Lithium Americas Corp. filed SEC Form 8-K: Regulation FD Disclosure

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 7, 2025

LITHIUM AMERICAS CORP.

(Exact name of Registrant as Specified in Its Charter)

3260 - 666 Burrard St

Vancouver, British Columbia, Canada V6C 2X8

(Address of principal executive offices, and Zip Code)

(778) 656-5820

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

On January 7, 2025, Lithium Americas Corp. (the “Company”) issued a press release announcing an increased mineral resource and mineral reserve estimate for the Thacker Pass lithium project in Humboldt County, Nevada (“Thacker Pass”), including the release of an independent National Instrument 43-101 (“NI 43-101”) technical report entitled “NI 43-101 Technical Report on the Thacker Pass Project Humboldt County, Nevada, USA,” dated effective December 31, 2024 and an independent S-K 1300 technical report (the “SK 1300 Technical Report”) entitled “S-K 1300 Technical Report Summary on the Thacker Pass Project Humboldt County, Nevada, USA” dated December 31, 2024. A copy of this press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

The information in this Item 7.01 or Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under Securities Act of 1933, as amended, or the Exchange Act.

Detailed Property Description

For a complete description of the Thacker Pass lithium project in Humboldt County, Nevada (“Thacker Pass” or the “Project”), see:

The Thacker Pass S-K 1300 Report and the Thacker Pass TR are referred to as the “Reports”. The information contained in this section has been derived from the Reports, is subject to certain assumptions, qualifications and procedures described in the Reports, some of which are not fully described herein, and is qualified in its entirety by the full text of the Reports.

Reference should be made to the full text of the Reports. The Thacker Pass S-K 1300 Report is available for viewing on the Company’s profile at sec.gov. The Thacker Pass TR is available for viewing on the Company’s profile on SEDAR+ at www.sedarplus.ca. All capitalized terms used in the disclosure below that are not otherwise defined shall have the meanings ascribed thereto in the Reports, as applicable. For certainty, references to “Lithium Americas Corp.”, “the Company” or “LAC” refer to the Company unless the historical context otherwise requires, in which case references relate to Old LAC (prior to the completion of the Arrangement).

The following description is taken from the Reports, and also includes certain information updated from the time of the filing of the Reports in accordance with the requirements of S-K 1300.

Property Description and Location

Thacker Pass is currently in the development stage with pre-construction activities well advanced. Lithium Nevada LLC (“LN”), a wholly owned subsidiary of Lithium Americas Corp. (“LAC”), is advancing the Project in Humboldt County, Nevada. Thacker Pass is owned by a joint venture between Lithium Americas, which has a 62% ownership, and General Motors Holdings LLC (“GM”), which has a 38% ownership. The terms “LN” and “LAC” are used throughout the report to denote the owners of the Project.

Thacker Pass is located in Humboldt County in northern Nevada, approximately 100 kilometers (“km”) north-northwest of Winnemucca, approximately 33 km west-northwest of Orovada, Nevada, and 33 km due south of the Oregon border. It is situated within Township 44 North (T44N), Range 34 East (R34E), and within portions of Sections 1 and 12; T44N, R35E within portions of Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, and 17; and T44N, R36E, within portions of Sections 7, 8, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, and 29. The Project area is located on the United States Geological Survey (USGS) Thacker Pass 7.5-minute quadrangle at an approximate elevation of 1,500 m. Entrance to the Project can be found at 41o 41’ 40.6” N 118o 02’ 4.3” W.

The Thacker Pass area encompasses approximately 7,900 hectares (ha) and lies within and is surrounded by public lands administered by the BLM. Thacker Pass includes certain surface rights and encompasses the mineral claims that were formerly referred to as the Stage I area of the Kings Valley Lithium Project and includes lithium (“Li”) claystone mining at the Thacker Pass deposit, and is located in Humboldt County in northern Nevada, approximately 100 km north-northwest of Winnemucca, about 33 km west-northwest of Orovada, Nevada and 33 km due south of the Oregon border. The area is sparsely populated and used primarily for ranching and farming.

Access to Thacker Pass is via the paved US Highway 95 and paved State Route 293; travel north on US-95 from Winnemucca, Nevada, for approximately 70 km to Orovada, Nevada and then travel west-northwest on State Route 293 for 33 km toward Thacker Pass to the Thacker Pass site entrance. Driving time is approximately one hour from Winnemucca, and 3.5 hours from Reno. On-site access is via several gravel and dirt roads established during the exploration and Phase 1 early works phase. The closest international airport is located in Reno, Nevada, approximately 370 km southwest of Thacker Pass. The nearest railroad access is in Winnemucca, Nevada.

As at December 31, 2023, the net book value for the Thacker Pass property was $202.8 million.

Mineral Tenure

Thacker Pass is comprised of 2,694 unpatented mining claims and 30 mill site claims (together, the “Thacker Mining Claims”) owned or controlled by LAC. LAC also owns 64.75 ha of private property in the Thacker Pass project area. Lithium Nevada is the record owner of the Thacker Mining Claims, and Thacker Pass does not include the development of LAC’s unpatented mineral claims in the Montana Mountains (“Montana Mountains”).

Unpatented mining claims provide the holder with the rights to all locatable minerals on the relevant property, including lithium. The rights include the ability to use the claims for prospecting, mining or processing operations, and uses reasonably incident thereto, along with the right to use so much of the surface as may be necessary for such

purposes or for access to adjacent land. This interest in the Thacker Mining Claims remains subject to the paramount title of the U.S. federal government. The holder of an unpatented mining claim maintains a perpetual entitlement to the claim, provided it meets the obligations for maintenance thereof as required by the Mining Act of the United States of America (the Mining Act) and associated regulations.

At this time, the principal obligation imposed on LAC in connection with holding the Thacker Mining Claims is to pay an annual maintenance fee, which represents payment in lieu of the assessment work required under the Mining Act. The annual fee of $200.00 per claim is payable to the BLM, Department of the Interior, Nevada, in addition to a fee of $12.00 per claim paid to the county recorder of the relevant county in Nevada where the unpatented mining claim is located, along with associated administrative filings. All obligations for the Thacker Mining Claims in Nevada, including annual fees for 2024-25 to the BLM and Humboldt County, have been fulfilled.

The holder of unpatented mining claims maintains the right to extract and sell locatable minerals, which includes lithium, subject to regulatory approvals required under Federal, State and local law. In Nevada, such approvals and permits include approval of a plan of operations by the BLM and environmental approvals.

Royalties

Certain of the Thacker Mining Claims are subject to a 20% royalty payable to Cameco Global Exploration II Ltd. solely in respect of uranium (the “Uranium Royalty”). In addition to the Uranium Royalty and those national, state and local rates described above, Thacker Pass is subject to a gross revenue royalty in the amount of 8% until aggregate royalty payments equaling $22 million have been paid, at which time the royalty will be reduced to 4.0% of gross revenue on all minerals mined, produced or otherwise recovered. The royalty was granted to MF2, LLC (“Orion”), a subsidiary of Orion Mine Fine Finance (Master) Fund I LP (f/k/a RK Mine Finance (Master) Fund II L.P.) in 2013. Orion subsequently transferred 60% of the royalty to Alnitak Holdings, LLC (together with Orion, the “Royalty Holders”). LAC can at any time elect to reduce the rate of the royalty to 1.75% on notice and payment of $22 million to the Royalty Holders.

