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A Diversified Industrial Minerals Company
May 16, 2014
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Except for statements of historical fact, the information contained herein constitutes “forward-looking statements” within the meaning of the United States Private Litigation Reform Act of 1995 or “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking statements in this presentation include, but are not limited to, statements with respect to the merits of the properties of RB Energy Inc. (“RBI”), RBI’s plans for its business and properties, projected production from RBI’s properties, expected revenues and operating costs and timing with respect to RBI’s plans for its properties. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements relate to future events or future performance and reflect RBI’s expectations regarding the future growth, results of operations, business prospects and opportunities of RBI. These forward-looking statements also reflect RBI’s current internal projections, expectations and beliefs and are based on information currently available to RBI.
Forward-looking statements are predictions based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause the actual events or results to differ materially from those projected in the forward-looking statements. These factors include, but are not limited to, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in cost and timing estimates, political risks, fluctuating commodity prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Assumptions upon which forward-looking statements are based include the accuracy of RBI’s mineral reserve and mineral resource estimates and the viability, expansion and development of RBI’s mineral projects, as well as financial predictions premised on such assumptions. Except as required by applicable securities laws, we undertake no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Forward-Looking Statements
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Information Concerning Estimates of Mineral Reserves and Resources
NI 43-101 DISCLOSURE
The mineral reserve and resource estimates reported in this presentation were prepared in
accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects
(“NI 43-101”), as required by Canadian securities regulatory authorities. For United States
reporting purposes, the United States Securities and Exchange Commission (“SEC”) applies
different standards in order to classify mineralization as a reserve. In particular, while the terms
“measured,” “indicated” and “inferred” mineral resources are required pursuant to NI 43-101, the
SEC does not recognize such terms. Canadian standards differ significantly from the requirements
of the SEC. Investors are cautioned not to assume that any part or all of the mineral deposits in
these categories constitute or will ever be converted into reserve. In addition, “inferred” mineral
resources have a great amount of uncertainty as to their existence and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under Canadian securities laws, issuers must
not make any disclosure of results of an economic analysis that includes inferred mineral resources,
except in rare cases.
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Corporate Summary
MANAGEMENT
Richard P. Clark - President & CEO
Alessandro Bitelli – CFO
Kevin Ross – COO
Hugh Stuart – VP Exploration
Brendan Pidcock – VP Mining
Mike Robinson – GM Quebec Lithium
Cristian Castillo – GM Aguas Blancas
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TSX:RBI $0.67 OTCQX: RBEIF $.060 Market Capitalisation $154.7 As at May 16, 2014
• Management has strong market following (ex Red Back Mining) • Proven track record in increasing shareholder value • Accomplished operators
Quebec Lithium (Val D’Or, Canada)
*Projected annual production 20,000 tonnes Li2CO3
Production cost ~ 3,200 – 3,900 $/ t Li2CO3
Sodium Sulfate by-product
~75% production secured in off-take agreements
Potential for Lithium-hydroxide & Lithium Metal
Projected annual production +2,000 tonnes I2 from 2015
Production Costs ~27-35 $/I2 kg Inventory 800 tonnes
Feasibility of Nitrate production expected Q2 2014
Head office Vancouver, Canada
RB Energy Inc. has assets in two of the top three most friendly mining
jurisdictions
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Americas Based Industrial Minerals Producer
Aguas Blancas (Antofagasta, Chile)
*2012 Feasibility Study
Quebec Lithium, Canada
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Quebec Lithium Project Location Favourable location with access to nearby infrastructure
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Canada Lithium
Québec
N
Located near Val d’Or Quebec • Established mining district
• Stable jurisdiction, low political risk
Easy access to nearby infrastructure • Paved highway access
• 60 km north of Val d’Or (Year round access to airport and supply)
• 550 km north of Montreal
• Rail access
• Grid power within 1.5km
(4.8 cents/kWh)
• Natural Gas connection ~ 2014
Quebec Lithium Project Highlights
RB Energy’s 100% owned Quebec Lithium project will be a mid-level Lithium Carbonate producer with ~12% of the world market
Projected annual production rate ~ 20,000 t/year of Lithium Carbonate. Potential capacity for 30,000 tonnes of sodium sulfate
75% of production has been secured in off-take agreements. (Tewoo & Marubeni)
Commissioning underway
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Quebec Lithium Reserves and Resources November 2011
Tonnes (millions)
Lithium Carbonate
(Li2CO3 in %)
Reserves
Proven 6.6 0.92
Probable 10.5 0.95
Total1 17.1 0.94
Resources
Measured 6.91 1.18
Indicated 26.33 1.19
Total Measured & Indicated2 33.24 1.19
Inferred Resource 13.76 1.21
1 Reserve – (0.6% Li2CO3 Cut-off)
• Mineral reserves detailed in this table are included in total mineral resources
2 Resource • 1. CIM definitions were used for Mineral Resources • 2. The cut offs applied are 0.80% Li2O for all classes • 3. The reported resources are rounded to nearest 10,000 tonnes and 0.01 % Li2O • 4. These resources have been depleted for historical mining. • 5. Material estimated to be remaining in stopes is accounted for. • 6. These are total mineral resources before mineral reserves estimated.
