INVESTOR PRESENTATION - lithiumamericas.comlithiumamericas.com/.../LAC-Investor-Presentation-January-24-2018.pdf · INVESTOR PRESENTATION. ... parameters, description of data verification

JANUARY 2018 |TSX: LA CNY SE: LA C

INVESTOR PRESENTATIONJANUARY 2018

Caucharí-Olaroz Lithium ProjectJujuy, Argentina


CAUTIONARY STATEMENT

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Technical InformationScientific and technical information in this presentation about the Caucharí-Olaroz Project andthe Lithium Nevada Project has been reviewed and approved by Rene LeBlanc, a qualifiedperson under NI 43-101. Further information about the Caucharí-Olaroz Project, including adescription of key assumptions, parameters, description of data verification and QA/QCprograms, and methods relating to resources and reserves, factors that may affect thoseestimates, and details regarding development and the mine plan for the project, is available inthe NI 43-101 technical report, “Updated Feasibility Study, Reserve Estimation and LithiumCarbonate Production at the Cauchari-Olaroz Salars, Jujuy Province, Argentina,” datedJanuary 15, 2018 available on SEDAR. Further information about the Lithium Nevada Project(formerly Kings Valley project), including a description of resources thereunder and descriptionof data verification and QA/QC programs, is available in the NI 43-101 technical report ofLithium Americas dated December 15, 2017 entitled “Independent Technical Report for theLithium Nevada Property, Nevada, USA”, available on SEDAR.

Forward-Looking StatementsThis presentation contains “forward-looking information” within the meaning of applicableCanadian securities legislation, and “forward-looking statements” within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 (collectively referred to as“forward-looking information”). All statements, other than statements of historical fact, may beforward-looking information. Forward looking information can be identified by the use ofstatements that include words such as "anticipate", "plan", "continue", "estimate", "expect","exceed", "may", "will", "project", "predict", “propose”, "potential", "targeting", "exploring",“scheduled”, “implementing”, "intend", "could", "might", "should", "believe" and similar words orexpressions. Information provided in this presentation is necessarily summarized and may notcontain all available material information.

Fforward-looking information in this presentation includes, but is not limited to: timing andresults of an updated development plan at Caucharí-Olaroz to increase production capacity to50,000 tpa of lithium carbonate; timing of results of development at Cauchari-Olaroz and thetargeted date for production to commence, the financial estimates for the Stage 1 feasibilitystudy, including capital and operating costs, NPV, IRR and EBITDA; estimation of mineralresources and mineral reserves; timing and results of additional development studies on theLithium Nevada Project, including completing a pre-feasibility study; forecasts for future lithiummarket demand and pricing, government regulation of mining operations and treatment undergovernment and taxation regimes.

Forward-looking information expresses, as at the date of this presentation, plans, estimates,forecasts, projections, expectations, or beliefs of management as to future events or results. Allsuch forward-looking information is based on certain assumptions, estimates, expectations,analyses and opinions made by management in light of their experience and perception ofhistorical trends, current conditions and expected future developments, as well as other factorsmanagement believes are appropriate in the circumstances. Assumptions upon which suchforward-looking information is based include, without limitation: long term pricing and demandgrowth for lithium products; a stable and supportive legislative and regulatory environment for

mining development in Argentina and Nevada; the impact of increasing competition; currenttechnological trends; constraints on the increase in supply of lithium carbonate by otherproducers and potential producers; costs of development and production; anticipated results ofexploration and development activities; a cordial business relationship between LithiumAmericas and SQM for the Caucharí-Olaroz project; determination by SQM to make adevelopment decision at Cauchari-Olaroz; Lithium America’s ability to operate in a safe andeffective manner; and ability to obtain financing on reasonable terms results of testing andtechnical analysis for processing of clay at Lithium Nevada being positive. Readers arecautioned that the foregoing list is not exhaustive.