Permitting and Reclamation Obligations

In 2021, BLM Approved a reclamation cost estimate for the Thacker Pass plan of operations of $47.6 million. Financial assurance in the amount of $13.7 million for the initial work plan was placed with the agency in February 2023 prior to initiating construction with the remaining amount to be placed as construction activities progress. The NDEP-BMRR approved the Plan of Operations and Reclamation Plan (“PoO”) with the issuance of draft Reclamation Permit 0415. On February 25, 2022, the NDEP-BMRR and then issued the final Reclamation Permit 0415. On June 25, 2024, the BLM approved a modification to the PoO, which included an updated facility layout and the addition of the countercurrent decantation circuits. A modified Reclamation Permit was issued by NDEP-BMRR in Q4 2024. The BLM will require the placement of a financial guarantee (reclamation bond) to ensure that all disturbances from the mine and process site are reclaimed once mining concludes.

Thacker Pass is located on public lands administered by the U.S. Department of the Interior, BLM. Construction of Thacker Pass requires permits and approvals from various Federal, State, and local government agencies. All major federal, state and local permits and authorizations for Phase 1 have been achieved and there are no identified issues that would prevent LAC from achieving all permits and authorizations for Phase 1 and 2 of Thacker Pass. Additional analysis would be needed to determine any potential Federal, State or local regulatory or permitting issues for future phases of Thacker Pass.

From 2008 to 2023, LAC performed extensive exploration activities at the Thacker Pass site under existing approved agency permits. LAC has all necessary federal and state permits and approvals to conduct mineral exploration activities within active target areas of the Thacker Pass site.

LAC is approved by the BLM and the NDEP-BMRR to conduct mineral exploration and construction activities at Thacker Pass in accordance with Permit No. N98582.

There are no identified issues that would prevent LAC from achieving all permits and authorizations required to construct and operate Phase 1 and Phase 2 of Thacker Pass, or that may affect access, title, or the right or ability to perform work on the property.

History

In 1975, Chevron USA (“Chevron”) began an exploration program for uranium in the sediments located throughout the McDermitt Caldera (“McDermitt Caldera”), a 40km x 30km geological formation straddling the Oregon-Nevada border, which includes Thacker Pass. Early in Chevron’s program, the USGS (who had been investigating lithium sources) alerted Chevron to the presence of anomalous concentrations of lithium associated with the caldera. Because of this, Chevron added lithium to its assays in 1978 and 1979, began a clay analysis program, and obtained samples for engineering work, though uranium remained the primary focus of exploration. Results supported the high lithium concentrations contained in clays. From 1980 to 1987, Chevron began a drilling program that focused on lithium targets and conducted extensive metallurgical testing of the clays to determine the viability of lithium extraction. In 1991, Chevron sold its interest in the claims to Cyprus Gold Exploration Corporation who allowed the claims to lapse. Jim LaBret, one of Cyprus Gold Exploration Corporation claim owner, leased his claims in 2005 to WEDC. In 2007, WEDC leased the mining claims to WLC for the purpose of lithium exploration and exploitation.

WLC changed its name to Lithium Americas Corp. in 2016. In Q4 2024, LAC and GM established a joint venture for ownership of the Project. GM acquired a 38% asset-level ownership in Thacker Pass, with LAC retaining a 62% interest .

Prior owners and operators of the property did not conduct any commercial lithium production from Thacker Pass.

Geological Setting, Mineralization and Deposit Types

Geological Setting

Thacker Pass is located within the McDermitt Volcanic Field (the “McDermitt Volcanic Field”), a volcanic complex with four large rhyolitic calderas that formed in the middle Miocene. Volcanic activity in the McDermitt Volcanic Field occurred simultaneously with voluminous outflow of the earliest stages of the approximately 16.6 million years ago (“Ma”) to 15 Ma Columbia River flood basalt lavas. This volcanic activity was associated with impingement of the Yellowstone plume head on the continental crust. Plume head expansion underneath the lithosphere resulted in crustal melting and surficial volcanism along four distinct radial swarms centered around Steens Mountain, Oregon.

The McDermitt Volcanic Field is located within the southeastern-propagating swarm of volcanism from Steens Mountain into north-central Nevada. Thacker Pass is located within the largest and southeastern most caldera of the McDermitt Volcanic Field, the McDermitt Caldera.

Mineralization

The Thacker Pass deposit sits sub-horizontally beneath a thin alluvial cover at Thacker Pass and is partially exposed at the surface. The Thacker Pass deposit is the target of a multi-phase mining development of Thacker Pass. It lies at relatively low elevations (between 1,500 m and 1,300 m) in caldera lake sediments that have been separated from the topographically higher deposits to the north due to post-caldera resurgence and Basin and Range normal faulting. Exposures of the sedimentary rocks at Thacker Pass are limited to a few drainages and isolated road cuts. Therefore, the stratigraphic sequence in the deposit is primarily derived from core drilling.

The sedimentary section, which has a maximum drilled thickness of about 160 m, consists of alternating layers of claystone and volcanic ash. Basaltic lavas occur intermittently within the sedimentary sequence. The claystone comprises 40% to 90% of the section. In many intervals, the claystone and ash are intimately intermixed. The claystones are variably brown, tan, gray, bluish-gray and black, whereas the ash is generally white or very light gray. Individual claystone-rich units may laterally reach distances of more than 152 m, though unit thickness can vary by as much as 20%. Ash-rich layers are more variable and appear to have some textures that suggest reworking. All units exhibit finely graded bedding and laminar textures that imply a shallow lacustrine (lake) depositional environment.

Surficial oxidation persists to depths of 15 m to 30 m in the moat sedimentary rock. Oxidized claystone is brown, tan, or light greenish-tan and contains iron oxide, whereas ash is white with some orange-brown iron oxide. The transition from oxidized to unoxidized rock occurs over intervals as much as 4.5 m thick.

The moat sedimentary section at Thacker Pass overlies the hard, dense, indurated intra-caldera Tuff of Long Ridge. A zone of weakly to strongly silicified sedimentary rock, the Hot Pond Zone (“HPZ”), occurs at the base of the sedimentary section above the Tuff of Long Ridge in most of the cores retrieved from the Thacker Pass deposit. Both the HPZ and the underlying Tuff of Long Ridge are generally oxidized.

Clay in the Thacker Pass deposit includes two distinctly different mineral types, smectite and illite, based on chemistry and X-ray diffraction (“XRD”) spectra. Clay with XRD spectra that are indicative of smectite (12 - 15 Å basal spacing) occurs at relatively shallow depths in the deposit. Smectite drill intervals contain roughly 2,000 - 4,000 ppm Li. The chemistry and structure of the smectite at the McDermitt Volcanic Field is most similar to hectorite, a subtype of smectite (Na_0,3(Mg,Li)₃Si₄O₁₀(OH)₂), though chemically the clay is intermediate between hectorite and two other smectites, stevensite and saponite. Supported hectorite clay occurs elsewhere in the McDermitt Caldera and has been documented by several authors.

