GREEN ENERGY LITHIUM

Overview

In Utah, the Paradox Basin and the underlying Mississippian (Leadville) formation is known to contain high quality brine resources lithium, bromine, potash, iodine and other valuable recoverable minerals.

Of the fifty-five oil and gas wells drilled in the area, at least thirty-two penetrated the Paradox Salt member of the Hermosa formation which contains the supersaturated brines and evaporite beds.

Geologic and geophysical (sonic or GR Neutron) logs of these drill sites are available for study.

It is from this basic data that the distribution and grades of the potash/salt horizons and brines of the potash deposits and the target concepts were derived.*

Various prior workers in the area created maps showing structure contours, isopachs, and structural interpretations in the process of doing oil and gas exploration in the past.

Many of these maps are also available for study and form the basis of this presentation.

The available data from the area of the Green Energy Project is a strong indication of the potential for it to become a producer of lithium, potash and other products. In order to confirm those indications, additional work will be necessary.

* These logs were acquired from the Division of Natural Resources, Utah Geological Survey.

Location

Approximately 19 km west of the town of Moab
Established infrastructure in close proximity including roads, rail and power
Proximity to Tesla, Gigafactory 1 and Kore Power

Adjacent Ventures

Anson Resources

NPV (Pre-Tax) US$ 1,305 m
IRR (Pre-Tax) 47%
1,037,900 t Lithium Carbonate Equivalent (LCE)
5,274,900 Bromine (BR2)
MoU for DLE plant construction issued with Sunresin

Intrepid Potash – Cane Creek Potash Mine

The mine can produce between 75,000 and 120,000 tons of potash annually

American Potash Corp

Samples contain from 66 ppm to 500 ppm lithium, 18,800 ppm to 41,958 ppm potassium and 1,150 ppm to 6,100 ppm bromine

Potential Resource

The Paradox Basin and the Mississippian (Leadville) Formation is known to contain high quality brine resources lithium, bromine, potash, iodine and other valuable recoverable minerals.

Infrastructure

A total of 4,160 acres in the Paradox Basin with close proximity to rail head, industrial power, paved roads, and services. The targeted brine horizon occurs over the entire property.

Grade

Grades as high as 500 ppm were recorded immediately adjacent to the property. Lithium occurs in super saturated brines with over 40% dissolved solids in solution.

Adjacent Resource

Anson Resources (ASX: ASN) currently shows the potential overlap of its current resource of 1,037,900 t Lithium Carbonate Equivalent (LCE). (Figure 1)

History

Economic interest in this area has historically centered on oil and gas production – massive supersaturated brine deposits have been well documented as part of those drilling operations.

Oil & gas exploration encountered blow outs caused by intersecting pressurized brines (~4,900 PSI) within the Paradox Formation containing high amounts of potash, lithium, bromine, among other potentially payable minerals.
There are 132 oil and gas and potash boreholes in the vicinity of the project – 2 wells were drilled specifically for brine – the White Cloud #2 well and the Long Canyon #1.
Aviara Energy Corp’s Cane Creek Federal #11-1, encountered strong brine flow from Shale 15 / Clastic 31 and was successfully plugged down to 6990 feet with no evidence of perforation.
Southern Natural Gas Co.’s Long Canyon #1, well, adjacent to the property, noted for strong brine flow from Shale 15, testing at 500 ppm lithium. Other historic sampling in and around the project ranged from 81 to 500 ppm lithium.

Illustration of Oil & Gas Wells Historically and Currently Drilled on and around the Green Energy Project

Illustration of Oil & Gas Wells Historically and Currently Drilled on and around the Green Energy Project (below)

Geology

The portion of the Colorado Plateau underlying much of southeastern Utah is referred to as the Paradox Basin
Large halite and potash deposits occur within a cyclic sequence of evaporites and fine-grained clastic sediments
High pressure wells could potentially flow across the entire property – no pumping to surface required
The company is targeting two target horizons:
1) Paradox Formation, Clastic Zone 31 / Shale 15
2) Mississippian (Leadville) Formation
Legacy drill data confirms immense supersaturated brine aquifers

Clastic 31 / Shale 15

Approx 6-11 ft in thickness depth containing lithium and other valuable recoverable resources including bromine, iodine, and others

Work Plan

Compilation and study of the oil and gas well logs has been completed
Acquisition of the many generations of seismic data generated in the past, with emphasis on the potash and brine horizons, are being analyzed to develop a 3-D geologic model
Preliminary process engineering, including reservoir modeling, needs to be done regarding recoveries of lithium, potash and other commodities from the brines
The full scope of the deposits cannot be finally determined until after a thorough program of test drilling is complete.
Re-enter one well – Cane Creek Federal #11-1 – located in Shale 15 (Clastic 31), that has showcased historical significant lithium-bearing brine flows
Samples will be provided to Summit Nanotech for analysis, interpretation and consulting on potential future production

Proposed Timeline

Qualified Person

The scientific and technical information contained on this website relating to the Green Energy Project has been reviewed and approved by Bradley C. Peek, MSc, CPG, a “Qualified Person” as defined by National Instrument 43-101.