Clayton Valley Lithium Project - cypressdevelopmentcorp.com€¦ · Clayton Valley Lithium Project. Basic Shares Outstanding: 98.8 m. FD Shares Outstanding: 115.4 m. Market Capitalization:

Clayton Valley Lithium Project

Basic SharesOutstanding:

121.0 m

FD SharesOutstanding:

147.5 m

MarketCapitalization:

C$133 m

CYP (TSX-V) | CYDVF (OTCQB) | C1Z1 (Frankfurt)May 2021

2

Forward Looking Statements

Some of the statements in this document may be deemed to be "forward-looking statements." All statements in this document, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from

those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

Qualified Person as defined by National Instrument 43-101 and supervised the preparation of the technical information in this presentation is William Willoughby, PhD, PE, Director and CEO of Cypress.

CYPRESS DEVELOPMENT CORP

http://www.sedar.com/

3

Cypress Capital Structure


Basic Shares Outstanding 121.0 million

FD Shares Outstanding * 147.5 million

Market Capitalization C $ 133 million

Cash Position C $ 20 million

Trading Symbols

TSX Venture Symbol CYP

US OTCQB Market CYDVF

Frankfurt Exchange Symbol C1Z1

* Warrants 21.4 million

* Options 5.8 million

4

Management & Directors


William Willoughby, PhD, PE CEO, DIRECTOR

Doctorate in Mining Engineering & Metallurgy from University of Idaho (1989)Registered Professional Engineer (since 1985) SME Registered Member (since 2015)Cypress CEO (Since 2017)Founder & CEO Caliber Minerals (since 2017)Owner Willoughby & Associates (since 2015) International Enexco (2007-2014)Teck (Cominco) (1989-2007)

Donald C. Huston PRESIDENT, CHAIRMAN

Cypress Chairman and President, 35 years experience in financing and operating mineral exploration projects including 15 years in geophysical contracting, Director for four publicly traded Canadian companies.

James G. Pettit DIRECTOR

Non-executive Director, 30 years experience in corporate finance, executive management & compliance. Present CEO of Aben Resources, Director for five publicly traded Canadian companies.

Donald MyersDIRECTOR

Non-executive Director, Audit Committee35 years experience in management, communications and investor relations of Canadian and US listed resource and technology companies.

Amanda Chow, CPA, CMA INDEPENDENT DIRECTOR

Chartered Professional Accountant (CPA, CMA) Bachelor of Business Administration from Simon Fraser University, 21 years experience in corporate finance.

Braam Jonker, CPACFO

Cypress CFO. Accomplished financial leader in the mining industry, 30 years of experienceOverseen raising of $750 mil in financingRegistered Chartered Accountant in British Columbia, (Canada), England, Wales and South Africa

5

Advisors & Consultants


Corby Anderson, PhD, PE Technical Advisor, Metallurgy

Doctorate in Mining Engineering & Metallurgy from University of Idaho (1989)Harrison Western Professor in the Kroll Institute for Extractive Metallurgy as part of the Mining and George S. Ansell Department of Metallurgical and Materials Engineering at the Colorado School of Mines

Todd Fayram, MMSA-QP Consultant, QP Metallurgy

Master of Science in Metallurgical Engineering from Montana Tech of the University of MontanaOwner Continental Metallurgical Consultants

Daniel Kalmbach, CPG Consultant, QP Geology

Bachelor of Science in Geology from University of Idaho, Certified Professional Geologist American Institute of Professional Geologists.22 years experience in exploration, mine geology and environmental managementVP Exploration for Caliber Minerals

Adam Knight, PEConsultant, Project Manager

Bachelor of Science in Mining Engineering University of Nevada, Professional Engineer, Nevada, 26 years experiences in management and operations of mining companiesVP Operations for EMC Metals

William Breen, PGeoConsultant, Land Manager

Bachelor of Science in Geology from University of Idaho, Registered Member SMEProfessional Geologist, WyomingLicensed Geologist, Washington

Donald MosherAdvisor, Corporate Development

Simon Dyakowski, CFA, MBAAdvisor, Capital Markets

6

Investment Highlights


A designated U.S. strategic mineral forecast for significant growth in demand

In top 3 most favorable mining jurisdictions (Fraser Institute 2017-2019) 3 hours from the Tesla Gigafactory

