEOUS GLOBAL LOCATION

Kesler,S.E., Gruber,P.W., Medina,P.A., Keoleian,G.A., Everson,M.P. and Wallington,T.J.(2012).

Kitotolo ideally located to

service key markets

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Lithium is used in a range of medicines to treat psychiatric i l lnesses including depression, bipolar disorder and other brain disorders.

Lithium is widely used in glass and glass -ceramics including induction cooktops and cookware. Lithium ores are used in glass manufacture to lower melting/firing times and furnace temperatures and save energy, improve quality and glass strength.

Lithium based chemicals such as lithium carbonate, l ithium bromide, l ithium chloride, and l ithium hydroxide are widely used in industrial applications including refrigeration, air -conditioning, manufacture of lubricants and aluminium smelting.

The most commonly used rechargeable battery for electronic devices such as mobile phones, laptop devices, cordless power tools and digital cameras is the lithium ion battery due to its cost, weight and ability to conform to any size or space

The critical elements in lithium ion batteries, the most commonly used, include graphite, cobalt, nickel, manganese and lithium, of course.

WHY LITHIUM?

BROAD AND EVOLVING TARGET MARKETS

ELECTRIC VEHICLES

ELECTRONICS

CHEMICALS

GLASS & CERAMICS

MEDICINE

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LITHIUM – HISTORICAL COMPARISON

❖ Lithium consumption globally has grown significantly since 2000.

❖ Consumption grown 11% year-on-year over past 8 years.

❖ Surging demand for rechargeable batteries for electric vehicles, electronic devices and power storage

❖ 120,000 metric tonnes of Lithium consumed in batteries per annum

❖ Demand set to increase rapidly with greater demand for electric vehicles.

World Lithium Consumption 2000 - 2017

11%Year-on-Year growth

of global lithium consumption

>50%of lithium consumption

due to demand for rechargeable battery

250,000Metric tonnes of

Lithium consumed per year.

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ELECTRIC VEHICLES TO DRIVE DEMAND

❖ Mercedes

❖ Volkswagen

❖ Audi

❖ BMW

❖ Hyundai

❖ Ford

❖ Jaguar

Electric vehicles, once a concept, are now a reality.

Countries are setting near-term targets to ban petrol and diesel vehicles, including:❖ Norway (2025)❖ Netherlands (2025)❖ States in Germany (2030)

Britain, France and China are aiming to phase out sales by 2040.

Car manufacturers are following suit.Volvo announced it would only make electric or hybrid vehicles from 2019.

Other brands planning electric vehicles production by 2020 include:

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COMPETENT PERSON DISCLAIMER

• Competent Person Statement

• The information in this presentation that relates to sampling techniques and data, exploration results, geological interpretation and ExplorationTargets, Mineral Resources or Ore Reserves has been compiled by Mr James Sullivan is a member of the Australian Institute of Geoscientists. MrSullivan is engaged by Force Commodities as a consultant geologist.

• Mr Sullivan has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activitiesundertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Sullivan consents to the inclusion in this presentation of the mattersbased on information in the form and context in which it appears.

• Forward looking statements

• Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally beidentified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and“guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management,anticipated production or construction commencement dates and expected costs or production outputs.

• Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actualresults, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include,but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demandfor production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences andpermits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the companyoperates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel,industrial relations issues and litigation.

• Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatoryand other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give anyassurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business oroperations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management orbeyond the Company’s control.

• Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially fromthose disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events notto be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers arecautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date ofissue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information thecompany does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events,conditions or circumstances on which any such statement is based.

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