Pan Am Lithium Competitive Advantages

Pan American Lithium Competitive Advantages

  • Own 100% of projects outright subject only to capped NSR royalties, and 1% Chilean nominee in holding company
  • Year-round road access to all projects
  • Water rights applied for at Laguna Verde and Laguna Brava
  • Lithium grade at Laguna Verde = 212.4 mg/liter yielding inferred resource estimate of 512,960 metric tons lithium carbonate equivalent(1) as per NI 43-101 compliant Technical Report authored by QP John Hiner, L.P. Geo.
  • No required drilling / no hydrology determination necessary at Laguna Verde surface lake
  • Pan American Lithium now commencing scoping, pre-feasibility and process design well ahead of majority of main junior brine competitors

Chile Geopolitical Advantages

  • Chile benefits from low political / regulatory risk
  • Significantly Lower Political Risk in Chile vs. other South American countries:
    • Chile: world's No. 1 copper producer with center-right government of Sebastian Piñera with pro-business credentials
    • Argentina: soaring inflation, shortages of natural gas, electricity and labor, plus demands for higher wages
    • Bolivia: recent threats by President Evo Morales to “nationalize” mining concessions
    • Venezuela: President Hugo Chavez caused panic after he threatened to nationalize the country's gold industry accusing "capitalist mafias" in the industry of destroying environment & exploiting workers
  • Mining represents 23.5% of GDP in Chile(2)
  • Over 100 year history of support for mining industry
  • Political, economic and social stability
  • Independent judiciary, Parliament, Government
  • Project finance, tax, royalty, capital repatriation and other corporate and financial advantages

Other Chile Competitive Advantages

  • Chile Atacama Region III: Low transportation costs due to proximity to west coast shipping ports
  • World class port system
  • Existing mining cluster (and supporting infrastructure) in North Region

 

(1) See NI-43-101 Technical Report authored by QP John Hiner, L.P. Geo., and filed on SEDAR on June 14, 2010, for more information

(2) Source: Chilean Mining Council presentation, March 2008