First Drill Hole - February 2017Preliminary Economic Study - October 2018Positive Prefeasibility Study - August 2020

Extensive surface deposit in unique setting adjoining Albemarle’s Silver Peak brine operation

Lithium Nevada

Claystone Advanced Project

7

Lithium: US “Critical Mineral”


• US Government designated Lithium as a “Critical Mineral” of strategic importance in December 2017. (Executive Order 13817 – A Federal Strategy to Ensure, Secure and Reliable Supplies of Critical Minerals)

• “Critical Mineral” designation favours domestic sources of Lithium across the supply chain

• Section 3 of the policy calls for identification of new sources of the minerals, increasing exploration mining and processing and streamlining permitting

Lithium-ion Battery Demand by End Use Sector

8


This chart outlines the key drivers of demand for lithium-ion batteries over the forecast period. The major growth area is EVs, followed by stationary (grid) applications. In our base case scenario we expect demand will be 135,000 MWH in 2018, reaching 760,000 MWH by 2025, and 4M MWH by 2035.

SOURCE: BENCHMARK MINERAL INTELLIGENCE – CYPRESS DEVELOPMENT CORP – AUGUST 2018

0.0

1.0

2.0

3.0

4.0

5.0

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Stationary

Other

Electric Vehicles

EV Downside

EV Upside

9

Nevada Location


100% owned Property3% NSR royalty

Option to buy-down to 1% for $2 million

U.S. Federal BLM Lands Project Area covering 5,430 acres (formerly Dean and Glory Projects)

North Geothermal Lease 640 acres

CypressProject

Las Vegas

Tesla Factory

Cypress Geothermal

Lease

Cypress Claims

AlbemarleSilver Peak

Brine Operation

CypressProject

10

Lithium Deposit Types


Sedimentary Brine Hardrock

Mine Product Lithium Carbonate(Li2CO3)Lithium Carbonate(Li2CO3)

Spodumene Concentrate(6% Li2O)

Typical Grade 1,000-3,000 ppm Li 500-1,000 ppm Li 4,500-7,000 ppm Li

Production Steps

MiningAcid LeachingEvaporation Crystallization

Pumping of BrineEvaporationCrystallization

MiningCrushing and GrindingRoasting Acid LeachingEvaporation/Crystallization

Estimated Cash Costs($/tonne Li2CO3 )

$3,387 *Cypress PFS $2,500 – 4,000 ** +$6,000 **

** Industry and company reports

11

Prefeasibility Study Results (August 2020)


25.8%

Internal Rate of Return (IRR)$1.03 billion

Net present value (NPV 8%)

4.4 years

Payback Period15,000 tpd for 40 years

Operating Rate

$493 million over 2 years

Capital Cost Estimate83%

Net Lithium Recovery

$9,500/tonne

Base case price for lithium carbonate

27,400 tonnes

Average production lithium carbonate

$3,387/tonne

Operating Cost for Lithium

After-Tax Cash Flow Analysis (US Dollars)

12

Clayton Valley Highlights

CYPRESS DEVELOPMENT CORP |

Multi-million tonne LCE resources and reserves

Large Size

Next to Albemarle’s Silver Peak brine operation

Accessible Location

First drill hole February 2017Rapidly advancing, PFS completed August 2020

New Discovery

Easy MiningFlat deposit, no overburden Soft clay, no drill & blast

Leachable clay, low acid consumptionPotential by-products, including REEs

Low-Cost Processing

13

Sedimentary Hosted Lithium Projects


Project Clayton Valley (TSXV:CYP)

Operating Cost ~$3,400 / tonne LCE

Development Stage PFS

Market Cap (C$) 127 MM

Project Thacker Pass (TSX:LAC)


Development Stage PFS

Market Cap (C$)2,393 MM*Argentina + Nevada Assets *Majority of MC due to Brine

Project Rhyolite Ridge (ASX:INR)

Operating Cost ~$2500 / tonne LCE

Development Stage FS


Project Sonora(AIM:BCN)


Development Stage FS


2393

754

252127

0

500

1000

1500

2000

2500

3000

Lithium Americas(TSX:LAC)

