The only advanced pre-production

lithium project in Chile

Corporate Presentation

October 2016

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Disclaimer

Any statements contained herein which are not statements of historical fact may be

deemed to be forward-looking statements, including, without limitation, statements

identified by or containing words like "believes,” “expects,” “anticipates,” “intends,”

“estimates,” “projects,” “potential,” “target,” “goal,” “plans,” “objective,” “should”, or similar

expressions. The Company gives no assurances the assumptions upon which such

forward-looking statements are based will prove correct. Forward-looking statements

involve risks, uncertainties and assumptions, and are based on information currently

available to us. Actual results may differ materially from those expressed herein due to

many factors, including, without limitation: validation of the POSCO technology; obtaining

and the issuance of necessary government consents; confirmation of initial exploration

results; the Company's ability to raise additional capital for exploration; development and

commercialization of the Company's projects; future findings and economic assessment

reports; issuance of necessary government consents; the Company's ability to identify

appropriate corporate acquisition or joint venture opportunities in the lithium mining sector

and to establish appropriate technical and managerial infrastructure; political stability in

countries in which we operate; and lithium prices. For further information about risks faced

by the Company, and its Maricunga Project, see the “Risk Factors” section of the

Company’s Form 10K, filed with the SEC. The Company undertakes no obligation to

update any forward-looking statement contained herein to reflect events or circumstances

which arise after the date of this release.

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Lithium

– Significant growth potential in the medium and long term

– Brine projects significantly lower operational costs compared with hard rock

Chile

– The best lithium resources in the world

– Recent announcements by the Chilean government provide positive steps for the lithium industry

and show commitment to provide mechanisms for advancement of new projects

– Chilean President directly instructed Codelco to move forward with its Maricunga and Pedernales

lithium claims to promote new lithium production

Maricunga

– Located in the 2nd largest lithium bearing brine deposit in Chile with exceptional grades

– 4th top brine lithium project in the world out of 37 other brine salars

– NI 43-101 Measured Resource for minimum 20-year life with significant upside potential

POSCO

– 21% cornerstone shareholder with $18mm invested to date

– POSCO owns proprietary Technology, pilot tested on Maricunga and potential to significantly change

the Lithium industry through faster recovery and lower cost structure

Management

– Chile-based with top level technical team and significant experience in mining and financing

Li3 EnergyInvestment Highlights

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Maricunga ProjectMaricunga Lithium Brine JV – Structure

LPI, MSB and Li3 have agreed the following ownership structure for

the new JV entity in Chile (“NewCo”):

Lithium Power - 50.0%

Minera Salar Blanco - 32.3%

Li3 Energy - 17.7%

NewCo has now been incorporated, with the Maricunga tenements

and assets held by all three parties to be vended in shortly.

LPI to fund exploration and development costs over the next 2.5yrs

to earn its 50% equity interest in NewCo, with the target of

completing a Definitive Feasibility Study by late 2018. LPI will hold

50% voting rights from the start of the JV.

MSB to sell to LPI three options over the San Francisco, Salamina

and Despreciada tenements in exchange for 16 million ordinary

shares in LPI, voluntarily escrowed until 24 June 2018. The share

issue will be subject to LPI shareholder approval.

LPI to provide up to US$3.5 million via a secured loan to NewCo in

order to fast-track the initial exploration activities, funded from

current cash on hand.

The Board and Technical Committee for NewCo will be split between

LPI, MSB and Li3 from the outset, based on each company’s

respective shareholding in the Maricunga JV.

Lithium Power International Limited | 4

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Maricunga projectLithium Brines in South America – Lowest On The Cost Curve

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While difficult to directly compare lithium brine vs hard-rock, we can make the following broad observations:

Brines are typically easier & cheaper to explore.

Brines are typically cheaper & quicker to develop to production (depending on permits).

Brines require less opex once in production, and see less cost volatility.

Brines can be purified onsite to >99% lithium, while hard-rock production is sold as beneficiated ore.

Brines have historically been preferred by battery manufacturers.

