1. automotive and vehicles
2. electric vehicles

Keliber Oy presentation
Aiming to be the first lithium producer in Europe
PDAC
NORDIC MINING DAYS
Keliber Oy
March 2 2015
Harry Sandström
Disclaimer
This document has been used by Keliber Oy during an oral presentation. Therefore,
this document is incomplete without the oral explanations, comments and supporting
instruments that were submitted during the referred presentation. To the extent
permitted by law, no representation or warranty is given, express or implied, as to the
accuracy of the information contained in this document.
Some of the statements made in this document contain forward-looking statements.
To the extent permitted by law, no representation or warranty is given, and nothing in
this document or any other information made available during the oral presentation
should not be relied upon as a promise or representation as to the future condition of
Keliber’s Business.
Overview
 Roots of Keliber Oy are in the studies
of Suomen Mineraali Oy 1950 ’s and
1960’s
 Company is engaged in searching for
and developing spodumene-rich
pegmatite deposits in Central
Ostrobothnia
 Company has a valid mining licence
for a deposit in Ullava (Länttä) and
claims and exploration permits on
other spodumene-bearing pegmatite
deposits in the extensive, over 500
km2, Lithium Province of Central
Ostrobothnia
 The company’s target is to produce
6 000 tonnes of lithium carbonate
per year
Board of Directors and Management
Mr. Olle Sirén, CEO
Mr. Markku Isohanni,
Chairman
Mr. Ivar S. Fossum,
Member
Mr. Esa Sandberg,
Chief Geologist
Mr. Timo Mäki,
Member
Mr. Lars Gröndahl,
Member
Mr. Kari Wiikinkoski,
Environmental
Manager
Mr. Heikki Markkanen,
Member
Ms. Mona
Schanche, Member
Mr. Jarmo Finnilä,
Communications
and administration
manager
Mr. Risto Vänskä,
Member
Mr. Tom Söderman,
Member
Shareholders
Company is owned by Finnish investment companies and private investors and Nordic
Mining ASA
Nordic Mining ASA
Finnish Industry Investment Ltd
Ilmarinen Mutual Pension Insurance Company
Ab Mine Invest Oy
Thominvest Oy
Other (private investors and investment companies)
Total
25,04 %
19,97 %
8,55 %
7,58 %
6,89 %
31,97 %
100,00 %
Deposits and main exploration targets
1. Länttä 2. Syväjärvi, 3. Outovesi 4. Leviäkangas 5. Emmes 6. Rapasaari7. Päiväneva
8. Heikinkangas 9. Rytilampi 10. Palojärvi 11. Timmerpakka 12. Jäneslampi and
Buldans
Mineral Resources and Reserves
Keliber Mineral Resources and Reserves
Category
Deposit
kt
Measured
Indicated
Länttä
433
Länttä
868
Syväjärvi
1 664
Rapasaari
922
Outovesi
289
Leviäkangas
190
Emmes
818
Total
4 751
Measured
and Indicated
5 184
Inferred
Syväjärvi
54
Leviäkangas
271
Total
325
Li2O% Cut off JORC Category
1,12
1,06
1,22
1,29
1,49
1,13
1,40
1,25
1,24
1,45
0,90
0,99
0,50
0,50
0,50
0,70
0,50
0,50
0,70
2004 Proven
2004 Probable
2012
2012
2004
2004
2012
Proven and
Probable
0,50
0,50
Deposit
kt
Li2O% JORC
Länttä
Länttä
Syväjärvi
Outovesi
472
513
1 390
277
0,98
0,96
1,08
1,17
Total
2 180
1,15
2 652
1,12
2004
2004
2004
2004
2012
2004
Mineral Resource and Reserve estimates (JORC 2004 and JORC 2012) by Markku Meriläinen (MAusIMM) and
Pekka Lovén (MAusIMM (CP)) Outotec (Finland) Ltd
Länttä deposit
Reserve of 0.985Mt @ 0.97% Li2O in proven and probable categories
 The Länttä deposit was found at the
beginning of 1960`s.
 Drilling operations and small bulk
sampling were carried out in many
phases. The last phases have been an
overburden stripping in 2010 and bulk
sampling in 2010 and 2013 by Keliber Oy.
