About Lithium Americas (Argentina)

Lithium Americas Corp., a Canadian-based resource company, focuses on advancing lithium development projects toward production. The company intends to focus its near-term business activities on advancing the Caucharí-Olaroz Project and the Thacker Pass Project. In connection with these efforts, the company is exploring a potential separation of its U.S. and Argentina operations, through the creation of a standalone public company focused on the development of the Thacker Pass Project. The company has many end uses, including ceramics and glass, batteries, greases, air treatment and pharmaceuticals. Mineral Projects The company is advancing two significant lithium development projects, the Caucharí-Olaroz Project, located in the province of Jujuy in Argentina; and the Thacker Pass Project, located in north-western Nevada, the U.S. The company also owns the Pastos Grandes Project, located in the province of Salta in Argentina, which was recently acquired in connection with the Millennial Transaction (acquisition of 100% of the issued and outstanding Millennial Shares (common shares in the capital of Millennial Lithium (Millennial Lithium Corp.)) pursuant to the Arrangement on January 25, 2022 and the completion of the final step of the Arrangement on January 26, 2022) and holds interests in other prospective lithium projects. ‘Arrangement’ means an arrangement among the company, Millennial Lithium and the securityholders of Millennial Lithium on the terms and subject to the conditions set out in a plan of arrangement under section 288 of the Business Corporations Act (British Columbia) (BCBCA), the terms of which were agreed to between the company and Millennial Lithium by way of an arrangement agreement dated November 17, 2021 and approved by the Supreme Court of British Columbia in a final order dated January 11, 2022. Caucharí-Olaroz Project The Caucharí-Olaroz Project is owned by Minera Exar S.A. (Minera Exar), a company incorporated under the laws of Argentina. Minera Exar, in turn, is 44.8% owned by the company, 46.7% by Ganfeng Lithium Co. Ltd. (Ganfeng), and 8.5% by Jujuy Energia y Mineria Sociedad del Estado (JEMSE). Minera Exar is in the midst of constructing a lithium mining and processing facility that provides for annual production of 40,000 tpa (tonnes per annum) of battery-quality lithium carbonate over a 40-year life of mine. The company and the project co-owner, Ganfeng, continue to actively work with Minera Exar to advance construction, procurement and engineering work at the Caucharí-Olaroz Project. Minera Exar has commenced a planning process for a second stage expansion of the Caucharí-Olaroz Project, with a targeted production increase of at least 20,000 tpa of lithium carbonate. The Cauchari and Olaroz Salars are located in the Department of Susques in the Province of Jujuy in northwestern Argentina, approximately 250 km northwest of San Salvador de Jujuy, the provincial capital. The company holds its interest in the Caucharí-Olaroz Project through a 44.8% interest in Minera Exar, with Ganfeng holding a 46.7% interest. On April 4, 2021, JEMSE, a mining investment company owned by the government of Jujuy Province in Argentina, acquired an 8.5% equity interest in Minera Exar by exercising its option under the JEMSE Option Agreement dated August 26, 2020. Thacker Pass Project The Thacker Pass Project is located in northern Humboldt County, Nevada. In February 2022, the company submitted a draft application to the U.S. Department of Energy for funding of the Thacker Pass Project through the Advanced Technologies Vehicle Manufacturing Loan Program. The program is designed to provide funding to the U.S. companies engaged in the manufacturing of advanced technology vehicles and their components. On October 7, 2021, the company announced an expanded and updated Mineral Resource (a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction) estimate for the Thacker Pass Project of 13.7 Mt of LCE (lithium carbonate equivalent) grading 2,231 ppm lithium of measured and indicated, consisting of Measured Resources of 8.2 Mt LCE grading 2,356 ppm lithium and Indicated Resources of 5.5 Mt (million tonnes) LCE grading 2,067 ppm lithium. On January 15, 2021, the company announced the issuance by the U.S. Department of the Interior Bureau of Land Management (BLM) of a positive ROD under the NEPA process. The ROD approved the proposed mine and plan of operations for the Thacker Pass Project, along with the company’s proposal to continue exploration work to the north and south of the proposed mine site and processing facilities. The process by which the ROD was issued is under appeal. In 2017, the company commenced a program to assess the mine