Brine operations are generally regarded as having less environmental impact over time.

For the reasons above, South American lithium brines inhabit the bottom of the cost curve, as can be seen below:

Maricunga projectMaricunga Lithium Brine JV – Project Overview

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The Maricunga Salar is located in northern Chile and sits within the “Lithium Triangle”,

which contains the largest and highest quality lithium brine deposits in South America.

Maricunga is regarded as the highest quality pre-production lithium brine project in

Chile, with characteristics comparable to the world-leading Atacama lithium brine

deposit operated by SQM and Abermarle (which sits at the bottom of the global lithium

cost curve).

The Maricunga project has a foreign resource estimate* (from 2012) of 574,000

tonnes of lithium carbonate equivalent, with a very high average grade* - lithium

(1250mg/l) and potassium (8970mg/l).

Maricunga is located in Region III of Atacama in northern Chile. It is approx 170km NE

of the mining town of Copiapo. In terms of infrastructure access, Maricunga is directly

adjacent to International Highway 31, which connects northern Chile and Argentina,

and 250km from the Chilean coast.

Maricunga projectOne of the highest quality lithium salars in South America

Known foreign resource estimate* of 574,000 tonnes of

lithium carbonate equivalent, based on previous exploration.

An additional 1125 Ha of new tenements now under

exploration.

Second highest lithium grade* (1250mg/l) of the major salars

in South America.

Magnesium grade* below the Atacama deposit, with a similar

Mg/Li ratio.

High potash byproduct resulting in improved project

economics.

Close to critical road & port infrastructure.

Recent study of 37 salars ranked Maricunga as #7 salar

worldwide^.

Chilean Geological Survey has classified Maricunga as a

Category 1 deposit (one of only four in Chile).

^ signumBOX Aug 2016 * refer to LPI announcement on the 28 July 2016 and page 2 disclaimers 7

In April 2012, Hains Technology & Associates completed a NI 43-101 Compliant Measured

Resource Report with the following lithium and potassium resources (as compounds) estimated at:

The April 2012 NI 43-101 Compliant Measured Resource Report includes the following conclusions

and recommendations:

– “Results of airlift testing during the RC exploration drilling program and pumping tests on test

trenches indicate that future brine production can be achieved through a combination of

production wells and open trenches”

– “The analyses of brine chemistry indicate that the brine is amenable to lithium and potash

recovery through conventional technology”

– “It is believed that through the application of proprietary technology developed by Li3’s strategic

partners, lithium recovery from the Maricunga brine can be significantly enhanced and may range

from 45 percent to more than 70 percent”

– “It is the recommendation of the authors that a full feasibility study be completed for the

Project”

Lithium Carbonate (tonnes) Potash (tonnes)

Measured Inferred Total Measured Inferred Total

603,960 59,304 663,264 1,482,638 145,771 1,628,409

Average Concentration (g/L)(SO4+2B)/

K Li Mg Ca SO4 B Mg/Li K/Li (Cs+Mg)

8.97 1.25 8.28 12.42 0.72 0.61 6.63 7.18 0.184

Maricunga ProjectResource NI 43-101 compliant

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Maricunga projectTenement Map

The JV tenements consist of a collection of holdings in the northern (lithium-rich)

section of the Maricunga salar:

The Maricunga Salar has been subject to significant past exploration under the

previous partners, MSB and Li3. More than US$30m has been invested in these

tenements over the past 4yrs, in order to generate the existing lithium resource.

Pumping results from two test production wells (see P1 and P2 opposite)

undertaken by MSB in 2015 indicated strong brine flow rate and high lithium grades.

Under the new JV, the next phase of exploration will include the drilling of 16 diamond

drill holes and 2 pumping wells across the salar, starting later this month. This drilling

program is targeting an update of the existing lithium resource, with a new JORC

report anticipated in 1H 2017.

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Maricunga projectDevelopment Timeline

Lithium Power International Limited | 10

In Chile, lithium is considered “strategic” and therefore under the current mining law, it is a non-

concessible substance.

