THIS WEBSITE (THE “WEBSITE”) WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF AMERICAN LITHIUM CORP. (“AL” OR “AMERICAN LITHIUM”) AND ITS SUBSIDIARIES, INCLUDING WITHOUT LIMITATION, PLATEAU ENERGY METALS INC. (“PLU”, WITH AL, PLU AND THE OTHER SUBSIDIARIES TOGETHER REFERRED TO AS, THE “COMPANIES”) AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A DECISION TO INVEST IN ANY SECURITIES OF THE COMPANIES. THE COMPANIES DO NOT MAKE ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. THE COMPANIES EXPRESSLY WARN READERS NOT TO RELY ON THE INFORMATION HEREIN FOR INVESTMENT OR OTHER RELATED PURPOSES. ACCORDINGLY, ANY USE OF THIS INFORMATION IS AT YOUR RISK AND WITHOUT LIABILITY TO THE COMPANIES NOR ANY OF THEIR ADVISORS, AGENTS OR REPRESENTATIVES. THE INFORMATION CONTAINED HEREIN IS NOT AND SHOULD NOT BE CONSTRUED AS EITHER A PUBLIC OR PRIVATE OFFER OR SOLICITATION TO PURCHASE SECURITIES IN THE CAPITAL STOCK OF THE COMPANIES, NOR AS LEGAL, FINANCIAL, OR TAX ADVICE. THE READER IS REFERRED TO HIS/HER/ITS PROFESSIONAL LEGAL, FINANCIAL AND TAX ADVISORS REGARDING INVESTMENT RELATED DECISIONS RESPECTING THE SECURITIES OF THE COMPANIES. NO SECURITIES REGULATORY AUTHORITY OR SIMILAR AUTHORITY HAS REVIEWED OR IN ANY WAY PASSED ON THE ACCURACY OR ADEQUACY OF THIS PRESENTATION. ANY REPRESENTATION TO THE CONTRARY IS CRIMINAL OFFENSE.
QUALIFIED PERSON AND TECHNICAL REPORTS
The scientific and technical
information contained in this Presentation has been reviewed and approved by
Ted O’Connor, a Director of AL, who is a Qualified Persons as defined in
National Instrument 43-101.
Certain scientific and technical information with respect to the TLC Property contained in this Presentation has been taken from the technical report entitled “Technical Report for the TLC Property, Nye County, Nevada, USA” with an effective date of April 15, 2020 and prepared by Derek J. Loveday of Stantec Consulting Ltd., a copy of which is available on American Lithium’s SEDAR profile at www.sedar.com. Certain scientific and technical information with respect to: (a) the Falchani Project contained in this Presentation has been taken from the technical report entitled “Falchani Lithium Project NI 43-101 Technical Report – Preliminary Economic Assessment” with an effective date of February 4, 2020 and prepared by John Joseph Riordan, David Alan Thompson, Valentine Eugene Coetzee and Stewart Nupen of DRA Pacific.; and (b) the Macusani Project contained in this Presentation has been taken from the technical report entitled “Macusani Project, Macusani, Peru, NI 43-101 Report – Preliminary Economic Assessment” with an effective date of January 12, 2016 and prepared by Michael Short and Thomas Apelt of GBM Minerals Engineering Consultants Limited, David Young of The Mineral Corporation and Mark Mounde of Wardell Armstrong International Limited, copies of both of which are available on PLU’s SEDAR profile at www.sedar.com. The preliminary economic assessments included herein are preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessments will be realized. Additional work is required to upgrade the mineral resources to mineral reserves. In addition, the mineral resource estimates could be materially affected by environmental, geotechnical, permitting, legal, title, taxation, socio-political, marketing or other relevant factors. All figures are reported in US dollars (“$”), unless otherwise noted. Economic highlights represent the Companies’ 100% interest in the projects.
This Website contains certain forward-looking information and forward-looking statements (collectively “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend”, “indicate”, “scheduled”, “target”, “goal”, “potential”, “subject”, “efforts”, “option” and similar words, or the negative connotations thereof, referring to future events and results. Forward-looking statements in this Presentation include, but are not limited to: statements regarding the business, operations, outlook and financial performance and condition of the Companies; plans, objectives and advancement of the TLC Property, Falchani Project and Macusani Project (the “Projects”); exploration drilling plans, in-fill and expansion drilling plans and other work plans and exploration programs to be conducted; results of exploration, development and operations; expansion of resources and testing of new deposits; environmental and social community and other permitting; timing, type and amount of capital and operating and exploration expenditures; estimation of mineral resources and mineral reserves; preliminary economic assessments, including the assumptions and parameters upon which they are based; development and advancement of the Projects; treatment under regulatory regimes; ability to realize value from the Companies’ assets; any other statements regarding the business plans, expectations and objectives of the Companies; and any other information contained herein that is not a statement of historical fact.
Forward-looking statements are
based on management’s reasonable estimates, expectations, analyses and opinions
at the date the information is provided, and is based on a number of
assumptions and subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward-looking information. Assumptions upon which such
forward-looking information are based include, without limitation, that no
significant event will occur outside the ordinary course of business of the
Companies; legislative and regulatory environment; impact of increasing
competition; current technological trends; price of lithium, uranium and other
metals; costs of development and advancement; anticipated results of
exploration and development activities; the ability to operate in a safe and
effective manner; and the ability to obtain financing on reasonable terms.