The smectite clay concentrates at Thacker Pass have a lithium content similar to hectorite clay concentrate at Hector, California (around 5,700 ppm Li; and higher than the average of all clay concentrates at Clayton Valley, Nevada (approximately 3,500 ppm Li average). The illite clay concentrates at Thacker Pass contain approximately twice the concentration of lithium as the hectorite concentrate from Hector, California and approximately three times the concentration of lithium from clay concentrates in Clayton Valley, Nevada.

Deposit Types

Lithium enrichment (greater than 1,000 ppm Li) in the Thacker Pass deposit and deposits of the Montana Mountains occur throughout the caldera lake sedimentary sequence above the intra-caldera Tuff of Long Ridge. Assay data from the 2017 exploration drilling program indicates that the Lithium-enriched interval is laterally extensive throughout the southern portion of the caldera. The deeper illite-rich portion of the sedimentary sequence contains higher lithium than the shallower, smectite-rich portion. The uplift of the Montana Mountains during both caldera resurgence and Basin and Range faulting led to increased rates of weathering and erosion of a large volume of caldera lake sediments. As a result, much of the sediments in the Montana Mountains have eroded away.

South of the Montana Mountains in the Thacker Pass deposit, caldera lake sediments dip slightly away from the center of resurgence. Because of the lower elevations in Thacker Pass, a smaller volume of the original caldera lake sedimentary package eroded south of the Montana Mountains. As a result, the thickness of the sedimentary package increases with distance from the Montana Mountains. The proposed open-pit mining activity is concentrated just south of the Montana Mountains in Thacker Pass where lithium enrichment is close to the surface with minimal overburden.

Caldera lake sediments of the McDermitt Caldera contain elevated lithium concentrations compared to other sedimentary basins. Although the exact genesis of the lithium enrichment processes is not fully understood, exploration activities have been based on the caldera lake model described above. Exploration results support the proposed model and have advanced the understanding of the geology of the Thacker Pass deposit.

Exploration

Prior to the 2010 drilling campaign, exploration consisted of:

Survey work was completed prior to 1980 under Chevron’s exploration program. Most of the Thacker Pass area has been surveyed by airborne gamma ray spectrometry, in search of minerals such as uranium. Anomalously high concentration of lithium was discovered to be associated with the caldera. Lithium became the primary focus of exploration from 2007 onward.

A collar survey was completed by LAC for the 2007-2008 drilling program using a Trimble Global Positioning System (“GPS”). At that time the NAD 83 global reference system was used. Comparing LAC’s survey work with that done by Chevron showed near-identical results for the easting and northings, elevations were off by approximately 3 m and were corrected in order to conform with earlier Chevron work.

The topographic surface of the Thacker Pass area was mapped by aerial photography dated July 6, 2010. This information was obtained by MXS, Inc. for LAC. The flyover resolution was 0.35 m. Ground control was established by Desert-Mountain Surveying, a Nevada licensed land surveyor, using Trimble equipment. Field surveys of drill hole collars, spot-heights and ground-truthing were conducted by Mr. Dave Rowe, MXS, Inc., a Nevada licensed land surveyor, using Trimble equipment.

In addition to drilling in 2017, LAC conducted five seismic survey lines. A seismic test line was completed in July 2017 along a series of historical drill holes to test the survey method’s accuracy and resolution in identifying clay interfaces. The seismic results compared favorably with drill logs, and illustrated that the contact between the basement (intracaldera Tuff of Long Ridge) and the caldera lake sediments (lithium resource host) slightly dips to the east.

A geophysical investigation of the subsurface materials was performed in 2023 using Electrical Resistivity Tomography (“ERT”) and Towed Transient Electromagnetic (“tTEM”) survey methods. The objectives of the investigation were to map the thickness of basalt and alluvium layers overlying the clay/ash materials, determine the depth of the basement, delineate potential faults the Montana Mountains, and differentiate between illite and smectite clays. Fifteen ERT test lines and 61 km of tTEM data were collected during this investigation. Further regional mapping of the Caldera has been conducted by the Nevada Bureau of Mines and used to outline the caldera moat sediments. Further work was undertaken with federal labs and universities to refine the geology and improve the genetic model of the Thacker Pass deposit.

Drilling

Three drilling campaigns have been performed by LAC. These campaigns were in 2007-2010, 2017-2018, and 2023. LAC’s drilling campaigns consisted of a combination of HQ, PQ, reverse circulation, and sonic coring and drilling methods.

In 2008, LAC drilled five confirmation HQ core drill holes (Li-001 through Li-005) to validate historical drilling across the Montana Mountains to guide further exploration work. These holes were not used in the resource estimation.

Each subsequent drilling campaign since the 2007-2010 drilling expanded the known resource to the northwest, east, south of the highway and further understanding of the local geology across Thacker Pass. All anomalous amounts of lithium occurred in clay horizons.

A total of 227 holes from the 2007-2010 campaigns, 135 holes from the 2017-2018 campaigns, and 94 holes from the 2023 campaign were used in the 2024 Mineral Resource estimate in the Reports.

The table below lists a summary of holes drilled.

Past and modern drilling results show lithium grade ranging from 2,000 ppm to 8,000 ppm lithium over great lateral extents among drill holes. There is a fairly continuous high-grade sub-horizontal clay horizon that exceeds 5,000 ppm lithium across the Thacker Pass area. This horizon averages 1.47 m thick with an average depth of 56 m down hole. The lithium grade for several meters above and below the high-grade horizon typically ranges from 3,000 ppm to 5,000 ppm lithium. The bottom of the deposit is well defined by a hydrothermally altered oxidized ash and sediments that contain less than 500 ppm lithium, and often sub-100 ppm lithium (HPZ). All drill holes except two, are vertical which represent the down hole lithium grades as true-thickness and allows for accurate resource estimation.

Sampling, Analysis and Data Verification

Sample Preparation

Drilled core was securely placed in core boxes and labelled at site. The boxes of drilled core were then transported to LAC’s secure logging and sampling facility in Orovada, Nevada, where they were lithologically logged, photographed, cut, and sampled by LAC employees and contractors.

Sample security was a priority during the drilling campaigns. Core from the drill site was collected daily and placed in a lockable and secure core logging and sampling facility (steel-clad building) for processing. All logging and sampling activities were conducted in the secured facility. The facilities were locked when no one was present.

The lengths of the assay samples were determined by the geologist based on lithology. From 2007 to 2011 certain lithologies associated with no lithium value were not sampled for assay. These rock types are alluvium, basalt, HPZ and volcanic tuff. All drilled core collected after 2011 was sampled for assay. Average assay sample length is 1.60 m but is dependent on lithology changes. The core was cut in half using a diamond blade saw and fresh water. Half the core was placed in a sample bag and the other half remained in the core boxes and stored in LAC’s secure facility in Orovada.

To collect duplicate samples, one half of the core would be cut in half again, and the two quarters would be bagged separately. Each sample was assigned a unique blind sample identification number to ensure security and anonymity. The samples were either picked up by ALS Global of Reno, Nevada (“ALS”) by truck or delivered to ALS in Reno, Nevada by LAC employees.