Reserves & Resources
Successful Mine Development
Mine and plant commissioning ongoing (V’al d’Or, Que)
*Projected Opex $3,200 per tonne Li2CO3 vs. $5,500-$5,800 market
Discovery to production: 6 years vs. industry avg. 10 years
Design rate of 20,000tpa scheduled for Q4-2014
World Class Producer
~12% of world’s lithium carbonate supply: >20,000 tonnes/year
75% of production secured in off-takes with Tewoo and Marubeni
Project EBITDA $50M to $75M scheduled 2015/16
Lithium carbonate market remains robust vs. other metals
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Quebec Lithium Mine
*2012 Feasibility Study
Projected Revenues & Operating Costs
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Operating Costs
Description Lithium Iodine
Production Cost 2014-2019 3,200-3,900 $/t Li2CO3 27-35 $/i2 kg
Total Production Life of Mine ~250 Ktonnes Li2CO3 ~30 KTonnes of i2
RB Energy Inc. Expected Revenues
0
100
200
300
2014 2015 2016 2017 2018 2019
Rev
enu
e M
$
Energy Storage Revolution Under Way
Lightest metal with highest energy density
Currently used in:
<30% of worlds batteries
>90% of portable electronics
Over 25 lithium battery chemistries available
Tesla S extended range >450km
80% charge < 20 minutes
Competing technologies
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Three Major Markets in Growth Mode
Consumer
Electronics
• Li-ion batteries have captured nearly 100% market share • Sole battery technology in portable application in 5-10 years • Prices dropping steadily • Applications migrating to larger devices (lawnmowers, wheelchairs)
Smart Grid
Storage
• Industrial-scale storage for solar and wind power farms (50+MW) • AES bidding on 400MW storage facility for Long Island, NY • Smaller scale community energy storage: growth opportunity
Electric
Vehicles
• VW publicly states its intention to be the world EV leader by 2018 • 45 hybrid models and 15 EVs now available • Lithium batteries now used in all HEV and EV vehicles • GM, Nissan post record EV sales in August 2013 • HEV’s now 20% of vehicle sales in Japan…China next • 130 million E-bikes on Chinese roads (only 4% lithium powered)
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Lithium Carbonate Applications*
Laptop 30g
E-bike/scooter 500g
Hybrid cars 6kg
Plug-in hybrids 12kg
40 kWh EV 24kg
120 kWh community energy storage 50kg
1 MW bulk storage (est.) 600kg
*GM conversion factor: 0.6kg of lithium carbonate per kWh for hybrids, plug ins and EVs
Lithium Battery Cost and Battery Revenue Forecasts*
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*IHS iSuppli Rechargeable batteries Special Report, August 2011
0
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
Lith
ium
Car
bo
nat
e E
qu
ival
en
t (t
on
ne
s)
*Taken from Euro Pacific Lithium Industry Report August 14, 2011
Lithium Supply by Country
Others
United States
Argentina
Chile
Canada
Australia
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Lithium Market
Batteries, 24%
Glass, 25%
Ceramics, 9%
Alloys, 17%
Others, 25%
Lithium Carbonate Price Lithium Supply by Country
Lithium Demand End Uses Global Lithium Consumption 2012
Source: TRU Group – Jan 2013
$-
$2,000
$4,000
$6,000
$8,000
$10,000
Pro
du
ct P
rice
(Li
2CO
3$/
ton
ne)
*All data taken from Euro Pacific Lithium Industry Report published August 14, 2013
Lithium Carbonate Price
Technical - 99% Battery Grade - 99.5%