Readers are cautioned that the foregoing list is not exhaustive. Further, the aforementioned
assumptions may be affected by the negative disruptive effect of the novel
coronavirus (“COVID-19”) pandemic, which has resulted in a widespread health
crisis that has affected the economies and financial markets of many countries
around the world. The international response to the spread of COVID-19 has led
to significant restrictions on travel; temporary business closures;
quarantines; global stock market and financial market volatility; a general
reduction in consumer activity; operating, supply chain and project development
delays and disruptions; and declining trade and market sentiment, all of which
have and could further affect commodity prices, interest rates, credit ratings
and credit risk. The continuing and additional business interruptions, expenses
and delays relating to COVID-19, could have a material adverse impact on the
Companies’ plans, operations, financial condition and the market for its
securities; however, as at the date of this Presentation, such cannot be
reasonably estimated. Although AL believes that the current opinions and
expectations reflected in such forward-looking statements are reasonable based
on information available at the time, undue reliance should not be placed on
forward-looking statements since AL can provide no assurance that such opinions
and expectations will prove to be correct.
All forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including risks, uncertainties and assumptions related to: the Companies’ ability to achieve their stated goals, including the the estimated valuation of the Companies being accurate; the estimated costs associated with the advancement of the Projects; legislative changes that impact operations of the Companies; risks and uncertainties relating to the COVID-19 pandemic and the extent and manner to which measures taken by governments and their agencies, the Companies or others to attempt to reduce the spread of COVID-19 could affect the Companies, which could have a material adverse impact on many aspects of the Companies’ businesses including but not limited to: the ability to access mineral properties for indeterminate amounts of time, the health of the employees or consultants resulting in delays or diminished capacity, social or political instability in Peru which in turn could impact AL’s ability to maintain the continuity of its business operating requirements, may result in the reduced availability or failures of various local administration and critical infrastructure, reduced demand for the Companies’ potential products, availability of materials, global travel restrictions, and the availability of insurance and the associated costs; risks related to the certainty of title to the properties of the Companies, including the status of the “Precautionary Measures” filed by AL’s subsidiary Macusani Yellowcake S.A.C. (“Macusani”), the outcome of the administrative process, the judicial process, and any and all future remedies pursued by AL and its subsidiary Macusani to resolve the title for 32 of its concessions; the ongoing ability to work cooperatively with stakeholders, including but not limited to local communities and all levels of government; the potential for delays in exploration or development activities due to the COVID-19 pandemic; the interpretation of drill results, the geology, grade and continuity of mineral deposits; the possibility that any future exploration, development or mining results will not be consistent with our expectations; risks that permits will not be obtained as planned or delays in obtaining permits; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages, strikes and loss of personnel) or other unanticipated difficulties with or interruptions in exploration and development; risks related to commodity price and foreign exchange rate fluctuations; risks related to foreign operations; the cyclical nature of the industry in which the Companies operate; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment and the effects upon the global market generally, and due to the COVID-19 pandemic measures taken to reduce the spread of COVID-19, any of which could continue to negatively affect global financial markets, including the trading price of AL’s shares and could negatively affect the Companies’ ability to raise capital and may also result in additional and unknown risks or liabilities to the Companies. Other risks and uncertainties related to prospects, properties and business strategy of the Companies are identified in the “Risk Factors” section of AL’s Management’s Discussion and Analysis filed on June 28, 2022, and in recent securities filings available at www.sedar.com. Although the Companies have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Companies does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
CAUTIONARY NOTE REGARDING MACUSANI CONCESSIONS
Thirty-two of the 151 concessions held by American Lithium’s subsidiary Macusani, are currently subject to Administrative and Judicial processes (together, the “Processes”) in Peru to overturn resolutions issued by INGEMMET and the Mining Council of MINEM in February 2019 and July 2019, respectively, which declared Macusani’s title to 32 of the concessions invalid due to late receipt of the annual validity payments. In November 2019, Macusani applied for injunctive relief on 32 concessions in a Court in Lima, Peru and was successful in obtaining such an injunction on 17 of the concessions including three of the four concessions included in the Macusani Uranium Project PEA. The grant of the Precautionary Measure (Medida Cautelar) has restored the title, rights and validity of those 17 concessions to Macusani until a final decision is obtained at the last stage of the judicial process. A Precautionary Measure application was made at the same time for the remaining 15 concessions and was ultimately granted by a Court in Lima, Peru on March 2, 2021 which has also restored the title, rights and validity of those 15 remaining concessions to Macusani, with the result being that all 32 concessions are now protected by Precautionary Measure (Medida Cautelar) until a final decision on this matter is obtained at the last stage of the judicial process. The favourable judge’s ruling confirming title to all 32 concessions from November 3, 2021 represents the final stage of the current judicial process. However, this ruling has recently been appealed by MINEM and INGEMMET. American Lithium has no assurance that the outcome of these appeals will be in the Company’s favour.
FUTURE-ORIENTED FINANCIAL INFORMATION
To the extent any forward-looking information in this Presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading “Forward-Looking Information”. The Companies’ actual financial position and results of operations may differ materially from management’s current expectations and, as a result, the Companies’ valuation may differ materially from the valuation provided in this presentation. Such information is presented for illustrative purposes only and may not be an indication of the Companies’ actual financial position or results of operations.