Once at ALS, the samples were dried at a maximum temperature of 60ºC. The entire sample was then crushed with a jaw crusher to 90% passing a 10 mesh screen. Nominal 250-gram splits were taken for each sample using a riffle splitter. This split is pulverized using a ring mill to 90% passing a 150 mesh screen.

Analysis

ALS was used as the primary assay laboratory for LAC’s Thacker Pass drill program. ALS is an ISO/IEC 17025-2017-certified Quality Systems Laboratory. ALS is an independent laboratory without affiliation to LAC.

ALS used their standard ME-MS61 analytical package for testing of all of LAC’s samples collected. This provides analytical results for 48 elements, including lithium. The method used a standard four-acid digestion followed by an atomic emission plasma spectroscopy (“ICP-AES”) analysis to ensure that elevated metal concentrations would not interfere with a conventional inductively coupled plasma mass spectroscopy (“ICP-MS”) analysis. Certified analytical results were reported on the ICP-MS determinations.

Quality Control Measures and Data Verification Procedures

In 2010-2011, for every 34 half core samples, LAC randomly inserted two standard samples (3,000 ppm grade and 4,000 ppm Li grade), one duplicate sample, and one blank sample. The 2017-2018 quality program was slightly modified to include a random blank or standard sample within every 30.5 m interval and taking a duplicate split of the core (¹⁄₄ core) every 30.5 m.

In 2023, LAC re-certified the 3,000 ppm grade standard, 4,000 ppm grade standard and purchased the OREAS 173 standard (1,000 ppm standard) for use in 2023 QA/QC program. In addition to the three standards, a blank standard and duplicates were also included in the 2023 QAQC program. Like the 2017-2018 program, a random blank or standard sample was included every 30.5 m interval and a duplicate split of the core (¹⁄₄ core) was taken every 30.5 m.

The total number of LAC blank, duplicate, and standard samples analyzed by the laboratory during LAC’s drilling campaign in Thacker Pass from the 2010-2011 drilling campaign was 9.5% of the total samples assayed. LAC’s 2017-2018 drilling campaign averaged 11.1% quality control samples out of the total samples assayed. LAC’s 2023 drilling campaign averaged 10.5% quality control samples out of the total samples assayed. Assaying for all drilling averaged 10.5% check samples. This does not include ALS internal check and duplicate samples.

ALS also completed their internal QA/QC program (“QA/QC”) which included blanks, standards and duplicates throughout LAC’s exploration programs for lithium and deleterious elements including aluminum, calcium, cesium, iron, potassium, magnesium, sodium and rubidium. The standards used by ALS and the ALS QA/QC programs have been reviewed by the “qualified person” (“QP”) and were utilized in the QA/QC review.

The 2010 sampling program was initially seeing a 6% failure rate of the QA/QC samples where 17% of the 4,000 Li standards were returning lithium grades exceeding three standard deviations of their tested median grade. ALS began using a new higher-grade lithium standard to improve the calibration of their inductively coupled plasma spectrometer. Following the improved calibration process, LAC selected the 16 highest lithium values from drill holes WLC-001 through WLC-037 and WLC-040 through WLC-200 to be re-assayed. The samples were sent to both ALS and Activation Laboratories (“ActLabs”) in Ancaster, Ontario, Canada for lithium assays. The re-assay grade for ALS and ActLabs was 5% and 3% lower than the original assay, respectively. It was concluded that the overall deposit estimate may be lower by at most 2% to 3%. For further assurance, ActLabs was chosen to run lithium assays on 112 random duplicate pulps generated by ALS in April 2011. The results were within 3% of ALS certified lithium grade.

The 2017-2018 and 2023 sampling programs had consistent quality control results for the duration of the campaigns. Duplicate samples returned with an R2 value of 0.9827 and 0.9944 respectively, indicating a high-level of precision in the sampling and laboratory techniques and supporting the validity of QA/QC protocols. The duplicate grades extend from 4 ppm lithium to 8,500 ppm lithium. In addition, the blank and standards sample quality programs indicated that the accuracy and precision of the analytical process provides results that can be relied on for resource estimation.

Data Verification

Excel formatted electronic files containing lithological descriptions, sample assays, hole collar information, and downhole surveys were provided to Sawtooth Mining, LLC (“Sawtooth Mining”) by LAC for the purpose of generating a geologic resource block model. Certified laboratory certificates of assays were provided in PDF as well as csv formatted files for verification of the sample assays database. Sample names, certificate identifications, and run identifications were cross referenced with the laboratory certificates and sample assay datasheet for spot checking and verification of data by the QP responsible for the relevant section of the Reports.

Geologic logs were consolidated from paper archives and scanned PDFs on LAC’s network drives. In 2016, each drill log was transcribed into a spreadsheet using the smallest lithologic interval identified in the log to create the highest resolution dataset possible. Subsequent geologic loggings of drill cores were entered directly into either an Access database or Excel spreadsheets. The data was then uploaded into LAC’s Hexagon Mining Drill Hole Manager database.

Geologic logs, Access databases, and Excel spreadsheets were provided to Sawtooth Mining for cross validation with the excel lithological description file. Spot checks between excel lithological description file were performed against the source data and no inconsistencies were found with the geologic unit descriptions. Ash percentages were checked in the lithological descriptions and a minor number of discrepancies were found in the ash descriptions. It was determined that less than 0.7% of the ash data contained discrepancies in the lithological description. The QP responsible for the relevant section of the Reports determined that this 0.7% database error rate was within acceptable limits but noted that it should be addressed in the future.

The QP responsible for the relevant section of the Reports located and resurveyed 18 drill holes using a hand-held GPS unit to verify the coordinates and elevations of the drill hole survey database. The surveyed holes matched the coordinates and elevation of the hole survey provided by LAC closely where the actual drill holes could be found.

The QP responsible for the relevant section of the Reports completed spot checks of the Excel assays datasheet used in the creation of the geologic block model by cross-referencing the assay data with the certified laboratory certificate of assays. Only HQ core holes were reviewed since HQ cores were the only holes used for the estimation of resources. No data anomalies were discovered during this check.

The QP collected samples during LAC’s 2022 auger bulk sampling program for independent verification of the lithium clay/ash grades. The samples were delivered to ALS in Reno, NV for processing and analysis. Distribution of the lithium grades from the independent verification shows distribution of grades similar to what has been reported from the drill core assays.

The shallow and massive nature of the Thacker Pass deposit makes it amenable to open-pit mining methods. Per uniaxial compression strength studies done by WorleyParsons (March 2018) and AMEC (May 2011), it was determined that mining of the ore clay body can be done without any drilling and blasting. Additionally, LAC was able to excavate a test pit without any drilling and blasting. Only the basalt waste material will require blasting. The mining method assumes hydraulic excavators loading a fleet of end dump trucks.

Mineral Processing and Metallurgical Testing

Extensive metallurgical and process development testing has been performed both internally at the Company’s facilities and externally with vendors and contract commercial research organizations. The main objective was to develop a viable and robust process flowsheet to produce battery grade lithium carbonate.