Only mining exploitation concessions initiated before 1979 are authorized for the exploitation of

lithium. The Cocina mining concessions fall under this category

The Chilean government acknowledges that it is time to redefine the strategic categorization of lithium

and new government has lithium as a priority.

In June 2014, the government established the National Lithium Commission to recommend a new

State Policy for the exploitation of lithium and promotion and development of new projects

The recent announcements by the Chilean government provide positive steps for the lithium industry

in Chile. Government is committed to provide mechanisms for non-grandfathered lithium claims to

advance their projects and Chilean President directly instructed Codelco to move forward with its

Maricunga and Pedernales lithium claims to promote new lithium production

Government strategy fits well with Li3/MSB plan to advance Cocina claims as a "starter" project.

Government initiatives bring Chile to the forefront to advance lithium production in one of the best

jurisdictions worldwide, attracting world class strategic partners

Chilean Mining Law and Way ForwardSpecial circumstances around lithium

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Luis Saenz – Chief Executive Officer, President, and Director

Former head of Standard’s Bank PLC. mining and metals team, Americas

Joined Standard Bank Plc’s investment banking unit in New York (1997) and relocated to Peru

(1998) to establish Standard’s local Rep office to lead its mining and metals organization in Latin

America

– Standard Bank (JSE:SBK) is South Africa’s largest bank, conducting operations worldwide with a

focus on emerging markets

Previously worked for Pechiney World Trade in base metals trading before joining Merrill Lynch as

VP Commodities (Latin America)

Currently Director of Atico Mining and CEO of Compañia Minera Quiruvilca

Over 25 years of experience in mining finance and metals trading

Luis Santillana – Chief Financial Officer

Over 15 years mining industry experience in finance and fund raising, debt facilities, deal negotiation

and execution, strategic and financial planning, treasury management, and financial and

management reporting

Former Strategic Planning Manager for ENRC PLC, a $7bn revenue diversified mining company

listed on the LSE (FTSE 100)

Former member of the core management team at Hochschild Mining plc, a Peruvian gold and silver

producer, that led Hochschild’s successful IPO and listing on the LSE (FTSE 250). Financial

Manager for the Peruvian subsidiaries

MBA from IESE Business School (Spain) and a Bachelor’s Degree in Industrial Engineering from

Universidad de Lima (Peru), CIMA (UK)

Management TeamKnowledgeable, Experienced, Local

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Don Hains, P.Geo – Qualified Person under TSX NI 43-101 Standards

An industrial minerals exploration and economic geologist with

over 35 years of experience in development, use and analysis

of industrial minerals properties; Prepared valuation reports to

feasibility and market studies in Canada, United States,

Europe, Africa and Asia; Registered Professional Geoscientist

(Ontario License #0494); Author of CIM Best Practice

Guidelines for Estimation of Lithium Brine Resources and

Reserves

Frits Reidel, CPG – Qualified Person under TSX NI 43-101 Standards

Hydrogeologist with 25 years of working experience on water,

brine and infrastructure related projects for the mining industry

in North and South America; Previously involved with the

reserve evaluation and feasibility study of Orocobre

Ltd; Technical advisor to Lithium Americas Corp on the

Cauchari Lithium Project, and participated in the initial

resource evaluation of Salar de Hombre Muerto for FMC

Peter Ehren, Aus IMM

Independent consultant, expert in development processes and

technical and economic assessment of new projects,

especially relating to lithium (brine and minerals) and

potassium. Previously evaluated projects in China, Chile,

Argentina, and Australia and currently working for Orocobre

Macarena Gonzalez

Environmental consultant, expert in the environmental and

social fields, current consultant and partner of Process and

Environmental Consultancy; Handled environmental matters

and developed DIA’s and EIA’s for Salar de Olaroz, Salar de

Maricunga, Salar de Aguas Calientes, among others

Pedro Pavlovic

Chemical senior engineer with 40 years of experience in

project development, particularly in production of potassium

nitrate, lithium carbonate, potassium chloride, and iodine.