From Ore to Lithium Carbonate: Stage 1
Flotation Circuit
Open-Pit Mine
3-Stage
Crushing Circuit
2-Stage
Grinding
Circuit
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Kiln
From Ore to Lithium Carbonate: Stage 2
Leach Solution
Purification
Soda Ash
Neutralization
Filter
Sulphation
Kiln Product
Ion Exchange
Bicarbonate
Precipitation
Packaging
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Aguas Blancas, Chile
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Aguas Blancas Iodine Mine
Located in the Atacama Desert of northern Chile 100 km SE of major port city of Antofagasta 170 km SE of new major port of Mejillones
Caliche deposit containing numerous salts
Currently producing 3-4% of world iodine supply
LOMP -15 years at +2000 tonnes iodine per annum
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Aguas Blancas Update
Strategy revised following the softening of the iodine price in 2013
SAG mill commissioning delayed until iodine prices firm (expected to be in 2015)
In 2014 the Heap Leach process will produce ~1,000t iodine
2014 Sales from production and inventory will be ~1,300t iodine
2014 Savings associated with significant labour cost reduction
Production is forecast to be approximately 1,400 tonnes of iodine in 2015 and 2,200 in 2016
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Aguas Blancas Reserves and Resources December 30, 2012
Tonnes (millions)
Iodine (I2 in ppm)
Reserves
Proven 14,558 492
Probable 68,386 457
Total1 82,944 463
Resources
Measured 16,798 474
Indicated 88,205 417
Total Measured & Indicated2 105,003 426
Inferred Resource 67,392 338
1 Iodine contained in Proven & Probable Reserves increased by 57% from December 31, 2011 2 Measured and Indicated Resources increased by 86% from December 31, 2011
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Aguas Blancas +15 Year Mine Life
Reserves & Resources
SQM, 34%
Japan, 31%
Recycled, 5%
United States, 4%
Other Chile, 24%
Other, 2%
Iodine Supply ~ 30 kt/2011 Roskill Report
Pricing ($40-$45/kg)
World consumption shows steady year on year increase of ~5%
Chile produces 60% of world’s iodine
Sirocco currently accounts for 6% of Chile’s output, expected to grow to 12%
Iodine tied to health care and nutrition – both closely correlated to household income growth
X-ray media and LCD consumption main areas of market growth
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Iodine Price (Chile Export Statistics) Iodine Supply ~30 kt (2011 Roskill Report)
Iodine Market
X-ray Contrast, 21%
Iodophores, 13%
Medicine, 13%
LCD, 11%
Animal Nutrition, 8%
Fluoro Derivatives,
6%
Biocides, 6%
Nylon, 4%
Human Nutrition, 3%
Other, 15%
Iodine Demand SQM Annual Report 2012Iodine Demand (SQM Annual Report 2012)
0
10
20
30
40
50
60
I 2 P
rice (
$/k
g)
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Richard Clark
2000-885 W. Georgia St.
Vancouver BC V6C 3E8
Tel: +1 (604) 689-7842
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Quebec Lithium
Mine Site & Operations
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Quebec Lithium – Open Pit - Oct 2013
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Quebec Lithium – Floatation
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Aguas Blancas – Continuous Miner – 2013
28 Aguas Blancas - Constructing a Heap Leach Pad
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Aguas Blancas – Agitated Leach Plant (ALP)