Ore Collection for Metallurgical Testing

The ore samples used for bulk metallurgical testing were collected by auger sampling campaigns from the proposed pit at the Thacker Pass deposit. Bulk sample holes were selected to spatially represent the Thacker Pass deposit, targeting both high and low lithium contents and the life of mine mineralogy of both clay types illite and smectite. Clay types are defined by taking the ratio of assayed magnesium value in a sample and dividing by the lithium assayed value. A sample with a ratio of Mg:Li greater than 20 is considered smectite. A sample with a ratio of Mg:Li less than or equal to 20 is illite. Ore was transferred from the auger into bulk bags, and each bulk bag contained approximately 0.9 metric tonne of material.

Metallurgical Test Work - Beneficiation

The beneficiation area of the plant consists of the following circuits:

The beneficiation flowsheet is designed according to the physical properties of the Thacker Pass deposit. Namely, lithium is primarily located in clays which are intermixed with non-lithium containing minerals, referred to as “coarse gangue”. This is confirmed by analysis of ore samples via Sensitive High Resolution Ion Microprobe (“SHRIMP”), where lithium concentration is as high as 1.81 wt.% in the clay regions located in the boundaries of detrital grains.

Note that this beneficiation flowsheet is analogous to that used in phosphate mining operations where phosphate rock (product) is separated from clay (waste). The Thacker pass flow sheet utilizes a similar process except clay is the product while rock (gangue) is the waste. Individual equipment was tested and demonstrated to be effective for the purposes of clay recovery and coarse gangue rejection of Thacker Pass ROM ore.

The beneficiation area of the process has been tested to collect performance data for key pieces of equipment. Over 45,000 lbs of Thacker Pass ore have been processed through a large-scale pilot that included a production scale cyclone. The circuit has been shown to be effective for clay liberation and separation from coarse gangue, with clay recovery ≥ 90% during testing. A lithium (i.e. clay) recovery of 92% is assumed for the process plant. The dewatering section (thickener, decanter centrifuge) can produce a clay concentrate at approximately 55% solids. This has been verified at pilot scale by other tests.

For design purposes, it is assumed that coarse gangue rejection corresponds to ash content of ROM ore as test work has shown they are correlated. Ash content has been logged for all areas of the pit as part of the geological characterization. Design criteria for thickener sizing, underflow density, and flocculant consumption have also been specified based on test results.

Leaching and Neutralization

The clay concentrate product from the classification circuit is repulped in process brine and directed to the leach circuit. Lithium contained in the clay is solubilized with sulfuric acid in agitated leach tanks. After leaching, excess acid is neutralized with limestone and recycled magnesium hydroxide prior to brine recovery and filtration of the neutralized slurry.

Through years of leach testing with both smectite and illite clays from the Thacker Pass deposit, LAC has established a fundamental understanding of key variables such as temperature, kinetics, and acid dose. A leach model has been established that correlates incoming leach feed composition to the lithium extraction at design conditions (3h residence time, 0.49 kg acid/kg solids) with good accuracy (R2 = 86.5%). This model serves as the basis for mine planning. Over 40 samples of optimized mine plan ore have been leached at design conditions and show good agreement with the lithium leach extraction correlation. The average lithium leach extraction is predicted to be 92.5%.

Continuous leaching and neutralization testing incorporating recycle streams has shown no deleterious effects on the leach performance and that no contamination buildup occurs. Design criteria for leach extraction, equipment sizing, and reagent consumptions have been specified based on test results. Leach tests continue at the LiTDC to try and further optimize acid efficiency.

Countercurrent Decantation

Neutralized slurry flows to the countercurrent decantation (“CCD”) circuit which is comprised of eight thickeners in series. The slurry flows to CCD1 while wash water is added to CCD8. Through countercurrent mixing and settling, the net effect is that wash water displaces the brine portion of the slurry to the front of the circuit (CCD1) for recovery, while the slurry at the end of the circuit (CCD8) is essentially leftover solids and fresh water. Initial scoping work demonstrated that neutralized slurry could be thickened to underflow densities of approximately 32% solids using anionic flocculant and that eight stages of CCD were estimated to recover about 99% of brine.

Multiple testing campaigns, both internal and external, have shown that neutralized slurry can be settled in various CCD stages to acceptable underflow densities. With eight total stages, fluctuation in the underflow density has minimal impact on washing efficiency, thus the system is robust and able to accommodate some fluctuation without a detrimental performance impact. Design criteria for equipment sizing, reagent consumptions, and operating conditions have been specified based on test results.

Neutralized Slurry Filtration

After CCD, the neutralized slurry is filtered in membrane filter presses, with the objective to generate a dry cake suitable for stacking in the clay tailings filter stack (“CTFS”). The filtrate (i.e. water) is recycled back to CCD as wash solution. Hundreds of filtration batches have been performed by LAC on a pilot scale membrane filter press. Filter cakes produced are consistently uniform, friable, and with 35 to 40% moisture content as measured drying at 105°C.

It has been shown that plate and frame filter presses are very effective for solid-liquid separation of neutralized slurry. As a result of using CCD for brine recovery instead of in-press cake washing, filtration rates have substantially increased. The cakes are suitable for dry-stacking and have favorable release properties from the filter cloths. Generally, it is accepted that clays are difficult to filter. However, after leaching the clay properties are substantially altered and become amenable to filtration.

Design criteria for equipment sizing, filtration cycles, and operating conditions have been specified based on test results. Filtration rates include feeding time and nominal mechanical time applicable for full-scale equipment. Lithium recovery in the CCD and filtration circuit is calculated based on design criteria and ranges between 98.5% to 99.5%.

Magnesium and Calcium Removal

Brine recovered in CCD is fed to the magnesium sulfate crystallization circuit, where most of the magnesium is removed in crystallizers. The circuit is designed to remove as much magnesium as possible in the form of hydrated magnesium sulfate salts (MgSO₄*xH₂O where x varies with temperature). A critical aspect of magnesium sulfate crystallization is to avoid lithium losses to the salts, because at a threshold concentration of lithium and potassium in solution, lithium can form a double salt with potassium. Therefore, understanding the LiKSO₄ phase boundary limit is essential to operate the magnesium crystallizers effectively. LAC, with the assistance of a research partner, has mapped this boundary using in-situ real time monitoring tools during crystallization of brine solutions. LAC now has a custom phase diagram specific to Thacker Pass brines which serves as a thermodynamic operating basis.

Extensive bench and pilot scale testing of the magnesium sulfate crystallization system has been performed by Aquatech International Corp. (“Aquatech”), who is providing the crystallization packages for the Thacker Pass project. Optimum conditions have been identified to maximize magnesium removal while avoiding lithium losses. Crystallizer sizing and target design conditions have been incorporated into the flow sheet per their test results and recommendations. A continuous pilot scale campaign of the magnesium sulfate crystallization has also been performed at the LiTDC and demonstrated successful removal of MgSO₄*xH₂O salts while avoiding lithium losses.

The precipitated magnesium salts are removed and washed via centrifugation and conveyed to the CTFS, while the filtrate is processed downstream.