Previously prepared sampling procedures for brine,

evaporation design for test work and lithium processing routes

Carlos Espinoza, PhD

Current Associate Professor of Universidad de Chile, extensive

experience in hydrogeological simulation and modeling,

baseline studies evaluation of environmental impact studies

and water resources, and evaporation well simulation

(Salar de Atacama)

Technical AdvisorsVast experience in lithium brine deposits in South America

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Patrick Cussen – Chairman of the Board

35+ years minerals and mining experience; President of Celta,

a mining consulting company based in Chile ;Former Managing

Director of Chile Copper Ltd., subsidiary of Codelco, in

London; Chairman of the Board of Cesco, the Chilean think-

tank on mining

Luis Saenz – CEO, President, and Director

Patricio Campos – Director

40 years minerals and mining experience in project exploration,

evaluation, technical and economic preparation; Consultant to

Anglo American and SQM (Salar de Atacama project), Falcon

Mines, MAGSA, ACF Minera S.A., Former Professor of Mining

Economy and due diligence at the Mining Department,

Universidad de Chile and Instituto de Ingenieros de Minas de

Chile

Gi-Chen Eom – Director

Mr. Eom is a designee of POSCO Canada, Ltd. (“POSCO”). Mr.

Eom has worked for POSCO since December 1990, starting his

career as a steelworks engineer. Mr. Eom joined the steel

business division of POSCO in 2001 and has served as the Vice

President of PosLX Business Planning Team in its New Business

Development Group, Finance and Investment Division since

September 2015. Mr. Eom received his B.A. in Mechanical

Engineering from Sungkyunkwan University (SKKU) in 1991.

David Wahl – Director

Current Chairman of Southampton Associates, a Geological and

Engineering Consulting firm, specializing in mining and technical

issues for corporate clients, financial institutions and governments

Board of DirectorsActive and supportive board with a wealth of experience

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Contact Information

Luis Saenz

Chief Executive Officer

Luis.saenz@li3energy.com

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APPENDIXThe key growth for lithium is car batteries, particularly in China

16Source: CRU

According to CRU, total gloal lithium demand across all applications is forecast to grow at +8% pa (CAGR) over the next 5 years to 2020.

Last year, 44% of global lithium consumption was for lithium-ion rechargeable batteries, with demand expected to grow at +13% pa in this segment over the

next 5 years.

Within battery demand, growth in electric & hybrid vehicle batteries is expected to grow at +23% pa over the next 5 years.

The main driver of this EV/HEV/PHEV growth is China, which represents >50% of global battery production capacity.

LPI exploration manager on site (2016)

.

A combination of strong demand and supply interruptions has resulted in the Chinese lithium price rallying from ~US$5,000/t in mid 2015 (contract) to >US$20,000/t

currently (spot).

APPENDIXLithium prices continue to rally, driven by strong demand

APPENDIXThe fundamentals for lithium are strong in the medium term…

LPI exploration manager on site (2016)

Based on CRU’s forecasts, the supply/demand balance for lithium will continue to remain tight over the next 5 years.

Sonic Drilling Truck

at C-3

Sonic Drilling Truck

at C-3

C-3 Core Samples Core Sample

Sonic Drill Hole

Lab Samples C-3 Core Samples

Maricunga Exploration 2011/2012: Sonic drilling (C-1 to C-6) and core samples

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Production Well Pump,

Located at P-1 and P-2

P-2 and

Monitoring WellTrench

Brine

Pumping

Monitoring Well

(Total of 4 per

Production Well)

Well Drilling Truck

P-2 Samples

Well Pump

Maricunga Exploration 2011/2012: P-1 and P-2 production wells

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Rock Drilling / Boart Longyear Camp

Core Samples

OfficeStorage

Dormitories

Kitchen & Dining

Trucks

LabShowers

Restrooms

Legend:

1 – 58: 2007 Campaign Drill Holes

S1 – S6: Seismic Lines

C1 – C6: Sonic Core Boreholes

P1 – P2: Production Wells

Camp is located 4km northeast from

the Project

Maricunga Exploration 2011/2012: Site map and camp

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