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Lithium Brochure

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Page 1: Amerilithium
Page 2: Amerilithium

AmeriLithium is an independent, intrepid energy company dedicated to the

exploration and production of lithium reserves in North America and throughout the

world.

Headquartered in the US lithium heartland of Nevada, our global vision has led us to

some of the key locations for lithium production worldwide. From the wilds of Canada

to the outback of Australia and back home to the world’s richest tertiary lithium

deposits in central Nevada, AmeriLithium is dedicated to providing cleaner, renewable

energy sources for a changing planet.

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“Number one priority when I get into office (will be) finding the new driver of our economy... There’s no better driver that pervades all aspects of our economy than a new energy economy.”

US President Barack Obama

In today’s changing global climate, the way we produce and consume energy has never been more important. Securing a reliable, renewable and environmentally friendly source of energy for the planet is of paramount importance to every country throughout the globe and touches almost every industry worldwide.

THAT ENERGY IS LITHIUM.

Barack Obama made America’s new energy economy the cornerstone of his election campaign. It remains a major driving force for his administration and a key element of governmental legislation today and into the future.

At AmeriLithium, we believe that the US will pioneer the energy alternatives that will lead us into tomorrow. Securing America’s energy independence from difficult oil markets, playing our part in the development of innovative fuel sources and leading the way in a new domestic marketplace with assured government backing all drive our operations.

Above all, we aim to make the most of the unparalleled opportunities presented by the ever-growing demand for lithium powered technology through the exploration of the world’s richest mineral locations and the enrichment of a new energy industry that will lead the way for the rest of the world.

MISSION STATEMENT

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AN INTRODUCTION TO LITHIUM

With a density of around half that of water, lithium is the lightest metal known to man, a highly chemically active alkali and the first element in Group 1 of the periodic table – the alkali metals group. Due to its highly reactive nature, lithium does not occur as a pure element and rather is found locked in compound in mineral deposits, brines and pegmatite rocks.

But despite being the 33rd most frequently occurring mineral in nature, the concentrations found within hard rock formations are low, making traditional mining techniques less cost effective. Instead, the lithium industry has turned to brine extraction as the key method of sourcing large quantities of the mineral.

Found at various locations worldwide, brine sourced lithium is found at or below the surface of salars (salt flats or lakes), volcanic tertiary rock formations or other hard rock areas, concentrated through processes of evaporation and run-off and captured by strategically placed extraction plants. A cleaner method than mining with almost zero waste, brine extraction uses electrolytic processing to separate the metal and collect it into large commercial quantities. It’s not only more cost effective than mining, but easier to obtain permits for the placer claims, making set up costs significantly lower.

On the commercial markets, lithium is not publicly traded, rather sold to end users for a negotiated price per ton. Currently, demand within the US far outstrips supply, a situation which is set to rise with President Obama’s new green agenda and its reliance on lithium ion batteries as alternative energy sources. High demand and low supply recently sent prices soaring to around $6,600 per ton, from a domestic market with a demand of over 100,000 tons of lithium carbon equivalent.

Today, the US accounts for 3% of the world’s lithium production, from its only production plant located in the Clayton Valley, Nevada. However, this region is known to have some of the highest concentrations of lithium from tertiary rhyolite formations anywhere in the world, and with a low manganese content, is purer and easier to extract than that of Chile, another significant global site for production and the source of 61% of lithium imports to the US.

Globally, the Andes mountain chain in South America is the richest area for lithium. Bolivia accounts for the world’s largest lithium deposits, estimated at around 50% of the reserves on Earth. By production however, Chile leads the way, followed closely by Argentina and China – however, more and more reserves are being discovered every year, with Australia, Russia and the United States joining the ranks of significant producers.

Taking into account the far-flung locations or political instability of some of these locations, securing regular, reliable domestic lithium production has never been more important to satisfy the spiraling demand for this valuable mineral.