 The deposit consists of two parallel
spodumene pegmatite veins striking to
North-East and dipping 70° to South-East.
The veins are parallel to the supracrustal
host rocks both in strike and dip.
 The main minerals of spodumene
pegmatite are albite (40 %), quartz,
microcline and spodumene (all 15-20 %)
and muscovite (2 %).
Länttä deposit model
Syväjärvi deposit
Syväjärvi deposit model
Reserve of 1.39Mt @ 1.22% Li2O in probable category
The Syväjärvi lithium pegmatite was
discovered by Suomen Mineraali Oy
(SMOY) in the 1960`s
First drilling was done by SMOY and
continued by Oy Partek Ab. GTK
prepared a resource estimate in 2010,
based on their own and previous drill
results.
Spodumene pegmatite is partly
outcropping under the lake Syväjärvi.
Pegmatite is structurally quite simple,
flat lying “bread” plunging to North with
some small parallel and non-parallel
veins
The dominating host rock type is mica
schist with greywacke.
Syväjärvi preliminary open pit plan
Outovesi deposit
Probable Reserve 0.28Mt @ 1.17% Li2O in probable category
Outovesi deposit model
 The discovery hole at Outovesi was
drilled on 2010. The first drilling
phase 2010 covered the whole
deposit and the resource estimate
was prepared based on that
 Spodumene pegmatite forms a
simple North / North-East striking
dike, which is dipping some 50° to
West. The dike is parallel to the
strike of the host rocks, but
perpendicular to the dip.
 The length of the dike is about 400
m and the maximum width about
ten meters
Outovesi preliminary open pit plan
Rapasaari deposit
Mineral Resources 0.92Mt @ 1.29% Li2O in indicated category
 GTK discovered the Rapasaari deposit in
2009
 Deposit consist of two spodumene rich dike
swarms Rapasaari E and Rapasaari W
 Keliber purchased the Rapasaari deposit
from the Ministry of Employment and the
Economy in 2014
 Keliber has drilled Rapasaari deposit over 4
800 meters in 2014 – 2015
 The deposit is still open to depth, northeast and south
Rapasaari E preliminary deposit model
Emmes Deposit
Mineral Resources 0.81Mt @ 1.40% Li2O in indicated category
 The Emmes area was first explored by Suomen
Mineraali Oy and Partek Oy in 1960 -1982
 The spodumene pegmatite dyke lies under Lake
Emmes
 The distance from the lake surface to the roof
level of the deposit varies in the range 5–8 m
(average water depth about 1.5 metres)
 The spodumene pegmatite dykes run in a NW–
SE direction and have a dip angle of about 60–
80° to the SW
 The spodumene pegmatite is zonal in structure
and consists mainly of microcline, plagioclase,
quartz, spodumene and muscovite
JORC compliant
underground resource
estimate in indicated
category 0,8 Mt @ 1.4 %
Li2O
Good exploration potential
 Keliber’s exploration targets are based on drill
intercepts, large number of boulders and
geochemical anomalies.
Significant spodumene boulders near by
existing deposits
 The Company has various targets for drilling to
increase resources and reserves
 Keliber Oy has exploration permissions or
landowners permission for exploration for all
the significant deposits or indications in the
area
 Geochemical till samples collected by
Geological Survey of Finland suggests that
additional lithium deposits could be discovered
at various new areas
Number of spodumene
boulders within 7.5Km
radius and near by
Kelibers existing
deposits
Production
overview
Processprocess
overview
Conventional processing method reduces technology risk
 Concentrating involves conventional crushing ,
mica separation, magnetic and dense media
separation and fine fraction grinding followed
by flotation
 The spodumene conversion from alphaspodumene to beta-spodumene
 Beta-spodumene will be leached and
hydrocarbonised in alkaline media to obtain
lithium bicarbonate which is purified by ion
exchange and crystalized to lithium carbonate
(Li2CO3)
 The Company’s target is to produce high
purity, 99.99 %, lithium carbonate.