The MgSO₄ crystallization system has been extensively tested both internally at the LiTDC and externally with the selected crystallizer technology provider for Thacker Pass (Aquatech ICD). Test work has repeatedly shown the system can be operated to remove ~75% of magnesium in the brine while avoiding lithium losses to crystals. The data coupled with fundamental thermodynamic phase diagrams has yielded design setpoints and equipment specification. Evaporator seeding has also proven effective to minimize scaling risk and will be implemented at site.

The chemical precipitations of both magnesium (with Ca(OH)₂) and calcium (with Na₂CO₃) have been investigated and are well understood. Reagent additions, operating conditions, and equipment design are all based on data collected. Filtration of the magnesium hydroxide slurry will be done with chamber filter presses where the equipment specifications are based on pilot testing.

The brine polishing step with ion exchange has also been evaluated. Optimum resins have been identified for each area and the performance over multiple cycles has been confirmed. Process design criteria for this section of the plant were developed from the data.

The only lithium loss in this section of the process comes from lithium contained in the mother liquor surrounding the crystals. Crystals are washed prior to discharging from the centrifuge and therefore lithium recovery is a function of solution chemistry and centrifuge wash efficiency. Wash efficiencies are estimated based on equipment performance in similar industrial applications. Lithium recovery is expected to be between 98.5-99.8%.

Lithium Carbonate Production

The brine feeding the lithium carbonate (Li₂CO₃) purification circuit primarily contains lithium, sodium, and potassium sulfate. The objective is to produce high quality battery grade lithium carbonate.

The Li₂CO₃ purification circuit is comprised of three stages: primary Li₂CO₃ crystallization, bicarbonation, and secondary Li₂CO₃ crystallization. Each stage has been tested and designed by Aquatech ICD. In the 1st stage, soda ash (Na₂CO₃) is added to the brine in stoichiometric excess to precipitate Li₂CO₃ and form crystals. The crystals collected in this first stage require purification to achieve battery quality (greater than 99.5 wt.%).

The Li₂CO₃ crystals collected from the 1^st stage are re-slurried with water and then transferred to a reactor where carbon dioxide (CO₂) gas is continuously metered at controlled temperature and pressure. This reaction converts Li₂CO₃ to highly soluble lithium bicarbonate (LiHCO₃). Solid impurities are then removed in a filtration step.

The filtered brine is fed to a 2nd stage reactor, where it’s heated to thermally degas CO₂ and precipitate battery quality Li₂CO₃. After separating and washing the crystals, the product is sent to packaging and the solution is recycled back to the circuit.

The Li₂CO₃ crystallization system has been extensively tested both internally at the LiTDC and externally with the selected crystallizer technology provider for Thacker Pass (Aquatech ICD). Test work has repeatedly shown the system can produce battery quality lithium carbonate. Additionally, the Zero Liquid Discharge (“ZLD”) system has been shown to effectively remove Na and K as sulfate salts without crystallizing lithium. Detailed kinetic studies of the bicarbonation system have validated the design of the Li₂CO₃ to LiHCO₃ conversion equipment. Data from these testing campaigns has been used to design equipment, estimate reagent consumption, and specify final operating conditions for the commercial design.

Process design criteria and equipment design for final product handling stages, namely drying, cooling, and packaging have also been developed from test data.

Lithium loss in this area is from lithium contained in the mother liquor surrounding the ZLD crystals. These crystals are not washed because the mother liquor also serves as a purge stream. Lithium recovery from Li₂CO₃ Production ranges between 95% to 98% and is a function of solution chemistry.

Tailings

Numerous geotechnical tests have been completed on tailings material generated from the LiTDC. Based on this testing, stability analysis modeling has shown a stable landform can be constructed when the tailings are compacted near optimum moisture content. To achieve a stable landform, technical specifications have been prepared which identify the moisture content and compaction requirements of the tailings.

Metallurgical Test Work Conclusions

Since 2017, LAC has performed extensive metallurgical and process development testing, both internally and externally. Pilot testing of all unit operations has been performed at the appropriate scale and with representative materials from the proposed mine plan to ensure successful scale-up. Beneficiation was pilot tested at the size necessary to collect performance data on a commercial size cyclone. Physical solid/liquid separations with cyclones can be difficult to model, and thus large-scale testing is needed to minimize scale-up risks. In this case, risk is minimized by simply “numbering up” the cyclones instead of scaling up.

Other areas including leaching, neutralization, chemical precipitations, and crystallization were piloted at smaller scale as these are based on thermodynamics and chemical equilibria that are not dictated by scale of equipment. Rather, scale-up design is based on physical considerations like mixing, physical properties, residence times, etc. Scale-up testing by vendors was performed by standard methods and equipment deemed appropriate for those areas. Physical property data has also been generated for key process streams (e.g. rheology, densities and phase equilibria).

Owing to the large change in volume through the process, LAC chose to break the pilot plant into three sections enabling operation at the appropriate scale for testing. By careful selection of the break points, all areas that include recycle streams have been run continuously and fully integrated to assess any impacts. For example, there are no interconnected recycle streams connecting Li₂CO₃ to leach and therefore it is not required to have these circuits pilot tested in series at the same time. The Li₂CO₃ recycle streams are all internal to the circuit and the complete system has been extensively tested. This strategy has allowed for collection of critical information of connected systems and recycle stream impacts without running an end-to-end demonstration plant. Additionally, the developed flow sheet only includes equipment that has been historically proven in mining and chemical operations worldwide. The intent is to minimize risk of “first-of-kind” technology and leverage industry experience.

All relevant data and design criteria have been incorporated into the process modelling software Aspen Plus^® to generate a steady-state material and energy balance.

The table below summarizes the expected ranges of lithium recoveries from the ore types that could be encountered in the mine plan and the mineral and chemical processing steps to produce lithium carbonate. These design ranges were calculated from the Aspen Plus^® model. Overall recovery of lithium is expected to range between 74.6% to 86.8% with an average of 80.6%.

Lithium Recovery by Process Step

Mineral Resource and Mineral Reserve Estimates

The unpatented mining claims owned by LAC in the Montana Mountains are not part of Thacker Pass.

Only HQ core samples subject to LAC’s QA/QC programs and assayed by ALS Reno, Nevada, were used to estimate the resource.

456 drill holes were used in the development of the resource block model. All drill holes used for the grade model except WLC-058 are essentially vertical (88.8 degrees to 90 degrees). Regular downhole gyro surveys were conducted to verify this. All mineralization thicknesses recorded are treated as true thicknesses.

All drill holes used for grade estimation were standard HQ core. Core is stored at a secure logging facility while being processed, then locked in CONEX containers or a warehouse after sampling was completed.

Geological Domains

Geological domains were created based on lithology in order to capture the variations in chemical distributions and heat alteration of the clays and the waste material types. A list of the domains in downhole order is detailed in the table below along with the average thickness of each domain. In general, the thresholds noted in the table below were applied to help define the lithological domaining in the database, however, there were some interpretations based on surrounding holes where the thresholds did not provide a definitive segregation of domains. The smectite and illite domains are the Lithium rich domains that were included in the Mineral Resource estimate.