Ioneer Ltd (ASX:INR) Bacanora Lithium(AIM:BCN)

Cypress Development(TSXV:CYP)

Market Capitalization (CAD)

14

History


Albemarle Corporation (NYSE:ALB) acquires Rockwood Holdings and Silver Peak brine operation in Clayton Valley

2014 2016 2018 2020

2015 2017 2019

Tesla Motors breaks ground on $5 B Gigafactory in Sparks Nevada

Cypress acquires claims in Clayton Valley, begins surface exploration

Cypress begins drilling and metallurgical tests, identifies sulfuric acid leaching as means to extract lithium from Clayton Valley claystone

Preliminary Economic Assessment shows positive results in leaching with sulfuric acid

In-fill drilling, metallurgical and processing- related testing, permitting and due diligence studies with interested parties

Prefeasibility Study completedPilot plant recommended Elon Musk at Battery Day makes comments on leaching Nevada clay with salt

15

Clay Deposit


• Extensive volcanic-derived claystone east and south of brine field and Angel Island

• Lithium in illite and montmorillonite clays to depth of at least 150 m below surface

• Layer-cake-like geometry with lithium-bearing claystone outcropping at surface

16

Resources


Indicated

Tonnes (Million) Li ppm Tonnes LCE (million)

1,304 905 6.3

1.The effective date of the Mineral Resource Estimate is August 5, 2020. TheQP for the estimate is Ms. Terre Lane of Global Resource Engineering Ltd.and is independent of Cypress.2.The Mineral Resources were determined at a cutoff grade of 400 ppm Li andspecific gravity of 1.505.3.The Mineral Resource estimate was prepared with reference to the 2014Canadian Institute of Mining, Metallurgy and Petroleum (CIM) DefinitionStandards (2014 CIM Definition Standards) and the generally acceptedCanadian Institute of Mining’s (CIM) “Estimation of Mineral Resources andMineral Reserves Best Practice Guidelines. (November 29, 2019).4. Cautionary statements regarding Mineral Resource estimates: MineralResources are not Mineral Reserves and do not have demonstrated economicviability. There is no certainty that all or any part of the Mineral Resource willbe converted into Mineral Reserves. Inferred Mineral Resources are the partof a Mineral Resource for which quantity and grade or quality are estimated onthe basis of limited geological evidence and sampling. Geological evidence issufficient to imply but not verify geological and grade or quality continuity.

CVLP view northwest from near DCH-7

17

Reserves


Probable Reserve

Tonnes (Million) Li ppm Tonnes LCE (Million)

213 1,129 1.28

1. The effective date of the Mineral Reserve Estimate is August 5, 2020. TheQP for the estimate is Ms. Terre Lane of Global Resource Engineering Ltd.and is independent of Cypress. 2. The Mineral Reserve estimate wasprepared with reference to the 2014 Canadian Institute of Mining, Metallurgyand Petroleum (CIM) Definition Standards (2014 CIM Definition Standards)and the with generally accepted Canadian Institute of Mining’s (CIM)“Estimation of Mineral Resources and Mineral Reserves Best PracticeGuidelines (November 29, 2019). 3. Mineral Reserves are reported within thepit design at a mining cutoff of 900 ppm. 4. The cutoff of 900 ppm is anoptimized cutoff selected for the mine production schedule. 5. The MineralReserves are derived from and not separate from the Mineral Resources. 6.Mineral Reserves are estimated based on delivery to the mill stockpile. 7. NoInferred Resources are included in the Mineral Reserves or given value in theeconomic analysis

Silver Peak Highway with Angel Island in center looking west

18

PFS Design Assumptions


• Operating rate of 15,000 tpd• (5.5 million tpy claystone )

• Production of 27,400 tonnes LCE

• Plant site on flank of Angel Island

• Conveyor from pit to leach plant

• 2,500 tpd sulfuric acid plant on site

19

Mining


• Soft material, no drilling and blasting• Mining by excavator to feeder breaker• Shallow long surface cut allows all-

conveyor transport to mill• Negligible stripping, < 0.29 tonne of

waste per tonne of mill feed• Mine plan for 15,000 tpd mill feed• 5.475 million tpy average 0.11% Li

Processing• 2,500 tpd sulfuric acid plant on-site• Clay feed to attritor and agitated tank

leaching, heated to 50-70°C • Solid-liquid separation in filtration plant• Leach solution treated in lithium

recovery plant by proprietary process to remove Ca, Mg, Fe, and Al

• Lithium concentrate solution treated by evaporation and electrolysis to produce lithium hydroxide on-site

20

ProcessFlow Diagram


Mining Feed Preparation Leaching Filtration

Lithium Recovery

Lithium Product

Tailings

Acid Plant

Process Water

Return to Process Water

21

FacilitiesArrangement


22

Capital CostEstimate


Area $ x 1,000

Facilities 5,891

Mine 34,768

Plant 306,855

Infrastructure 25,907

Owners Costs 24,992

Contingency & Working Capital 94,704

Total Capital Cost 493,115

Area $ x 1000Feed Preparation 10,731Leaching 14,358Filtration 32,211Tailings Handling 3,589Li Recovery 44,930Acid Plant 102,585Construction Directs 56,858Total Direct 265,262Indirect 41,593Total Plant 306,855

23

Operating CostEstimate


AreaAvg Annual

$ x 1000Mill Feed

$/t

Mining 10,787 1.98

Processing 77,758 14.27

G&A 3,550 0.65

Total 91,925 16.90

24

EconomicModel


25

Path to Production


H1 - 2021 Complete Study on Chloride LeachConduct Pilot Plant Test Program

- Basis for Feasibility Study- Demonstrate Customer Acceptance

Produce lithium product marketing samples

2022Submit Plan of Operations Begin Environmental Impact Statement

H2 - 2021 Secure Water SourceComplete Feasibility Study Prepare Plan of Operations

2023Obtain Record of Decision Begin Project Construction

26

Appendix: Lithium Market Fundamentals


Current Lithium Supply and Breakdown by End-Use24

8,58

3

122,

068

126,

515

BatteryDemand

OtherDemand

27


LithiumCarbonate(54%)

LithiumHydroxide(46%)

NCA(14%)

NCM (29%)

LCO(30%)

OtherLTO (1%)

LFP (22%)LMNO LMO (3%)

Stationary grid storage (3%)

ElectricVehicles (61%)

Other (36%)

Metallurgy (9%) Lubricant &Grease (17%)

Class &Ceramics (37%)

Medical (5%)

Air Treatment (7%)

Other (25%)

Tota

l Lith

ium

Dem

and

in 2

018

(LC

E to

nnes

)


85,000125,000 125,000 125,000

30,000

31,500 31,500 31,50028,000

28,000 28,000 28,000

184,500

2030

184,500

2018

184,500

20352023

143,000

Talison

Galaxy Resource

Neometals

28

Brownfield Lithium Capacity Forecast to 2035


Albemarle SQM

2018 2023

94,000

2030

155,000155,000

2035

125,000

55,000 70,00085,000 85,000

39,00055,000

70,000 70,000

FMC Orocabre

14,00030,000 35,000 35,000

18,000

27,00030,000 30,000

65,00065,000

203520232018 2030

57,000

32,000

3,000 3,000 3,000 3,000

Albemarle

20352018 2023 2030

2,000 2,000 2,000 2,000

1,000 1,000 1,000 1,000

203520232018

3,000

2030

3,0003,000 3,000

Arqueana de Minérios e Metals Ltda.

Companhia Brasileira de Litio

5,000 5,000 5,000 5,000

2,000 2,000 2,000 2,000

20302018

7,000

2023 2035

7,0007,000 7,000

Sociedade Mineira de Pegmatites

Bikita Minerals

6,00010,000 10,000 10,000

4,000

6,000 6,000 6,0003,000

3,000 3,000 3,0003,000

3,000 3,000 3,000

23,000

2018

17,000

23,000

20352023 2030

23,000

Jiangxi Special ElectricYichun Tani

Fozhao Lanke

Tibet Mineral Development

Qinghai Lithium

Brine

Hardrock

Brine and Hardrock


‘000 LCE tonnes

Greenfield Lithium Capacity Forecast to 2035


Tawana Resources (Pos)

Core Exploration Ltd (Pos)Kidman Resources SQM (Pos)

Altura Mining (HP)