 The potential by-products are columbite (Nb,
Ta), analcime , quartz-feldspar and
mica.Electricity can be produced on site using
combination of conventional technology and
wood gasification plant
Test result of Li2CO3 production from Länttä
Spodumene ore
Li2CO3 (% Impurities (PPM)
99.939
Al
B
Be
Ca
Cl
Fe
K
Mg
Outotec
60 <20 <20
20 <200
20.0 250.0 <20
GTK
12 5. 01 15. 8 <20 <20000 <5
64.9 <5
Li2CO3 (% Impurities (PPM)
99.939
Mn Na S
Si
P
Pb
V
Outotec <20
80.0 300 240.0 250.0 <40 <20
GTK
<0. 2 57.3 <10 205.0 224.0 0. 1 0. 1
Source: Company data, Outotec
Production Process R&D
 GTK Mintec
 Pilot benefication tests completed in January
2015
 DMS and flotation pilot
 Outotec (Finland) Oyj
 Research agreement signed and concentrate pilot
scheduled for the spring 2015
 The test program includes all the process stages
from calcining to crystallization of the lithium
carbonate product
Porcessing plant -Kalavesi
Main activities in 2015
 Complete the process studies and the
process optimization programme in spring
2015
 Compile the Pre-feasibility study during the
2015
 Environmental work
 Environmental Impact Assessment
report for new deposits expected to be
ready in first half of 2015
 Environmental permitting of new
deposits commences in 2015
 CEF measures (Continuous Ecolocigal
Functionality) for the golden eagle and
moor frog
Deposits incuded in the EIA programme
Lithium Demand
Lithium use is forecasted to expand by 2.5 fold by 2025
 Accelerating demand
 Demand for lithium is expected to grow
rapidly from 150kt to 450kt in the next 20
years with GAGR of 10%
 The production of rechargeable batteries drives
the Li2CO3 markets
 Such batteries are already common in
portable electronic devices and
developments in transportation
industry are rapidly increasing the
demand
 As long as the consumer electronics sector
stays strong and demand for hybrid
electric vehicles continues to grow,
demand for battery-grade lithium is
expected to continue to increase and
become the largest lithium consuming
industry
 New lithium projects are needed
 According to current forecasts for demand
and capacity expansions, capacity begins to
become constrained in 2023
Lithium consumption – Forecast 2012 - 2025
Mt LCE
450
400
350
300
Lithium is core material in new batteries
due to its high energy-to-weight ratio,
high charging rate and low selfdischarge rate.
Others
Batteries are expected to be 60% of the
total demand by 2025.
Aluminum
Medical
250
Continuos Casting
Powders
Air conditioning
200
150
Lubricating greases
100
Glass
50
0
Frits
2012 2013E2014E2015E2016E2017E2018E2019E2020E2021E2022E2023E2024E2025E
600 Lithium Demand – Production Capacity
100%
90%
500
80%
New projects necessary to
satisfy lithium demand
70%
400
60%
50%
300
40%
Total Estimated
Lithium Demand
~450Mt in 2025
200
100
30%
20%
10%
0%
0
Current producers
Sourc : Roskill, Chemetall, MiR, NREL, IndMin, Galaxy, Chemetal, FMC corporation, SignumBOX,Global
Strategic Metals, Critical Elements Corporation
es
Polymers
New comers
Demand
Utilization rate %
European Market
Net Import of Lithium Carbonate in Europe 2011 by country
New projects required to meet the deficit
 Net import of lithium carbonate in Europe has remained in deficit
for the past few years and it its expected to increase rapidly due to
the demand growth in battery-grade lithium
 Only five different lithium mining projects in Europe
 All available resources must be used to meet the demand
Net Import 2011
Total 15 754
tonnes
 Leading net importers of lithium carbonate are Belgium, Spain,
Germany and France covering ~60% of total imports in 2011
Net Import of Lithium Carbonate in Europe 2007-2011
International Lithium,
Ireland
• Blackstairs deposit
• Resources: historical
resource estimate 0,57Mt
@1,5% Li2O
Solid Resources, Spain
• Pesqueira deposit
• Resources: M&I
1,6Mt/inferred
4Mt
@0,45% Li2O
Sources: British Geological Survey, Pareto