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LITHIUM’S USES

The lightweight, versatile nature of lithium has made it a vital element in a wide range of consumer products being used the world over. Lithium-ion batteries have become an indispensible part of mobile phones, mp3 players, laptop computers, video cameras, power tools, games, watches and anything else that requires a durable, portable, affordable energy source with a high storage capacity and an efficient, reliable power output. Today, over 60% of mobile phones and 90% of laptops use lithium battery technology – figures that are set to rise as demand grows (at around 20% per year) and ever more manufacturers realize the value of lithium batteries for their products.

By 2012, the worldwide market for rechargeable lithium batteries is set to be worth over $6 billion.

Lithium’s potential doesn’t stop there. It’s used by the medical industry as an anti-depressant. Industrial uses include glass, ceramic and porcelain enamel manufacture and thanks to its high-tensile, high-temperature strength and elasticity as an alloy (i.e. lithium magnesium or aluminum) it is widely used in the aviation industry.

But lithium’s true future lies in the environmentally friendly fuel alternative provided by the high-capacity lightweight, durable batteries that use the mineral at their core. President Obama used the need for greener alternatives to oil and gas consumption as the cornerstone of his election-winning policies, and today his administration is making provisions to make his visions reality. By 2015, the President has called for over one million American made hybrid vehicles to be on the roads, and with lithium batteries the principle replacement for gasoline in motor vehicles, the industry is set for a boom. With between nine and 30 kilograms of lithium needed per hybrid car battery, the need for domestic supply is clear.

This ‘new energy economy’ is not only geared towards a safer, greener future for the US and the world, but also contributes to securing America’s freedom from foreign energy reserves and an end to the country’s reliance on non-domestic oil.

The President’s commitment is clear; to date, a $790 billion economic stimulus plan has been put in place, which includes $5 billion for the development of a secure, domestic battery industry which is set to satisfy the demands of consumer goods manufacturers and this burgeoning new hybrid car industry. This includes;

• $2billionworthofloans,grantsandtaxcreditgearedtowardsdevelopinglargescalelithium-ion battery production for the domestic hybrid vehicle market.

• $2.4billiontaxcreditforbuildingbatteryplants.• Around$7,500taxcreditforbuyersofhybridandelectriccars,settogreatlystimulatedemand.

The unstoppable demand for lithium is highlighted not only from this governmental commitment, but by the investment by all major car manufacturers in developing vehicles using lithium-ion batteries: Toyota, Honda, Nissan, Renault, BYD, Mitsabishi, Hyundai, Ford, Chevrolet, and GM are all working towards mass-market hybrid and electric vehicles.

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“New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea. Well I do not accept a future where the jobs and industries of tomorrow take root beyond our borders – and I know you don’t either. It is time for America to lead again.”

President Barack Obama

• TheUnitedStatesistheworld’sleadingconsumeroflithium.• Globallithium-ionbatterymarketsettobeworth$6bnby2012.• Demandfornewlithium-ionbatteriesgrowingataround20%peryear.• Over60%ofmobilephonesand90%oflaptopcomputersrelyonlithium-ionbatteries.• BarackObamahascalledforoveronemillionlithiumpoweredhybridvehiclesontheroadsby

2015.• Betweennineand30kilogramsoflithiumarerequiredforeveryvehiclebattery.• TheObamaadministrationhaspromised$5bnofa$790bnstimuluspackagetothedomestic

lithium-ion battery industry.• Toyota,Honda,Nissan,Renault,BYD,Mitsabishi,Hyundai,Ford,Chevrolet,andGMareall

committed to developing lithium-ion powered vehicles.• Lithiumpriceshavereachedupto$6,600perton.• AnnualUSdemandforlithiumforecastat100,000tons.• LithiumbatterytechnologyaidsAmericainsecuringindependencefromforeignoilmarkets.

Today, the United States is the world’s leading consumer of lithium for a vast range of goods and industries. And with this drive for a new energy economy, as well as rising oil prices and continual technical innovations, demand is set to rocket. As production of lithium batteries shifts from overseas manufacturers to US based companies, this new dedication to domestic production of lithium provides a guaranteed market for the vast, untapped lithium reserves present in the US. And thanks to our pioneering spirit, future vision and commitment to a greener tomorrow, AmeriLithium will lead the way in making the most of every opportunity.