Pilbara Minerals (HP)

20,000

75,000 80,000 80,000

30,00040,000 40,000

30,00030,000 30,000

12,000

30,00030,000 30,000

20,00020,000 20,000185,000

203520302018

200,000

2023

200,000

32,000

China Minmetals (Pos)Chinese Producers (Pos)Chinese Producers (Prob)

15,00025,000 25,000

20,000

20,000 20,00010,000

10,000 10,000

5,000

2018 2023

55,000

2030 2035

45,000

55,000

2,000 25,000 25,00020,000

20,000 20,00012,000

18,000

9,000

9,000

9,000

9,000

84,000

2018 2023 2030 2035

48,00058,000

Rio Tinto - Serbia (Pos)

Savannah - Portugal (Pos)Grupo Mota - Portugal (Pos)Keliber - Finland (Pos)

Birimian Limited - Mali (Pos)

Desert Lion Energy - Namibia (Prob)

25,000 25,00025,000

25,000 25,000

20,000 20,000

15,000

20,000 20,000

8,000

10,000 10,000

2023 2030 2035

100,000

56,000

100,000

Argosy (Pos)Galaxy Resource (HP)

LSC (Pos)

Millennial Lithium (Pos)Lithium Americas (Pos)

45,00060,000

27,00027,000

10,000

17,00017,000

20,000

30,000119,000

144,000

20352030

21,000

2023

Galaxy Resource (Pos)

Pure Energy Minerals (Pos)

Nemaska Lithium (HP)Piedmont Lithium (Pos)

Global Geoscience (Pos)Lithium Americas (Pos)

Brine

Hardrock

Brine and Hardrock

2018 2035203020235,000

25,000 25,000 25,000

20,00035,000 35,000

Bacanora Minerals Ltd (Pos)AMG (HP)


‘000 LCE tonnes

HP – Highly probableProb – ProbablePos – Possible

29

Lithium Capacity Forecast to 2035

30



0.20

0.70

0.10

0.80

0.00

0.30

0.40

0.50

0.90

0.60

1.00

2030 2035202920192015

Million LCE tonnes

2016 2017 2018 2020 2021 2022 2023 20342024 2025 2026 2027 2028 2031 2032 2033

Operational supply

Highly Probable additonal tonnes

Possible additonal tonnes

Probable additonal tonnes

Lithium Demand-Supply Balance, 2015-2035

31



0.0

4.0

5.0

2030 2035202920192015

Million LCE tonnes

2016 2017 2018 2020 2021 2022 2023 20342024 2025 2026 2027 2028 2031 2032 2033

For the supply forecast we have divided the forecast into three main phases, which reflect the development of the market over time, these are:

Phase 1, 2015-2018:In this phase the supply-demand balance is very tight, with demand growing faster than new capacity expansions. New supply is largely from development of brownfield sites at operating producers

Demand - UpsideDemand - Base

Possible additonal tonnes

Demand - DownsideUnplanned necessary capacity - Base Case

Probable additonal tonnes

Operational supply

Highly Probable additonal tonnes

Phase 2, 2019-2025:Phase two sees new supply start to come online from greenfield projects, as well as expansions at existing producers. The market moves into a period of relative oversupply by the end of the period

Phase 3, 2026-2035:Towards the latter part of the forecast period there is a marked requirement for further as yet announced lithium capacity to come on-stream to meet rising demand. We expect that prices will remain in a range needed to stimulate this new investment, given that geological constraints are not an issue.

3.0

2.0

1.0

Contact

William Willoughby, PhD, PE DIRECTOR, CHIEF EXECUTIVE OFFICER

Donald C. HustonCHAIRMAN, PRESIDENT

Don MyersCORPORATE COMMUNICATION

[email protected]

Suite 1610, 777 Dunsmuir StreetVancouver, BC, V7Y 1K4, CANADATel: (604) 687-3376Fax: (604) 687-3119

mailto:[email protected]://www.cypressdevelopmentcorp.com/

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Documents

Clayton Valley Lithium Project - cypressdevelopmentcorp.com€¦ · Clayton Valley Lithium Project. Basic Shares Outstanding: 98.8 m. FD Shares Outstanding: 115.4 m. Market Capitalization: