Keliber Oy presentation Aiming to be the first lithium producer in Europe

Brussels May 20 2015 Workshop on Raw Materials in the Juncker Plan Keliber Oy

Markku Isohanni Chairman of Board

Keliber

Aiming to be the First Lithium Producer in Europe Producing Annually 6 000 t High Purity Lithium Carbonate

The Mineral resource and ore reserves (JORC 2004 and JORC 2012) Markku Meriläinen (MAusIMM and Pekka Lovén (MAusIMM (CP) Outotec Finland Oy

Keliber investment case

EU is amongst the largest consumers of lithium (~24% of global demand), but doesn't currently have any producing lithium mines.

Project is located in mining friendly jurisdiction and strong surrounding infrastructure with good access to power and water supply and no immediate investment needs for transportation infrastructure

Robust lithium demand growth

- According to various studies Lithium demand is expected to grow by 10-12% p.a. driven by increasing penetration of hybrid and electric vehicles and stationary batteries.

Keliber targets for production of high purity (99.99%) lithium carbonate which attracts a significant price premium in the market.

Permits in place to start Lithium Carbonate production from Länttä

- The Company has all permits in place to start 6000 tons annual production of lithium carbonate from Länttä deposit and in Kalavesi central production plant. Keliber’s current mineral resource base is 6,2 Mt and open pit resource 5,4 Mt is sufficient for 15 years production.

Excellent exploration potential

- The lithium province of Central Ostrobothnia is estimated to be over 500 square km and only small fraction of area has been properly explored.

Kokkola with nearby area is the biggest inorganic processing center in Fennoscandia with a lot of skilled labor force. The estimated labor force is c. 80- 90 persons

1. Länttä 2. Syväjärvi, 3. Outovesi 4. Leviäkangas 5. Emmes 6. Rapasaaret 7. Päiväneva 8. Heikinkangas 9. Rytilampi 10. Palojärvi 11. Tiimmerpakka 12. Jäneslampi and Buldans

Keliber Mineral Resources and Reserves

Category Deposit kt Li2O% Cut off JORC Category Deposit kt Li2O% JORC

Measured Länttä 433 1,12 0,50 2004 Proven Länttä 472 0,98 2004

Indicated Länttä 868 1,06 0,50 2004 Probable Länttä 513 0,96 2004

Syväjärvi 1 668 1,34 0,50 2012 Syväjärvi 1 390 1,08 2004

Rapasaari 1 956 1,25 0,50 2012 Outovesi 277 1,17 2004

Outovesi 289 1,49 0,50 2004

Leviäkangas 190 1,13 0,50 2004

Emmes 818 1,40 0,70 2012

Total 5 789 1,28 Total 2 180 1,15

Measured and

Indicated 6 222 1,26

Proven and

Probable 2 652 1,12

Inferred Syväjärvi 73 1,58 0,50 2012

Leviäkangas 271 0,90 0,50 2004

Total 344 1,04

Keliber

Process overview

Concentrating involves conventional crushing , mica separation, magnetic and dense media separation and fine fraction grinding followed by flotation.

Spodumene concentration

The spodumene concentrate will be converted from alpha-spodumene to beta-spodumene in 1000 C temperature.

Beta-spodumene will be leached and hydrocarbonised in alkaline media to obtain lithium bicarbonate which is purified by ion exchange and crystalized to lithium carbonate (Li2CO3).

The Company’s target is to produce high purity, 99.99 %, lithium carbonate. The potential by-products are columbite (Nb, Ta), analcime , quartz-feldspar and mica.

Electricity can be produced on site using combination of conventional technology and wood gasification plant.