Global Strategic Metals,
Austria
• Wolfsberg deposit
• Resources: M&I
6,9Mt/inferred
10Mt @1,2-1,6%
Li2OGlobal
Strategic Metals
Keliber, Finland
• Deposits in Länttä,
Syväjärvi, Outovesi
and Leviäkangas
• Resources: M&I
3,33Mt/inferred
0,75Mt @1,3% Li2O
Rio Tinto Minerals, Serbia
• Jadar deposit
• Resources: inferred 125,3Mt @1,8%
Li2O
Ultra Lithium, Serbia
Pan Global Resources,
Serbia
Price of Lithium
Battery industry interested in high-purity lithium from hard-rock
Industry
Extraction from
minerals
Extraction from
salars
• Li grade up to 2-3%
• Mining, crushing,
separation/flotation
(spodumene), roasting,
leaching and
crystalization to lithium
carbonate (Li2CO3)
• Processing cost
$2,500-4,500/t Li2CO3
• Li grade 0.016-0.15%
• Concentration,
evaporation, chemical
treatment
• Processing cost
$1,400-3,000/t Li2CO3
• Purification of
magnesium out of
lithium solution
requires a substantial
amount of water
Market Segmentation
Industry ready to pay
premium for high purity
lithium(99.99%) – valued
three times higher than
technical grade lithium
carbonate
Price US$ 15,000/t
10%of battery
market
Price US$ 8,500/t
15%of battery
market
Major limitation of extraction
from brines is the high
magnesium to lithium ratio
that has to be reduced to
avoid Mg contamination in
products and requires a
substantial amount of fresh
water
Price US$ 6,500/t
75%of battery
market
EV Plus
Grade
99.99% LC
EV
Grade
99.9% LC
The highest
purity levels
associated
with lithium
carbonates
obtain the
highest
prices
Battery
Grade
99.5% LC
Technical
Grade
99.0% LC
Industrial
Grade
<99.0% LC
Sources of battery industry: Roskill, Chemetall, Cormark
Source of market segmentation: Galaxy Resources Limited
23
Financing
Financing
Financing round I
Capital financing round I
EUR 4 M
Investments
• Private capital investment
• New issue of shares
• Broadening of
ownership base
Use of
finance
Progress of
project
• GTK claims
• Preparatory work
• Pre-feasibility study
• Increasing of ore
reserves
2012-2013
Financing round II and III
Capital financing rounds
II and III
EUR 2.4 M and EUR 4 –
6 M / Potential IPO
• Capital financing round II
• Round III - either private
capital investment or listing
on the stock exchange
• Off-take agreements
Financing round IV
Project funding
EUR 80 – 100 M
• Project funding
package deal
• Feasibility study l. completion of
feasibility plans
• Construction work and
production start-up
• Broadening of the resource
base
• Bankable feasibility study
• Commencement of
production
2014-2016
23
Öhman
2017-2018
SWOT Analysis
Attractive market fundamentals. Opportunity in lithium-ion batteries for grid energy storage
Strengths
Weaknesses
 Strong pure lithium asset
 Small proven resource base
 Existing environmental permit valid and ready for production
 Lithium process not proven on a commercial scale
 Award-winning lithium carbonate process guaranteed by Outotec
 Lack of transparency inherent in the pricing of lithium , which
is subject to individual agreement negotiations
 Excellent connections to port & railway, water supply and energy
accessibility
 Lithium market fundamentals are
attractive and strengthening (increasing
consumption of Li batteries
and growth in EV’s)
SWOT Analysis
Opportunities
 Excellent expansion possibilities in
regional lithium resources
 Potential for lithium ion
batteries to store alternative
sources of energy i.e. solar power
 Potential to move forward in the value chain
Threats

Lithium prices remain flat or
decline given the weak global
economic environment (commodity price risk)
 Competition from larger existing lithium producers in both
brine and hard rock sourced deposits
 Emergence of alternative energy sources and new technologies
 Currency fluctuations (global Li2CO3 sales denominated in USD)
22
Thank You!
Keliber Oy
Toholammintie 496
69600 Kaustinen
Finland
+358 (0)10 567 0600
info(at)keliber.fi
www.keliber.fi