Lithium Americas' actual results, programs and financial position could differ materially fromthose anticipated in such forward-looking information as a result of numerous factors, risks anduncertainties, many of which are beyond Lithium Americas' control. These include, but are notlimited to: possible variations in mineral resource and reserve estimates; recovery rates; lithiumprices; changes in project parameters as plans continue to be refined; legislative changes thatimpact the operations in which Lithium Americas conducts business; results of explorationactivities and development of mineral properties; interpretation of geological data; receipt andsecurity of mineral property titles; failure of plant, equipment or processes to operate asanticipated; accidents; labour disputes; the inability to obtain key personnel and parts related tooperations; receipt of licenses to conduct mining activities; environmental liabilities and risksinherent in the development and production of Lithium Americas' properties; cost overruns orunanticipated costs and expenses; the availability of funds; disputes with joint venture partners;currency fluctuations; general market and industry conditions; competition; and delays inobtaining governmental and regulatory approvals, as well as those factors more fully describedunder the heading “Risk Factors” in Lithium Americas’ annual information form and mostrecently filed management discussion & analysis available on SEDAR. There can be noassurance that forward-looking information will prove to be accurate, as actual results andfuture events could differ materially from those anticipated in such information. Accordingly,readers are cautioned not to place undue reliance on forward-looking information. LithiumAmericas does not intend, and expressly disclaims any obligation to, update any forward-looking information whether as a result of new information, future events or otherwise, exceptas, and to the extent required by, applicable securities laws.


LITHIUM PRICEIn 2016, lithium prices rose around 300% in China with contract prices for existing producers rising to over US$13,000/t

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Source: Asian Metal, Thomson Reuters

Fall 2015 - lithium prices in China begin to rise as expected new supply fails to meet growing demand Lithium prices remain elevated as

supply continues to lag demand

Existing producers reporting average contract prices over US$13,000/t US$24,450

US$21,650

$0

$10,000

$20,000

$30,000

Jun Dec Jun Dec Jun Dec

Lithium Hydroxide (>56.5%) Lithium Carbonate (>99.5%)

201720162015

China Lithium “Spot” Price(US$/tonne)


LITHIUM AMERICAS – RECENT ACHEIVEMENTS

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Reno

Vancouver

Toronto

JujuyJANUARY 2018 |

(1) Note: Much of the production infrastructure is scaleable to a production capacity of 50,000 tpa of lithium carbonate, and LAC and SQM are investigating adevelopment plan that contemplates such increase.

Lithium Americas is advancing world-class lithium assets through a low-risk path to production

Partnered with SQM in 50/50 JV• Partnered with largest lithium brine producer in

50/50 JV (Minera Exar) to help build and operate the Caucharí-Olaroz lithium project.

1Completed DFS for Cauchari-Olaroz• Caucharí-Olaroz Stage 1 definitive feasibility study (DFS)

(25,000 tpa1) supports operating costs of US$2,495/t with 40 year project life.

Development work underway to support initial production by 2020• Detailed engineering and construction work is underway for development of

Cauchari-Olaroz Stage 1, US$425 million capex (100% basis before VAT), to enable targeted 2020 production.

Advanced Lithium Nevada with PFS scheduled for end of Q2 2018• Actively advancing the Lithium Nevada project with a new, highly skilled technical

team focused on completing a pre-feasibility study (PFS) to produce lithium hydroxide from claystone.

Secured US$285 million to fund Stage 1• Ganfeng Lithium and Bangchak provide US$285 million in equity and credit,

primarily, to fund Caucharí-Olaroz Stage 1.