Lithological Domains

Notes:

Geological Model

A Vulcan ISIS database was designed and populated with raw geologic data from Excel datasheets containing drill hole assays, collars, lithological, and survey data. The data files were compiled and verified by the QP responsible for the relevant section of the Reports, from the supporting files provided by LAC provided. The domains were added to the lithological and assay data files as described above.

The topography surface used in the geological model was a lidar surface that was provided by LAC in 5 ft contours. The lidar surface was compared against the drill hole collar values where most drill hole collars were within +/- 5 ft of the lidar surface. Select drill holes that were within a WLC test pit were about 20 ft off from lidar as the drill holes were drilled prior to the test pit and the lidar was flown after the test pit was constructed.

Triangulated surfaces for the Alluvium, S2, S1, I3, I2, I1, Hot Pond Zone and Tuff intervals were created in Maptek’s Vulcan software. In areas where there was not a lot of drill hole data, a thickness triangulation was utilized to ensure that the thickness of the intervals followed geological trends. Due to secondary uplift of the TMS units, the Tuff surface was used as a trend surface for the overlying units.

Four basalt flows were correlated based on drill hole data and the 2023 geophysical survey results. Triangulated solids for the four basalt flows were created in Maptek’s GeologyCore—Vein Modeler.

From the geological surfaces, unfolding specifications were created in Vulcan for 10 different zones. Two unfolding specifications were created for variogram analysis: smectite and illite. While the remaining eight unfolding specifications were created for grade interpolation: Alluvium, Smectite 2, Smectite 1, Illite 3, Illite 2, Illite 1, HPZ, and Tuff.

Compositing Assay Data

A composited database was created from the raw ISIS database. A compositing run length of 5 ft was chosen based on most of the samples being taken at 5 ft intervals and wanting to have approximately three composite samples per 15 ft block height. During the creation of the composited database, the geological domains were used to separate the samples from each domain into separate composite values. During the compositing routine, the number of samples increased to 30,293 from 26,768 due to splitting some of the larger samples into 5 ft composites. The maximum sample length of the composite database is 6 ft where it is 33 ft in the raw database

Outliers and Grade Capping

High-grade outliers were managed through the compositing routine. The highest lithium grade of 8,850 ppm in the raw database was reduced to 8,690 ppm after the database compositing routine. No grade capping was performed for this dataset since the nugget effect is low in this stratified deposit.

Variography

Variograms were constructed for the smectite and illite domains and utilized for interpreting grade into the respective domains. The smectite variogram utilized composite data from S1 and S2, while the illite variogram utilized composite data from the I1, I2, and I3. Generating variograms by lithology group allowed for the variograms to have more data and to show a better representation of the data.

A fan diagram analysis was completed in Vulcan for both the smectite and illite domains. Based on the fan diagrams, a major direction of 135° and a semi-major direction of 45° was chosen for both the smectite and illite variograms.

The unfolded specifications for smectite and illite were used during the creation of the variograms to search for data as structural variations occurred throughout the Thacker Pass deposit.

Block Model Parameters, Grade Estimation, Ash and Density

A block model was created using Maptek’s Vulcan 3D subsurface geologic modeling software. A sub-blocked block model with a parent block size of 75 ft x 75 ft x 15 ft and a minimum sub-block size of 25 ft x 25 ft x 5 ft was generated. The block model was sub-blocked in order to have tighter definition along the lithology contacts.

The In Situ tonnages, Run of Mine (“ROM”) tonnages and Extractable tonnages were added to the block model in order to accurately account for the different tonnage types. Imperial and Metric tonnages and volumes were carried in the block model along with wet and dry tonnages to allow for the flexible reporting for the mine plan schedule (imperial), metallurgical recovery processes (metric), and cost model (metric). The equations were setup in a single Vulcan Block Calculation File (“BCF”).

The ash percentage originated from the geologist’s logs where a percentage of ash was estimated through visual inspections at the time of geological logging. The recordings were logged by the geologist in the lithological table. The estimated ash percentage was then brought into the Vulcan ISIS database in the lithology table where it was utilized to create 5-ft composite samples.

The ash composite samples were then estimated into the Vulcan block model for the domains using the inverse distance squared interpolator. The waste domains were interpolated using one pass, while the smectite and illite domains were interpolated using four passes.

Average densities were included in the block model calculations. In order to account for the density appropriately, the ash percentage in the block model was utilized to weight average the clay and ash density average values for dry bulk density, wet bulk density, and moisture. The Smectite 2 and Illite 1 domains have the highest ash values for smectite and illite, correspondingly, these two domains have the lowest density values for smectite and illite, respectively. Additionally, Illite 2 has the lowest ash value and the highest density value for illite.

Mining recoveries were applied to the ROM and Extractable tonnages on a block by block basis. However, only In-Situ tonnages were reported for the Mineral Resource estimate. ROM and Extractable tonnages were utilized during mine planning and the Mineral Reserve estimate.

Plant process recovery factors and equations were provided by LAC and applied to the block model. For the purposes of the Mineral Resource pit optimization and economic resource pit-shell, an average recovery of 73.8% was provided by LAC and then rounded down to 73.5%. This average value was utilized instead of the individual block metallurgical values to determine the cutoff grade for resources and the economic pit shell. As noted previously, smectite has a lower mean recovery than illite

Cutoff Grade and Pit Optimization

For the determination of reasonable prospects for eventual economic extraction, the QP for the relevant section of the Reports utilized a cutoff grade (“CoG”) for lithium ppm with inputs from the table below and the following equation. The values below are based on the Exhibit 15.1, “Preliminary Feasibility Study S-K 1300 Technical Report Summary for the Thacker Pass Project Humboldt County, Nevada, USA,” effective December 31, 2022, and the report entitled “Feasibility Study, National Instrument 43-101 Technical Report for the Thacker Pass Project, Humboldt County, Nevada, USA” effective as of November 2, 2022 (together, the “2022 Reports” and have been escalated to Q2-2024 dollars.

Based on the Q2 2024 Benchmark pricing forecast, the average long term Lithium price was $29,000/tonne.

Cutoff Grade Inputs

Notes:

A resource constraining pit shell has been derived from performing a pit optimization estimation using Vulcan Software. The pit optimization utilized the inputs in table below and the lithium cutoff grade of 858 ppm Li to determine the constraining resource pit shell.

In addition to the costs detailed in the table below, in areas where the Mineral Resources lie underneath the processing plant or waste disposal areas, costs that would be required for the removal of those items were included in the evaluation of the Mineral Resource pit.

The Mineral Resource pit is only within the BLM mining claims and private property that LAC has rights to.

Pit Optimizer Parameters

Notes:

Mineral Resource Estimates

The statement of Mineral Resources for Thacker Pass as of December 31, 2024 are presented in the table below. Mineral Resources are reported exclusive of Mineral Reserves in accordance with S-K 1300.

Mineral Resources Estimate as of December 31, 2024 as Reported under S-K 1300

Notes:

The statement of Mineral Resources for Thacker Pass with an effective date of December 31, 2024 are presented in the table below. Mineral Resources are reported inclusive of Mineral Reserves in accordance with NI 43-101.