“Today, we have the chance to achieve a real breakthrough: the plug-in hybrid…Hybrid engines save gasoline by switching back and forth from battery to gasoline power……With a plug-in hybrid, commuters can drive back and forth to work, recharge their cars overnight, and go a month or more without a trip to the gas station.”

White House Chief of Staff Rahm Emanuel.

“We are recognizing that lithium is perhaps the Holy Grail of the electric vehicle and variations of the electric vehicle” David L. Trueman, Consulting Geologist with Avalon Rare Metals Inc.

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AMERILITHIUM’SPROPERTIES

PAYMASTER CANYON, ESMERALDA COUNTY, NEVADA

Undoubtedly the premier location in the US for lithium reserves, Nevada is home to AmeriLithium’s main domestic property. Spread over 5880 acres, the Paymaster Canyon claims lie in an area of West-central Nevada, surrounded by Paymaster Ridge to the East, the Weepah Hills to the West and the Silver Peak Range to the South, providing extensive drainage from an area of around 50 square miles. The sites also benefit from two large eastward faults which provide conduits for lithium brine from nearby Alkali Flats and the Big Smokey valley into the lower part of the Clayton Valley.

Within Paymaster Canyon, our claim block sits between Township 1 North and Township 1 South, comprisingoftwentythree160acreplacerclaimsandfiftyfive40acreplacerclaimseasilyaccessedfrom the nearby Highway 95. Nevada’s lithium originates from tertiary volcanic rocks found throughout the state, mobilized over centuries by hydrothermal activity in the area. It’s thanks to this that Paymaster Canyon’s tertiary rhyolite formations are considered to be amongst the richest in the world for lithium deposits, making the extensive drainage zone surrounding our claim blocks extremely valuable zones for lithium brine run-off of between 100 to 300 ppm (parts per million) and major sites of lithium rich clays and halite deposits.

The Clayton Valley region is also home to the Chemetall Foote lithium plant, operated by Rockwood Holdings inc. A key producer of lithium products worldwide and the only US based company of its kind, Rockwood has a market capital of around $1.73bn, highlighting the industry confidence and blue-chip potential held in the Paymaster Canyon area, giving AmeriLithium reason to anticipate great success and look forward to the next stages of development.

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AMERILITHIUM’SPROPERTIES

AMERICANA PROPERTY, ALBERTA, CANADA

Located 20kms North of the town of Fox Creek in west-central Alberta, Canada, AmeriLithium’s propertyisthelargestofitskindinthearea.At664,049acres(or268,731hectares),Alberta’slargestclaim sits alongside properties owned by the industry’s biggest players in one of Canada’s most active mineral-rich locations. Because of this, we expect to see similar results to these highly successful oil, gas and precious metal extraction companies.

With numerous oil and gas drilling operations also in the area – comprising 116 wells in total - AmeriLithium is placed within Canada’s energy heartland. Because of these neighboring prospects, the Americana Property benefits from an established infrastructure of rail, roads and pipelines, making production at the plant simpler, faster and more cost-effective than other projects of its kind.

It’s thanks to these neighboring oil and gas properties that west-central Alberta – and the Americana Property area in particular – has been identified as such a rich resource for lithium extraction. Extensive drilling in the area identified several major mineralized brine aquifer systems from which lithium deposits can be drawn. One of the largest of these aquifers, the Leduc formation, forms part of AmeriLithium’s property in west-central Alberta. As oil and gas production continues, significant levels of lithium rich brine are separated from the petroleum product, and re-injected into aquifer formations, further enriching them. To date, very little lithium extraction has been performed by this method in Alberta.

A 1995 Geological study by the Alberta Research Council entitled Industrial Mineral Potential of Alberta Formation Waters concluded that; ‘higher quantities (of lithium) found in some Alberta formation waters are similar to those of the major USA producer’, adding their recommendation that those formation waters be continually analyzed for ongoing industrial mineral production. Within the region–andintheLeducformationinparticular–lithiumconcentrationsof>75mg/lto>140mg/lwereidentified,estimatingpotentialreservesofupto2.4billionlbsoflithiumintheimmediatearea.Further studies in 2009 have estimated the Leduc aquifer formation to have an average thickness of 25 meters, average porosity of 6% and an average permeability of 20 millidarcies, and form part of an area that could potentially yield 515,000 tons of lithium (or 2.7 million tons of lithium carbon equivalent). With an average of $6600 per ton this estimated reserve is worth in excess of $3.3 Billion Dollars.