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4

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Lithium Nevada

Cauchari-Olaroz


CAPITAL STRUCTURE

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Symbol TSX / NYSE – LAC

Shares Outstanding1 88.5 million

52 Week Range C$3.85 - C$14.06

Share Price2 C$9.30

Average Daily Volume3 1.1 million (30-day average)

Market Cap2 C$825 million (US$660 million)

Cash4 US$73 million

Debt4 US$205 million available(fully undrawn)

Enterprise Value2 US$585 million

LargestShareholders

Ganfeng Lithium – 17.0%Bangchak (BCP) – 15.9%Management & Directors* – 12.1%

1 Shares outstanding as of January 22, 2017.2 Calculated based on TSX closing share price on December 7, 20173 Includes TSX, NYSE and OTCQX.4 Cash and debt as of September 30, 2017.

Research Coverage

Cormark SecuritiesNational Bank FinancialEight CapitalCanaccord Genuity

Source: Thomson Reuters, Bloomberg, Company Reports

Recent Share Price (TSX:LAC)

Lithium Americas commenced trading on NYSE under the symbol “LAC” on January 25, 2018

Adjusted for 5:1 share consolidation on November 8, 2017

* Management and Directors include 7.5% interest from Geologic Resource Partners and exclude strategic investment by Ganfeng Lithium and Bangchak.

$0.00

$4.00

$8.00

$12.00

$16.00

Mar-16 Sep-16 Mar-17 Sep-17

Shar

e Pr

ice

(C$/

sh)


THE MANAGEMENT TEAM

Lithium Americas has assembled a highly qualified team with a focus on Argentina, lithium, engineering and capital markets

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Tom Hodgson, CEO

John Kanellitsas, President

Gabriel Rubacha, President, South America

Alexi Zawadzki, President, North America

Eduard Epstein, CFO

David Deak, CTO / President of Lithium Nevada

Myron Manternach, EVP Finance / Corp. Dev

Ignacio Celorrio, Legal / Corp. Dev

Alec Meikle, VP, Business Development

• 30+ years experience in senior management roles

• Served as COO and CEO and on the Board of Directors of several public and private companies

• Previously Commercial Director of Techint Engineering and Construction

• Degree in Aeronautical Engineering

• Argentine citizen

• 25+ years of business experience at prominent investment banks and asset management firms

• Previously CEO of LAC

• 20+ years of business experience in energy and mining development and construction

• Hydrologist with a Master’s degree from Wilfrid Laurier University


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CAUCHARÍ-OLAROZ JV WITH SQM

In March 2016, Lithium Americas entered a strategic 50/50JV with SQM to develop and operate the Caucharí-Olarozproject

Leverages SQM’s technical expertise. SQM is the largestproducer of lithium brines with over 20 years experience operatingand expanding its world-class Atacama project in Chile.

Provides a lower risk development approach. SQM’s operatingexpertise combines with Lithium Americas’ well-establishedgovernment and community relations in Argentina.

Governed by a shareholders’ agreement. The JV is governedby a Shareholders’ Agreement which provides Lithium Americasand SQM with:

I. Equal representation on Management Committee.II. Unanimous approval requirement for budgets and timing

of expenditures.III. The right to each buy 50% of the project’s production.

*Jujuy Energía y Minería Sociedad del Estado (JEMSE), a Jujuy government owned company, has a right to an 8.5% interest in the JV.

*

CAUCHARI-OLAROZPROJECT


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STRATEGIC INVESTMENTS BY GANFENG & BANGCHAK

In 2017, Ganfeng Lithium and Bangchak provided a total of US$285 million to Lithium Americas through a combination of credit and equity

Ganfeng Lithium Bangchak Total

Equity Investment US$47 million US$33 million US$80 million • LAC’s cash balance is US$73 million

Shares Issued* 15 million 10 million 25 million• LAC’s currents shares outstanding is

88.5 million• Ganfeng Lithium and Bangchak own

17.0% and 15.9%, respectively, of LAC

Credit Facility US$125 million US$80 million US$205 million

• 6 year credit facility from first drawdown

• 8.0% interest (year 1-3), 8.5% (year 4), 9.0% (year 5), 9.5% (year 6)

• No prepayment penalty

Offtake (Stage 1) 80% 20% 100%• 20 year term• Offtake for Stage 1 of Cauchari-Olaroz

at market prices

US$285 million secured

Approximately 70% in form of

debtOfftake at

market pricesEnterprise value

of US$585 million

*Adjusted for 5:1 share consolidation on November 8, 2017


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STRONG SUPPORT FROM ARGENTINA AND JUJUY GOVERNMENTIn June 2017, senior executives from Lithium Americas, SQM and Minera Exar met with senior officials from Argentina and Jujuy government to reaffirm commitment to support development of Cauchari-Olaroz

Meeting with SQM, Lithium Americas and Minera Exar with Argentina and Jujuy Government- June 28, 2017


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*

Stage 1 DFS Results (100% basis)March 2017

Average annual production 25,000 tpa battery-grade Li2CO3

Project life 40 years

Proven & probable reserves 1.5 million tonnes LCE at 698 mg/L Li

Construction capital costs US$425 million (before VAT)

Operating costs US$2,495 / t Li2CO3

Lithium carbonate price assumption US$12,000/t battery-grade Li2CO3

Average EBITDA US$233 million

After-Tax EconomicsUS$803 million NPV10% , US$1.1 BB NPV8%28.4% IRR3.4 year payback

CAUCHARÍ-OLAROZ STAGE 1 FEASIBILITY STUDY

Note: The March 2017 updated feasibility study is modelled on an initial stage of 25,000 tpa of lithium carbonate; however, much of the production infrastructure is scalable to a production capacity of 50,000 tpa of lithium carbonate and LAC and SQM are investigating a development plan that contemplates such increase.All figures on a 100% project equity basis unless otherwise noted.


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CAUCHARÍ-OLAROZ CONSTRUCTION SCHEDULE

H1 2017Started Stage 1 development

2018Plant, gas pipeline, and electricity transmission line construction

H2 2017 Execution of detailed engineeringExpansion of campDrilling campaignEarly works construction

2020Commissioning and first production

2018 20192017

Waste Brine Reception Construction Testing Pond Liner Pond Testing


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LITHIUM NEVADA PROJECT

Advancing a scalable process to produce lithium hydroxide from lithium-bearing claystone.

• 100% owned by Lithium Americas Corp.

• Conducting an exploration program with the objective of expanding and upgrading the existing large and high-grade NI 43-101 compliant resource.

• Modern infrastructure• Located near the mining town of Winnemucca• Adjacent to paved highway• Access to Nevada labour market• Wide-ranging energy sourcing options

• Assembled a strong technical team with experience in the lithium industry, project engineering and geology.

• Examining future strategic partnership/financing alternatives to collaborate and develop the Lithium Nevada Project.

• Engaged WorleyParsons to complete a NI 43-101 Preliminary Feasibility Study (PFS) by the end of Q2 2018.

JANUARY 2018 |


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LITHIUM NEVADA DEVELOPMENT SCHEDULE

Q4 2017Complete 2017 exploration program

Q2 2018Complete PFS (including reserve estimate)

Q1 2018 Finalize process testingInitiate baseline environmental surveys

H2 2018Advance permitting processCommence detailed engineering

2018 20192017

Drilling Project Site Process Testing


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SUMMARY

The next lithium producer from brine • Development work in support of 2020

production start• 2017 DFS supports production at low-

end of cost curve (<US$2,500/t)

Following a low-risk development approach• Partnered with the largest lithium

producer from brine, SQM

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3 Experienced team focused on maximizing long-term shareholder value• Assembled talented technical and

financial team with experience in lithium industry and capital markets

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Unlocking value in a large, clay-based resource in Nevada• Pursuing mine plan to produce

lithium from claystone• PFS targeted for Q2 2018

2ARGENTINA NEVADA

RISK STRATEGY TEAM


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APPENDIX


THE BOARD OF DIRECTORS

Lithium Americas focus is on a low risk strategy to reach production and maximize shareholder value

Board with diverse industry experience

• Background in mining, accounting and construction. • Argentine directors – Gabriel Rubacha and Franco Mignacco -

provide strong local connections.

Pursuing a low-risk approach to development

• Partnered with SQM in a 50/50 JV to leverage SQM’s operating expertise in brines.

• Strong JV agreement in place to reduce Lithium Americas’ financing and development risk.

Closely aligned with shareholders

• Management and board, including Ganfeng Lithium and Bangchak, control approximately 46.0% of Lithium Americas’ common shares.

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GEORGE IRELANDCHAIRMAN OF THE BOARD• 35 years of experience in the resource sectors. • Founder, CIO, and PM at Geologic Resource Partners.

WANG XIAOSHEN • Vice Chairman and EVP of Ganfeng Lithium.• MBA from China Europe International Business.

CHAIWAT KOVAVISARACH • President and CEO of Bangchak.• MBA from Thammasat University, Thailand.

FRANCO MIGNACCO• President of Minera Exar based in Jujuy, Argentina.• MBA from San Andres University, Buenos Aires, Argentina.

JONATHAN EVANS• Former VP and GM for the Lithium division at FMC.• MBA from Rensselaer Polytechnic Institute.

GARY COHN• Former in-house legal counsel for Magna International. • MBA for York University, J.D. from Osgoode Hall Law School.

JEAN FRASER• Partner at Osler, Hoskin & Harcourt LLP. • BSc. and J.D. from University of Toronto.

TOM HODGSON, JOHN KANELLITSAS AND GABRIEL RUBACCHA (See “The Management Team”)


ARGENTINA’S TURN AROUND

Improved business conditions with President Macri

• Abolished export duties and trade controls.• Eliminated exchange rate and capital controls.• Settled outstanding claims from 2003 default.• Fast-track process to join the Organization for Economic

Cooperation and Development.

Argentina increasing support for mining investments

• Improving mining jurisdiction e.g., Cerro Negro, etc.• Removed 5-10% export duty on commodities (including

lithium).

Tax amnesty program to invest in infrastructure

• Program to attract an estimated US$500 billion.• Launched Renewable Energy Plan that is expected to attract

US$15 billion in investment.

2017 midterm election reaffirm Macri’s agenda

• Macri’s “Let’s Change” coalition won top five population centers in the October 2017 mid-term election.

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Mauricio Macri

President of Argentina

Week 1

Abolishes key export duties and import controls

April 2016

Settles claims from 2003 default and completes oversubscribed debt raise

Week 2

Eliminates exchange rate and capital controls

December 2015

President Macri and new government takes office

February 2017

President Macri approval rating reaches a six month high June 2017

Argentina issues $2.75 billion in 100-year bonds

Source: Bloomberg

October 2017

Midterm election sees increased representation for Macri’s coalition


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CAUCHARÍ-OLAROZ LITHIUM PROJECT

Caucharí-Olaroz is located on an international highway with access to power, water, and a large local labour force

Located in Jujuy, Argentina

• Large property package ~ 70,000 ha.• Close proximity to existing producers (ORE, FMC, SQM,

ALB).

Near excellent infrastructure

• Natural gas pipeline - 50 km.• Paved highway – 300 km to SQM’s Atacama project.• Deep sea port - 550 km.• Access to fresh water.

JANUARY 2018|


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CAUCHARÍ-OLAROZ LITHIUM PROJECT (CONT.)

Working closely with local communities

• Economic benefits agreements with 6 local communities.• Emphasis on local employment.• Minera Exar Jujuy and field office staff ramping up.• Construction staff est. over 1,000 workers.• Over 400 employees and contractors in Argentina.

Support from Argentine government

• Permitted for construction and operation under 2012 EIS (updated in October 2017).

Advancing development underway

• Execution of detailed engineering.• Expansion of camp.• Accepting construction packages.• Drilling campaign.

10 km

JANUARY 2018|


CAUCHARÍ-OLAROZ CONVENTIONAL PROCESS

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Pump lithium brine from the salar

Use solar evaporation to concentrate lithium brine in

shallow ponds

Process concentrated

lithium brine in a plant

Ship lithium carbonate

Design by experience

• SQM engineering staff developing design and execution planning.• Process is based on SQM’s +20 years experience operating in the Atacama.• Infrastructure and plant designed to be scaleable to a production capacity of 50,000 tpa of battery-grade lithium carbonate1.

Note: The March 2017 updated feasibility study is modelled on an initial stage of 25,000 tpa of lithium carbonate; however, much of the production infrastructure is scalable to a production capacity of 50,000 tpa of lithium carbonate and LAC and SQM are investigating a development plan that contemplates such increase.All figures on a 100% project equity basis unless otherwise noted.


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CAUCHARÍ-OLAROZ STAGE 1 OPEX & CAPEX

Reagents40%

Pond Harvesting

14%

Energy14%

Other9%

Maintenance8%

Labour7%

Transportation5%

G & A3%

Evaporation Ponds

US$129 MM

Lithium Carbonate Plant

US$121 MM

InfrastructureUS$82 MM

Total Indirect CostUS$37 MM

ContingencyUS$55 MM

Initial Capital Costs Operating Costs

US$2,495/t of battery grade lithium carbonate produced

US$425 million capital costs before VAT and working capital.

All figures on a 100% project equity basis unless otherwise noted. Totals may not add due to rounding.


LITHIUM RESOURCE AND RESERVE SUMMARY

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Li Grade (%) Li Cut-off (%) LCE (t)Lithium NevadaZone I – May 2016Measured Resources 0.31 0.20 843,000Indicated Resources 0.29 0.20 2,489,000Inferred Resources 0.29 0.20 1,954,000Zone II – May 2010Indicated Resources 0.27 0.20 1,365,000Inferred Resources 0.26 0.20 650,0001. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all of any part of the mineral resource will be

converted to mineral reserves.2. The values in the tables above are expressed as total contained metals.3. The 0.20% Li cut-off grade for Zone 1 and Zone 2 was determined on the basis of different economic assumptions, as further described in the technical report.4. A potassium and sodium resource are also reported.

1. Ratios of lithium to other metals include: K:Li of 8.2, Mg:Li of 2.4, B:Li of 1.6, SO4:Li of 28.5.2. LCE is calculated based the following conversion factor: Mass of LCE = 5.323 x Mass of lithium metal3. The conversion is direct and does not account for estimated processing losses. 4. The values in the columns on Lithium Metal and Lithium Carbonate Equivalent above are expressed as total contained metals.5. Mineral Resources have a cut-off grade of 354 mg/L of lithium.6. Mineral Resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all of any part of the mineral resource will be

converted to mineral reserves.

Brine Volume (m3)Average Li Concentration

(mg/L) Lithium Metal (t) LCE (t)Caucharí-Olaroz (100% basis)

Mineral Reserves – March 2017Proven Reserves (Years 1-5)1,2,3,4 4.9 x 107 712 35,159 187,149

Probable Reserves (Years 6-40) 1,2,3,4 3.5 x 108 695 246,474 1,311,982

Mineral Resources – July 2012Measured Resources2,3,4,5,6 9.1 x 108 630 576,000 3,039,000

Indicated Resources2,3,4,5,6 2.9 x 109 570 1,650,000 8,713,000


THE FUTURE IS CLEAR

Hong Kong

CONTACT INFORMATION

[email protected] – 355 Burrard StreetVancouver, BC V6C 2G8Canada

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INVESTOR PRESENTATION - lithiumamericas.comlithiumamericas.com/.../LAC-Investor-Presentation-January-24-2018.pdf · INVESTOR PRESENTATION. ... parameters, description of data verification