Lithium carbonate production

Processing plant at Kalavesi, Kaustinen Li2CO3 (%)Impurities (PPM)

99.939 Al B Be Ca Cl Fe K Mg

Outotec 60 <20 <20 20 <200 20.0 250.0 <20

GTK 12 5.01 15.8 <20 <20000 <5 64.9 <5

Li2CO3 (%)Impurities (PPM)

99.939 Mn Na S Si P Pb V

Outotec <20 80.0 300 240.0 250.0 <40 <20

GTK <0.2 57.3 <10 205.0 224.0 0.1 0.1

Test result of Li2CO3 production from Länttä Spodumene ore

Source: Company data, Pareto Outotec

Keliber

Current status

Company ’s exploration drilling programs have resulted a 390 percent increase in Company’s JORC compliant mineral resources during 2013 – 2015

Company is finalizing process optimization work

- Benefication tests show possibility of 88 % recovery at 4,5 Li2O content by using dense media separation and flotation

- Outotec Oy is conducting hydrometallurgical test work and producing test and marketing samples of high purity lithium carbonate

- Process R&D tests is expected to be completed in end of May 2015 and reports from the R&D work ready in end of June 2015

- Pre feasibility sudy expected to be ready late 2015

Increased mineral resources and process R&D

Environment

Company has valid environmental licenses for Länttä mine and Kalavesi production plant

Company has commenced EIA process for 5 lithium deposits in Central Ostrobothnian Lithium Province

- EIA report is expected to be completed and submitted to the authorities in autumn 2015

Company has commenced early proactive measures for secure and improve

- The territory of the golden eagle in the area

- The habitat of the moor frogs at Lake Syväjärvi area

Measures and follow-up program will continue trough preparation, mining and closing stages of mining activities Source: Company Golden eagle photograph by Olli-Pekka Karlin

Keliber

World lithium demand and lithium required in batteries

According to various studies lithium demand is expected to grow by 10-12% p.a. and even up to 16 % in the optimistic scenarios driven mainly by increasing demand of automotive industry and stationary batteries.

In 2014 around 9,400 tones of lithium as lithium carbonate equivalent were required for batteries for hybrid and electric cars.

It is estimated that in 2025 the demand of lithium as lithium carbonate equivalent is 15 times higher for batteries for hybrid and electric cars.

Robust market for lithium

Lithium required in different batteries

Cell Phone: 1.7 grams

Smartphone: 2.1 grams

Tablet: 19 grams

Laptop: 37 grams

Power Tool: 40 grams

E-Bike: 75 grams

Gas-Electric Hybrid: 2,500 grams (2.5 kg/5.5 lb)

Plug-In Hybrid: 8,000 grams (8 kg/17.6 lb)

Electric Vehicle: 28,000 grams (28 kg/61.7 lb)

1-Megawatt Storage Battery: 600,000 - 800,000 grams (600 - 800 kg/1322.7/1763.7 lb)

Source: U.S. Department of Energy, signum BOX estimates

Keliber

Financial highlights –Pre-Tax IRR of 26 %

Source: Company data

Reserve Grade

Li2O % 1,00

Mill Feed Grade

Li2O % 1,10

Mining rate 260 -300 kt/a

Exchange Rate 1,07 EUR/US$

Lithium Carbonate Price 8,6 Us$/kg 8 EUR/kg

By-product Credit 7 %

Total Capex 91 MEUR

Total Site Oprerating Cost 288 MEUR 68,7 EUR/t

Net Smelter Return 714 MEUR 170,4 EUR/t ore

Pre-Tax NPV (8) 112 MEUR

Pre-Tax IRR 26 %

Post-Tax NPV (8) 69 MEUR

Post-Tax IRR 20 %

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M E

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Years

Cumulative Cash Flow (i=disc rate)

•Pre-feasibility study

• Increasing of ore reserves

• Capital financing round II • Round III - either private

capital investment or listing on the stock exchange

• Off-take agreements

•Project funding package deal

Financing round I Financing round II and III Financing round IV

Investments

2012-2013 2014-2016 2018

Use of finance

Progress of project

•GTK claims

•Preparatory work

•Bankable feasibility study

• Commencement of production

• Construction work and production start-up

• Feasibility study (completion of feasibility plans)

• Broadening of the resource base

• Private capital investment

• New issue of shares

• Broadening of ownership base

Capital financing round I EUR 4 M

Capital financing rounds II and III EUR 2.4 M and EUR 3 – 4 M / Potential IPO

Project funding EUR 80 – 100 M

Keliber

Financing