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AMERILITHIUM’SPROPERTIES

LAKE DUMBLEYUNG, WAGIN SALT LAKES REGION, WESTERN AUSTRALIA

AmeriLithium’s Australian plays sit upon a vast area of lithium rich land located in the state of Western Australia. Spread over 175 square kilometers, our three projects lie within the South West Mineral Field, an area identified as being rich in brine deposits and a key site for global lithium extraction.

AmeriLithium currently hold three exploration licenses for the region, comprising of 55 graticule blocks. All are within areas of significant potential for lithium brine extraction, being placed upon salt lake systems with high soluble lithium values of up to 530mg/l (equivalent to 5.1kg of lithium carbonate per cubic meter of brine) and extremely favorable drainage systems.

Our three Australian plays are all located within a 25 km radius of Lake Dumbleyung, an area of great interest to the lithium industry and home to other major Australian players such as Reward Minerals and Venus Resources. Both neighboring companies have carried out extensive surveys and testing of the area, identifying the high soluble lithium values in brine deposits as well as the potential for lithium-bearing brines from draining Archaean granites at the western confluence of an extensive catchment area. Both have since declared an interest in the Lake Dumbleyung region and the salt lake systems upon which AmeriLithium’s projects are also situated.

This puts the area on a level with the world’s largest lithium deposits in South America, making it an extremely significant site for the global lithium industry. It is also worth noting that North America’s only lithium brine operation - Chemetall Footes Silver Peak play – originally began operation at 400mg/l.

Thanks to legislative change and a pro-mining stance from the Australian government as well as it’s geographical proximity to the Asian markets, AmeriLithium is well placed to capitalize on this new demand for production and supply of lithium. Australian infrastructure allows for easy exportation to the developing Chinese market, whose manufacturing economy accounted for around 1/3 of lithium demand in 2008. In 2009, world sales of mobile phones – a major usage of lithium batteries – was estimated at one billion units, around 600 million of which were produced in China. And with an ever-expanding consumer electronics industry manufacturing cameras, laptops, games consoles and hybrid motor vehicles, China’s multi-billion dollar market represents an unparalleled opportunity for lithium exportation.

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AMERILITHIUM’SPROPERTIES

AMERILITHIUM’S THREE AUSTRALIAN PLAYS ARE:

BARE ROCKS PROJECT

Lying immediately to the East of Lake Dumbleyung, Bare Rocks covers a salt lake system rich in mineral deposits. The area was the site of Reward Minerals’ survey that identified the presence of salt lake brine with a lithium concentration of 530mg/l, making this site extremely significant for the rich down-drainage systems coming from the lake.

HOFFMAN HILLS PROJECT

25 kilometers South of Lake Dumbleyung, Hoffman Hills covers a salt lake system comprising the same brine drainage outlets as found at Bare Rocks, making it an equally significant site for exploration.

NORMANS LAKE PROJECT

Located 25km to the North of Lake Dumbleyung, Normans Lake presents another salt and drainage lake system expected to yield high mineral deposits, making it another considerable prospect for lithium extraction.

Thanks to our interest in this mineral-rich region, AmeriLithium stands to be a major player in one of the world’s most significant new discoveries on the lithium extraction landscape, and to capitalize on an area set to challenge South America as a global lithium heartland.

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CONTACT US

US / CANADIAN OFFICE297 Kingsbury Grade,Lake Tahoe,Douglas County,NevadaNV89449-4470

Tel: +** *** *****Fax: +** *** *****e-mail: [email protected]

INTERNATIONAL OFFICEPembroke House, 30 Upper Pembroke Street, Dublin 2,

Tel: +353(0)1234242Fax: +** *** *****e-mail: [email protected]