Mineral Resources Estimate effective as of December 31, 2024 as reported under NI 43-101

Notes:

Potential risk factors that could affect the Mineral Resource estimates include but are not limited to large changes in the market pricing, commodity price assumptions, material density factor assumptions, material ash estimations, fault mapping, future geotechnical evaluations, metallurgical recovery assumptions, mining and processing cost assumptions, and other cost estimates could affect the pit optimization parameters and therefore the cut-off grades and Mineral Resource estimates.

The Mineral Resource Estimate is based on a cutoff grade analysis, an optimized pit shell, and drill hole spacing based on geostatistical analysis. The Mineral Resource was also assessed where it was estimated under major infrastructure such as waste piles and the plant.

Mineral Reserve Estimates 

This section contains forward-looking information related to the Mineral Reserves estimates for the Thacker Pass deposit. The material factors that could cause actual results to differ from the conclusions, estimates, designs, forecasts, or projections include geological modeling, grade interpolations, bulk density values, lithium price estimates, mining cost estimates, and final pit shell limits such as more detailed exploration drilling or final pit slope angle. The reference point at which the Mineral Reserves are defined is at the point where the ore is delivered to the run-of-mine feeder. Reductions attributed to plant losses have not been included in the Mineral Reserve estimate.

The Mineral Reserve estimate relies on the resource block model prepared by the QP responsible for the relevant section in the Reports.

Geological Block Model

The Mineral Reserve estimate relies on the resource block model prepared by the relevant QP. The block model had geological domains applied based on lithological type and grade. The domains in the block model include Alluvium, Smectite - S1 and S2, Illite - I1, I2 and I3, Hot Pond Zone, Tuff, and Basalt. The smectite and illite clay and ash zones are the Lithium rich domains within the Thacker Pass deposit and were the domains included in the Mineral Resource estimate. The waste zones include Alluvium, Hot Pond Zone, Tuff, and Basalt.

The block model was generated in Maptek’s geological software package and includes fields for geological domain, Mineral Resource classification, density, moisture, elemental values, in situ tonnages and volumes, ROM tonnages, extractable tonnages, and metallurgical recovery. The extractable tonnages and metallurgical recovery are based on recovery equations developed by LAC through material testing at the LiTDC. All equations have been applied to the entire block model and take into consideration the individual block’s elemental values, ash values and lithology.

Extractable Lithium and Metallurgical Recovery Factors

LAC used a set of equations to estimate the metallurgical recovery of lithium based on ash content, magnesium grade, and lithium grade, extractable lithium tonnage, and other important factors for determining waste tonnages. Imperial and Metric tonnages and volumes were carried in the block model along with wet and dry tonnages to allow for the flexible reporting for the mine plan schedule (imperial), metallurgical recovery processes (metric), and project cost model (metric).

Cut-off Grade

The Mineral Reserve pit is substantially larger than the pit utilized for the previous technical report. This change in size is due primarily to the LAC business decision to allow for the 2024 Mineral Reserves to extend outside of the currently permitted pit. In determining where the pit would be allowed to extend, a cut-off grade analysis, pit optimization routines, stripping ratio maps, waste tonnage amounts per pit area, and planned infrastructure locations were considered.

Two types of cutoff grades for the pit optimization were utilized in order to create the ultimate pit that will be utilized for the mine plan and Mineral Reserves. The two cutoff factors are:

The lithium cutoff grade is the same as the Mineral Resource cutoff grade of 858 ppm Li. A second cutoff factor was based on the pit optimization analysis. This resulted in the application of the cutoff factor of 15 Kilograms of Extracted LCE per Leach Ore for pit optimization. In the 2022 Reports, the cut-off factor utilized Extracted Lithium and ROM Total Feed. However, in the current Mineral Reserve estimate, the Kilograms of Extracted LCE per tonne of Leach Ore cutoff factor was utilized to evaluate the blocks. The 2024 cut-off factor is based on how much LCE could be produced per Leach Ore tonne. With the 2024 factor, utilizing the LCE recovered allowed for the incorporation of the Metallurgical Recovery into the cut-off factor considerations. Which allows the equation to focus on the material quantities after Attrition Scrubbing.

Pit Optimization

The pit optimization routine for the Mineral Reserve estimate has been completed in several passes. In the first pass, a reserve constraining pit shell was derived by performing a pit optimization estimation using Vulcan Software. The pit optimization utilized the inputs as follows:

The first pass of the pit optimization did not utilize the Kilograms of Extracted LCE per Leach Ore cutoff factor, but was rather an attempt to have a complete set of blocks that could be considered for Mineral Reserves.

Based on the Q2 2024 Benchmark pricing forecast, the average long term Lithium price was $29,000/tonne. The QP has relied on LAC to provide this price, but is in agreement with the long term forecast price for the use in pit optimization activities. The final long range price forecast that is being used for the determination of Mineral Reserves is based on $24,000/tonne.

Pit Optimizer Parameters

Note:

Plant Capacities and Mine Plan Considerations

The mine plan is based on four plants at a leach ore feed rate to provide 40,000 LCE tonnes per plant. The 5th plant is for acid only production. Each of these plants comes online in different years. The mine plan resulted in an 85-year mine life with a total plant leach ore feed of 611.8 million dry tonnes. Leach ore feed tonnes are the ROM dry tonnes less the ash tonnes.

The cutoff factor varied annually in the mine plan to achieve the required LCE’s while controlling total tonnes mined. The cutoff factor varied from a minimum of 7.5 kg of LCE recovered per tonne of leach ore feed and a maximum of 26 kg LCE recovered per tonne of leach ore feed. For the first 25 years of the mine plan, the cutoff factor averaged 17.2 kg LCE recovered per tonne of leach ore feed to provide higher economic returns during the high capital intensity years of plant building. In years 26-85, the cutoff factor decreased to an4 average of 12.3 kg LCE recovered per tonne of leach ore feed to increase the recovery of the remaining Mineral Resources.

Dilution and Mining Recovery

The block model is a sub-blocked model with a parent block size of 22.9 m x 22.9 m x 4.6 m (75 ft x 75 ft x 15 ft) and a minimum sub-block size of 7.6 m x 7.6 m x 1.5 m (25 ft x 25 ft x 5 ft). The block model was sub-blocked to have a tighter definition along the lithology contacts.

For this analysis, the QP has assumed that there will be a 2.5% loss on the top and bottom of the ore zones (5% total) in an effort to clean the contact zones between domains. This analysis has not considered adding dilution into the mine plan due to the loss that is being applied

Waste

Waste consists of various types of material: basalt, alluvium, tuff and clay that does not meet the ore definition or the cut-off grade described above.

Stripping Ratio

The resulting stripping ratio of the final Mineral Reserve pit is 5.3 tonnes of waste rock with 5% ore loss included to 1 tonne of recovered ore with stockpile reclaim included.

Mineral Reserve Estimates

The statement of Mineral Reserves for Thacker Pass as of December 31, 2024 are presented in the tables below.

Mineral Reserves Estimate with an effective date of December 31, 2024 as Reported under S-K 1300

Notes:

Mineral Reserve Estimate with an effective date of December 31, 2024 as reported under NI 43-101

Notes: