Park Place

The consolidated Park Place project consists of 1,404,558 acres of contiguous Brine Hosted Mineral Licenses. The project is situated between Edson, Fox Creek, and Hinton, approximately 180 km west of Edmonton, and is approximately 50 km to the south of the Company’s Boardwalk lithium brine project. This area has seen over 70 years of hydrocarbon extraction resulting in a well-established and well-trained labour force, networks of all-weather gravel roads, drill sites that can be easily accessed from Provincial highways, and electrical transmission lines that run through and adjacent to the project.

On June 24^th, 2024, LithiumBank announced an initial National Instrument 43-101 – Standards of Disclosure for Mineral Projects lithium-brine mineral resource estimates of 10,078,000 tonnes of inferred Lithium Carbonate Equivalent (“LCE”) at a grade of 79.4 mg/L lithium within the Leduc Formation (“Fm”) aquifer, and 11,603,000 tonnes inferred LCE at 80.9 mg/L lithium within the Swan Hills Fm aquifer underlying Park Place.

Park Place Lithium global in-situ Inferred Mineral Resource Estimations

1. Total volume of rock and pore space
2. Total volume of effective porosity 
3. Calculated using a weighted average (by pore volume) from the average grade of the Leduc and Swan Hills formations
4. Calculated using a weighted average porosity by total formation volume for both Leduc and Swan Hills formations

Note 1: Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will ever be upgraded to a higher category. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

Note 2: The weights are reported in metric tonnes (1,000 kg or 2,204.6 lbs).

Note 3: Tonnage numbers are rounded to the nearest 1,000 unit.

Note 4: In a ‘confined’ aquifer (as reported herein), effective porosity is an appropriate parameter to use for the resource estimate.

Note 5: The resource estimation was completed and reported using a cut-off of 50 mg/L Li.

Note 6: To describe the resource in terms of industry standard, a conversion factor of 5.323 is used to convert elemental Li to Li2CO3, or Lithium Carbonate Equivalent (LCE).

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The initial mineral resource estimate assessments were prepared by global technology company SLB (NYSE: SLB) using 3D static modelling mining workflows. These assessments were then used to determine the resource estimates and reviewed and validated by a Qualified Person as defined by National Instrument 43-101 of Canada.

The mineral resource estimate work was prepared within a portion of the Park Place Property (81%) that is defined as the area of interest and totals 1,140,115 acres. The Swan Hills Fm directly underlies the Leduc Fm and appear to be in hydraulic communication based on regionally available pressure data. While they may represent a regionally connected aquifer system, the two formations are evaluated separately due to an identifiable difference in lithology and porosity. The Swan Hills Fm is mapped to from 24 to 264 m in thickness within the claims area and the Leduc Fm immediately overlies the Swan Hills Fm, where present, with a maximum thickness of 366 m within the claims area. The maximum observed combined thickness where the two units overlap within the property is 511 m of highly porous reservoir rock occur that would potentially present ideal locations for consideration within a PEA.

The NI 43-101 mineral resource three-dimensional model utilized over 1,171 wells that have been drilled into the Devonian aged strata being evaluated. Of the 1,171 wells, 420 have good quality data to make stratigraphic picks within the AOI. The dataset consisted of 196 wells intersecting the top of the Leduc Fm, 300 wells intersecting the top of the Swan Hills Fm, and 236 wells intersecting the bottom of the Swan Hills Fm.

SLB constructed 3D geological and porosity models in Petrel™ subsurface software by using existing well logs and a combination of 3D and 2D seismic data acquired throughout the AOI at Park Place.  SLB conducted petrophysical analysis of 118 wells, processed and interpreted 3D and 2D seismic data to correlate between acoustic impedance and porosity. Porosity data was parameterized in a 3D grid by distributing the porosity evaluated from well logs using a variogram derived from 3D and 2D seismic impedance data. Log porosity was verified via direct petrophysical correlations to core porosity measurements. This demonstrated that the petrophysical log-based porosity correlates well with effective core porosity.

Total in-place formation brine volume was obtained by multiplying the total rock volume of the Leduc and Swan Hills Fm within the AOI using the estimated porosity volume of the 3D grid. 

An analysis of available oil and gas reserves information indicates an original hydrocarbon saturation of these reservoirs of approximately 5%. SLB models provided estimated volumes of each formation within the claims area by summing the effective porosity grid blocks overlapping the claims and assuming 95% of the pore space being brine saturated:

• The Leduc Fm, within the AOI, hosts 23.8 km³ of lithium-rich brine.
• The Swan Hills Fm, within the AOI, hosts 26.9 km³ of lithium-rich brine.
• Combined total of 50.8 km³ of brine within the AOI at Park Place.

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North American Brine Resources