development potential of the Thacker Pass deposit, which hosts the primary Mineral Resource estimate on the project. The Thacker Pass TR was completed in August 2018. Pursuant to the mine plan in the Thacker Pass TR, the company contemplates developing an initial Phase 1 capacity of 30,000 tpa of battery-grade lithium carbonate commencing in 2022 and increasing in Phase 2 to 60,000 tpa in 2026. The Thacker Pass Project is expected to be developed as an open-pit mining operation using conventional mining equipment. Given the soft nature of the deposit, minimal blasting and crushing is anticipated. The ore will then be processed in a leaching circuit using sulfuric acid to liberate the lithium from the claystone. Following the leaching process, the lithium bearing solution is expected to be purified using crystallizers and reagents to produce battery-grade lithium carbonate. With the reliance on sulfuric acid, the Thacker Pass TR calls for the construction of a conventional sulfuric acid plant at site. The sulfuric acid plant will convert molten sulfur into low-cost sulfuric acid, which is expected to reduce transportation costs and provide a low-cost source of power and steam. The company would construct a waste heat generation facility at the sulfuric acid plant, providing electricity for the Thacker Pass Project. In addition, the company plans to include an expansion scenario to target total capacity of 80,000 tpa of lithium carbonate. On January 15, 2021, the BLM issued its ROD (BLM’s Record of Decision with respect to the Thacker Pass Project) for the proposed mine and Mine Plan of Operations (MPO) for the Thacker Pass Project, and related mitigation measures. The BLM also approved the company’s proposal to conduct exploration work to the north and south of the proposed mine site and processing facilities. The ROD is the final step in the BLM’s NEPA (the United States National Environmental Policy Act of 1969, as amended) review process for the Thacker Pass Project. The Thacker Pass Project comprises an area of approximately 3,367 hectares within Humboldt County, Nevada. The company holds the claims indirectly through Lithium Nevada Corporation (Lithium Nevada), a wholly-owned subsidiary of the company. The company holds its interests in the claims indirectly through Lithium Nevada. The company has existing water rights within the Quinn River Valley. The Thacker Pass Project is located in the McDermitt caldera. Pastos Grandes Project The Pastos Grandes Project was recently acquired by the company in connection with the Millennial Transaction. The Pastos Grandes Project is a lithium brine mineral project located in the central portion of the Salar de Pastos Grandes Basin in the Salta Province, Argentina. Millennial Lithium’s properties on the Pastos Grandes Salar include nine mining leases. The first of these, Jorge Eduardo, Neptalí 2, El Milagro and Norte Argentino; were obtained in 2016 by Millennial Lithium from a local Salta entity known as the Moreno Group, through an option to purchase agreement, which has been executed in full. Additionally, in 2016 Millennial Lithium obtained the Papadopoulos XXXII lease, when the previous owners dropped their claim and it was declared vacant by the mining court. This property was subsequently released for filing and was awarded to Millennial Lithium, as the winner of a drawing. In October 2017, Millennial Lithium acquired control of three additional leases, namely Taba PG; Papadopoulos LXXIV, and Aguamarca 15. Finally, in August 2017, in a tender held by the Province-owned resources and energy distribution company, Recursos Energeticos y Mineros Salta S.A. (REMSA), Millennial Lithium obtained the REMSA XIII lease, with the final contract being signed in December 2017. Considering all of these properties, the aerial extent of the leases held by Millennial Lithium, as of the date of the Pastos Grandes TR, is 8,664 ha. The company has established a technical team to review the resource estimate, reserve estimate and other technical data in respect of the Pastos Grandes Project, with a view to validating the prior work and further optimizing prospective operations. The company has also started to investigate measures by which it can leverage the company’s experience and learnings from development of the Caucharí-Olaroz Project, and is considering development and production opportunities on a holistic basis among its Argentina-based projects. History The company was incorporated under the Business Corporations Act (British Columbia) (BCBCA) in 2007. It was formerly known as Western Lithium Canada Corporation and changed its name to Western Lithium USA Corporation in 2010. Further, the company changed its name to Lithium Americas Corp. in 2016.