Scotty Lithium Project

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SCOTTY LITHIUM
PROJECT

The Scotty Lithium Project covers 78.1 km2 and is located 189 km northwest of Las Vegas and 517 km from Reno in the Tier 1 mining jurisdiction of Nevada USA.

The Scotty Lithium Project has twin prospects of lithium brines and lithium sediments and is adjacent to the existing Iconic Minerals Ltd (TSXV: ICM) Bonnie Claire Project, with similar geology.

The claims are within the Sarcobatus Flat that is approximately 30 km long and 20 km wide, with the associated drainage basin covering an area of 2,070 km2 . Quartz-rich volcanic rocks that contain anomalous amounts of lithium occur within and adjacent to the drainage basin with recent soil samples of up to 540ppm Lithium (Li).

Nevada map_Dec 2022 Update (1)

INVESTMENT HIGHLIGHTS

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Scotty Lithium Project is located within the Tier 1 jurisdiction of Nevada USA and only 330km from Tesla’s Gigafactory and surrounded by multiple lithium projects with $150m-plus market caps.

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Strong soil assay results of up to 540ppm Li with defined target areas:

  • 3 sediment target zones – North, East, West
  • 2 twin targets (sediment & brine) - Upper South & Lower South
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Soil geochemistry was used effectively in the discovery and delineation of the Iconic Minerals Ltd adjoining Bonnie Claire Lithium Deposit, where Inferred Resources comprise 3.4Bt at 1,013ppm Li for 18.3Mt of LCE1 resource from 9 drill holes, equivalent to a Hard Rock deposit greater than 700Mt @ 1% Li201.

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The Bonnie Claire Mineral Resource Estimate & Preliminary Economic Assessment suggests a unique geology and subsequent low-cost mining and process solution:

  • Bonnie Claire appears to be a new type of deposit that has lithium compounds like lithium carbonate and lithium salts deposited within the fine grain clay, silt, and sand pore space. Although most of the sediment hosted lithium in the literature occurs in clays, it does not at Bonnie Claire.

(1) Bonnie Claire PEA Technical Report

RECENT EXPLORATION

As announced in September 2022, the Scotty Lithium Project presently consists of five identified targets over 78.1km2 , with strong soil assay results of up to 540ppm Li and each target holding standalone exploration potential.2

  • 643 soils samples were taken across the Scotty Lithium Project:
  • 177 samples (~27%) recording greater than 200ppm Li
  • 89 samples (~14%) recording greater than 264ppm Li, the maximum recorded at the adjacent Bonnie Claire Lithium Deposit
  • 3D modelling of the enclosed basin in conjunction with the soil results produced the five current target zones:
  • 3 sediment target zones – North, East, West
  • 2 twin targets (sediment & brine) - Upper South & Lower South
  • Magnetotelluric (MT) surveys within each zone are currently being commissioned to define the basin extent and optimise subsequent drilling programs
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Plan view of soils with target areas 1 to 5

(2) ASX Announcement: Strong Soil Assay Results Define Targets at the Scotty Lithium
Project, Nevada USA - Sept 21, 2022

NEVADA MINING

Although lithium reserves are distributed widely across the country, Nevada is home to the only lithium producers in the U.S. As the global push towards electric vehicles and low-carbon energy intensifies, and with the US government securing a domestic supply chain of critical minerals, exploration in the area surrounding the Scotty Project is increasing.

Nevada is actively encouraging the development of critical mineral resources3, and Loyal Lithium’s Scotty Project is well positioned to benefit from the market cycle, as the world transitions to cleaner, low-carbon energy, with lithium at the forefront of that market.

  • As of 1 September 2022 an estimated 17,375 active, filed, and submitted placer claims, have been located in Nevada, presumably for lithium or lithium brine in 18 different hydrographic basins4. This activity all means an incredible ramp up in accessible infrastructure and increased knowledge of the area’s geology.
  • USA’s Inflation Reduction Act Enforces a minimum level of locally sourced raw materials from the domestic market5 as the US looks to secure domestic minerals for a sovereign energy supply.
  • Nevada is seeing a critical minerals’ boom with multiple projects with USD $150M-plus market cap.

(3) Bureau of Land Management: Nevada Mining and Minerals
(4) https://data-ndom.opendata.arcgis.com/pages/lithium-claims
(5) How the Inflation Reduction Act Will Help Small Businesses