Normal

RESOURCE AND
RESERVE REPORT
Pre-Feasibility Study

Salar del Hombre Muerto
February 21, 2023

Prepared forNormalLivent USA Corp.
1818 Market Street
Suite 2550
Philadelphia, PA 19103

Prepared byIntegral Consulting Inc.
285 Century Place
Suite 190
Louisville, CO 80027

CONTENTS
LIST OF FIGURES ................................................................................................................................. viii
LIST OF TABLES ......................................................................................................................................xi
ACRONYMS AND ABBREVIATIONS ............................................................................................. xii
1

2

3

EXECUTIVE SUMMARY ...............................................................................................................1-1
1.1

PROPERTY DESCRIPTION AND OWNERSHIP ...........................................................1-1

1.2

GEOLOGY AND MINERALIZATION .............................................................................1-2

1.3

STATUS OF EXPLORATION ACTIVITIES......................................................................1-3

1.4

DEVELOPMENT AND OPERATIONS ............................................................................1-4

1.5

MINERAL RESOURCE ESTIMATES ................................................................................1-4

1.6

MINERAL RESERVE ESTIMATES ....................................................................................1-5

1.7

PERMITTING REQUIREMENTS.......................................................................................1-7

1.8

SUMMARY ...........................................................................................................................1-7

1.9

RECOMMENDATIONS ......................................................................................................1-8

INTRODUCTION ............................................................................................................................2-1
2.1

TERMS OF REFERENCE AND PURPOSE.......................................................................2-1

2.2

SOURCES OF INFORMATION .........................................................................................2-2

2.3

DETAILS OF INSPECTION................................................................................................2-3

2.4

REPORT VERSION UPDATE ............................................................................................2-3

2.5

QUALIFIED PERSONS .......................................................................................................2-4

PROPERTY DESCRIPTION ..........................................................................................................3-1
3.1

PROPERTY AREA................................................................................................................3-3

3.2

MINERAL CONCESSIONS TITLE AND RIGHTS .........................................................3-3
3.2.1

4

Mineral Concessions Title and Mining Group....................................................3-5

3.3

ROYALTIES ........................................................................................................................3-10

3.4

OTHER ENCUMBRANCES .............................................................................................3-10

3.5

PROVINCIAL BORDER DISPUTE ..................................................................................3-10

ACCESSIBILITY, CLIMATE, AND INFRASTRUCTURE.......................................................4-1
4.1

ACCESSIBILITY ...................................................................................................................4-1

4.2

PHYSIOGRAPHY ................................................................................................................4-1

4.3

HYDROGRAPHY.................................................................................................................4-5

4.4

CLIMATE ..............................................................................................................................4-7

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4.5

VEGETATION ......................................................................................................................4-7

4.6

INFRASTRUCTURE ............................................................................................................4-7
4.6.1

Other Factors Affecting Operations .....................................................................4-9

5

HISTORY ...........................................................................................................................................5-1

6

GEOLOGIC SETTING AND MINERALIZATION ..................................................................6-1
6.1

6.2
7

6.1.1

Regional Geology ....................................................................................................6-1

6.1.2

Local Geology ..........................................................................................................6-6

MINERAL DEPOSIT............................................................................................................6-8

EXPLORATION ................................................................................................................................7-1
7.1

7.2

7.3

7.4
8

GEOLOGIC SETTING .........................................................................................................6-1

PRE-DEVELOPMENT TESTING CAMPAIGN (1992–1994) .........................................7-2
7.1.1

Drilling Type and Extent........................................................................................7-4

7.1.2

Brine Sampling ........................................................................................................7-7

7.1.3

Borehole Geophysics ..............................................................................................7-8

7.1.4

Gravity Profiles........................................................................................................7-9

7.1.5

Supplemental Testing and Reporting by WMC in 1994 ..................................7-11

CHARACTERIZATION DURING OPERATIONS .......................................................7-11
7.2.1

Brine Monitoring Well Network Installation (2017) ........................................7-12

7.2.2

Deep Characterization Program (2020) ..............................................................7-13

7.2.3

Lithium Brine Production During Operations..................................................7-18

HYDROGEOLOGY ............................................................................................................7-20
7.3.1

1992 Brine Reservoir Evaluation .........................................................................7-21

7.3.2

1993 Brine Reservoir Evaluation .........................................................................7-21

7.3.3

1993 Alluvial Aquifer Evaluation .......................................................................7-22

SIGNIFICANT RESULTS AND INTERPRETATION ...................................................7-22

SAMPLE PREPARATION, ANALYSIS, AND SECURITY .....................................................8-1
8.1

8.2

SAMPLING EVENTS ..........................................................................................................8-1
8.1.1

Pre-Development Sampling ..................................................................................8-1

8.1.2

Operational Sampling.............................................................................................8-2

8.1.3

Brine Monitoring Well Sampling ..........................................................................8-3

8.1.4

Deep Characterization Sampling (2020) ..............................................................8-4

QUALITY CONTROL/QUALITY ASSURANCE PROCEDURES ................................8-4
8.2.1

Control Laboratories ...............................................................................................8-5

8.2.2

Correlation between Lithium Grades Measured at MdA and External
Laboratories .............................................................................................................8-5

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8.3
9

OPINION ON DATA ADEQUACY ..................................................................................8-7

DATA VERIFICATION ..................................................................................................................9-1
9.1

DATA VERIFICATION PROCEDURES ...........................................................................9-1

9.2

LIMITATIONS ......................................................................................................................9-1

9.3

OPINION ON DATA ADEQUACY ..................................................................................9-1

10 MINERAL PROCESSING AND METALLURGICAL TESTING.........................................10-1
11 MINERAL RESOURCE ESTIMATES ........................................................................................11-1
11.1

BACKGROUND .................................................................................................................11-1

11.2

KEY ASSUMPTIONS, PARAMETERS, AND METHODS ...........................................11-2
11.2.1 Method 1—Single Polygon Using Resource Extent within Livent
Concession..............................................................................................................11-3
11.2.2 Method 2—Thiessen Polygons Defined by Boreholes .....................................11-3
11.2.3 Method 3—Thiessen Polygons with Lithologically DefinedSpecific Yield..........................................................................................................11-4
11.2.4 Method 4—Single Polygon with Statistical Predictions ofSpecific Yield and Lithium Concentration at Depth ........................................11-5
11.2.5 Method 5—Kriging ...............................................................................................11-6

11.3

HISTORICAL RESOURCE ESTIMATE SUMMARY ....................................................11-8

11.4

HISTORICAL BRINE PRODUCTION ............................................................................11-8

11.5

CURRENT RESOURCE ESTIMATE INCLUSIVE OF RESERVES ..............................11-9

11.6

CURRENT RESOURCE ESTIMATE EXCLUSIVE OF RESERVES ...........................11-10

11.7

GEOLOGICAL MODEL ..................................................................................................11-11

11.8

SUMMARY .......................................................................................................................11-13

12 MINERAL RESERVES ESTIMATES .........................................................................................12-1
12.1

NUMERICAL BRINE RESERVOIR MODEL .................................................................12-1
12.1.1 Model Domain and Grid ......................................................................................12-1
12.1.2 Flow and Transport Boundary Conditions .......................................................12-3
12.1.3 Hydraulic and Solute Transport Properties ......................................................12-4
12.1.4 Model Calibration .................................................................................................12-6
12.1.5 Simulated Historical Operations.........................................................................12-6
12.1.6 Predictive Simulations..........................................................................................12-8
12.1.7 Sensitivity to Potential Operations in the Eastern Subbasin.........................12-10

12.2

CUT-OFF GRADES ESTIMATES ...................................................................................12-11

12.3

RESERVES CLASSIFICATION AND CRITERIA ........................................................12-12

12.4

MINERAL RESERVES ESTIMATE ................................................................................12-14

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12.5

DISCUSSION ....................................................................................................................12-14

13 MINING METHODS ....................................................................................................................13-1
13.1

CURRENT WELLFIELD DESIGN ...................................................................................13-1

13.2

ANTICIPATED WELLFIELD DESIGN...........................................................................13-2

13.3

ANTICIPATED LITHIUM BRINE PRODUCTION SCHEDULES .............................13-3

14 PROCESSING AND RECOVERY METHODS ........................................................................14-1
14.1

SELECTIVE ADSORPTION (SA) PLANT ......................................................................14-2

14.2

PRE-CONCENTRATE PONDS........................................................................................14-2

14.3

FINISHED SALAR BRINE (FSB) PONDS ......................................................................14-3

14.4

CARBONATE PLANT ......................................................................................................14-3

14.5

AUXILIARY SERVICES PLANT ......................................................................................14-4

14.6

ARTIFICIAL (SPENT BRINE) LAGOON .......................................................................14-5

14.7

PROJECT FENIX EXPANSIONS .....................................................................................14-6
14.7.1 First Expansion ......................................................................................................14-7
14.7.2 Second Expansion .................................................................................................14-8
14.7.3 Third Expansion ....................................................................................................14-9

15 INFRASTRUCTURE ......................................................................................................................15-1
15.1

SITE FACILITIES ................................................................................................................15-1

15.2

ENERGY ..............................................................................................................................15-3

15.3

WATER AND PIPELINES ................................................................................................15-4
15.3.1 Trapiche Aquifer ...................................................................................................15-4
15.3.2 Los Patos Aquifer ..................................................................................................15-7

15.4

WASTE DISPOSAL ..........................................................................................................15-10

15.5

TRANSPORTATION .......................................................................................................15-10
15.5.1 Rail.........................................................................................................................15-10
15.5.2 Port Facilities........................................................................................................15-11

15.6

LOCAL COMMUNITIES ................................................................................................15-12

16 MARKET STUDIES .......................................................................................................................16-1
16.1

DEMAND ............................................................................................................................16-2
16.1.1 Base Lithium Compounds ...................................................................................16-2
16.1.2 Performance Lithium Compounds .....................................................................16-3

16.2

SUPPLY................................................................................................................................16-4

16.3

PRICING ..............................................................................................................................16-4

16.4

MATERIAL AGREEMENTS.............................................................................................16-5
16.4.1 Argentina Agreements .........................................................................................16-5

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17 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL FACTORS .....................17-1
17.1

ENVIRONMENTAL STUDIES ........................................................................................17-1
17.1.1 General Background .............................................................................................17-1
17.1.2 Salar del Hombre Muerto (Project Fenix) ..........................................................17-1
17.1.3 Los Patos Aqueduct Environmental Baseline ...................................................17-6
17.1.4 Known Environmental Issues .............................................................................17-6

17.2

ENVIRONMENTAL CONTROL PROGRAM ...............................................................17-6
17.2.1 Water Programs .....................................................................................................17-8
17.2.2 Supply Programs ...................................................................................................17-9
17.2.3 Waste Management Program ............................................................................17-10
17.2.4 Physical Components Programs .......................................................................17-10
17.2.5 Biological Component Program........................................................................17-11
17.2.6 Argentina Community Relations Program .....................................................17-13

17.3

PROJECT PERMITTING .................................................................................................17-14
17.3.1 Environmental and Operating Permits ............................................................17-14
17.3.2 Water Rights ........................................................................................................17-15

17.4

MINE RECLAMATION AND CLOSURE ....................................................................17-15
17.4.1 Closure Planning .................................................................................................17-15
17.4.2 Mine Closure Process in Argentina ..................................................................17-16
17.4.3 Closure Cost Estimate ........................................................................................17-16
17.4.4 Limitations on the Cost Estimate ......................................................................17-17

17.5

LOCAL PROCUREMENT ..............................................................................................17-17

17.6

SDHM TRUST...................................................................................................................17-18
17.6.1 Archaeology .........................................................................................................17-20
17.6.2 Responsible Care .................................................................................................17-20

18 CAPITAL AND OPERATING COSTS ......................................................................................18-1
18.1

CAPITAL COST ESTIMATES ..........................................................................................18-1

18.2

OPERATING COST ESTIMATES ....................................................................................18-2

19 ECONOMIC ANALYSIS ..............................................................................................................19-1
19.1

BASIC MODEL PARAMETERS .......................................................................................19-1

19.2

RESULTS .............................................................................................................................19-2

19.3

SENSITIVITY ANALYSIS .................................................................................................19-2

20 ADJACENT PROPERTIES ...........................................................................................................20-1
20.1

ALLKEM LIMITED ............................................................................................................20-4

20.2

POSCO ARGENTINA .......................................................................................................20-4

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20.3

GALAN LITHIUM LIMITED ...........................................................................................20-4

20.4

WATER RIGHTS OF OTHER COMPANIES .................................................................20-5

21 OTHER RELEVANT DATA AND INFORMATION..............................................................21-1
22 INTERPRETATION AND CONCLUSIONS ............................................................................22-1
22.1

GEOLOGY AND RESOURCES ........................................................................................22-1

22.2

MINING AND MINERAL PROCESSING .....................................................................22-1

22.3

MINERAL RESOURCES AND RESERVES ....................................................................22-1

22.4

INFRASTRUCTURE ..........................................................................................................22-2

22.5

ENVIRONMENTAL, PERMITTING, AND SOCIAL ISSUES .....................................22-2
22.5.1 Closure ....................................................................................................................22-3

22.6

CAPITAL AND OPERATING COSTS ............................................................................22-3

22.7

ECONOMIC ANALYSIS...................................................................................................22-3

23 RECOMMENDATIONS ...............................................................................................................23-1
23.1

RECOMMENDED WORK PROGRAMS ........................................................................23-1
23.1.1 Deep Exploration ..................................................................................................23-1
23.1.2 Spent Brine Return Evaluation ............................................................................23-1
23.1.3 Numerical Modeling.............................................................................................23-1

24 REFERENCES..................................................................................................................................24-1
25 RELIANCE ON INFORMATION PROVIDED BY THE REGISTRANT............................25-1
26 SIGNATURE PAGE .......................................................................................................................26-1

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LIST OF FIGURES
Figure 3-1. Location of Salar del Hombre Muerto ............................................................................. 3-1
Figure 3-2. Project Fenix and Subbasins .............................................................................................. 3-2
Figure 3-3. Mining Claims in the Salar del Hombre Muerto ............................................................ 3-4
Figure 3-4. MdA Claims in the Salar del Hombre Muerto ............................................................... 3-9
Figure 4-1. Location Map and Directions ............................................................................................ 4-2
Figure 4-2. Project Fenix Process Area Layout ................................................................................... 4-3
Figure 4-3. Elevation Profile .................................................................................................................. 4-4
Figure 4-4. Salar del Hombre Muerto Watersheds ............................................................................ 4-6
Figure 4-5. Railway Network ................................................................................................................ 4-8
Figure 6-1. Location of Salar del Hombre Muerto, Puna Plateau .................................................... 6-2
Figure 6-2. Regional Geologic Map ...................................................................................................... 6-4
Figure 6-3. Regional Stratigraphic Columns ....................................................................................... 6-5
Figure 6-4. Bedrock and Surficial Geologic Maps .............................................................................. 6-6
Figure 6-5. Geologic Cross Sections ..................................................................................................... 6-7
Figure 7-1. Pre-Development Exploration at Salar del Hombre Muerto ........................................ 7-4
Figure 7-2. Cross Plot of Specific Yield vs. Depth .............................................................................. 7-6
Figure 7-3. Cross Plot of Lithium and Potassium Concentration vs. Depth .................................. 7-8
Figure 7-4. Example Surface Gravity Profile..................................................................................... 7-10
Figure 7-5. Brine Monitoring Well Network and Deep Characterization Boreholes .................. 7-12
Figure 7-6. Geophysical Logs and Lithology for Deep Exploratory Borehole PSP1-20 ............. 7-14
Figure 7-7. Packer Test Results for Deep Characterization Borehole PSP1-20 ............................ 7-15
Figure 7-8. Geophysical Logs and Lithology for Deep Exploratory Borehole PSP2-20 ............. 7-15
Figure 7-9. Packer Test Results for Deep Characterization Borehole PSP2-20 ............................ 7-16
Figure 7-10. Geophysical Logs and Lithology for Deep Exploratory Borehole PSP3-20............ 7-17
Figure 7-11. Packer Test Results for Deep Characterization Borehole PSP3-20 .......................... 7-18
Figure 7-12. Primary and Secondary Lithium Brine Production Well Batteries.......................... 7-19
Figure 7-13. Lithium Concentration in Brine Produced by the Primary and Secondary Well
Batteries ..................................................................................................................................... 7-20
Figure 8-1. Variability in Average Lithium Brine Production Well Lithium Concentrations(2000–2022).................................................................................................................................. 8-3
Figure 8-2. Comparison of Lithium Concentrations between MdA’s Laboratory and SEGEMAR
Laboratory................................................................................................................................... 8-6
Figure 8-3. Comparison of Lithium Concentrations between MdA’s Laboratory and SGS
Laboratory................................................................................................................................... 8-6

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Figure 8-4. Comparison of Lithium Concentrations between MdA’s Laboratory and Alex
Stewart Laboratory .................................................................................................................... 8-7
Figure 10-1. Mineral Process Diagram ............................................................................................... 10-2
Figure 11-1. Thiessen Polygon Approach to Resource Assessment Using 1992 Exploratory
Boreholes ................................................................................................................................... 11-4
Figure 11-2. Prediction of Specific Yield and Lithium Concentration with Depth ..................... 11-6
Figure 11-3. Generalized Local Geology.......................................................................................... 11-12
Figure 11-4. Vertical Cross Section through the Geologic Model ................................................ 11-13
Figure 12-1. Model Plan View ............................................................................................................. 12-2
Figure 12-2. Vertical Slice through Salar Model ............................................................................... 12-3
Figure 12-3. Relationship between TDS and Density Used in Salar Model ................................. 12-5
Figure 12-4. Measured and Simulated Lithium Concentrations at Primary and Secondary Well
Batteries (2000–2022) ............................................................................................................... 12-7
Figure 12-5. Simulated Lithium Brine Production Wells, Freshwater Extraction Wells, and Spent
Brine Discharge Area .............................................................................................................. 12-9
Figure 12-6. SA Plant Process Efficiency (2012–2022) .................................................................... 12-13
Figure 13-1. Surface Pumping Equipment ........................................................................................ 13-1
Figure 13-2. Historical Lithium Brine Production from the Primary and Secondary Well
Batteries (2000–2022) ............................................................................................................... 13-2
Figure 13-3. Anticipated Lithium Brine Production Schedule ....................................................... 13-3
Figure 14-1. Project Fenix Facilities .................................................................................................... 14-1
Figure 14-2. Project Fenix Selective Adsorption Plant Process ...................................................... 14-2
Figure 14-3. Project Fenix Carbonate Processing Plant ................................................................... 14-4
Figure 14-4. General Flowchart of Auxiliary Services Plant........................................................... 14-5
Figure 14-5. Annual Flow to Artificial Lagoon ................................................................................. 14-6
Figure 14-6. Project Fenix Facility First Expansion Process Flow Diagram ................................. 14-7
Figure 14-7. Photograph of Project Fenix Current Facility First Expansion, January 2023 ........ 14-8
Figure 14-8. Project Fenix Facility Second Expansion Conceptual Process Flow Diagram ....... 14-9
Figure 14-9. Project Fenix Facility Third Expansion Conceptual Process Flow Diagram ........ 14-10
Figure 15-1. Project Fenix Site Facilities............................................................................................. 15-2
Figure 15-2. Trapiche Aquifer Well Locations .................................................................................. 15-5
Figure 15-3. Average Annual Extraction Rates, Trapiche Aquifer ................................................ 15-6
Figure 15-4. Rio de Los Patos Aquifer Infrastructure ...................................................................... 15-8
Figure 15-5. Los Patos Aquifer Raw Water Aqueduct .................................................................... 15-9
Figure 15-6. Livent Salar de Pocitos Railway Station .................................................................... 15-11
Figure 15-7. Super Sacks at the Antofagasta Port Railway Station.............................................. 15-11
Figure 15-8. Empresa Portuaria de Antofagasta ............................................................................ 15-12

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Figure 16-1. Distribution of End-Use Market ................................................................................... 16-1
Figure 16-2. Conservative and Base Case Forecast Prices for Lithium Carbonate ...................... 16-5
Figure 17-1. Number of Employees from Neighboring Communities ....................................... 17-18
Figure 20-1. Adjacent Properties......................................................................................................... 20-2

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LIST OF TABLES
Table 3-1. MdA’s Mineral Concessions Titles and Rights in the SdHM ......................................... 3-5
Table 3-2. Mining Concessions Granted to Third Parties by Salta Province Overlapping withCatamarca Province................................................................................................................. 3-11
Table 7-1. Summary of Exploration Work........................................................................................... 7-2
Table 7-2. Summary of Exploration Drilling ....................................................................................... 7-5
Table 7-3. Hydraulic Conductivity Measured During Exploration .............................................. 7-21
Table 11-1. Specific Yield by Lithology .............................................................................................. 11-5
Table 11-2. Pre-development and September 2022 Kriged Resource Estimates .......................... 11-7
Table 11-3. Historical Pre-Development Resource Estimate Summary ........................................ 11-8
Table 11-4. Historical Production from Selective Adsorption Plant ............................................. 11-9
Table 11-5. Lithium Resource Estimate (inclusive of lithium reserves), as of December 31, 2022.................................................................................................................................................. 11-10
Table 11-6. Lithium Resource Estimate (exclusive of lithium reserves), as of December 31, 2022.................................................................................................................................................. 11-10
Table 12-1. Simulated Future Brine Pumping Schedule (m3/d) ................................................... 12-10
Table 12-2. Proven and Probable Lithium Reserves (starting January 1, 2023) ......................... 12-14
Table 13-1. Anticipated Lithium Carbonate Production Schedule (2023–2030) .......................... 13-4
Table 15-1. General Load Consumption and Associated Energies for Fenix Plant..................... 15-3
Table 15-2. Fuel Storage Tank Capacity............................................................................................. 15-4
Table 17-1. Environmental Control Program.................................................................................... 17-7
Table 17-2. Measures to Prevent or Mitigate the Impacts to Wildlife from Transport ............. 17-13
Table 17-3. Environmental Permit Summary ................................................................................. 17-15
Table 17-4. Final Closure Cost Estimate .......................................................................................... 17-17
Table 17-5. SdHM Trust Activities ................................................................................................... 17-19
Table 18-1. Capital Expenditure Estimate (2023–2031) in Million $USD...................................... 18-1
Table 18-2. Unit Cost Estimates in $USD........................................................................................... 18-3
Table 19-1. Key Financial Results ....................................................................................................... 19-2
Table 19-2. Economic Model Sensitivity Analysis Million $USD .................................................. 19-2
Table 20-1. Mineral Concessions Adjacent to Project Fenix ........................................................... 20-3

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ACRONYMS AND ABBREVIATIONSAllkemAllkem Limited

amsl

above mean sea level

bgs

below ground surface

CAGR

compound annual growth rate

CFR

Code of Federal Regulations

CIM

Canadian Institute of Mining, Metallurgy and Petroleum

Contract of 1991

Exploration, Development and Operation Contract executed in 1991

CSR

Corporate Social Responsibility

CRIRSCO

Committee for Reserves and International Reporting Standards

DCF

discounted cash flow

DGFM

Dirección General de Fabricaciones Militares

DIPGAM

Direccion Provincial de Gestion Ambiental Minera

EIA

environmental impact assessment

EMA

Environmental Mining Agency

EPdA

Empresa Portuaria de Antofagasta

ESIA

Environmental and Social Impact Assessment

FMC

FMC Corporation

FOB

freight on board

FSB

finished salar brine

Galan

Galan Lithium Limited

HMW

Hombre Muerto West

ICP

inductively coupled plasma

IntegralIntegral Consulting Inc.

ISOInternational Organization for Standardization

LCE

lithium carbonate equivalent

LiventLivent Corporation

L/sliter(s) per second

MdA

Minera del Altiplano, S.A.

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MIL

Federal Mining Code, Mining Investments Law. No. 24,196

Mtmetric ton(s)NDVINormalized Difference Vegetation Index

OD

outer diameter

OES

optical emissions spectroscopy

OSC

Ontario Securities CommissionPe

effective porosity

POSCO

POSCO Argentina

ppm

parts per million

psipounds per square inch

PVC

polyvinyl chloride

PWB

primary well battery

QA/QC

quality assurance and quality control

QP

Qualified PersonSA

selective adsorption

SdHM

Salar del Hombre Muerto (also referred to as “the Salar”)

SdHM TrustFund denominated Salar del Hombre Muerto Trust Fund

SEC

Securities and Exchange Commission

SEGEMARServicio Geológico Minero Argentino

Srspecific retention

SWB

secondary well batterySy

specific yield

TDS

total dissolved solids

U.S.

United States

WMC

Water Management Consultants

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1 EXECUTIVE SUMMARY
This report discloses the lithium mineral resources and reserves at Livent Corporation’s(Livent’s) Project Fenix, an active lithium brine mining operation that began producing lithiumin 1997. Project Fenix is the first lithium brine operation in Argentina to produce lithium frombrine at a commercial scale.
Project Fenix is scheduled to undergo several phased expansions designed to increase nominal
lithium carbonate production capacity to 100,000 metric tons (Mt) lithium carbonate per year.
The First Expansion, designed to double lithium carbonate production capacity to 40,000 Mt, iscurrently underway in two phases (A and B). The remaining expansions will increase
production capacity in the years that follow, culminating with 100,000 Mt lithium carbonate
production capacity in 2030.
Future operating conditions at Project Fenix and operating expenses are known with greatercertainty than other projects without a proven track record of lithium carbonate production.
This report was developed to pre-feasibility standards to support the ongoing operations, andthe announced expansions currently in progress. This report establishes the resource andreserves to support the ongoing operations, and the expansions currently in progress andannounced.
Certain elements of Project Fenix—including site infrastructure, mine design and planning,processing plant(s), and environmental compliance and permitting, including near-term capitaland operating costs—are established with enough rigor and confidence to meet feasibility
standards. This study is classified as pre-feasibility primarily to acknowledge uncertainty inlong-term capital and operating costs as projected to the life-of-mine over 40 years.
Resources and reserves reported herein are based on data collected prior to operations, during
operations, and through the end of 2022. Some information contained in this report is forwardlooking and should be used with caution. Forward-looking statements are based onassumptions the Qualified Persons (QPs) consider reasonable at the time this report was
created. Forward-looking statements do not guarantee specific or implied results, performance,or outcomes. Instead, forward-looking statements involve risks, are inherently uncertain, andcannot be relied upon to provide assurance for a particular outcome.

1.1 PROPERTY DESCRIPTION AND OWNERSHIP
Salar del Hombre Muerto (SdHM or Salar) is located in northwest Argentina, in thenortheastern portion of Catamarca Province on the border with Salta Province. SdHM is ahydrologically closed (endorheic) basin characterized by a dry former lake bed that evolved
into a salt pan (salar), which covers an area of nearly 600 km2. A bedrock saddle near the center

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of the Salar separates the basin into the Western and Eastern Subbasins, approximately 348 km2
and 240 km2, respectively.
Minera del Altiplano S.A. (MdA), Livent’s Argentine operating subsidiary, owns and operates
lithium brine production facilities and related chemical processing plants in the Western
Subbasin of SdHM. The operation, referred to as Project Fenix, broadly encompasses the areasused for lithium brine production and processing, and is located exclusively within the Western
Subbasin of SdHM.
MdA holds a title to mining concession rights to extract resources from SdHM. These mineral
concession rights include a total of 143 contiguous mining concessions in the Western Subbasin(referred to as the Contiguous Lease Area) and one concession in the Eastern Subbasin, which
when combined cover an area of approximately 327 km2.

1.2 GEOLOGY AND MINERALIZATION
The geology in northwest Argentina covers two geologic provinces: the Puna plateau in thewest and the Eastern Cordillera to the east. The Argentinean portion of the Puna is thesouthern extension of the Altiplano of southernmost Bolivia, southern Peru, and northern Chile.
The Puna is located east of a modern volcanic arc and above a moderately dipping segment of
the eastwardly subducting Nazca plate.
The principal lithium-bearing region of South America is located within the Puna plateau. The
climate of the Puna varies from semiarid to hyperarid on the eastern border, to arid along thewestern volcanic arc. In the southern Puna, combinations of east-trending volcanic chains andnorth-trending, reverse fault–bounded structural blocks comprise several endorheic basins.
A salar is the hydrologic terminus of an endorheic basin. Lithium-rich brine deposits arecommon beneath the salar surface, within porous evaporite and clastic sedimentary deposits,
because they are located in areas with the following characteristics: arid climate; igneous and/orhydrothermal activity; tectonically driven subsidence; lithium-bearing minerals orhydrothermal waters; and time required to evapoconcentrate lithium in brine.
The salar at SdHM consists of evaporite deposits formed within an endorheic basin, boundedby pre-Paleozoic, Paleozoic, and Cenozoic–age crystalline metamorphic basement rocks. Faultbounded bedrock hills occur within and along the margins of the Salar basin subdividing theSdHM into two separate subbasins (eastern and western), each with different evaporite
sediment compositions. The Eastern Subbasin is dominated by borate evaporites and clastic
sediments (such as sand, silts, and clays), whereas the Western Subbasin is relatively free ofclastic sediment and is dominated by halite (sodium chloride salt) evaporite deposits.

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The lateral boundary of the evaporite sedimentary deposits of the Western Subbasin of SdHM isroughly circular in shape, coinciding with the contact between sediment and surrounding
bedrock. The deposit is hydraulically unbounded at the saddle where the Eastern and Western
Subbasins connect, which allows brine in the Eastern Subbasin and brackish water from the Riode los Patos to enter the Western Subbasin. The deposit is open to the south where
groundwater flow from the Trapiche Aquifer enters the Salar. At both locations, water orlithium-rich brine flows into the deposits of the Western Subbasin. The vertical extent (depth)of the lithium-rich brine deposit has not been determined. Based on surface geophysicalsurveys and several drilling locations greater than 100 m deep, the bedrock–halite contact islikely greater than 200 m in most of the Western Subbasin and may exceed 900 m in thenorthwestern portion of the subbasin.

1.3 STATUS OF EXPLORATION ACTIVITIESLivent’s mineral exploration activities at SdHM are classified according to when they occurred
relative to operations. Pre-development exploration began with a comprehensive sitecharacterization program initiated in the early 1990s, which consisted of two field investigations
centered on collecting hydrogeologic information in the Western Subbasin.
Shortly after pre-development site characterization work was completed in 1997, brine
extraction and lithium carbonate production began. Brine quality (chemical analysis), brine
elevation levels, and brine pumping data collected during operations can be considered
supplemental exploration data because they provide valuable information about the brinereservoir and lithium resources/reserves on a much broader scale than is possible during a
conventional pre-development exploration program.
In 2020, Livent explored the lithium brine resources of the Western Subbasin of SdHM at depths
greater than the depth of its operating lithium brine production wells. This supplemental
exploration program, referred to as the Deep Characterization Program, involved core drillingusing an HQ-diameter diamond drill to 102 m, 220 m, and 302 m below ground surface (bgs) atthree locations near existing brine pumping well batteries, as well as in the area where theEastern and Western Subbasins connect.
Exploration activities are ongoing to the extent Livent continues to collect operational data(brine elevation, pumping rates, and brine quality). Additional exploration activities focused oncore drilling and sampling at depths greater than 40 m bgs are in the planning phase. Oncecompleted, data generated from those activities may potentially allow for upgrading lithium
resource estimates.

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1.4 DEVELOPMENT AND OPERATIONSLivent’s process for extracting lithium from the brine resource is to pump the lithium-bearing
brine from production wells into the Selective Adsorption (SA) Plant, or optionally into preconcentrate ponds for solar concentration prior to going to the SA Plant. The SA Plant uses
treated fresh water and a proprietary adsorption process to selectively remove the lithium fromthe brine. The polished stream leaves the SA Plant and is further concentrated in solar
evaporation ponds called finished salar brine (FSB) ponds. The residual barren brine andfreshwater mixture (generally referred to as spent brine) is sent to the artificial lagoon where it
evaporates or infiltrates back into the Salar. Some of the finished brine is sent to the Carbonate
Plant, where it is reacted with soda ash to produce battery- or technical-grade lithium
carbonate. The remaining finished brine is sent offsite to the Güemes Plant where it is used to
produce high-purity lithium chloride.
Livent continues to process lithium at SdHM essentially the same way it has since operations
began in 1997. The only significant changes to operations occurred in 2012 when the preconcentrate ponds and two additional lithium brine production wells were placed in service.
Livent has begun expansion plans to increase lithium carbonate production. Plans for increased
lithium carbonate production involve increasing brine and water extraction and throughput
capabilities at the SA Plant, and increasing lithium carbonate production capacity. Considering
Livent’s successful track record and historical performance, its plans for expansion are
fundamentally sound and have lower risk than a similar operation at an unproven location.

1.5 MINERAL RESOURCE ESTIMATES
This report includes the first resource and reserve estimate for Project Fenix that complies with
Securities and Exchange Commission regulations S-K 601(b) (96). The current resource estimate
provided in this report, as of December 31, 2022, does not rely on historical (pre-production)
lithium grade information. Instead, it relies on data collected from an extensive monitoring
well network installed in 2017, nearly 20 years after operations began, and data from deep
characterization boreholes drilled in 2020. Historical data collected prior to development anddata collected from deep exploration boreholes are used to estimate static reservoir properties
that are not expected to change over time. Although historical resource estimates do notconform to current standards, they are included in this report for reference and to illustrate how
well various resource estimates compare over time and across different estimation methods anddata sets.
Kriging, a well-established method for interpolating data between measurements, was used toestimate in situ lithium resources in September 2022. Using this method, measured lithium
concentrations from Livent’s monitoring wells, publicly available lithium concentration datafrom the Eastern Subbasin, and lithium concentrations measured in deep characterization
boreholes were the basis for interpolation. The availability, density, and reliability of brine andIntegral Consulting Inc.

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hydraulic data from lithium brine production and monitoring wells allows resources fromground surface to 40 m bgs to be classified as “measured.” The interval from 40 to 100 m bgs isclassified as “indicated,” and from 100 to 200 m bgs, where data are sparse, is classified as“inferred.”
The current resource estimates (as of December 31, 2022) were calculated by deducting theamount of lithium produced from September 1, 2022, through the end of 2022 from theSeptember 2022 estimate. Current resources are presented inclusive and exclusive of mineralreserves.
Resource estimates, inclusive of reserves, are as follows: 523,000 Mt lithium (measured);805,000 Mt lithium (indicated); 1,328,000 Mt lithium (measured and indicated); and 892,000 Mt
lithium (inferred). The total measured, indicated, and inferred resource, inclusive of reserves, is
2,220,000 Mt lithium.
To calculate resources exclusive of reserves, the proven reserves were deducted from measured
resources and probable reserves were deducted from indicated resources. Resource estimates,
exclusive of reserves, are as follows: 370,000 Mt lithium (measured); 228,000 Mt lithium(indicated); and 597,000 Mt lithium (measured and indicated). The total measured, indicated,
and inferred resource, exclusive of reserves, is 1,489,000 Mt lithium.

1.6 MINERAL RESERVE ESTIMATES
Integral Consulting Inc. estimated lithium reserves using a numerical brine reservoir model(Salar Model) to predict changes in brine occurrence and grade in response to anticipatedlithium brine production schedules. Numerical modeling is the best tool for estimating lithium
brine reserves. It is essentially a physically based bookkeeping method for simulating fluid
flow and for tracking dissolved solids and lithium concentration and movement.
The active model area of the Salar Model is 364 km2, which covers the entire Western Subbasin.
In the vertical dimension, the model is divided into nine horizontal layers from ground surface
to bedrock. Model calibration involved changing input parameters until a satisfactory match
between observed and model-simulated conditions were reached. The Salar Model wascalibrated to brine elevations and brine chemistry (total dissolved solids and lithium
concentrations) measured at brine monitoring wells distributed across the entire Western
Subbasin, from proxy locations used to represent aggregate flows from the primary well battery
and secondary well battery, and monitoring wells in the Trapiche Aquifer.
Once the Salar Model was calibrated, it was used to predict changes in brine levels and brine
quality for a 40-year period through 2062. It should be noted that 40 years was the chosen timeframe for the numerical simulation, based on the QPs’ understanding of the resource,
operational history, and anticipated lithium carbonate production schedule, which in turn is theIntegral Consulting Inc.

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basis for establishing the life-of-mine. In the QPs’ opinion, based on available resources, current
mine plans, and pricing assumptions, the life-of-mine will remain profitable and above the cutoff grade beyond 40 years.
New lithium brine production wells are required to meet future target lithium brine production
rates. Lithium grades are anticipated to gradually decrease over time as the rate of lithium
removal exceeds the rate of natural replenishment. As this happens, brine becomes more diluteand more pumping is required to extract the required mass of lithium.
In the predictive simulations, all new wells were designed to draw exclusively from themeasured resource depth interval (0–40 m bgs) in years 0–20. In later years (21–40), brine isextracted from both the measured and indicated resource (0–100 m bgs) depth intervals. It
should be noted that future lithium brine production can be achieved with various wellconfigurations, and actual future well configurations are subject to change.
Although Project Fenix is the only commercial lithium carbonate production operation at
SdHM, other companies with mining claims adjacent to Livent’s, mainly in the Eastern
Subbasin, are known to be in the advanced exploration stage and could begin brine extraction
on a commercial scale in the next few years. To evaluate the potential impact on reserves,model inflows from the Eastern Subbasin were deactivated for a 40-year predictive simulation
beginning in January 2023. Key results from this simulation were that the flux from the Eastern
Subbasin, as modeled for reserve estimation, is diluting resources in the Western Subbasin.
Without flow from the Eastern Subbasin, lithium grade increases over time, and brine levels
decrease, relative to the reserve simulation, but not enough to materially affect reserves in eithercase.
For this reserve assessment, a cut-off grade of 218 mg/L was calculated using a breakeven
financial analysis for a 40-year life-of-mine. The breakeven analysis included reasonably
foreseeable capital and operating expenses and cost of capital at 10%, and revenue generated
assuming a long-term, forward-looking lithium carbonate price of $20,000 per Mt. Thisapproach was considered a “worst-case scenario” to establish the minimum economically viable
lithium concentration for Project Fenix to be marginally profitable and is appropriate toestimate a cut-off grade concentration.
Numerical model results indicate the lithium carbonate production schedule provided byLivent is feasible, and brine grade remains well above the economically viable cut-off grade of
218 mg/L throughout the 40-year simulation period. At the end of the 40-year simulation, flowweighted, average lithium concentration is 523 mg/L.
Future brine extraction was simulated in the Salar Model with new wells screened in the“measured” resource interval for years 0–20. In years 21–40, additional brine is produced withnew wells screened in both the “measured and indicated” resource interval. Considering

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anticipated pumping rate increases together with model predictions and 25 years of
performance monitoring data, it is reasonable to classify brine produced in the first 10 years as“proven reserves.” Brine produced in years 11–40 is classified as “probable” on the basis thatnew wells extract brine from the measured and indicated resource in later years.
Lithium reserves extracted in years 1–10 are classified as “proven” by reducing the lithium mass
extracted by 23.4% to account for process inefficiencies. Proven reserves (153,000 Mt) represent
approximately 12% of the current measured and indicated resource (1,328,000 Mt lithium).
Lithium resources extracted in later years (11–40), also discounted for process inefficiencies, areclassified as “probable.” Probable lithium reserves (578,000 Mt) produced in years 11–40
represent 43% of the total measured and indicated resource. Reserves are classified as probablebecause a fraction of the brine produced in years 21–40 originated in the measured andindicated resource intervals and certain modifying factors (economic, legal, governmental,
environmental, and social) necessarily introduce uncertainty in future operations. The total
proven and probable reserves (731,000 Mt) make up approximately one-third of the total
resource.

1.7 PERMITTING REQUIREMENTS
MdA entered into an agreement with the Argentine federal government and Catamarca
Province to develop SdHM in 1991. After 1993, the Argentine federal government assigned its
rights and obligations to Catamarca Province, which provides Catamarca Province jurisdiction
and a minority ownership stake in MdA. MdA holds water rights to the Rio Trapiche andTrapiche Aquifer to support current operations. MdA currently holds temporary rights to theLos Patos Aquifer. Permeant concessions for the Los Patos Aquifer are expected to be grantedin the coming months.
Project Fenix conducts operations under a variety of environmental and operating permits.
Environmental baseline investigations were conducted for Project Fenix and the Los Patos
Aqueduct projects. Environmental impact assessments are updated biannually with datacollected from ongoing monitoring programs. Additional permits are obtained for facilities
upgrades and expansion as required by governmental agencies.

1.8 SUMMARY
This lithium resource and reserve disclosure may differ from other disclosures for projects
involving lithium-bearing brine extraction because Project Fenix is a mature project and is oneof only a few long-term operating projects (25 years of continuous operation) of its kind in theworld. Currently, most lithium brine projects are for sites still in the exploration phase, have
only a few years of experience with commercial lithium production, or are not subject toIntegral Consulting Inc.

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disclosure requirements. Because of the 25 years of operational history, information collectedduring operations support the interpretations and conclusions made herein.
Although not considered in this reserve assessment, lower cut-off grades may become
economically viable with advances in process technology or with changes in mine plans (e.g.,
additional pre-concentrate ponds or SA columns). The economic analysis indicated positive
cash flow for the life-of-mine after an initial payback period of 3.6 years based on the
anticipated lithium carbonate production schedule.

1.9 RECOMMENDATIONS
Future exploration should focus on depths greater than 40 m bgs to potentially upgrade
resource estimates currently considered indicated and inferred. A supplemental deep
exploration program work plan is currently in development. Incorporating new data collectedfollowing a future deep exploration program may have the added benefit of increasing reserves.
Livent should evaluate the mass balance at the artificial lagoon. A mass balance evaluation is
aimed at quantifying flows into and out of the artificial lagoon and its storage capacity. A better
understanding of the lagoon mass balance is necessary to manage future spent brine disposition
as lithium brine production increases. Additionally, the evaluation should include future spentbrine return options, including an adaptive management program for surface return,mechanical evaporators, recycle technologies, injection wells, or some combination thereof.
Further numerical modeling work is recommended to support expanded lithium brine
production and optimize well configurations and pumping rates. Additional modeling work
should include validation and/or extending the calibration period to simulate a future brine
elevation and quality monitoring data set. Future numerical modeling work should incorporate
relevant information collected during the other two recommended future work programs (deepexploration or spent brine return evaluation).

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2 INTRODUCTION
In 2018, the Securities and Exchange Commission (SEC) adopted amendments to modernize theproperty disclosure requirements for mining registrants by requiring disclosures concerningmineral resources and reserves. The amendments more closely align the SEC’s disclosure
requirements and policies for mining properties with current industry and global regulatory
practices and standards (i.e., Committee for Reserves and International Reporting Standards[CRIRSCO]).
This report was prepared in accordance with SEC regulations S-K 601(b) (96) by Integral
Consulting Inc. (Integral) on behalf of Livent Corporation (Livent; the Registrant) for its lithium
brine mining operation, Project Fenix, located in the Western Subbasin of the Salar del Hombre
Muerto (SdHM or Salar), Catamarca Province, Argentina. This report was developed to meet or
exceed pre-feasibility standards in support of ongoing operations and the announced
expansions currently in progress. Of the relevant factors evaluated herein, site infrastructure,mine design and planning, processing plant(s), and environmental compliance and permitting,including near-term capital and operating costs, are established with enough rigor andconfidence to meet feasibility standards. This study is classified as pre-feasibility primarily toacknowledge uncertainty in long-term capital and operating costs as projected to the life-ofmine over 40 years.

2.1 TERMS OF REFERENCE AND PURPOSE
Integral was retained by Livent to develop this report to comply with the mineral disclosure
requirements set forth by the SEC. The mineral disclosures are specific to Livent’s Project Fenix,
an active lithium brine mining operation that began producing lithium in 1997. This report
establishes the resource and reserves to support the ongoing operations, and the expansions
currently in progress and announced.
Mineral resource and reserve estimates, reported herein, were developed in accordance with thefollowing guidance:•

Australasian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves (JORC 2012).

•

Mineral resource and reserve definitions provided by the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM 2014).

•

Ontario Securities Commission (OSC) staff notice 43-704 for guidance on the applicationof National Instrument 43-101 for mineral brine projects such as lithium (OSC 2011).

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Although these guidance documents do not provide prescriptive mineral classification
breakpoints, we adhere to their principles, which center on transparency, materiality, andcompetence, in developing the resource and reserve estimate for Project Fenix.
Some information contained in this report is forward-looking and should be used with caution.
Forward-looking statements are based on assumptions the Qualified Persons (QPs) consider
reasonable at the time this report was created. Forward-looking statements do not guarantee
specific or implied results, performance, or outcomes. Instead, forward-looking statements
involve risk, are inherently uncertain, and cannot be relied upon to provide assurance for aparticular outcome.
Lithium brine production rates at the Selective Adsorption (SA) Plant have been remarkably
consistent in recent years (2015 to 2022), averaging approximately 25,300 metric tons (Mt)lithium carbonate equivalent (LCE) per annum.
In 2022, Project Fenix produced 26,100 Mt LCE of concentrated lithium brine from the SA Plant,
which feeds both the Lithium Carbonate Plant at Project Fenix and the Lithium Chloride Plant
located in Güemes, Argentina (the Güemes Plant).
Project Fenix is scheduled to undergo several phased expansions designed to increase nominal
lithium carbonate production capacity to 100,000 Mt lithium carbonate per year. The First
Expansion, designed to double lithium carbonate production capacity to 40,000 Mt, is currently
underway in two phases (A and B). The remaining expansions will increase lithium carbonate
production capacity in the years that follow, culminating with 100,000 Mt lithium carbonate
production capacity in 2030.
In this report, lithium mass is usually the preferred unit for expressing resources; however, aconversion factor of 5.323 is used when converting lithium mass to LCE. Metric units are usedthroughout this report, unless otherwise noted. Costs are expressed in United States (U.S.)
dollars ($).

2.2 SOURCES OF INFORMATIONThis report is based in part on site characterization data collected before mining operations
began (pre-development); operational data in the period thereafter, including deep exploration
data collected by Livent in 2020; information provided by Livent; government reports andpublications; and reports, letters, information from reports and memoranda prepared by otherthird parties as cited in the report and listed in Section 24 (References).

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2.3 DETAILS OF INSPECTION
Personal inspections of the SdHM and Livent operating facilities, as well as meetings inArgentina with local authorities have been conducted by QPs from Integral as outlined below:•

Sean Kosinski and William Cutler visited the Salar and Livent’s Project Fenix facilities in
April 2015. The site visit included inspection of geological and hydrological setting,review of brine and freshwater extractions systems, and review of manufacturing
processes.

•

Sean Kosinski and William Cutler met with local mining and water authorities in
Catamarca in August 2015. They presented a freshwater management strategy for the
Trapiche Aquifer during that visit.

•

Sean Kosinski and William Cutler met with the federal Mining Ministry and technicalleaders from the Argentine government in Buenos Aires in December 2016. They
presented plans for the SdHM brine monitoring well network and provided an
overview of numerical modeling work in support of Livent’s management of the Salar.

•

Sean Kosinski visited the SdHM in March 2017 to provide technical oversight, including
drilling methods and inspecting core and drill cuttings during installation of brine
monitoring wells and across Livent’s concession in the Western Subbasin of the Salar.

•

Sean Kosinski and William Cutler visited the SdHM and Livent’s Project Fenix facilities
in March 2018. During this site visit, the QPs inspected site facilities and freshwater
resources at the Los Patos and Trapiche rivers at and in the vicinity of the Salar.

•

Sean Kosinski visited the SdHM and Project Fenix facilities in March 2022. During thisvisit, he observed operations at the Salar, including the operation of lithium brine
production wells and flows to the artificial lagoon; overseeing geophysical surveys;
toured portions of the Eastern Subbasin, including Laguna Catal; observed surface waterflows in Trapiche area streams, and construction activities related to the Project Fenix
plant expansion.

2.4 REPORT VERSION UPDATEThis report marks the first mineral resource and reserve disclosure submitted by Livent for its
lithium brine mining operation at SdHM in accordance with 17 Code of Federal Regulations(CFR) § SEC 229.1300. As this report may be updated later following acquisition of new andrelevant data or information, the user should confirm that this is the latest filed version of thereport.

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2.5 QUALIFIED PERSONSThis report was prepared by Integral, a third-party consulting firm, in accordance with 17 CFR §229.1302. The following personnel serve as the QPs for this report as defined in 17 CFR §229.1302 (b)(1)(i):•Sean Kosinski, P.Hg., graduated from Eastern Connecticut State University with a
Bachelor’s degree in Environmental Earth Science, and from the University of Nevada,Reno, with a Master’s degree in Hydrogeology. He is a Professional Hydrogeologist
certified by the American Institute of Hydrology (No. 14-HG-6007) and he is a memberof the Nevada Mining Association and National Groundwater Association. He is a
Senior Consultant with Integral with more than 20 years of experience in mininghydrology.

•

William Cutler, Ph.D., P.G., graduated from the University of Michigan with a
Bachelor’s degree in Geological Sciences; from the University of Calgary with a Master’s
degree in Geology and Geophysics; and from the University of Hawaii with a Doctor ofPhilosophy (Ph.D.) in Geology and Geophysics. He is a Professional Geologist licensed
in California (No. GEO 4667), and a Principal with Integral with 40 years of experiencein geology, including oil and gas exploration and development, mining, and water
resources.

Livent has determined that the QPs meet the qualifications specified under the definition ofqualified person in 17 CFR § 229.1300.

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3 PROPERTY DESCRIPTIONThe SdHM is a salt pan (salar) in northwest Argentina, in the northeastern portion of Catamarca
Province on the border with Salta Province (Figure 3-1).

Figure 3-1. Location of Salar del Hombre Muerto

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The entire SdHM covers an area of nearly 600 km2. A bedrock saddle near the center of the
Salar separates it into Western and Eastern Subbasins, approximately 348 km2 and 240 km2,
respectively (Figure 3-2).

Figure 3-2. Project Fenix and Subbasins

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Minera del Altiplano S.A. (MdA), Livent’s Argentine operating subsidiary, owns and operates
lithium brine production facilities and related chemical processing plants in the Western
Subbasin of SdHM (S 25° 27ʹ, W 67 °05ʹ), referred to hereafter as Project Fenix. Project Fenix
broadly encompasses the areas used by Livent for lithium brine production and processing, andis located exclusively within the Western Subbasin of SdHM. Project Fenix is approximately 45
km from Ciénaga Redonda, 85 km from Los Nacimientos, 97 km from Antofalla, 100 km from
Antofagasta de la Sierra, and 174 km from Peñon. The city of Salta has a population of
approximately 700,000 and is 185 km east-northeast of Project Fenix.

3.1 PROPERTY AREA
MdA holds a title to mining concession rights to extract resources from SdHM. These mineral
concession rights were granted to MdA pursuant to the Argentine Mining Code and include a
total of 143 contiguous mining concessions in the Western Subbasin (referred to as theContiguous Lease Area) and one concession in the Eastern Subbasin, which when combined,
cover an area of approximately 327 km2 (32,617 hectares). The extent of mining concession
rights within the entire SdHM and party holding title to the concessions were provided toIntegral by Livent on December 22, 2021, and are shown on Figure 3-3. Neighboring mining
concessions are discussed in Section 20.

3.2 MINERAL CONCESSIONS TITLE AND RIGHTS
MdA owns 144 mining properties and holds concessions title and rights to mine lithium,magnesium, sodium, potassium, magnesium salts, borax, borate, and bentonite from SdHM
(collectively, the Project Fenix). To date, however, MdA has only produced lithium andremoves the other minerals during brine processing. MdA and Livent’s predecessor, FMC
Corporation (FMC), initially obtained mineral rights under the Contract of 1991 (as defined in
Section 16.4.1) with Dirección General de Fabricaciones Militares (DGFM), an entity of the
Ministry of Defense of the Argentine Republic and Catamarca Province. The agreement has
since been amended several times, including under the Amendment of 1994 (as defined in
Section 16.4.1), which, following legislative and constitutional reforms in 1993 and 1994,
resulted in the Argentine federal government’s transfer of eminent domain of mineral rights
subject to MdA’s concession to Catamarca; while the DGFM transferred title to the concessions
to MdA. For additional information regarding the agreements governing MdA’s concessions,
see Section 16.4.1.

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Figure 3-3. Mining Claims in the Salar del Hombre Muerto

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3.2.1 Mineral Concessions Title and Mining GroupOn December 29, 2021, the mining authority of Catamarca issued joint resolution No. RESFC2021-90-E-CAT-AM, by virtue of which it approved the formation of the SdHM mining group(i.e., a new mining property constituted from multiple adjoining existing mines), including 141
mining properties in a single unified docket. Livent has access to 144 total mining properties.
A list of these 144 mining concessions titles and rights is included as Table 3-1 (the three notincluded in the mining group are in Bold Italics). The locations of the 144 mining properties
are shown on Figure 3-4.
Table 3-1. MdA’s Mineral Concessions Titles and Rights in the SdHM
Concession Name

Original File Number

Hectares

Unified File Number

20 de Febrero

165M1993

500

EX–2021-00466761

20 de Mayo

84M1991200

EX–2021-00466761

29 de Mayo

86M1991200

EX–2021-00466761

3 de Febrero

91M1991

200

Acazoque I

92M1988200

EX–2021-00466761

Acazoque II

93M1988300

EX–2021-00466761

Acazoque III

94M1988200

EX–2021-00466761

Alicia María

46M1993300

EX–2021-00466761

Ana María

45M199395

EX–2021-00466761

Beatriz IV

108M1993

200

EX–2021-00466761

Beatriz XIII

51M1985200

EX–2021-00466761

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Carnalita I

142M1990

600

EX–2021-00466761

Carnalita II

143M1990

400

EX–2021-00466761

Chiro I

203M2003

178

EX–2021-00466761

Chiro II

204M2003

336

EX–2021-00466761

Chiro III

205M2003

194

EX–2021-00466761

Chiro IV

206M2003

105

EX–2021-00466761

Chiro V565M2004

1270

EX–2021-00466761

Cuba

1953M1900

100

EX–2021-00466761

Don Elías

168M1993

600

EX–2021-00466761

Eduardo

85M1991200

EX–2021-00466761

Fernando

70M1991200

EX–2021-00466761

Fernando I

69M1991399

EX–2021-00466761

Gringa223M1995

100

EX–2021-00466761

Habana17M1992200

EX–2021-00466761

Horacio

222M1995

200

EX–2021-00466761

Jenny

167M1994

400

EX–2021-00466761

La Puna II

38M1991200

EX–2021-00466761

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Concession Name

Original File Number

Hectares

Unified File Number

Lalita44M1993300

EX–2021-00466761

Los Quilmes I

66M1991200

EX–2021-00466761

Los Quilmes II

67M1991300

EX–2021-00466761

Los Quilmes III

68M1991172

EX–2021-00466761

Mañana

1951M1900

100

Marcela

88M1991

200

María Cristina

92M1991

200

María II

121M1983

200

EX–2021-00466761

María III

122M1983

200

EX–2021-00466761

María IV

123M1983

200

EX–2021-00466761

María IX

87M1985200

EX–2021-00466761

María V

124M1983

200

EX–2021-00466761

María VII

85M1985200

EX–2021-00466761

María VIII

86M1985200

EX–2021-00466761

María X

88M1985200

EX–2021-00466761

María XI

89M1985200

EX–2021-00466761

María XII

90M1985200

EX–2021-00466761

María XIII

91M1985200

EX–2021-00466761

María XIV

92M1985200

EX–2021-00466761

María XV

93M1985200

EX–2021-00466761

Nelly IV

113M1983

200

EX–2021-00466761

Nelly V

114M1983

200

EX–2021-00466761

Nelly X

28M1985200

EX–2021-00466761

Integral Consulting Inc.

EX–2021-00466761

Nelly XII

30M1985

100

EX–2021-00466761

Nelly XIII

31M1985200

EX–2021-00466761

Nelly XIV

32M1985200

EX–2021-00466761

Norma I

115M1983

200

EX–2021-00466761

Norma II

116M1983

200

EX–2021-00466761

Norma III

117M1983

200

EX–2021-00466761

Norma IV

118M1983

200

EX–2021-00466761

Norma IX

57M1985200

EX–2021-00466761

Norma V

119M1983

200

EX–2021-00466761

Norma VI

54M1985200

EX–2021-00466761

Norma VII

55M1985200

EX–2021-00466761

Norma VIII

56M1985200

EX–2021-00466761

Norma X

58M1985200

EX–2021-00466761

Norma XI

59M1985200

EX–2021-00466761

Norma XII

60M1985200

EX–2021-00466761

Norma XIII

61M1985200

EX–2021-00466761

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Concession Name

Original File Number

Hectares

Unified File Number

Norma XIV

62M1985200

EX–2021-00466761

Norma XV

63M1985200

EX–2021-00466761

Olga I

100M1983

200

EX–2021-00466761

Olga II

101M1983

200

EX–2021-00466761

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Olga III

102M1983

200

EX–2021-00466761

Olga IV

103M1983

200

EX–2021-00466761

Olga IX

37M1985200

EX–2021-00466761

Olga V

104M1983

200

EX–2021-00466761

Olga VI

34M1985200

EX–2021-00466761

Olga VII

35M1985200

EX–2021-00466761

Olga VIII

36M1985200

EX–2021-00466761

Olga X

38M1985200

EX–2021-00466761

Olga XI

39M1985200

EX–2021-00466761

Olga XII

40M1985200

EX–2021-00466761

Olga XIII

41M1985200

EX–2021-00466761

Olga XIV

42M1985200

EX–2021-00466761

Olga XV

43M1985200

EX–2021-00466761

Paula

26M1993290

EX–2021-00466761

Paulina

169M1993

400

EX–2021-00466761

Poppy I

125M1983

200

EX–2021-00466761

Poppy II

126M1983

200

EX–2021-00466761

Poppy III

127M1983

200

EX–2021-00466761

Poppy IV

128M1983

200

EX–2021-00466761

Poppy IX

77M1985200

EX–2021-00466761

Poppy V

129M1983

100

EX–2021-00466761

Poppy VI

74M1985200

EX–2021-00466761

Poppy VII

75M1985200

EX–2021-00466761

Poppy VIII

76M1985200

EX–2021-00466761

Poppy X

78M1985200

EX–2021-00466761

Poppy XI

79M1985200

EX–2021-00466761

Poppy XII

80M1985200

EX–2021-00466761

Poppy XIII

81M1985200

EX–2021-00466761

Poppy XV

83M1985

100

EX–2021-00466761

Rosana II

131M1983

200

EX–2021-00466761

Rosana III

132M1983

200

EX–2021-00466761

Rosana IV

133M1983

200

EX–2021-00466761

Rosana IX

97M1985200

EX–2021-00466761

Rosana V

134M1983

200

EX–2021-00466761

Rosana VII

95M1985200

EX–2021-00466761

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Concession Name

Original File Number

Hectares

Unified File Number

Rosana VIII

96M1985200

EX–2021-00466761

Rosana X

98M1985200

EX–2021-00466761

Rosana XI

99M1985200

EX–2021-00466761

Rosana XII

100M1985

200

EX–2021-00466761

Rosana XIII

101M1985

200

EX–2021-00466761

Rosana XIV

102M1985

200

EX–2021-00466761

Rosana XV

103M1985

200

EX–2021-00466761

Sabina164M1993

500

EX–2021-00466761

Salar I

18M1990300

EX–2021-00466761

Salar II

19M1990200

EX–2021-00466761

Salar III

17M1990200

EX–2021-00466761

Salar IV

15M1990208

EX–2021-00466761

Salar V

16M1990200

EX–2021-00466761

Santa Barbara I

5M1991200

EX–2021-00466761

Santa Barbara II

6M1991370

EX–2021-00466761

Santa Barbara III

7M1991400

EX–2021-00466761

Santa Barbara IV

8M1991200

EX–2021-00466761

Santa Barbara V

9M1991200

EX–2021-00466761

Santa Barbara VI

10M1991200

EX–2021-00466761

Silvia I

95M1983200

EX–2021-00466761

Silvia II

96M1983200

EX–2021-00466761

Silvia III

97M1983200

EX–2021-00466761

Silvia IV

98M1983200

EX–2021-00466761

Silvia IX

67M1985200

EX–2021-00466761

Silvia V

99M1983200

EX–2021-00466761

Silvia VI

64M1985200

EX–2021-00466761

Silvia VII

65M1985200

EX–2021-00466761

Silvia VIII

66M1985200

EX–2021-00466761

Integral Consulting Inc.

Silvia X

68M1985200

EX–2021-00466761

Silvia XII

70M1985200

EX–2021-00466761

Silvia XIII

71M1985200

EX–2021-00466761

Silvia XIV

72M1985200

EX–2021-00466761

Silvia XV

73M1985200

EX–2021-00466761

Tauro I

33M1991100

EX–2021-00466761

Tauro II

34M1991200

EX–2021-00466761

Tauro III

31M1991200

EX–2021-00466761

Yvi IV

46M1991200

EX–2021-00466761

Yvi VI

48M1991600

EX–2021-00466761

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Figure 3-4. MdA Claims in the Salar del Hombre Muerto

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3.3 ROYALTIES
Pursuant to Provincial Laws Nos. 4757, 4759, 5031, and 5128, related regulatory decrees andsupplementary regulations, as well as the agreements with Catamarca (as described in moredetail in Section 16.4.1), MdA is required to pay monthly royalties to Catamarca inconsideration for the minerals extracted from its concessions.
MdA is required to pay the Catamarca province an immaterial semi-annual “canon” feepursuant to the Argentine Mining Code and monthly royalties equal to 3% of the pithead valueof the minerals extracted by MdA (the "Pithead Royalty") pursuant to the Argentine Mining
Investment Law and Catamarca provincial law. Separately, under an amendment to its longterm agreement with Catamarca entered into on January 25, 2018, MdA agreed to pay theCatamarca province an additional monthly contribution (the "Additional Contribution") and to
make Corporate Social Responsibility (CSR) expenditures. The Additional Contribution
amount is equal to 2% of sales of products in a given month measured at the higher of MdA’s
average invoice price or an average export price for similar products from Chile and Argentina,
net of tax in either case (the "Contractual Price") less Pithead Royalty. The total amount MdA
pays will not be above 2% of sales of products at the Contractual Price in a given month. The
CSR amount each year is the equivalent of 0.3% of MdA's annual sales of products at theContractual Price. Total payments including the "canon" fee, Pithead Royalty, Monthly
Contribution, CSR expenditures and water trust payments equal to 1.2% of annual sales of
products at the Contractual Price (as described below in the "Water" subsection to Item 1).

3.4 OTHER ENCUMBRANCES
The mining properties have been granted to MdA and comply with all legal requirements tomaintain them (royalty payments, investment plan fulfilled). For further information, see
Section 3.3, Royalties.
Project Fenix and its mining properties are required to maintain certain permits. An
environmental impact statement is required to be updated and approved by Catamarca every
2 years. Certain water permits are also currently subject to renewal every 2 years. No
additional material permits are required for MdA to freely operate these concessions.

3.5 PROVINCIAL BORDER DISPUTE
A portion of the territory governed by MdA’s concession rights is subject to a longstanding
border dispute between Catamarca Province and adjacent Salta Province (Figure 3-4). The
border dispute has never impacted MdA’s operations and it is not expected to impact
operations going forward, because MdA’s lithium brine production well batteries and lithium
carbonate production facilities are located south of the disputed areas. In disputed areas in the

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north of the Salar, MdA obtained mining concessions from the Salta Province (Litio I and LitioII) that overlap concessions granted by the Catamarca Province (Norma VI, Norma I, Tauro I,
Tauro III, La Puna II, Olga VI, Olga I, Silvia VI, and Silvia I). The total area in dispute
represents approximately 7.6% of MdA’s concession (approximately 25 km2). Further, the area
in question is largely at the fringe of the mining property, where the deposits are not as thick,and the grade of lithium concentration is lower. However, due to this border dispute, themining authority of Salta Province has granted mining concessions that overlap with mining
concessions granted to MdA by the Catamarca Province mining authority.
MdA has filed an objection with the mining authority of Salta Province in two third-party
applications for mining concessions (i.e., Tabahm, Eugenia I, Baltasar I and Arco Iris I mines),
but the authority of Salta consistently rejects MdA’s filings on the grounds that the territory
under dispute belongs to Salta. So far, nine mining concessions granted by the Salta Province
mining authority have been identified that would overlap (totally or partially) with MdA’s
mining concessions granted by the Catamarca Province mining authority.
Table 3-2 lists the mining concessions granted by Salta Province to third parties that overlap
with MdA’s concessions granted by Catamarca Province, and the purported ownership thereof.
MdA wholly controls two concessions (La Puna II and Olga VI) within the dispute area between
Salta and Catamarca.
Table 3-2. Mining Concessions Granted to Third Parties by Salta Province Overlapping with Catamarca Province

Mining Concession Granted by Salta
Province to Third Parties

Title Owners of Salta Province
Concessions

Mining Concessions Granted by Catamarca
Province to MdA that Overlap with Salta
Province’s Concessions

Rodrigo II

Taballione Carlos Dante

Poppy VI; Poppy I; Los Quilmes III; Carnalita II

Baltasar Primero

Alpha Minerals S.A.

Tauro I; Tauro II; Tauro III

Arco Iris I

Alpha Minerals S.A.

Tauro I; Norma VI

Eugenia I

Surminera

Norma VI; Norma I

TabahmPosco Argentina

Olga I; Silvia I; Silvia VII

Norma Edith

Moreno Jorge Enrique, Salas Alba Silvia

Silvia VI; Silvia I

Virgen de Lourdes Segunda

VacantSilvia VI; Silvia I

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4 ACCESSIBILITY, CLIMATE, AND INFRASTRUCTURE
4.1 ACCESSIBILITY
Project Fenix (the site) is located where the toe of the Trapiche alluvial fan and Salar meet in theWestern Subbasin of SdHM. There are no navigable waterways or railways that connect ProjectFenix to other population centers.
Vehicles and planes provide access to the site. When traveling from Salta, the site is accessedfrom the north by National Route 51 to Provincial Route 27, and then Provincial Route 17. The
total drive distance from Salta to Project Fenix is approximately 400 km. From Catamarca, thesite is accessed via National Route 40 through Belen, then Provincial Route 43 from Las Juntas
through Antofagasta de la Sierra. The total drive distance from Catamarca to Project Fenix isapproximately 650 km. From Project Fenix to the port city of Antofagasta, Chile, isapproximately 675 km via Provincial Route 17 to Provincial Route 27, then National Route 51 toRoute 23, and then Panamericana Norte Route 5 (Figure 4-1).
The Salta Airport is the nearest major commercial airport to Project Fenix.
Livent maintains a runway suitable for light-duty aircraft approximately 1 km east of ProjectFenix. Departures from the runway occur several times per day, weather permitting, toregional airports in Catamarca and Salta (Figure 4-2).

4.2 PHYSIOGRAPHY
SdHM is located at high elevation (approximately 4,000 m above mean sea level [amsl]) within
the Central Andean Plateau bounded on either side by the eastern and western Cordillera of theAndes Mountains. SdHM is located in the Puna region of the Altiplano—a high plateau withhorst and graben topography characterized by north–south trending volcanic mountain ranges
separated by sediment-filled basins. Elevations range from approximately 6,100 m amsl at
Cerro Galan, a massive inactive volcanic caldera at the southern extent of SdHM, toapproximately 3,970 m amsl at the surface of the Salar in the Western Subbasin. A topographic
profile from Cerro Galan to the Western Subbasin of the Salar is shown in Figure 4-3.

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Figure 4-1. Location Map and Directions

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Figure 4-2. Project Fenix Process Area Layout

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Figure 4-3. Elevation Profile

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4.3 HYDROGRAPHYThe SdHM is an endorheic basin defined by the boundaries of its watershed, which isapproximately 3,900 km2 in area (Figure 4-4). The SdHM watershed consists of threesubwatersheds: the Trapiche watershed, the Rio de Los Patos watershed, and the Salar
watershed. The Rio Trapiche watershed (319 km2) is characterized by the alluvial fan that
gently slopes from the highlands in the south toward the Salar. Two perennial streams arelocated within the boundaries of Trapiche watershed: the Rio Peñas Blanca and Rio Trapiche.
Infiltration from both streams into the alluvial fan provides groundwater recharge to the
Trapiche Aquifer.
A dam (dique) was constructed in 1994 along the Rio Trapiche to impound surface water before
it infiltrates into the Trapiche alluvial fan. Some of the impounded water is used to supply the
Selective Adsorption (SA) Plant and for human consumption (Figure 4-2).
The Los Patos watershed is the largest (2,140 km2) of the three subwatersheds and hosts the Riode Los Patos and its tributary Rio Aguas Caliente. The headwaters of Rio de Los Patos arelocated at Cerro Galan. The Rio de Los Patos and Rio Aguas Caliente merge in the alluvial
basin west of Cerro Amarillo, where it flows north toward the alluvial fan in the southern
portion of the Eastern Subbasin. Here, the Rio de Los Patos becomes braided and spreads out
across the alluvial fan and Salar. The braided segments flow north and west until they merge
into a single surface water feature, the Laguna Catal, where the Eastern and Western Subbasinsconnect.
The Salar watershed (1,415 km2) is characterized by the expansive Salar surface, which is thehydrologic terminus for both the Rio Trapiche and Rio de Los Patos watersheds. There arethree large surface water features within the Salar watershed: Lagunas Catal and Verde, and an
artificial lagoon north of Project Fenix. The Laguna Catal is the most prominent surface water
body within the Salar watershed. The extent of each surface water feature varies seasonally andin response to precipitation and snowmelt events. In recent aerial photographs, Laguna Catal isapproximately 9 km2. Laguna Verde, located in the northern portion of the Eastern Subbasin, isapproximately 3.7 km2. The artificial lagoon north of Project Fenix, fed by discharge of lithiumbarren (spent) brine to the Salar surface, is approximately 1.5 km 2.

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Figure 4-4. Salar del Hombre Muerto Watersheds

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4.4 CLIMATEThe Puna region is an arid desert climate with temperate summers and cold winters. Summer
temperatures range from freezing at night to 15–30°C during the day. Winter temperatures are
cold, ranging from -30°C during the night to 15°C during the day, with strong steady winds
gusting to more than 120 km/h.
Precipitation measured at Project Fenix, near the Salar surface, averages approximately 100 mm
per year and falls mostly during summer thunderstorms. Precipitation rates roughly correlatewith elevation. Higher elevations within the SdHM tend to receive greater amounts ofprecipitation than lower elevations. Light snow is common during the winter months,
particularly at higher elevations.

4.5 VEGETATION
The plants at SdHM evolved in response to changes from a Neotropical origin toward the dry
conditions that define the high Andean desert (EC & Asociados 2020). Vegetation is sparse in
the Puna due to low precipitation rates. Vegetation tends to occur as grasses, or asphreatophytes located along narrow riparian corridors, vegas, or wetlands, supported by thepresence of shallow fresh or brackish water.

4.6 INFRASTRUCTURE
The energy required for the operation of Project Fenix is generated at the Auxiliary Services
Plant located onsite. This plant has eight generators: five dual-fuel generators, two generatorsthat use natural gas, and one diesel generator used as backup through programmed orunscheduled interventions of the other generators. Current operations have a maximum
generation capacity of 5.2 MW (including backup equipment), and deliver power for operating
conditions with an average demand of 4.4 MW.
Natural gas is the primary power supply to the Auxiliary Services Plant. It is supplied to
Project Fenix via pipeline operated by REMSA S.A., a public limited company responsible formanaging the energy and mining resources of Salta Province. Diesel used to power lithium
brine production wells and for backup power at the Auxiliary Services Plant is transported by
vehicles with bulk tanks. A network of six underground tanks and two aboveground tanks
provides 500,000 liters of standard, 777,000 maximum diesel storage capacity.
The railway network in Chile is operated by the company Ferronor; this network is made up of
2,300 km of rail with a line that runs from north to south of Chile, plus a set of branches that run
east to west. The Augusta Victoria Station (Chile)–Socompa Station (Argentina), on the borderwith Argentina, allows cargo to be moved from the Antofagasta Port at the Pacific Ocean to theIntegral Consulting Inc.

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Socompa Station, and from the Socompa Station through the Belgrano Railway to the Olacapato
Station or Socompa Station–Güemes Station (611 km) in Argentina (Figure 4-5).

Figure 4-5. Railway Network

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4.6.1 Other Factors Affecting Operations
MdA uses natural gas and diesel to generate electricity, which is the principal source of power
at its facilities. From time to time, MdA experiences interruptions in the supply of electricity,
but the interruptions have not materially impacted its operations to date.

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5 HISTORY
Livent is a specialty chemical company focused on performance lithium compounds. Livent
was formed and incorporated by FMC Corporation as FMC Lithium USA Holding Corp. in thestate of Delaware on February 27, 2018, and was subsequently renamed Livent Corporation.
Prior to this time, Livent’s property was operated through various subsidiaries of FMC.
Livent conducts its operations in Argentina through MdA, its local operating subsidiary. MdA
mines lithium via brine production in the Western Subbasin of the SdHM, in a region of theAndes Mountains of northwest Argentina known as the “lithium triangle.” This area of theCentral Andes is within an arid plateau with numerous volcanic peaks and salt flats known as“salars” and is the principal lithium-bearing region of South America.
Livent began its initial geological investigations of the SdHM in the early 1990s, prior todevelopment (WMC 1992, 1994). An economic geologic reconnaissance report by Catalano(1964) is the only geologic investigation at SdHM known to predate Livent’s. In 1991, MdAentered into an agreement with the Argentine federal government and the Catamarca Province
in connection with the development of the SdHM exploration site. In 1993 and 1994, theArgentine federal government assigned all of its rights and obligations under the agreement to
the Catamarca Province. Pilot lithium production began in 1997 and commercial lithiumproduction operations began in 1998.
Even though the current lithium production process has undergone optimization andimprovement since operations began, the fundamental technology remains largely unchanged.
Lithium-rich brine is pumped from beneath the surface of the Salar, where it is directed to the
SA Plant for processing. Surface water from the Rio Trapiche and groundwater from the
Trapiche Aquifer are directed to the SA Plant for processing along with the brine. Once lithium
is extracted from the brine, the mixture is directed to the artificial lagoon on the Salar surface
where it infiltrates back into the Salar or evaporates. Concentrated lithium brine from the SA
Plant is then further processed into lithium carbonate or lithium chloride products.
Livent is the only commercial lithium producer in SdHM. Several other companies are
involved in various stages of exploration. Additional information on neighboring lithium
projects is provided in Section 20.

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6 GEOLOGIC SETTING AND MINERALIZATION
In order to better understand the SdHM lithium-containing brine reservoir, a comprehensive
review of available geological data was conducted and is summarized herein. Understandingof Salar reservoir geology and hydrology is critical in designing and operating a brine extraction
system to maximize recoverable reserves.

6.1 GEOLOGIC SETTING
This section describes the regional and local geology of the SdHM.

6.1.1 Regional Geology
The geology in northwest Argentina covers two geologic provinces: the Puna plateau in thewest and the Eastern Cordillera to the east. The Argentinean portion of the Puna is thesouthern extension of the Altiplano of southernmost Bolivia, southern Peru, and northern Chile.
The Puna is located east of a modern volcanic arc and above a moderately dipping segment of
the eastwardly subducting Nazca plate. East of the modern volcanic arc, local volcanic edifices
are present within the Puna, and both the volcanic arc and volcanoes within the Puna have been
active from Miocene times to the present (e.g., Allmendinger et al. 1997; Kay et al. 2008; andreferences therein).
The principal lithium-bearing region of South America is located within the Puna plateau. The
climate of the Puna varies from semiarid to hyperarid on the eastern border, to arid along thewestern volcanic arc. In the southern Puna, combinations of east-trending volcanic chains andnorth-trending, reverse fault–bounded structural blocks comprise several hydrologically closed(endorheic) basins (Alonso 1986, 1999; Vandervoort et al. 1995).
The hydrologic terminus of an endorheic basin is essentially a dry lake bed, referred to as a salar.
In the Puna, where evaporation rates far exceed precipitation, salars are typically flat andexpansive with little or no perennial water or vegetation. Lithium-rich brine deposits arecommon beneath the salar surface, within porous evaporite and clastic sedimentary deposits,
because they are located in areas with the following characteristics: arid climate; igneous and/orhydrothermal activity; tectonically driven subsidence; lithium-bearing minerals or hydrothermal
waters; and time required to evapoconcentrate lithium in brine (Munk et al. 2016).
SdHM is one of the most important evaporitic basins in the Argentinean Puna and encompasses
nearly 600 km2 (Figure 6-1). SdHM lies adjacent to the eastern margins of the Puna (lateTertiary, Neogene age) sedimentary units that are up to 7 km thick and largely infilled themodern depositional basins (Jordan et al. 1999; Alonso et al. 1991). Many of these basinscontain thick sequences of evaporites (mainly halite, gypsum, borates, and carbonates) and

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alluvial clastic material (sands, silts, and clays) with minor volcanic tuff horizons (Alonso 1986).
In the Puna, and especially in the central part of the Puna, Neogene strata outcrop as reverse
fault–bounded “slices” along salar margins or as intrabasin uplifts within the salars(Vandervoort et al. 1995). Surface water drains into these closed basins and evaporation
dominates the water balance, leaving behind brines enriched in various metals and salts,
sometimes including economic levels of lithium, boron, and/or potassium.

Figure 6-1. Location of Salar del Hombre Muerto, Puna Plateau

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The origin of lithium in the brines of the Puna/Altiplano has not been established with certainty.
Shallow magma chambers are known to underlie the Puna and could potentially be the source
for mineral constituents being emplaced to the surface by volcanic activity (especially fumarolicand hydrothermal vents or leakage through many of the faults that traverse the Puna). Lithium
is transported to the Salar in surface waters that enter the Salar and largely evaporate,
depositing evaporite sediments along with concurrent clastics. Lithium is not a significant
component of precipitated evaporite minerals and tends to concentrate in the residual brine
within the sediment porosity. Evaporite deposits and their entrained brine are believed to be of
Holocene age (within the last 12,000 years).
A regional geologic map of the area surrounding SdHM is provided as Figure 6-2, withaccompanying stratigraphic columns provided as Figure 6-3. Holocene evaporite deposits andalluvial/colluvial clastic deposits (Units 48 and 47 of Figure 6-3, respectively) overlie older
igneous, metamorphic, and clastic sedimentary rocks. A detailed description of the regional
geology, tectonics, and evolution of the Puna is beyond the objectives of this report; theinterested reader is referred to the works of Aceñolaza et al. (1975, 1976), Kay et al. (2008),
Alonso et al. (1991), Vandervoort et al. (1995), and Warren (1999, 2010).

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Figure 6-2. Regional Geologic Map

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Figure 6-3. Regional Stratigraphic Columns

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6.1.2 Local Geology
SdHM consists of evaporite deposits formed within an isolated endorheic basin, bounded by
pre-Paleozoic, Paleozoic, and Cenozoic–age crystalline metamorphic basement rocks.
Published geologic maps and cross sections of SdHM geology are provided in Figures 6-4 and
6-5, adapted from Vinante and Alonso (2006). Fault-bounded bedrock hills—for example the
Península Tincalayu, Farallón Catal, and Península Hombre Muerto—occur within and along
the margins of the Salar basin (Figure 6-4), further subdividing SdHM into two separate
subbasins (eastern and western), each with different evaporite sediment compositions. The
Eastern Subbasin is dominated by borate evaporites and clastic sediments (such as sand, silts,
and clays), whereas the Western Subbasin is relatively free of clastic sediment and is dominatedby halite (sodium chloride salt) evaporite deposits. Farallón Catal rises to an elevation of about
4,200 m and is a bedrock inlier within SdHM. The Eastern and Western Subbasins areconnected by sediments deposited between Farallón Catal to the north and Península Hombre
Muerto to the south. The margins of the sedimentary basins have lacustrine depositional
terraces and ephemeral wetlands.

Figure 6-4. Bedrock and Surficial Geologic Maps

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Figure 6-5. Geologic Cross Sections

Neoproterozoic metasedimentary rocks are generally present in the Rio de Los Patos watershedto the southeast. Lower Paleozoic through Miocene shale, sandstone, conglomerates, andevaporites are present across the western portion of the watershed. These are overlain by late
Miocene volcanic dacite, andesite, and ignimbrites. Quaternary alluvial deposits are present
within valleys and as alluvial fans with evaporate deposits forming in the Salar.
Clastic sediments (sands, silts, and clays) are deposited along with evaporite minerals in thebasins by stream inflows and by alluvial fans along bounding hills. The Eastern Subbasin ismuch more clastic-rich than the Western Subbasin, primarily because the predominant stream
feeding the entire SdHM basin complex, Rio de Los Patos, enters the Eastern Subbasin at its
southeastern margin and deposits stream-entrained clastics. The Western Subbasin isconsidered a “mature” salar, per the definitions provided by Houston et al. (2011). Mature

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salars are dominated by massive central cores of halite with salar-margin sheets of clastic
deposits. Immature salars are dominated by basin-wide interbedded deposits of evaporites andclastics. The Western Subbasin maturity could have resulted from “moderately evolved brines
decanting from the immature eastern sub-basin over a subsurface bedrock barrier” (Houston etal. 2011). Stratigraphic succession of halite beds with small amounts of terrigenous materialindicates a lack of sediment feed during deposition with the presence of tuffaceous layers
providing evidence of ash falls during volcanism.
The general configuration of sedimentary deposits in SdHM is presented in Vinante and Alonso(2006). A transition of primary evaporite minerals is observed from basin margins to basin
centers, proceeding from carbonates at margins through borates, sulfates, and ultimately
chlorides (halite) in basin centers. The Eastern Subbasin is highly asymmetric, with the deeper
basin center in the western portion (Figure 6-5a). The Western Subbasin is more symmetricalbut is believed to be deepest west of the geographical center. Clastic sediments (sands, silts,
and clays) are deposited along with evaporites in the basins by stream inflows and by alluvial
fans along bounding bedrock hills. A generalized geological model of the site is discussed in
Section 11.7.

6.2 MINERAL DEPOSIT
There are several key characteristics that allow lithium-rich brines to develop over time within
Salar sediments. The characteristics required are an endorheic basin, arid climate, tectonicallydriven subsidence, igneous or geothermal activity, lithium-bearing source rocks, adequate
aquifer(s)/reservoir(s), and sufficient time to concentrate the brine (Bradley et al. 2013). SdHM,
along with other lithium-rich salars in the lithium triangle, each bear these characteristics tovarying degrees.
The volcanic arc of the western Cordillera, eastern volcanic centers, and Altiplano-Puna magma
body, which have been active from the Miocene to present day, are the origin of boron-richfluids—the source of borate in SdHM (Alonso 1999). The presence of arsenic, antimony, andlithium in modern boron-rich hot springs and buried deposits favors a common origin model
for lithium in the SdHM (Alonso 1999). The current chemistry of SdHM resulted from thedissolution of constituents by infiltrating surface water or hydrothermal fluids rich in boron or
sodium chloride that flowed into SdHM, were concentrated in solution, and precipitated due toevaporation or supersaturation (Alonso 1999; Houston et al. 2011; Munk et al. 2016). Lithiumcontinues to concentrate in brine after halite saturation is reached (Houston et al. 2011). Thesemechanisms result in brines that increase in lithium concentration from relatively dilute in fresh
water entering the Salar to lithium-rich brine in the Western Subbasin’s halite nucleus (farthestfrom entering surface waters).

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The lateral boundary of the evaporite sedimentary deposits of the Western Subbasin of SdHM isroughly circular in shape, coinciding with the contact between sediment and surrounding
bedrock, consisting mainly of Paleozoic metamorphic graywackes and shales. The Incahuasi
Formation, consisting of Quaternary-aged clastics, evaporites, basalts, and andesites, forms thenorthern boundary. Neogene volcanic dacites and andesites form the eastern and southeasternboundary of the depositional basin.
The deposit is hydraulically unbounded at the saddle where the Eastern and Western Subbasinsconnect, which allows brine in the Eastern Subbasin and brackish water from the Rio de los
Patos to enter the Western Subbasin. The deposit is open to the south where the groundwaterflow from the Trapiche Aquifer enters the Salar. At both locations, water or lithium-rich brine
flows into the deposits of the Western Subbasin. The vertical extent (depth) of the lithium-richbrine deposit has not been determined. Based on surface geophysical surveys (Section 7.1.3),
and several deep (>200 m) drilling locations, the bedrock–halite contact is likely greater than 200
m in most of the Western Subbasin and may exceed 900 m in the northwestern portion of thesubbasin (WMC 1994).

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7 EXPLORATION
Livent’s mineral exploration activities at SdHM are classified according to when they occurred
relative to operations (i.e., pre-development or during operations). Pre-development
exploration began with a comprehensive site characterization program initiated in the early
1990s, conducted by Water Management Consultants (WMC) on behalf of FMC (now Livent).
The program consisted of two field investigations centered on collecting the sitecharacterization information in the Western Subbasin (WMC 1992, 1994). The sitecharacterization work involved core drilling boreholes, surface and downhole geophysicalsurveys, hydraulic testing, water quality sampling from surface holes and catas (shallow
excavated trenches), and other tests to evaluate site-specific baseline geological,hydrogeological, chemical, and meteorological conditions.
Shortly after pre-development site characterization work was completed in 1997, lithiumproduction began. Brine quality (chemical analysis), brine elevation levels, and brine pumping
data collected during operations can be considered supplemental exploration data because they
provide valuable information about the brine reservoir and lithium resources/reserves on amuch broader scale than is possible during a conventional pre-development exploration
program.
In 2020, Livent explored the lithium brine resources of the Western Subbasin of SdHM at depths
greater than the depth of its operating lithium brine production wells. This supplemental
exploration program, referred to as the Deep Characterization Program, involved core drilling
three locations using an HQ-diameter diamond drill to 102 m, 220 m, and 302 m below groundsurface (bgs). The drill hole locations were selected to collect data near existing brine pumping
well batteries, as well as in the area where the Eastern and Western Subbasins connect. Predevelopment and operational exploration activities are discussed in the following subsections.
Exploration activities are summarized in Table 7-1.

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Table 7-1. Summary of Exploration WorkYear
Completed

1992

1993

2017

2020

Exploration Type

NumberDepth Range (m bgs)

Length/Depth (m)Surface Holes74

Shallow

Unknown

Boreholes (HQ Core)
Boreholes (NQ Core)

17
1

8 - 92.5
70

742.3
70

Core Samples

892

0.1 - 63.54

89.2

Discrete Brine Samples

78

0.02 - 89

NA

Downhole Geophysics

15

16.8 - 70.2

540.6

Packer Testing24

0 - 46NA

Gravity Survey
Pumping Wells
Observation Wells

6 lines/217 total stations3
6

0 - 930
0 - 54
0 - 5436,000154
308

Exploration Boreholes
Exploration/Monitoring Wells
Brine Samples
Deep Characterization
Boreholes
Discrete Brine Samples
Downhole Geophysics

11
35
35

29.5 - 30.5
10.5 - 31
0 - 31

333.5
709
--

3

101.5 - 302

623.5

36
3

37 - 302
0 - 302-623.5

Notes:
bgs = below ground surface
HQ = H-size Q-groupm = meter(s)NA = not applicable
NQ = N-size Q-group

7.1 PRE-DEVELOPMENT TESTING CAMPAIGN (1992–1994)
The following provides a brief summary of the field investigations performed in the early 1990s
prior to development of the lithium-bearing brine resource (key features of the predevelopment exploration program are shown on Figure 7-1):•

A total of 18 boreholes (2000-series) were core drilled to evaluate the basin deposits in a
broad pattern across the Salar.

•

Lithologic logs (sediment and rock type) were prepared for 17 boreholes.

•

All but two of the boreholes were installed to relatively shallow depths (<55 m bgs). The
two deeper boreholes (Numbers 2002 and 2011) were drilled to 65 and 92.5 m bgs,
respectively.

•

The core drilling program averaged 90% core recovery for a total of 743 m of HQ coreand 70 m of NQ core.

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•Core samples were collected every 50 cm (or otherwise as practicable) to evaluate
effective porosity in a field laboratory, resulting in 892 porosity data values. Select coresamples were shipped to the Corelabs laboratory in Denver, Colorado, for verification of
the field methodology.

•

Quality assurance was provided through additional gas porosimetry and petrographic
mineralogic analysis of selected core samples (total of nine) and analysis of two selected
samples by scanning electron microscopy.

•

A suite of downhole geophysical logging tools was run in 15 of the open boreholes,
including natural gamma ray, gamma-gamma, temperature, caliper, and neutron
density tools.

•

Straddle packer tests were conducted across multiple intervals in 16 boreholes for a totalof 24 tests (including two injection tests), to obtain specific formation permeability andto collect brine samples for chemical analysis.

•

A total of 74 shallow holes (or “catas”) were excavated in the surface of the Salar tocollect additional brine samples. All samples were analyzed for lithium and otherrelevant solutes, as well as the determination of brine density.

•

A meteorological station was installed to collect weather-related data. It included theplacement of lysimeters (total of six) and pan evaporation systems to measureevaporation rates.

•

Two surface water stations, adjacent to the largest streams, Rio de Los Patos and Rio
Trapiche, were also established to provide monthly freshwater inflows to the Salar.

•

Six surface geophysical (gravity) surveys were conducted to evaluate the bedrock
topography and thickness of overlying evaporite and alluvial sediment deposits.

•

Three pumping tests were conducted to calculate hydraulic properties of Salar
sediments.

•

Seven specific capacity tests were conducted to estimate hydraulic properties of alluvial
aquifers.

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Figure 7-1. Pre-Development Exploration at Salar del Hombre Muerto

7.1.1 Drilling Type and Extent
A total of 18 boreholes were drilled and cored to depths between 8.0 m and 92.5 m bgs during
the 1992 investigation to provide information on SdHM geology, hydrogeology, and brine
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chemistry. An HQ core (96-mm outer diameter [OD]) was used for 17 cored boreholes for a
total of 743 m of coring, whereas an NQ core (76-mm OD) was used for an additional 70 m ofcoring; however, information for this NQ cored borehole was not reported by WMC (1992).
Core recovery was excellent, averaging 90% or higher. Each 1-m interval of core was loggedwith descriptions of “mineralogy, crystal size, texture, clastic content, matrix mineralogy,
effervescence with HCl, and porosity indicators such as large voids or fractures” for a total of 17
logs from the HQ cores (WMC 1992). An exploration drilling summary is provided in Table 7-2.
Table 7-2. Summary of Exploration Drilling
Borehole TypeYear

MethodDrilling Depth (m)Exploration Borehole

1992

DDH HQ Core

743

Exploration Borehole
Pumping Wells
Observation Wells
PS corePS wells
Deep Characterization Boreholes
Notes:
DDH = wireline diamond drilling
HQ = H-size Q-group
NQ = N-size Q-group
PS = Salar Piezometer

1992
1993
1993
2017
2017
2020

DDH NQ Core
Direct Rotary
Direct Rotary
DDH HQ Core
Direct Rotary
DDH HQ Core

70
154
308
333.5
709
623.5

Core Length (m)743Recovery (%)

70
NA
NA
333.5
NA

> 90
NA
NA
74
NA
> 80

552

> 90

A total of 892 core samples of approximately 10 cm in length were collected at discrete intervals
from 679 m of HQ core from 16 boreholes. WMC measured total interconnected porosity for the
892 select core samples in the field using an Archimedes method. Cores were 10 cm in lengthand 96 mm in diameter. Specific retention (Sr) of brine was measured in each core sample after
5 seconds of drainage, and for 44 select cores after 5 days of drainage (considered completebrine gravity drainage, a measure of effective porosity). Using the ratio of 5 seconds/5 day Sr in
the 44 core subset, which was 0.59, effective porosity was estimated where not directly
measured using the 5 second/5-day Sr ratio for each core sample. In its report, WMC (1992)
used the terms effective porosity (Pe) and specific yield (Sy) interchangeably, stating: “Theeffective porosity value used in volume calculations is, in this report, equivalent to the specificyield of the interconnected pore spaces.” Figure 7-2 is a cross plot of all Sy values versus depth
for all data reconstructed by Integral from data provided in the WMC report.

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Figure 7-2. Cross Plot of Specific Yield vs. Depth

Results of the field program were used to select 28 cores with a range of low, medium, and highspecific yield. These cores were submitted to the Corelabs laboratory in Denver, Colorado, foranalysis of gas porosimetry, petrography, and scanning electron microscopy to provide
additional information on porosity, crystallization, and mineralogy. Laboratory results showed
good correlation with field results and confirmed field results were of appropriate quality forthe resource estimate.
Downhole geophysical surveys were conducted using Logmaster tools for temperature, caliper,
natural gamma, gamma-gamma density, and neutron logs in 15 of the boreholes drilled during
the 1992 investigation to provide supplemental lithologic information and relative porosity
estimates. A calibrated neutron porosity log was generated from the neutron density log andused to develop continuous vertical porosity estimate profiles.
In 1993, pumping wells and associated observation wells were installed at three separate
locations adjacent to existing boreholes 2001, 2011, and 2007 to provide hydraulic information

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on the recoverability of the lithium resource. The pumping wells were labeled as well 3010
(adjacent to borehole 2001), well 3020 (adjacent to borehole 2011), and well 3030 (adjacent toborehole 2007). Locations were selected to provide control over the northwestern portion of thecentral halite nucleus (well 3010), the northern arm of the Salar (well 3020), and the southern
portion of the resource (well 3030). Pumping wells were constructed with 300-mm slottedcasing in a 400-mm borehole and gravel packed if required to maintain borehole integrity.
Observation wells were constructed 5 and 10 m from the pumping wells and 90° from eachother to depths between approximately 40 and 50 m bgs. Observation wells were constructedwith 1-mm slotted, 100-mm-diameter casing within a 200-mm-diameter borehole.
Eight groundwater monitoring wells (alluvial wells 4001 through 4008) were installed inalluvial freshwater aquifers in 1993 around the perimeter of the Salar to evaluate thehydrogeology and chemistry of groundwater within the Trapiche Aquifer and the Los Patos
Aquifer. These monitoring wells were installed using the mud-rotary method to a depth of 30
m bgs and completed with 0.5- to 1-mm slotted 100-mm polyvinyl chloride (PVC) screens.

7.1.2 Brine Sampling
A total of 78 brine samples were collected at approximate 10-m intervals within 16 boreholes
using an inflatable packer system, 95 brine samples were collected from surface holes, and 65
fresh and brackish samples were collected from surface water. Typically, two samples werecollected in the upper 10 m of each borehole, and about one sample for each subsequently
deeper 10-m interval. Additionally, 86 samples (including duplicates at a frequency of 1 per 10
samples) were collected for quality assurance and quality control (QA/QC). Brine samples were
submitted to FMC’s (now Livent’s) Bessemer City, North Carolina, facility for chemical analysis
of sodium, potassium, calcium, magnesium, lithium, sulfate, and borate using inductively
coupled plasma (ICP) spectroscopy and chloride using a titration method. Fresh and brackishsurface water samples were also analyzed for copper, lead, arsenic, carbonate, bicarbonate,fluoride, and nitrate. As a quality assurance check, ion balance for shallow excavation andborehole brine samples was conducted and deemed acceptable. Spatial and temporal changes
were not apparent due to the time or location at which samples were collected, and chemical
concentration with depth did not demonstrate any systematic change. QA/QC results were notincluded in the WMC (1992) report.
Concentrations of lithium, potassium, and borate were provided by WMC (1992, Appendix G)
as cross plots (concentration versus depth). Figure 7-3 is a cross plot of all lithium andpotassium concentration data versus depth reconstructed by Integral from WMC (1992)
reported data.

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Figure 7-3. Cross Plot of Lithium and Potassium Concentration vs. Depth

7.1.3 Borehole Geophysics
Geophysical logging was conducted by WMC (1992) in a suite of boreholes. Tools included
caliper, natural gamma, single-detector neutron, gamma-gamma density, and fluid-column
temperature. Integral reviewed the geological logs, provided as Appendix A of the WMC(1992) report. Eighteen boreholes were initially drilled from July through August 1992, and 15of them were geophysically logged. Due to borehole instability and collapse, geophysical logs
did not extend to drilled total depth in all boreholes.
The types of geophysical logs acquired are described in the following paragraphs. Because few
details were provided by WMC with respect to the interpretation of the downhole geophysicallogs, these descriptions are provided herein only to illustrate the capabilities and limitations ofeach borehole log system. We will not describe the gamma-gamma logging tool, as it wasdetermined by WMC to be operating in error. Additional background on geophysical logging
is available readily in the published domain and is not discussed any further.

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Caliper. Caliper logs provide a continuous record of the borehole diameter and can provide
information on stability of rock/sediment encountered. Caliper logs can be important ininterpreting other logs that are affected by changes in borehole diameter.
Natural Gamma. Natural gamma (hereafter referred to as “gamma”) logs measure the gamma
activity (radiation) produced by the naturally occurring isotopes of uranium, potassium, andthorium. The gamma response indicates variations in the lithologies, typically related to the
proportion of clay minerals or unweathered mineral grains.
Neutron. These logs use a neutron source to generate a flux of neutrons and measure the rate at
which neutrons are returned to a detector. Log interpretation assumes that the neutrons areabsorbed by the geologic materials through the collision of neutrons with hydrogen atoms. On
that basis, the neutron log signal is assumed to be inversely proportional to the total amount ofwater around the probe in the region surrounding the detector, which can be used to interpretthe amount of total water-filled porosity.
Temperature. Temperature logs (or fluid-temperature logs) provide a continuous record ofvertical variations in the water temperature in a borehole, and are useful in identifying waterproducing and water-receiving zones and in determining zones of vertical borehole flow.
Typically, isolated fractures (or flow zones) when penetrated by a borehole will show a “spike”
or thermal anomaly on the temperature log.
We determined that the available borehole geophysical logs were highly useful in confirming
lithologic interpretations and in allowing correlation of geologic strata between boreholes—
allowing us to develop a 3-dimensional understanding of the Salar aquifer framework.
Lithology was primarily determined using a combination of gamma, neutron, and caliper logs
in conjunction with core logging lithological descriptions. WMC (1992) faced significant
challenges in attempting to use neutron log data to estimate porosity. Neutron logs, in addition
to providing important keys to lithology, provide a qualitative measure of rock/sedimentporosity, where high count rates represent low porosity and vice versa.

7.1.4 Gravity Profiles
Six gravity geophysical profiles were undertaken by WMC in June 1993 for additional
geologic/hydrologic investigation at SdHM. The gravity method was selected to be the most
cost effective to accomplish the objectives for the geophysical program (i.e., to estimate thedepth to bedrock beneath evaporite and clastic sediments, and to determine the subsurface
geometry of alluvial fans). Electrical methods were considered but rejected because of thesignificant amount of salt present along lines 3 to 6. Seismic reflection and refraction methods
were not selected because of difficulties and expenses involved with mobilizing the necessary
equipment to the remote site. As stated above, the work was performed to estimate thesubsurface geometry of alluvial fans and contacts between the Salar and surrounding bedrock.

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The results from the profiling of alluvial fans (specifically those at Rio Trapiche and Rio de Los
Patos) were used in developing the groundwater input to the hydrologic balance of the Salar.
The combined total survey length was approximately 36 km (217 stations). Figure 7-4 shows anexample output from the gravity survey.

Figure 7-4. Example Surface Gravity Profile

The main objectives of the gravity profiling were to map bedrock topography, obtain combined
thickness estimates of the salt and any underlying alluvial sediments, and obtain thickness
estimates of alluvial sediments across Rio Trapiche and Rio de Los Patos alluvial fans. .
Gravity data were collected using a Lacoste & Romberg G Meter. Profiles extended onto areasof outcrop at each end. Station spacing along Profiles 1 to 5 varied from 50 m near outcrop to
100–150 m near the center of each line where greater depths to bedrock were anticipated.
Station spacing for Profile 6 varied from 250 m near the outcrop to 500 m along the remainder ofthe line.
All gravity data were corrected for instrument drift, tide, and latitude. Free air and simple
Bouguer corrections were applied. Terrain corrections were applied after limited available
topographic data were digitized from the Cachi 1 x 1.5° topographic map. Geosoft gravity
reduction software was used to process the data. Regional effects were removed by graphicalmethods assuming linear relationships between the regional gravity trend and distance. After

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removal of regional trends, the remaining residual complete Bouguer anomalies were used toperform depth to bedrock modeling along each of the profiles. Northwest Geophysical
Associates GM-SYS software was used to perform the forward modeling of depth to bedrock.
A total of 24 samples were collected at the ends of the profiles for laboratory density
measurements. These measurements helped to determine density contrasts between salt,
alluvium, and various volcanic bedrock types.

7.1.5 Supplemental Testing and Reporting by WMC in 1994
In 1994, FMC hired WMC to investigate the recoverable reserves for SdHM by field
investigation, data interpretation, and computer modeling. As part of this investigation,
extended pumping tests were done from three wells (3010, 3020, and 3030) used in the 1992
study (boreholes 2001, 2011, and 2007). Samples taken over 2-week intervals through the monthof June 1993 were packaged and shipped to the Bessemer City, North Carolina, QA/QC labs foranalysis by inductively coupled plasma optical emissions spectroscopy (ICP-OES). The results
showed no significant variation of constituent concentrations and correlated well with the 1992
packer testing results, thus supporting the conclusions of the 1992 test and demonstrating thatthe brine is more or less homogeneous over an extended pumping period.

7.2 CHARACTERIZATION DURING OPERATIONS
Nearly 25 years of data collected during Project Fenix operations, including flow rates andlithium concentrations from lithium brine production wells, provide an excellent source of sitecharacterization data. Additional, targeted site characterization activities were also completed
after operations began. Those activities included installation and sampling of a brine
monitoring well network in 2017 and the Deep Characterization Program in 2020. Locations ofbrine monitoring wells and deep boreholes are shown on Figure 7-5.

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Figure 7-5. Brine Monitoring Well Network and Deep Characterization Boreholes

7.2.1 Brine Monitoring Well Network Installation (2017)
In 2017, Livent designed and installed a brine monitoring well network across the Western
Subbasin of SdHM to support periodic monitoring of brine chemistry and elevations of top of
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brine. At each of 11 locations, a set of 3 clustered monitoring wells was constructed with depthsof 10 m, 20 m, and 30 m bgs, and a single well to 10 m bgs was installed at 2 locations, for a totalof 35 individual monitoring wells. Wells were constructed of 4-inch-diameter PVC pipe with 5m-long slotted screen intervals at the bottom of each well pipe. Each of the 30-m-deepboreholes was drill cored and encountered lithologies were documented prior to wellconstruction in that borehole. Brine monitoring wells were installed predominantly in halite,
except for the two easternmost stations (PS-1 and PS-2), which were installed in clastic material
with trace halite. Details of monitoring well construction, lithologic logs, and field chemicalparameters are provided in a report prepared by Livent’s contractor, Conhidro S.R.L. (2017).
Following installation of brine monitoring wells in 2017, brine samples were collected forlaboratory analysis at Livent’s laboratory at Project Fenix. Additional rounds of brine
monitoring were also conducted several times from 2020 through 2022.

7.2.2 Deep Characterization Program (2020)
Livent conducted a deep brine reservoir characterization program below 40 m depth in 2020
within the Western Subbasin of SdHM. The primary goals of the program were to measure thequantity and quality of the brine, and reservoir characteristics below 40 m to depths of at least
200 m by installation of targeted boreholes near the primary well battery (PWB) and secondary
well battery (SWB). Specifically, the two primary objectives were:
1. Determine the brine quality (e.g., lithium, potassium, and magnesium concentrations) at
depths greater than 40 m bgs
2. Characterize the deep brine reservoir hydraulic properties (relative permeability).
Data collected from boreholes during the program provide evidence of lithium concentrations
and reservoir properties at depths below any existing pumping wells. Boreholes were coredand logged for lithology, after which downhole geophysical logging was conducted. The
logging suite included natural gamma, spontaneous potential, and resistivity logs. Packer tests
were employed to collect brine samples and determine relative permeability (flow rates) atvarious depth intervals within boreholes. Brine samples were collected and analyzed forlithium content at SGS Laboratories in Orlando, Florida. Each borehole was converted into a
monitoring well after completion of geophysical logging and packer test sampling. Findings
from each of the three deep boreholes follows.
PSP1-20 is located near the SWB (Figure 7-5). The boring was advanced to a total depth of 220
m bgs through dominantly halite with some clastics. Undifferentiated metamorphic bedrock
was encountered at 202 m bgs. The geophysical logs and lithology for PSP1-20 are provided in
Figure 7-6. Once the borehole was finished to total depth, inflatable packers were used toisolate intervals within the borehole for brine sample collection and to measure flow rates(Figure 7-7).

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Figure 7-6. Geophysical Logs and Lithology for Deep Exploratory Borehole PSP1-20

Flow rates were measured, and brine samples were collected at 14 depth intervals within theborehole (Figure 7-7). Lithium concentrations ranged from 691 to 773 mg/L. The highest
concentration of lithium (773 mg/L) was collected from 65–76 m bgs. Flow rates measured ineach interval during sample collection were relatively consistent with depth, averaging
approximately 12 L/min, indicating favorable hydraulic characteristics with depth. Graphicalresults (Figure 7-7) show a modest negative (declining) trend of lithium concentrations withdepth. Cores obtained during drilling indicate a lithologic sequence of fractured evaporites(mostly halite) with some clastics (fine sand, silt and clay) from ground surface to 202 m bgs.
Bedrock was encountered at 202 m bgs. This borehole provides a control point for the reservoir
basement, which had not been established by drilling in prior investigations.
PSP2-20 is located near the PWB. The boring was advanced to a total depth of 302 m bgs;
bedrock was not encountered. Cores obtained during drilling indicate the dominant lithology is
crystalline halite, exhibiting fractures and interbedded fine sand and silt lenses. From groundsurface to about 170 m bgs the halite is highly fractured, below which halite is more massive.
The geophysical logs and lithology for this boring are provided in Figure 7-8.

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Figure 7-7. Packer Test Results for Deep Characterization Borehole PSP1-20

Figure 7-8. Geophysical Logs and Lithology for Deep Exploratory Borehole PSP2-20

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Once the borehole was finished to total depth, inflatable packers were used to isolate intervals
within the borehole, for sample collection and to measure flow rates. The deepest test interval
was 243–302 m bgs. A total of 17 brine samples were collected at various depth intervals
throughout the boring. Lithium concentrations ranged from 725 to 848 mg/L. The highest
concentration of lithium (848 mg/L) was detected in a sample collected from 207–218 m bgs.
Graphical results (Figure 7-9) show a modest positive (increasing) trend of lithium
concentrations with depth in boring PSP2-20. Flow rates were more variable and generally
lower than PSP1-20, averaging approximately 5 L/min. The highest flow rate (20 L/min) was
observed in the shallow portion of the borehole.

Figure 7-9. Packer Test Results for Deep Characterization Borehole PSP2-20

PSP3-20 is located in the eastern portion of the Western Subbasin. The borehole was advanced
to a total depth of 101.5 m bgs; bedrock was not encountered. The lithology here is primarily
clastic and markedly different from either PSP1-20 or PSP2-20. Massive fine-grained silts andclays, becoming progressively dense and compact, are present from ground surface to total
depth. Isolated factures filled with gypsum occur below 70 m, and halite is notably absent.
Unconsolidated clastic sediments with gypsum and iron oxide, and organics, were noted in theupper 98 m. Lithified sands and clays, resembling conglomerate, were noted in the deepest
interval (98–101.5 m bgs). The geophysical logs and lithology for this boring are provided in
Figure 7-10.

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Figure 7-10. Geophysical Logs and Lithology for Deep Exploratory Borehole PSP3-20

Once the borehole was finished to total depth, inflatable packers were used to isolate intervals
within the borehole for sample collection and to measure flow rates. The first interval was 8 m
in length and the following three intervals were 11 m, whereas the deepest interval was 17 m inlength. A total of nine brine samples (including duplicates) were collected at various depth
intervals throughout the borehole. Lithium concentrations ranged from 919 to 979 mg/L. The
highest concentration of lithium (979 mg/L) was detected in the sample collected from 84.5–
101.5 m bgs. Graphical results (Figure 7-11) show a positive trend of lithium concentrations
with depth.
Measured flow rates were lower at PSP3-20 than either of the other two boreholes, averaging
approximately 2.3 L/min per interval. The higher apparent flow rate in the deepest interval isconsistent with shallower intervals after taking into consideration the longer packer interval.

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Figure 7-11. Packer Test Results for Deep Characterization Borehole PSP3-20

7.2.3 Lithium Brine Production During Operations
As previously described, Livent operates two lithium brine production well batteries: 1) thePWB located in the approximate center of the Western Subbasin, and 2) the SWB located southof the PWB near the southwest margin of the basin (Figure 7-12). The PWB pumping has been
operating at essentially a constant rate of 1,000 m3/h since 1997, and the SWB has been operating
at roughly 600 m3/h since pumping began in 2013. In June 2021, the average depth to brine in
the five active PWB lithium brine production wells and two active SWB wells was 1.94 and1.88 m bgs, respectively. High volumetric flow rates and minimal drawdown in the lithium
brine production wells confirms the reservoir is suitable for brine extraction.

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Figure 7-12. Primary and Secondary Lithium Brine Production Well Batteries

The concentration of lithium in brine produced from the PWB and SWB over the past 20 years isshown graphically in Figure 7-13. The PWB has consistently produced brine with lithium
concentrations between 700 and 800 mg/L. At startup in 2013, the SWB produced brine withlithium at lower concentrations than the PWB. However, in recent years, the SWB has

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produced brine with nearly identical lithium content as the PWB. This pattern of increasing
concentrations followed by a period of relatively stable concentrations occurs shortly after
pumping begins when localized lower grade brine is removed and is replaced with higher
grade brine, which is consistent with the broader resource.

Figure 7-13. Lithium Concentration in Brine Produced by the Primary and Secondary Well Batteries

7.3 HYDROGEOLOGY
Fresh water primarily enters the SdHM brine reservoir from both streams and groundwater
discharges from basin-bounding alluvial aquifers (and potentially from adjacent rockformations). Characterization of the hydrogeology of SdHM was initiated for the brinereservoir during site characterization in 1992, and for the alluvial aquifers during the 1993 site
investigation. Hydraulic testing—including slug tests, packer tests, step-drawdown, andconstant-rate pumping tests, and core sampling—has been conducted in boreholes and wells
drilled in the brine reservoir to evaluate the lithium reserve. Constant rate pumping tests werealso completed in the Rio Trapiche and Rio de Los Patos alluvial aquifers before reservoir
development to evaluate the water balance and freshwater supply. Hydraulic testing results
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are summarized in Table 7-3. Estimates of hydraulic conductivity from results of previous
investigations were not reevaluated or reanalyzed during preparation of this report and arepresented as is; however, 25 years of operational data exist to support the conclusions madefrom pre-development data.
Table 7-3. Hydraulic Conductivity Measured During Exploration
K (m/day)
Unit

Test Type

Number Results

Minimum

Average

Maximum

HaliteSlug Injection Test
2
0.1
0.12
0.13
HalitePacker Test
21
0.35
31.3
120
HaliteConstant Rate Pumping Test
5
340
2,156
6,120
Transition
Packer Test
1
NA
0.36
NA
Alluvium
Specific Capacity Test
7
2.9
10.4
25
Notes:
Only tests with reported results included in summary.
m/day = meters per day
Constant rate pumping test hydraulic conductivity approximated from transmissivity using thickness of 50 m.

Geometric
Mean
0.11
18.5
1,046
NA
8.46

7.3.1 1992 Brine Reservoir Evaluation
A total of 22 packer tests were conducted in 11 of the 2000-series boreholes/wells between 0 and
46 m bgs during the 1992 site investigation. Packer tests were conducted by isolating a 5-m
interval using a nitrogen-inflated packer, pumping three borehole volumes at a measured flowrate using a suction pump, and recording drawdown in the sample interval. For the twointervals in which the permeability was too low for pumping, water was injected and waterlevels measured during a falling-head slug test. Results were evaluated using the Hvorslev
method and ranged from 0.1 to 120 m/day, with a geometric mean of 10 m/day. Specific yield
was also calculated from cores as discussed in Section 7.1.

7.3.2 1993 Brine Reservoir Evaluation
Step-drawdown tests were first conducted at each of the 3000-series pumping wells using
electrical submersible pumps. Tests were completed to estimate well yield and efficiency and to
determine the optimal rate for constant-rate tests. Discharge was pumped at least 500 m fromthe site through 15-cm PVC pipe with flow controlled using a gate valve at the wellhead, andbrine levels were monitored in the pumping well to the nearest ±1 mm using a 25-mm accesstube. A weir tank was used to record flow.
Simultaneous constant rate pumping tests were then conducted in the 3000-series pumping
wells and observation wells for a period greater than 20 days. Electrical submersible pumps
were used in two wells, and a surface turbine pump was used in one well. Wells were pumped
at rates between 31 and 37 L/s. Water levels were monitored in the pumping well, threeIntegral Consulting Inc.

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adjacent observation wells, and next closest 2000-series well installed in 1992 (WMC 1994) to thenearest ±1 mm using a water level probe with measurement intervals increasing geometrically.
Results of the tests are summarized in Table 7-3. Transmissivity ranged from 17,000 m2/day to
306,000 m2/day in wells 3020 and 3030, respectively. High transmissivity values are attributed
to presence of fractures, with lower values representative of the aquifer at a semi-regional scale(WMC 1994).
Dispersion tests were conducted during the constant discharge tests to support reserve
modeling by introducing a sodium fluoride solution of known concentration at the observation
well 10 m from the pumping well and then collecting samples from the pumping well for onsite
fluoride analysis using a benchtop pH/ISE meter and fluoride electrode (WMC 1994).

7.3.3 1993 Alluvial Aquifer Evaluation
Specific capacity tests were run on seven of the eight wells installed in the alluvium (alluvial
wells 4001 through 4008) surrounding SdHM (WMC 1994). Wells were pumped at rates
between 79.5 and 142.5 m3/day for a total of approximately 5 hours and drawdown wasmeasured in the well. Results were used to calculate hydraulic conductivity of the alluvial
aquifers, assuming 60% well efficiency, and ranged from 6.6 to 25 m/day for the Rio de Los
Patos alluvial aquifer and 5.3 to 14.3 m/day for the Trapiche alluvial aquifer (WMC 1994).
Additional discussion of the alluvial aquifers is provided in Section 15.3.

7.4 SIGNIFICANT RESULTS AND INTERPRETATIONIn the QPs’ opinion, the geologic and hydrologic framework necessary for understanding thefundamental processes governing fluid movement (i.e., groundwater and brine) at SdHM are
well understood. Data collected by Livent prior to development laid the foundation for
25 years of reliable lithium production. Additional data collected during operations and deep
exploration both support and refine the initial conceptual site model.
Pre-development exploration work utilized proven technology and protocols to define thegeology, hydrogeology, and chemistry of the lithium-bearing brines of SdHM, with particularfocus on Livent’s mining concession in the Western Subbasin. Borehole drilling, coring, packer
test sampling, surface and downhole geophysics, pump testing, and laboratory analyticalchemistry all contributed to a solid understanding of the lithium brine reservoir.
Exploratory work in 2017 and 2020, subsequent to the start of operations in 1997, further
contributed to the understanding of the lithium resource. Operational data, in particular flow
and chemistry data of produced brine over a period of 25 years, demonstrate the adequacy of
the resource.

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8 SAMPLE PREPARATION, ANALYSIS, AND SECURITY
Core and brine samples have been collected from boreholes and wells drilled in SdHM sincesite characterization was initiated in 1992, as discussed in Section 7. Core samples werecollected during the 1992 site investigation and analyzed for Sy. Brine samples have beencollected from discrete intervals of packer-isolated boreholes, from operating well batteries, andfrom monitoring wells constructed in SdHM. Sampling methods, preparation, and analysis
vary by sampling event and type. Samples are considered to varying degrees in evaluating theresources and reserves, based on the collection method and time, but holistically provide
multiple lines of evidence and confidence in the estimates.

8.1 SAMPLING EVENTS
Samples have been collected from SdHM in several campaigns since 1992 to evaluate the predevelopment and current in situ resources and reserves. Core and brine samples were collectedfrom boreholes during the original investigations (WMC 1992, 1994), brine samples have beencollected from the active operating well batteries since operations were initiated in 1997, brine
samples have been collected from the brine monitoring wells installed in the SdHM in 2017, andseveral times in 2020 through 2022. Additionally, brine and core samples were collected during
the 2020 Deep Characterization Program.

8.1.1 Pre-Development Sampling
WMC prepared core laboratory and hydrological monitoring procedures documents for the
1992 site investigation and provided supervision for MdA personnel completing the work assummarized in the 1992 report (WMC 1992). The proposed sampling frequency of 20% (0.1-m
sample per 0.5 m of core) was reduced to 13% due to sample quality or recovery; however, a
total of 892 core samples (89.2 m of core) were collected and analyzed in the field during the
1992 site investigation to calculate Sy as discussed in Section 7.1.1. Total interconnected porosity
was calculated using Archimedes method, whereby an object is weighed in two different mediaof known density and the weights are used to calculate its volume. Sr was also calculated in thefield and used to calculate Sy. All samples were fully saturated and then weighed after
5 seconds with a subset of 44 core samples (approximately 5%), then weighed again after 5 daysof gravity drainage. This subset of samples was used to develop a ratio of 5-second/5-day Sr of
0.59 and used to calculate Sy for all 892 samples by subtracting 5-day Sr from the totalinterconnected porosity.
A subset of 28 of these samples was selected to represent a range of low, medium, and highyields and minimize bias, and submitted to Corelabs in Denver, Colorado, an independent
geotechnical laboratory, for confirmation laboratory analysis. Samples submitted measured

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approximately 6.35 cm in diameter and were assigned unique eight-digit IDs where the first
four numbers represented the borehole ID and last four numbers represented the sample depth.
Each core sample was weighed to the nearest 0.0001 g after drying at 55°C to a constant weightand dimensions measured to the nearest 0.001 mm using digital calipers in accordance withASTM D4543-85. Bulk volumes were calculated by multiplying core length and area. Each core
was then placed into a matrix cup and pore volume measured using the CORELAB
AutoPorosimeterTM. A quantified volume of helium at known pressure was injected and porevolume calculated using Boyle’s law. This in turn was used to calculate the matrix volume,
total interconnected porosity, and density of cores. Laboratory tests showed good correlation
with the field measurements and confirmed they were accurate and unbiased. Results of the
1992 field program are the primary source of Sy data used to prepare the resource estimates.
Brine samples were collected from surface holes and packer-isolated discrete borehole intervals
using procedures outlined in the Manual on Hydrological Monitoring Program and Cata Drilling
prepared by WMC. This document was not available to the QPs, and pre-development sample
collection procedures cannot be discussed. A total of 95 samples were collected from surface
holes and 78 samples were collected during packer testing. Brine samples were submitted foranalysis of sodium, potassium, calcium, magnesium, lithium, sulfate, and borate using ICP
spectroscopy and analysis of chloride using titration at the Livent (formerly FMC) laboratory in
Bessemer City, North Carolina.
Concentrations of lithium, potassium, and borate were provided by WMC (1992) as cross plots(concentration versus depth), but raw data were not provided to Integral to allow for an
independent evaluation of the in situ resource. Cross plots were digitized independently by
two different Integral personnel and then averaged to generate a concentration dataset. Figure
7-3 shows the cross plot of all lithium and potassium concentration data versus depth
reconstructed by Integral from WMC (1992) reported data.
Additional samples were collected and submitted for QA/QC at the laboratory, but it is notclear from the report how many of those samples were collected from brine. In addition to theinternal QA/QC presumed to have been completed at the laboratory, the analytical procedures
and laboratory results were screened using the cation-anion balance. More than 88% of thebrine samples had errors of less than 1% difference and the remainder were below 1.5%;
therefore, all parent brine samples are included in the pre-development resource analysis.
Results of pre-development sampling and their inclusion in the analysis is supported bysamples collected after brine extraction began.

8.1.2 Operational Sampling
Aggregate samples have been collected on a daily basis from the PWB plant feed since 2000 andfrom the SWB plant feed since 2013. Spent brine sampling occurs on a weekly basis. Samples
collected from other mine components (pre-concentrate ponds, FSB ponds, and from control

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points within the processing plants) are not within the scope of this report. Samples collected
are analyzed at the onsite MdA laboratory for lithium, boron, calcium, potassium, magnesium,
sodium, and sulfur by ICP-OES. Aggregate PWB and SWB sample results were averaged foreach month of active operations and provided to Integral. A total of 358 average monthly
results, representing a much larger daily data set, are shown in the box and whisker plot oflithium concentrations in Figure 8-1. The greatest variability in brine concentrations occurred in
the period when the SWB began producing brine (2013). Brine variability remained higher
through 2019 than prior to SWB operations, but decreased in recent years as the lithium
concentrations from the SWB begin to equilibrate toward concentrations representative of thebroader resource.

Figure 8-1. Variability in Average Lithium Brine Production Well Lithium Concentrations (2000–2022)

8.1.3 Brine Monitoring Well Sampling
In 2017, Livent installed 35 lithium brine monitoring wells at 10, 20, and 30 m depths in theWestern Subbasin of SdHM. Monitoring wells were sampled by lowering a submersible pumpand extracting 3 times the volume of the well before sample collection. Samples were sent toIntegral Consulting Inc.

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Livent’s onsite quality control laboratory for compositional analysis by ICP-OES. Depths tobrine measurements and samples were collected in 2017 and several times from 2020 through2022.

8.1.4 Deep Characterization Sampling (2020)
In 2020, three boreholes were cored and packer tests were employed to collect brine samples atvarious discrete depth intervals during drilling. In general, boreholes were advanced at 12-m
increments, rods were then raised to expose the newly drilled interval, and a simple packer
system lowered into the open borehole. The packer system included two packers inflated using
nitrogen gas to approximately 50–90 pounds per square inch (psi) and used to isolate the upper
portion of the borehole from the sample interval. Brine was evacuated from the borehole using
a 7-bar air compressor and downpipe airline. A total of three borehole volumes of the target
sample interval were purged prior to sampling. Parameters including electrical conductivity,
temperature, pH, and density were measured and recorded for samples, which were collectedin bottles during purging. Brine samples were collected by Hidrotec Drilling personnel anddelivered to MdA personnel.
Samples from PSP-01 through PSP-03 were submitted to MdA’s onsite laboratory and analyzed
for aluminum, arsenic, boron, barium, calcium, density, iron, potassium, lithium, magnesium,
sodium, sulfur, silica, zinc, pH, conductivity, chloride, and alkalinity. Duplicate samples
collected from deep characterization boreholes were sent to SGS Laboratories in Salta,
Argentina, for analysis of density using ASTM Method D7777-13 and lithium using SGS
Method 113. Samples were also analyzed by SGS Laboratories for alkalinity, chloride,
conductivity, barium, boron, calcium, strontium, iron, magnesium, manganese, sodium,
potassium, zinc, nitrate, pH, total suspended solids, total dissolved solids (TDS), and sulfate
using standard analytical methods.

8.2 QUALITY CONTROL/QUALITY ASSURANCE PROCEDURES
Samples from the initial reserve estimates in 1992 and 1994 were analyzed in the field fordensity, pH, and temperature. They were then packaged and shipped to the FMC QA/QC labs
in Bessemer City, North Carolina, for compositional analysis by ICP-OES using a validated
instrument and a proprietary analytical method already established by FMC. Each sample wasanalyzed 10 times. Prior to analysis of each batch of samples, a synthetic standard of known
and similar composition was analyzed as a calibration check.
Once lithium brine production had commenced, regular samples taken from the primary wells
and the secondary wells installed in 2013 were analyzed onsite by the MdA laboratory using thesame analytical method and techniques developed in the Bessemer City QA/QC Labs. Prior to
analyses, the ICP is calibrated with a 10,000 parts per million (ppm) lithium standard.

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8.2.1 Control Laboratories
Livent routinely sends split samples to both its onsite laboratory and external laboratories
including Servicio Geológico Minero Argentino (SEGEMAR), SGS, and Alex Stewart laboratoryfor quality assurance purposes. In 2017, a subset of samples collected from monitoring wells
PS-03 through PS-13 was analyzed at both the onsite laboratory and SEGEMAR Laboratory. In
2020 during the Deep Characterization Program, samples were submitted to SGS in Salta. Morerecently in 2022, 52 samples were collected from onsite wells and analyzed at both the MdAlaboratory and Alex Stewart laboratory in Jujuy.

8.2.2 Correlation between Lithium Grades Measured at MdA and External
Laboratories
Figures 8-2, 8-3, and 8-4 show the correlation between analysis at an external laboratory and the
MdA internal laboratory. In the 2017 data, analytical results from MdA internal laboratory
were consistently higher than results from the SEGEMAR laboratory (Figure 8-2). MdAlaboratory protocol included sodium chloride addition to the calibration standard matrix
because MdA learned over many years that calibration standards should have dissolved solids(salt) chemistry mimicking brine to accurately quantify lithium content. Lower values provided
by the SEGEMAR laboratory are likely due to the use of a calibration standard that did notinclude TDS (sodium chloride addition) to simulate a brine solution matrix. Analytical results
for the 2020 samples sent to SGS and MdA, and 2022 samples sent to Alex Stewart and MdA are
well correlated with R2 values of 0.91 and 0.99, respectively (Figure 8-3 and Figure 8-4).
The QPs’ opinion is the data reported by MdA’s internal laboratory are accurate and acceptablefor estimating resources at SdHM.

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Figure 8-2. Comparison of Lithium Concentrations between MdA’s Laboratory and SEGEMAR Laboratory

Figure 8-3. Comparison of Lithium Concentrations between MdA’s Laboratory and SGS Laboratory

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Figure 8-4. Comparison of Lithium Concentrations between MdA’s Laboratory and Alex Stewart Laboratory

8.3 OPINION ON DATA ADEQUACY
Pre-development sampling and quality assurance programs (WMC 1992, 1994) were conductedin accordance with industry standard practices at the time of the investigations.
Duplicate samples for chemical analysis have been collected from various locations across
SdHM, including from brine and freshwater monitoring wells, ponds, lithium brine production
wells, and process components. These duplicate samples have been concurrently analyzed byLivent’s onsite laboratory, the Alex Stewart laboratory in Jujuy, Argentina, and the SGS
laboratory in Salta, Argentina, and are in good agreement across the continuum from fresh
water to saturated brine.
The agreement between quality assurance samples collected in duplicate during the installationof the brine monitoring wells, split between Livent’s laboratory and a commercial laboratory,
were less favorable—likely due to differences in brine sampling and analysis techniques.
However, the QPs maintain that Livent’s onsite laboratory has years of experience with lithium
analytical techniques for brine samples, and it is our opinion that Livent’s laboratory results arereliable and accurate.
The historical data previously used to estimate resources (WMC 1992; Integral 2016) were notreevaluated in a comprehensive QA/QC program for this report. However, the QPs do notview this as a deficiency in developing a resource estimate for SdHM. Instead, the QPs take aIntegral Consulting Inc.

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holistic view toward all data collected prior to and during operations to support resource
estimates discussed in later sections. The QPs’ opinion is the sample preparation, security, andanalytical procedures are adequate.

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9 DATA VERIFICATION
9.1 DATA VERIFICATION PROCEDURES
Integral developed and continues to maintain an environmental monitoring database including
select operational data (e.g., spent brine and PWB and SWB flow rates and brine quality).
Ongoing database maintenance includes steps for data verification in keeping with industry
standard practices.
Integral prepared estimates of the original (1992) lithium and potassium resource using aquifer
volumes determined from aerial photographs and maps of the concession boundary provided
by FMC. Aquifer parameters (Sy) determined from drill cores and lithium/potassium grades(concentrations) in brine from packer tests were obtained from the 1992 WMC report. FMC was
not able to locate the underlying tabulated data for Sy and lithium/potassium concentrations
generated by WMC. Therefore, Integral reconstructed the data by digitizing data points oncross plots available in WMC (1992, Appendix G). Data were digitized twice, by two separate
Integral staff, and compared to allow for identification and correction of digitizing errors.

9.2 LIMITATIONSThe QPs inspected the site on multiple occasions. During site visits, the QPs inspected facilities
during operations and key features outside the boundaries of the facility. The QPs monitored
freshwater stream conditions (Rio Trapiche and Rio de los Patos), inspected core boxes,
observed monitoring well installations, toured the Project Fenix laboratory, and interpreted site
geophysical data.
The QPs cannot verify data collected prior to development or reported by third parties. Unlessexpressly mentioned, it should be assumed that the QPs did not verify data provided by Livent.
However, Livent’s QA/QC practices typically include verification by independent laboratories.

9.3 OPINION ON DATA ADEQUACY
In the QPs’ opinion, the data are wholly adequate to support the analyses and interpretations oflithium resources and reserves as described herein. Livent has been continuously operating
Project Fenix since 1997. Its track record of historical operations provides valuablesupplemental information to support our opinions.
The approach, methods, and procedures described in reports the QPs reviewed in preparationof this report appear to conform to industry standard practices. The QPs consider data
provided by Livent and its subcontractors reliable and have the opinion that potential errors or

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omissions in those reports would not significantly affect the resource or reserve estimatespresented herein. The QPs’ opinion is the data upon which resources and reserves are
estimated are sufficient and reliable.

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10 MINERAL PROCESSING AND METALLURGICAL TESTING
Livent’s process for extracting lithium from the brine resource is to pump the lithium-bearing
brine from the lithium brine production wells into the SA Plant or, optionally, into preconcentrate ponds, for solar concentration prior to going to the SA Plant. The SA Plant includes
the lithium production facilities and related chemical processing plants in the Western Subbasinof the SdHM property owned and operated by MdA. It uses treated fresh water and a
proprietary adsorption process to selectively remove the lithium from the brine. At the SA
Plant, the process stream is further concentrated and polished to remove multivalent ions. The
polished stream leaves the SA Plant as concentrated lithium brine and is further concentrated insolar evaporation ponds called FSB ponds. The residual barren brine and freshwater mixture(generally referred to as spent brine) is sent to the artificial lagoon where it evaporates orinfiltrates back into the Salar. Some of the FSB is sent to the Carbonate Plant, where it is reactedwith soda ash to produce battery- or technical-grade lithium carbonate. The remaining FSB issent offsite to the Güemes Plant where it is used to produce high-purity lithium chloride. A
mineral processing diagram is provided in Figure 10-1.
Livent continues to process lithium at SdHM essentially the same way it has been since
operations began in 1997. The only significant changes to operations occurred in 2012 when the
pre-concentrate ponds and two additional lithium brine production wells went into service.
Livent has begun expansion plans to increase lithium carbonate production. Plans for increased
lithium carbonate production involve increasing brine and water extraction and throughput
capabilities at the SA Plant, and increasing lithium carbonate production capacity. Considering
its successful track record and historical performance, its plans for expansion are fundamentallysound and have lower risk than a similar operation at an unproven location.
Livent has its own analytical laboratory for testing of process streams and manufactured
products, and also relies on third-party laboratories for certain analyses and data verification.

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Figure 10-1. Mineral Process Diagram

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11 MINERAL RESOURCE ESTIMATES
Mineral resource estimates for in situ lithium in the Western Subbasin of SdHM are presented inthis section. We adopt the definition of a mineral resource from CIM (2014), which states:
A Mineral Resource is a concentration or occurrence of solid material of
economic interest in or on the earth’s crust in such form, grade or quality andquantity that there are reasonable prospects for eventual economic extraction.
The location, quantity, grade or quality, continuity and other geologicalcharacteristics of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling.

11.1 BACKGROUND
In the period prior to commencement of operations (1997) to the present, Livent’s consultants
have prepared several, independent preliminary mineral resource estimates using various
methods and data sets. Those prior estimates do not conform to current industry standards forclassifying resources. This report includes the first resource and reserve estimate for ProjectFenix that complies with SEC regulations S-K 601(b) (96).
The current resource and reserve estimates provided in this report, as of December 31, 2022, do
not rely on historical (pre-production) lithium grade information. Instead, they rely on datacollected from an extensive monitoring well network, consisting of 35 wells across the Western
Subbasin, installed in 2017, nearly 20 years after operations began. Historical data collectedprior to development and data collected from deep exploration boreholes are used to estimate
static reservoir properties that are assumed not to change. Historical resource estimates arepresented for reference and to illustrate how well various resource estimates compare over timeand across different estimation methods and data sets.
Prior to operations, WMC (1994) calculated pre-production lithium resources within theContiguous Lease Area (Figure 3-3) using three different methods: classical (Thiessen
polygons), and two different forms of kriging (block and panel). These prior resource estimates
were not classified according to current industry standards (measured, indicated, or inferred),
but were instead presented for 0–30 m bgs and 0–70 m bgs depth intervals based on the numberof boreholes within those depth intervals.
In 2016, Integral performed an independent estimate of original (pre-production) lithium
resources based on a re-analysis of the pre-development data (Integral 2016). Integral’sestimates were performed blind—with access to all input data, but without access to the final
resource estimates produced by WMC (1994). Integral estimated resources using four methods:

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a single polygon across Livent’s Contiguous Lease Area, two different methods involving
Thiessen polygons around exploratory boreholes, and a lithology-based approach.
We used ordinary kriging techniques to estimate lithium resources pre-development and for
September 2022. The pre-development resource estimate using kriging differed from priormethods in that it incorporated brine chemistry data from publicly available, third-party data
sets for the Eastern Subbasin of SdHM (Montgomery & Associates 2011). The same approach
was used for a resource estimate for September 2022, where lithium grade measured in brine
monitoring network wells was used instead of lithium grade from pre-development boreholes.
In addition, brine chemistry data from the Deep Characterization Program were used to inform
lithium grade below the brine monitoring wells, at depths where lithium resources are assumed
similar to pre-development conditions.

11.2 KEY ASSUMPTIONS, PARAMETERS, AND METHODS
Lithium resources in Livent’s Contiguous Lease Area of SdHM have been calculated as
described in the following discussion. A resource estimate represents the lithium mass in brine,
at a specific point in time, that may be extracted by pumping or some other extraction method.
The basic calculation of resource mass for compounds dissolved in brines is simply the productof the control (reservoir) volume, the brine-saturated Sy, and the concentration of a specificcompound (e.g., lithium) in the brine.
The pre-production mineral resource for lithium was calculated for an area consisting of theLivent Contiguous Lease Area, using several related methods. For all methods, the area ofanalysis (i.e., the resource extent) included nearly all portions of the SdHM sedimentary basin
within (not extending beyond) the Livent concession boundary. The only portion of thesedimentary basin within the concession boundary that was not included in the resource extent
was the southeastern area that includes the alluvial fan of Rio Trapiche. That area was excluded
because no borings had been conducted in the vicinity, and the potential for low-permeability
sediments (silt and clay) and freshwater influx were high. However, we do not discount that
future exploration could prove that this portion of the basin contains economic lithium
resources.
All calculation methods used defined reservoir volumes consisting of polygons of nominal 10 mthickness (0–10 m, 10–20 m, etc.). For each reservoir volume, a Sy and concentration of lithium
were applied to determine the mass of lithium resource within each volume. The calculated
mass of lithium was then summed for multiple volumes to generate the resource estimate forthe entire Livent concession. A brief summary of the methods used to estimate lithium
resources is provided below. Additional detail on each method is provided in WMC (1992) and
Integral (2016).

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11.2.1

Method 1—Single Polygon Using Resource Extent within Livent
Concession

Method 1 is the simplest of the resource calculation methods. Reservoir volumes wereconstructed using the entire resource extent within Livent’s concession and nominal 10-m depth
intervals, or slices. By this method, lateral variations in Sy and lithium concentration are notconsidered, and data from all boreholes for each 10-m slice (to 40 m depth) within theContiguous Lease Area boundary were averaged and applied to that reservoir volume.

11.2.2

Method 2—Thiessen Polygons Defined by Boreholes

Lateral variability in Sy and lithium concentration can be captured by several techniques. Oneof the simplest techniques is to define a series of Thiessen polygons, subareas of the resource
extent that are each defined by a single borehole.1 Thiessen polygon boundaries are drawn aslines of equal distance between boreholes, such that any location within a given polygon iscloser to its associated point (borehole) than to the point of any other polygon. By this method,
the resource area is subdivided into a series of polygons, each of which is associated with its
representative borehole. The Sy and lithium concentration data for a particular borehole areassigned to the reservoir volume defined by its associated Thiessen polygon and the depth
interval of interest. The borings installed in SdHM in 1992 were of variable depth. Nearly all of
the boreholes were drilled to depths of 30–40 m below grade. Sufficient spatially distributed Sy
and lithium concentration data are available for 10-m intervals from 0–40 m. Figure 11-1 shows
the Thiessen polygon approach using 1992 boreholes, with the most boreholes available forshallow intervals, and fewer boreholes available for deeper intervals. Below 40 m depth, only
three boreholes were deep enough to provide data for resource calculations.
For each Thiessen polygon volume (polygon area multiplied by the 10-m depth interval), Sy andlithium concentrations from the polygon’s borehole were averaged (if more than one data value
was available for that 10-m interval). Mass of lithium for that polygon volume was determinedby multiplying Sy by lithium concentration and by polygon volume. Resource estimates foreach 10-m interval were determined by summing the mass of lithium for all polygons withinthat interval.

Other methods of handling lateral variability include extrapolation techniques such as kriging or triangulation of
borehole data. Because of the limited data density, Integral used the simpler technique of defining Thiessen
polygons for each borehole.
1

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Figure 11-1. Thiessen Polygon Approach to Resource Assessment Using 1992 Exploratory Boreholes

11.2.3

Method 3—Thiessen Polygons with Lithologically DefinedSpecific Yield

A third method for calculating lithium resources was developed to represent lithologic controls
on Sy. Geophysical and geological logs of the 1992 boreholes show significant intercalation oflithologies. For many boreholes, lithologies vary in vertical profile within nominal 10-mintervals. Consistent with the lithologic nomenclature presented by WMC (1992) on boreholegeologic logs, Integral assigned one of five lithologies to each borehole interval:
1. Halite (pure)
2. Halite with sand
3. Halite with sand and clay
4. Clay with halite
5. Sand.
Each value for Sy was assigned its representative lithology, and an average Sy was determinedfor each lithology (with the exception of sand, which had no associated Sy values). Pure halite
and halite with sand showed the highest Sy values, averaging 8.3%. Halite with sand and clay
showed lower Sy, at 7.4%, whereas clay with halite showed the lowest value at 6.4%. Table 11-1
summarizes Sy values by lithology.

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Table 11-1. Specific Yield by Lithology
Lithology

Specific Yield (Sy)N

Mean (%)

Standard Deviation (%)

Halite (pure)
Halite with sand

198
63

8.3
8.3

4.0
5.0

Halite with sand and clay

270

7.4

3.9

Clay with halite
106
6.4
Note:
Sand (pure) was identified on geologic logs; however, no Sy values were available.
N = number of samples with both lithology and Sy

3.6

By review of geological/geophysical logs (WMC 1992), the vertical thickness of lithologies
within each 10-m depth interval in each borehole was tabulated. A Sy was assigned to thatinterval based on the proportions of various lithologies present and their associated average Sy
values. Lithium mass was calculated per Method 2 for each polygon volume, however, using
lithologically defined Sy values.

11.2.4

Method 4—Single Polygon with Statistical Predictions ofSpecific Yield and Lithium Concentration at Depth

Because of the deficiency in spatial distribution of the Sy and lithium concentration data below
40 m depth collected during pre-development exploration activities, traditional calculation
methods using data from deeper intervals were not possible. In this fourth method, we
statistically evaluated all available Sy and lithium concentration data by way of linear regression
analysis to develop predictive equations for these variables with depth. Statistics were
performed using R software, Version 2.10.1 (R Development Core Team 2009).
Log-transformed Sy data were found to have a statistically significant correlation with respect todepth. A pattern of decreasing Sy with depth was revealed (Figure 11-2a), and a regression
equation was developed to describe and predict Sy values versus depth. Uncertainties in themean estimated values of Sy, as expressed by the 95 percent confidence interval about the
regression predictions, were determined to support the uncertainty analysis in overall resource
calculations.

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Figure 11-2. Prediction of Specific Yield and Lithium Concentration with Depth

We concluded that the arithmetic average of all observed lithium concentrations, irrespective of
depth, was the most representative quantity for resource calculations under this method. The
arithmetic average concentration for lithium was 684 mg/L, as no statistically significant changewith depth was observed (Figure 11-2b). A 95 percent confidence interval on the mean was
calculated using the Student’s t statistic. To account for propagation of error in lithium masscalculations, we used the 95 percent confidence intervals for both Sy and lithium concentration
to estimate the 95 percent confidence limits for the calculated mass values. This approach waschosen as a conservative method, which may slightly overestimate the true variance of
calculated mass values. Average Sy and lithium concentrations were determined for each 10-m
nominal depth interval from 40 to 100 m.

11.2.5

Method 5—Kriging

Kriging is an industry standard approach for estimating mineral grades among other physically
based environmental variables. Kriging is an interpolation method based on geostatisticalprinciples. There are different forms of kriging. However, at its core, the method relies on priorinformation (e.g., lithium concentration or specific yield measurements sampled from
boreholes), and the basic assumption that two measurements closer together are more likely
similar than two measurements at distance, to estimate values at previously unsampled
locations. Two of the three methods from WMC (1992) relied on kriging (block and panel
methods).
Recently, Integral applied the ordinary kriging method to historical, pre-development lithium
concentration measurements to estimate lithium resources within Livent’s concession. In thismethod, we used average lithium concentrations from pre-development boreholes and deep
characterization boreholes located within 10-m intervals from ground surface to 60 m bgs. For
each uniform thickness slice of control volume, we applied a constant value for Sy representativeof halite from the corresponding depth intervals, by the same regression described in Method 4
above. We chose to use Sy measured in halite as a conservative measure (lower lithium mass)
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because the western subbasin is predominantly halite which has lower measured Sy than other,neighboring geologic materials present within Livent’s concession (e.g., clastics or transitional
halite-clastics). We also used publicly available lithium concentration data published by a thirdparty from the Eastern Subbasin (Montgomery & Associates 2011). Data from the Eastern
Subbasin constrain the kriging interpolation at the eastern margin of the Western Subbasin. Thisapproach created 10-m-thick layers of interpolated lithium resources. The lateral extent of eachlayer was clipped to the interior of Livent’s concession and again to the perimeter of the Salar.
The Western Subbasin brine reservoir is roughly bowl shaped. Thus, we assume the control
volume decreases by 1% for each 10-m interval below 30 m as the lateral extent of the reservoir
decreased with depth. Lithium resources by depth using the kriging method are summarized inTable 11-2.
Table 11-2. Pre-development and September 2022 Kriged Resource Estimates
Pre-Development
Depth
Interval(m bgs)Area (m2)

Sy

b
(m)

Average Li
Concentration(mg/L)

Li
Resource(K Mt)

September 2022

Type

Average Li
Concentration(mg/L)

Li
Resource(K Mt)

Type

0 - 103.00E+08 0.097 9/8.1
666
174
Measured
414
97
Measured
10 - 20
3.00E+08 0.072
10
674
145
Measured645
139
Measured
20 - 30
3.00E+08 0.068
10
686
140
Measured
668
136
Measured30 - 40
2.97E+08 0.066
10
702
138
Measured773
152
Measured
40 - 50
2.94E+08 0.064
10
763
144
Indicated
763
144
Indicated
50 - 60
2.91E+08 0.065
10
786
149
Indicated
786
149
Indicated
60 - 100
2.82E+08 0.058
40
781
512
Indicated
781
512
Indicated
100 - 200
2.64E+08 0.046
100
735
892
Inferred735
892
Inferred-Pre-Development Measured Resource (0–40 m)
597
September 2022 Measured Resource (0–40 m)
525
Indicated Resource (40–100 m)
805
Total September 2022 Measured and Indicated Resource (0–100 m)
1,330
Inferred Resource (100–200 m)
892
Total September 2022 Measured, Indicated, and Inferred Resource (0–200 m)
2,222
Notes:
Data from deep characterization boreholes PSP-01, PSP-02, and PSP-03 drilled in 2020 used to estimate indicated and inferred resource.
Area reduced by 1% of total for each 10-m interval deeper than 30 m bgs.
m = meters
m2 = square metersb = thickness of depth interval – reduced from 9 m pre-development to 8.1 m in 2022 due to observed drawdown
mg/L = milligram per liter
K Mt = thousand metric tons-- = not available

We also applied the same kriging technique described above to estimate the resource in September
2022. However, this evaluation used lithium concentrations measured in brine monitoring wells,

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rather than lithium concentrations measured in pre-development boreholes as the basis for lithium
grade interpolation in the 0–30 m interval. Below 30 m, we incorporated lithium concentration
data measured in 2020, during the Deep Characterization Program. Pre-development and
September 2022 resources estimated using kriging are summarized in Table 11-2.

11.3 HISTORICAL RESOURCE ESTIMATE SUMMARY
A summary of the preliminary pre-development resource estimates from WMC (1992) and
Integral (2016) -utilizing pre-development data but without access to WMC’s resource estimatesis provided in Table 11-3. Although these resource estimates rely on the same underlying predevelopment data sets, they were calculated independently using multiple methods. The
consistency between estimates is noteworthy and provides confidence in the general amount of
pre-development lithium resource in Livent’s concession within the Western Subbasin of SdHM.
Table 11-3. Historical Pre-Development Resource Estimate Summary
WMC 1992 (K Mt Li)
Depth (m)Integral 2016 (K Mt Li)

Classical

Block
Kriginga

Panel
Kriginga

Method 1

Method 2

Method 3

408

403

411

412

404

410

409

Sum 0–40

542

541

560

548

Sum 0–50

640

639

658

646

826

826

845

832

Method 4

AveragebInterval Sums
Sum 0–30c

Sum 0–70

851

870

880

Sum 50–100
Note:
a Mean value presented in WMC (1992)b Average of Methods 1–4
c Polygon volume for 0–10 m interval uses 9 m thickness, assuming depth to brine is 1 m bgs.
K Mt = thousand metric tons

444

11.4 HISTORICAL BRINE PRODUCTION
A summary of historical lithium brine production at the SA Plant, from 1997 through 2022, isprovided in Table 11-4. By deducting the amount produced from the lithium resource frompre-development resource estimates, the resource remaining can be estimated. By comparison,
we estimate the measured (0–40 m bgs) pre-production resource at 597,000 Mt using kriging(Method 5) of pre-production borehole data. We estimated the resource after approximately
25 years of lithium brine production (in September 2022) at 525,000 Mt, using the same kriging
method, the same 0–40 m bgs “measured resource” interval, and a new lithium concentration
data set (from brine monitoring network wells sampled in September 2022).

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The amount of concentrated lithium brine produced through September 2022 wasapproximately 84,000 Mt, which is approximately 16% of the measured (0–40 m bgs) resource
estimated as of September 2022. As a check, the pre-development lithium resource estimate,less 25 years of concentrated lithium brine production, is about equal to the September 2022
lithium resource estimate of 525,000 Mt (597,000 Mt – 84,000 Mt = 513,000 Mt, which is withinapproximately 2% of 525,000 Mt, c.f. Table 11-2). The difference between extracted andproduced lithium mass is inherently returned to the Salar. The current resource estimate(December 31, 2022) was calculated in a similar manner, by discounting the amount of lithiumproduced after September 1, 2022 from the September 2022 lithium resource estimate.
Table 11-4. Historical Production from Selective Adsorption Plant
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

Concentrated Lithium Brine (Mt Li)
Annual
500
2,254
1,244
2,394
1,208
842
1,693
2,770
3,199
3,237
3,515
3,788
3,352
3,383
3,283
3,455
3,819
4,302
4,273
4,545
4,792
4,406
4,753
4,708
4,932
4,903

Cumulative
500
2,755
3,998
6,392
7,601
8,443
10,137
12,907
16,106
19,34222,857
26,64529,99733,38036,664
40,11843,937
48,23952,512
57,057
61,84966,25571,00875,71680,64885,551

11.5 CURRENT RESOURCE ESTIMATE INCLUSIVE OF RESERVES
In situ lithium resources, inclusive of mineral reserves, for SdHM at the end of 2022 aresummarized in Table 11-5. This resource estimate assumes that brine produced from September
2022 through December 2022 originated from brine in the measured resource (0–40 m bgs)
interval, as the PWB and SWB lithium brine production wells are constructed to a depth up to
40 m bgs. Because flow to lithium brine production wells is predominantly horizontal, and theexisting well batteries do not extend below 40 m, it is unlikely lithium produced to-dateIntegral Consulting Inc.

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originated from indicated (40–100 m bgs) or inferred (100–200 m bgs) resource intervals. A cutoff grade was not applied to this resource estimate (inclusive of lithium reserves) because
economic viability is not a factor that affects the amount of resource in place. A cut-off grade of
218 mg/L, and the assumptions inherent, are tied to the resource estimate (exclusive of lithium
reserves) because the cut-off grade was applied to the reserve estimate.
Table 11-5. Lithium Resource Estimate (inclusive of lithium reserves), as of December 31, 2022
Lithium (K Mt)

Lithium Carbonate
Equivalent (LCE) (K Mt)

Measured

523

2,783

Indicated

805

4,288

Total Measured & Indicated

1,328

7,071

Inferred

892

4,749

Total Measured, Indicated & Inferred

2,220

11,820Category

Notes:K Mt = thousand metric tons
Values rounded to nearest thousand

11.6 CURRENT RESOURCE ESTIMATE EXCLUSIVE OF RESERVESIn accordance with SEC regulations 229.601 (b)(iii)(B)(11) and 229.1304, mineral resources must
be reported exclusive of reserves. Lithium brine is a fluid resource that is not static and may
migrate over time in response to various pumping stresses or environmental factors. Lithium
resources, exclusive of reserves, were estimated by subtracting proven and probable reserves(discussed in Section 12) from the total (including reserve) in situ measured resource andindicated resource (Table 11-5). The assumptions, including process efficiencies, cut-off grades,and future operational conditions used to estimate mineral resources and mineral reserves, arediscussed in Sections 12.2 and 13.3, respectively. Mineral resources (exclusive of reserves) on
December 31, 2022, are presented in Table 11-6.
Table 11-6. Lithium Resource Estimate (exclusive of lithium reserves), as of December 31, 2022
Lithium (K Mt)

Lithium Carbonate
Equivalent (LCE) (K Mt)

Measured

370

1,968

Indicated

228

1,212

Total Measured & Indicated

597

3,180

Inferred

892

4,749

Total Measured, Indicated & Inferred

1,489

7,928

Category

Notes:K Mt = thousand metric tons
Values rounded to the nearest thousand

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11.7 GEOLOGICAL MODEL
A 3-dimensional geological model was prepared for SdHM using Leapfrog Works software(Version 2021.2). The model was developed to support parameterization of the variable-density
flow and transport model used to estimate the lithium reserves. Borehole logs for the 1000series (primary well battery), 2000- and 3000-series (pre-development exploration boreholes andpumping wells), brine monitoring wells, and deep characterization boreholes in the Western
Subbasin were compiled along with borehole logs for the Trapiche alluvial aquifer and publicly
available third-party boreholes and cross sections in the Eastern Subbasin of the SdHM.
Borehole logs and cross sections were generalized and grouped based onlitho/hydrostratigraphic properties into four major units: 1) halite; 2) transition (mixed clastics
and evaporites); 3) alluvium (coarse-grained clastics); and 4) bedrock. A plan view of thegeologic model is shown in Figure 11-3 and vertical cross-section through the model (roughlyaligned with the gravity profile in Figure 7-4) is shown in Figure 11-4. Areal extents of halite,
transition, and alluvium were evaluated and digitized, and used to bound each of these units
laterally. Pre-development gravity profiles and publicly available third-party cross sections
were used to create a bedrock surface and bound the model vertically. This surface was also
informed by the slope of bedrock outcrops surrounding the Salar and structural features. In theWestern Subbasin, the bedrock surface is largely inferred from the aboveground topographic
slope and gravity surveys and is estimated to extend as deep as 900 m in the northwest portionof the basin containing the halite core.

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Figure 11-3. Generalized Local Geology

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Figure 11-4. Vertical Cross Section through the Geologic Model

11.8 SUMMARY
Regardless of the calculation method employed, lithium resource estimates were similar forvarious depth intervals (thickness). Integral’s (2016) independent estimates of pre-development
reserves confirmed WMC’s 1994 estimates. Since operations began 25 years ago, Livent’s
Project Fenix has and continues to produce high-grade (>740 mg/L) lithium brine withremarkably low variability in brine grade (Figure 8-1). When considering the consistency
between independent resource estimates together with 25 years of operational data, the QPs
have a high degree of confidence in the resource estimates.
The current resource estimates incorporate lithium concentration data measured at 35
monitoring well locations across the Salar and lithium concentrations measured from deep
exploration holes, installed in 2020, at depths greater than 30 m. In the QPs’ opinion, thecurrent resource estimates (as of December 31, 2022) are appropriate because they were
estimated by deducting lithium produced from September 2022 through December 2022 fromthe September 2022 resource estimate. The same approach of deducting lithium produced
through 2022 from pre-development resources, produced nearly the same mass absent from theIntegral Consulting Inc.

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2022 resource estimate (relative to pre-development resources) from within the measured
interval.
Although lithium concentration data from depths below 100 m in the Western Subbasin are
sparse, available data from below 100 m indicate the presence of high-grade brine.
Furthermore, lithium grades appear to increase with depth, whereas Sy within halite is likely todecrease with depth due to increasing lithostatic loading. The anticipated decrease in Sy wasmodeled using a regression to project Sy at depth. The depth of the resource in the Western
Subbasin (assumed to coincide with depth to bedrock) has been estimated using geophysicalmethods to be up to 900 m in the western lobe of the Western Subbasin (WMC 1992). Deep
exploration holes installed in 2020 indicate resource depths greater than 300 m near the PWB.
With limited deep borehole data, our understanding of reservoir properties, in particulareffective porosity and permeability at depth, are uncertain. In the absence of borehole data
below 300 m bgs, we set the depth of our resource evaluation to 200 m. Future exploration
below 40 m bgs is recommended to improve confidence in resources, particularly lithium grade
and reservoir properties in the intervals currently classified as indicated and inferred.

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12 MINERAL RESERVES ESTIMATES
Mineral reserves are the economically mineable part of a resource. Reserves are always afraction of the resource because the reserve estimate accounts for dilution and process-related
losses before the resource becomes a viable product (CIM 2014).
Integral estimated lithium reserves using a numerical brine reservoir model to predict changes
in brine occurrence and grade in response to anticipated lithium brine production schedules.
Numerical modeling is essentially a physically based bookkeeping method for simulating fluid
flow and for tracking dissolved solids and lithium concentration and movement. Our approachfor estimating lithium reserves, including a description of the method, key assumptions, andparameters, is provided in this section.

12.1 NUMERICAL BRINE RESERVOIR MODEL
Integral created a 3-dimensional numerical groundwater flow and transport model (Salar
Model) to predict lithium reserves for a 40-year period beginning in 2023. Groundwater Vistas
software (Environmental Simulations Incorporated) was used to create model input files and topost-process model results.
The Salar Model is based on the U.S. Geological Survey’s program, SEAWAT Version 4(Langevin et al. 2007), for simulating variable density groundwater flow and multi-species
transport. SEAWAT is a coupled version of two other, industry-standard programs for
simulating groundwater flow, MODFLOW (Harbaugh et al. 2000), and transport of dissolved
species in groundwater, MT3DMS (Zheng 2006). SEAWAT is designed to simulate variabledensity brine migration in continental aquifers by coupling the two programs.

12.1.1Model Domain and Grid

The Salar Model domain covers the entire Western Subbasin (Figure 12-1). At ground surface,
the active model area is 364 km2. The model area is divided into 123 rows and 113 columns, andmodel cell lengths vary in size from 200 m at the halite nucleus to 500 m at the margins of themodel. In the vertical dimension, from ground surface to the bedrock contact, the model isdivided into nine horizontal layers. A vertical slice through the numerical model along row 50(north to south) is shown in Figure 12-2.

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Figure 12-1. Model Plan View

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Figure 12-2. Vertical Slice through Salar Model

12.1.2

Flow and Transport Boundary Conditions

All of the relevant processes affecting fluid movement are simulated in the model, including
naturally occurring inflows from river leakage and from groundwater, and outflow by
evapotranspiration. Operational conditions are simulated in the model by outflow of fluids byextraction well pumping, and inflow of spent brine. Together, naturally occurring andoperational inflows/outflows are used as inputs to the numerical model, which allows foraccounting of fluid flow and dissolved lithium.
Most of the groundwater inflow to the Western Subbasin occurs as Rio de Los Patos leakage
and groundwater inflows at the saddle between the Eastern and Western Subbasins, followed
by groundwater inflows from the Trapiche Aquifer. Shallow brackish groundwater inflow
from the Eastern Subbasin was simulated using specified flux boundary conditions. Shallow
inflows from the Rio de Los Patos were assumed to have brackish water quality devoid oflithium, which was simulated using specified concentration boundary conditions at 200 g/L
TDS. Deeper brine inflows from the Eastern Subbasin were simulated using specified flux andspecified concentration boundary conditions at 330 g/L TDS and 500 mg/L lithium. Althoughlithium-rich brine likely flows into the Western Subbasin at higher concentration, relatively low
lithium concentrations in brine flowing from the Eastern to Western Subbasins were used inmodel simulations to be conservative. The total simulated inflow from the Eastern Subbasin is
0.3 m3/s, consistent with estimates made by WMC (1994). In the model, shallow inflows
constitute approximately 80% of the total inflow from the Eastern Subbasin with the remainder
of inflows occurring at depth.
Fresh groundwater inflow to the Salar from the Trapiche Aquifer was simulated using specified
flux (well) boundary conditions. The freshwater quality was simulated with constantconcentration boundary conditions, with TDS set to 2 g/L, and without lithium, based on water
quality data from Trapiche Aquifer monitoring wells. Total simulated inflow from the Trapiche
Aquifer is 0.1 m3/s, which is approximately 25% lower than WMC’s estimate (WMC 1994) toaccount for diversions and evaporation from the Trapiche Dique.

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Groundwater/brine is assumed to flow primarily within porous evaporite and clastic sediments.
Thus, no flow boundary conditions are assigned to model cells that represent bedrock along themargins of the Salar and at depth beneath the Salar sediments. This is a conservative approach,as bedrock adjacent and beneath the Salar may have some porosity and permeability containing
lithium-rich brines; however, without definitive information we assume bedrock is not part ofthe brine reservoir system.
Recharge from the infiltration of precipitation onto the Salar surface is not simulated because it
rarely occurs with sufficient volume to affect the water balance in a material way. Whenrecharge does occur, it does not significantly dilute shallow brine enough to affect averagelithium concentrations in well batteries, as indicated in Figure 7-13.
Evapotranspiration is applied to the top layer of the model. The maximum evaporation rateand extinction depth, depth below ground surface where evaporation is 0, is specified in themodel according to surface characteristics. Applied evapotranspiration rates range from 2×10−4
to 5×10−3 m/d with higher rates of evaporation occurring at open water bodies and lower rates inareas of barren (sparse vegetation) alluvium.

12.1.3

Hydraulic and Solute Transport Properties

SEAWAT simulates density-driven flow based on the assumption that there is a linear
relationship between solute concentrations and fluid density, in this case TDS and density(Figure 12-3). Lithium is tracked in the model but is not part of the density equation because it,along with the other dissolved solutes, is represented by TDS.
Model hydraulic properties were assigned based on the lithology mapped to the model gridfrom the Geological Model (Section 11.7). The QPs developed the Salar Model on the principleof parsimony, by grouping lithologies observed in boreholes into as few modeled lithologic
units as practical. This approach avoids overparameterization, which is often used to force amodel to appear calibrated and is usually unjustified. In general, shallow halite and shallow
transition zone lithologies (mixed evaporites and clastics), present at the saddle between the
Eastern and Western Subbasins, were assigned the highest hydraulic conductivity values(approximately 500 m/d). Hydraulic conductivities (a term we use interchangeably withpermeability) were assumed isotropic in the horizontal plane. The vertical anisotropy (ratio ofhorizontal to vertical hydraulic conductivity) generally varies (from 10 to 2) based on
depositional characteristics (i.e., the vertical anisotropy is highest in alluvium, while lower intransitional material and evaporites).

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Figure 12-3. Relationship between TDS and Density Used in Salar Model

Reductions in hydraulic conductivity with depth are commonly noted in deep (>100 m) flow
systems due to compaction of sediment by overburden materials (Belcher et al. 2001; D’Agnese
et al. 1997). This behavior was noted in one of three deep characterization holes (PSP-02);
however, the other two (PSP-01 and PSP-03) did not show an obvious reduction in conductivity
with depth. In the absence of additional information and to be conservative (less yield for agiven pumping condition), we reduced hydraulic conductivity with depth in the model.
In a transport model, effective porosity, the ratio of interconnected drainable pore space to total
porosity, is inversely proportional to solute velocity. Effective porosity is assumed to be similar
to Sy and the two properties are set equal to each other in the model. Dispersivity is aparameter used to account for the compounding effect that small-scale changes in velocity haveon solute transport. As such, dispersivity is a scale-dependent parameter that tends to increase
with the size of the flow system. Longitudinal dispersivity was set to one-tenth the length of anominal grid cell (20 m), with an order-of-magnitude reduction in the lateral and verticaldimensions (2 and 0.2 m, respectively). Considering groundwater/brine velocities at SdHM arequite high, and dissolved lithium salts tend to act as conservative tracers in groundwater,
diffusion and sorption kinetics were not simulated in the model.

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12.1.4

Model Calibration

Model calibration involved changing input parameters until a satisfactory match between
observed and model-simulated conditions are reached. Industry standard practices andguidelines (Zheng and Bennett 1995; Anderson et al. 2015; Reilly and Harbaugh 2004) were
followed throughout the calibration process. The Salar Model was calibrated to brine elevations
and brine chemistry (TDS and lithium concentrations) measured at brine monitoring wells
distributed across the entire Western Subbasin, from proxy locations used to represent
aggregate flows from the PWB and SWB, and monitoring wells in the Trapiche Aquifer.
The Salar Model was calibrated to observed brine elevation measurements and concentrationsof TDS and lithium, using a combination of trial-and-error techniques and using an automatedinverse calibration program, PEST (Watermark Computing 2016).
The model calibration process was iterative, whereby a pseudo steady-state model wasconstructed to establish the initial hydraulic conditions. The pseudo steady-state model,
developed to estimate water/brine balance and elevations prior to development, was run intransient mode for a long period of time until near-equilibrium conditions were met andchanges in storage were negligible. Using this model as a starting point, a transient calibration
was performed by simulating historical operations.

12.1.5

Simulated Historical Operations

Transient calibration involved grouping operational data (brine and freshwater extraction andspent brine discharge) into periods of relative uniformity called stress periods. The transient
calibration period spans 9,300 days, from July 1997 through the end of 2022. Model calibration
statistics and visual goodness-of-fit were evaluated at the end of each transient calibration
simulation, and parameters were adjusted in the pseudo steady-state, and in turn the transient
calibration model, until the model was deemed calibrated. Historical operations are simulatedusing the transient Salar Model. The transient Salar Model divides the period from July 1997
through the end of 2022 into 31 stress periods. During a given stress period, brine andfreshwater pumping rates, as well as the rate and quality (TDS and lithium) of spent brinedischarge and leakage from pre-concentrate ponds, occur at a constant rate equal to the average
historical rate (taken as the average over the stress period). Inflows from the Eastern Subbasin
and Trapiche Aquifer were assumed constant for the entire simulation.
Brine monitoring of the PWB and SWB occurs after discharge from the individual wells
comprising the battery are manifolded together in a single pipe. For example, the brine quality
reported at the PWB is the aggregate brine quality from the five wells that are operating at any
given time. In the Salar Model, an artificial monitoring location was placed in the center of eachwell battery as a surrogate for evaluating the TDS/lithium concentration at each battery. A

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comparison between actual measured and model-simulated lithium concentrations at thoselocations is provided in Figure 12-4.

Figure 12-4. Measured and Simulated Lithium Concentrations at Primary and Secondary Well Batteries (2000–2022)

The model was deemed calibrated when the residuals, or differences between measured andsimulated values (e.g., head or concentration), were sufficiently small. At the end of thetransient calibration period, the model was deemed acceptably calibrated using two commonlyreferenced calibration statistics—the average head residual and the scaled residual mean (theresidual sum of squares divided by the range in observed head)—which were -0.05 m and 8%,
respectively. Average model residuals for lithium concentration in lithium brine production
wells were 4.5 mg/L (Figure 12-4). The model mass balance error at the end of calibration was
0%, which is another indication the model is acceptable (0.5% or less is a common benchmark[Reilly and Harbaugh 2004]).

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12.1.6

Predictive Simulations

Once the Salar Model was calibrated, it was used to predict changes in brine levels and brine
quality for a 40-year period through 2062. Inflows from the Eastern Subbasin and Trapiche
Aquifer were assumed constant for the entire predictive simulation. Inflows of spent brineincreased in response to increased plant throughput following anticipated future expansions,
until year 2030, at which point the flows were held constant. Future spent brine management
was assumed for the model to involve cycling discharge to other areas, including the existing
artificial lagoon and an undeveloped area east of the artificial lagoon. Leakage from the preconcentrate ponds was assumed equal to leakage in 2022 until year 2026, when the ponds areplanned to be repurposed as part of the Third Expansion (see Section 14.7.3).
New lithium brine production wells are required to meet future target lithium carbonate
production rates. Lithium grades are anticipated to gradually decrease over time as the rate oflithium removal exceeds the rate of natural replenishment. As this happens, brine becomes
more dilute, and more pumping is required to extract the required mass of lithium. Thus, aseries of model simulations was performed by adjusting new well pumping rates and locations
until the simulated lithium extraction exceeded targeted lithium brine production. Simulated
lithium extraction should exceed targeted lithium brine production because the manufacturing
process efficiency is less than 100%, indicating there is some lithium loss between raw brine
entry to the SA Plant and the production of final manufactured product. Inherent in the model
predictions is the assumption that process efficiency will be similar to current efficiency in years
before the pre-concentrate ponds were used for spent brine return, with increasing efficiency inlater years.
In the predictive simulations, all new wells were designed to draw exclusively from themeasured resource depth interval (0–40 m bgs) in years 0–20. In later years (21–40), brine isextracted from both the measured and indicated resource (0–100 m bgs) depth intervals. Target
lithium brine production rates were achieved with the well configuration shown in Figure 12-5.
It should be noted that this future production well configuration is only one of many potential
well configurations capable of meeting target lithium production rates. Actual future wellconfigurations are subject to change.
To meet Livent’s anticipated near-term lithium carbonate production targets, four new wells
were added to the Salar Model to the northwest of the PWB. Additional wells were added in
the northwestern and northeastern quadrants of the Western Subbasin, within Livent’s
Contiguous Lease Area, to meet longer-term demands. A pumping schedule containing modelsimulated lithium brine production rates by well battery and individual new wells is provided
in Table 12-1. The pumping plan described is one of many potential configurations to achieve
the target lithium carbonate production schedule.

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Figure 12-5. Simulated Lithium Brine Production Wells, Freshwater Extraction Wells, and Spent Brine Discharge Area

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Table 12-1. Simulated Future Brine Pumping Schedule (m3/d)
2026

2027

2028

2029

2030

2031

2032–
2041

2042–
2051

2052–
2062

24,80024,80024,80024,80024,80024,80024,80024,80024,80020,20020,20020,20020,20020,20020,20020,20020,20020,20029,00036,00036,00044,00044,00044,00052,00070,50077,50049,000 52,000 57,000
Simulated Flow Rate by Individual New Wells
New well No. 1
2,000
2,000
4,000

74,00081,00081,00089,00089,00089,00097,000115,500

122,500

4,000

4,000

4,000

4,000

4,000

4,000

4,500

6,500

7,500

New well No. 2

2023

2024

2025

Total Simulated Flow Rate by Well Battery
Primary Well
24,800 24,800 24,800
Battery
Secondary Well
20,200 20,200 20,200
Battery
New Wells
4,000
7,000 12,000
Total

3,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,500

6,500

7,500

New well No. 3

2,000

1,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,500

6,500

7,500

New well No. 4

1,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,500

6,000

7,500

New well No. 5

3,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

7,500

7,500

New well No. 6

3,000

4,000

4,000

4,000

4,000

4,000

4,000

4,500

7,500

7,500

New well No. 7

3,000

4,000

4,000

4,000

4,000

4,000

4,000

7,500

7,500

7,500

New well No. 8

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

6,000

6,000

7,000

New well No. 10

4,000

4,000

4,000

4,000

6,000

7,000

New well No. 11

4,000

4,000

4,000

4,000

6,000

7,000

New well No. 9

12.1.7

Sensitivity to Potential Operations in the Eastern Subbasin

Project Fenix is the only commercial lithium carbonate production operation at SdHM. Other
companies with mining claims adjacent to Livent’s, mainly in the Eastern Subbasin, are known
to be in the advanced exploration stage and could begin brine extraction on a commercial scalein the next few years. To evaluate the potential impact on reserves, model inflows from theEastern Subbasin were deactivated for a 40-year predictive simulation beginning in January
2023. This simulation was identical to the predictive simulation described above in every aspect
except the model cells used to simulate inflows at the Eastern Subbasin were converted fromconstant flux boundary conditions to no-flow boundary conditions. Inherent in this simulationis the potential for neighboring operations to capture all of the water and lithium-rich brine thatflows naturally from the Eastern to Western Subbasin.
There were three key results of this simulation. The first key result was that lithium brine
concentrations at the end of 40 years were higher when the flux from the Eastern Subbasin was
set to zero. This occurs because most of the flux from the Eastern Subbasin was modeled as
fresh water without much lithium, which had the effect of diluting lithium concentrations inlater years.

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The second key result was total lithium mass extracted as reserves between the two predictive
simulations at the end of the 40-year simulation were within 3% of each other. This suggests
the reserve estimates are not sensitive to assumptions on inflows at the Eastern Subbasin.
Lastly, the model-simulated drawdown, expressed as the difference between brine elevation at
the start and end of the model prediction, was greater when the flux from the Eastern Subbasin
was set to zero, with brine elevations approximately 5 m lower after 40 years. Thus, theprimary risk to future operations, if brine extraction in the Eastern Subbasin were to effectively
eliminate flux into the Western Subbasin, is lower brine elevations, which in turn may require
future wells to be screened at correspondingly lower elevations.

12.2 CUT-OFF GRADES ESTIMATES
A cut-off grade is a concentration threshold below which mining is no longer economic.
Establishing a cut-off grade for lithium brine resources is not straightforward because theconcentration typically increases in the manufacturing process after it is extracted (i.e.,
uneconomic raw brine may become economically viable after further concentration byevaporation).
For this reserve assessment, a cut-off grade of 218 mg/L was calculated using a breakeven
financial analysis for a 40-year life-of-mine. The breakeven analysis included reasonably
foreseeable capital and operating expenses; cost of capital at 10%; and revenue generated
assuming a long-term, forward-looking lithium carbonate price of $20,000 per Mt. Thisapproach was considered a “worst-case scenario” to establish the minimum economically viable
lithium concentration for Project Fenix to be marginally profitable and is appropriate toestimate a cut-off grade concentration. Although future lithium carbonate prices have thepotential to be volatile, $20,000 per Mt is reasonable considering analysts’ current projections(Section 16).
The cut-off grade was calculated by adjusting lithium concentration to meet the demandschedule (Section 13) within the financial constraints described above until project revenue
exceeded total capital and operating expenses by 10% (equal to cost of capital). Future process
efficiency (assumed at 76.6%) was accounted for in establishing the cut-off grade. Financials arevalued in current terms (dollars). Operating expenses captured depreciation, royalties andcorporate taxes, and all normal expenses (e.g., labor and raw materials) required to operate
Project Fenix now and in the future, following expansions. Financials do not include(de)escalators related to currency volatility or inflation. In the QPs’ opinion, it is conservative toomit such (de)escalators from the cut-off evaluation as revenue is projected to exceed expenses
and inflation is likely to affect both cost expenditures and revenue. In a similar manner,
omitting depreciation from the breakeven analysis effectively reduces expenses and increases
project profitability.

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Although not considered in this reserve assessment, lower cut-off grades may become
economically viable with advances in process technology or with changes in mine plans (e.g.,
additional pre-concentrate ponds or SA columns). The economic analysis (Section 19) indicatedpositive cash flow for the life-of-mine after an initial payback period of 3.6 years based on the
anticipated lithium carbonate production schedule. Numerical model results indicate thelithium carbonate production schedule provided by Livent is feasible, and brine grade remains
well above the economically viable cut-off grade of 218 mg/L throughout the 40-year simulation
period when the model-simulated flow-weighted average lithium concentration in year 40 is
523 mg/L.

12.3 RESERVES CLASSIFICATION AND CRITERIAThe Salar Model simulates fluid (brine) movement within its domain. Brine is a fluid resourcethat moves within and between resource units (measured, indicated, and inferred) in response tochanges in pressure (pumping) and other environmental variables, which are generally lessinfluential. Predictive simulations using the Salar Model assume production from the PWB andSWB remains constant during the 40-year simulation. Additional lithium brine production
required to meet the anticipated lithium carbonate production schedule is made up with 11
additional wells. Flow to lithium brine production wells is believed to be predominantly
horizontal in stratified evaporite/clastic sediments; and, it is likely lithium produced to-dateoriginated primarily from the measured resource interval (0–40 m bgs) rather than deeper
indicated (40–100 m bgs) or inferred (100–200 m bgs) resource intervals because existing lithium
brine production wells are not screened deeper than 40 m bgs.
SA Plant efficiency is expressed as the ratio of lithium mass in concentrated lithium brine
exiting the SA Plant (effluent) divided by lithium brine production. Figure 12-6 shows the SA
Plant efficiency from 2012 through 2022, indicating improved efficiency from 2012 through2017, and stable efficiency thereafter. Although historical SA Plant efficiency is not a perfectindicator of process recovery, because it does not account for throughput delays at the plant or
sample variability within a given sampling event, it provides a good estimate of future
performance over extended periods. The SA Plant efficiency in the most recent 5 years (2018–2022) averaged 93%. For future lithium brine production and estimating reserves, the lithium
processed at the SA Plant is assumed to be 95% efficient.
Introducing pre-concentrate ponds to the process reduces efficiency because some brine in theponds is lost to leakage or is entrained in solid residuals. Livent has not undertaken pilot
testing to estimate pond process efficiency. However, others have reported efficiencies near
70% (Galaxy Resources Ltd. 2021). The pre-concentrate and proposed evaporation ponds are
assumed to be 65% efficient (35% of the lithium leaks back into the Salar or is entrained). Basedon the weighted average of flow through the various processes and efficiencies for the planned
expansions discussed in Section 14.7, the time-weighted average process efficiency (from theIntegral Consulting Inc.

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brine resource to final product) is expected to be 76.6%. Thus, lithium reserves based on future
anticipated lithium brine production are calculated by applying time-weighted efficiency to themass of lithium in feedstock lithium brine produced from the Salar. In essence, the mass oflithium in feedstock brine is reduced by 23.4% for reserve estimation purposes.
The Salar Model was used to predict lithium concentrations 40 years into the future, which is anacceptable prediction period considering guidance set forth in Anderson and Woessner (1992)
that suggests predictive simulations not be extended into the future more than twice the period
for which calibration data are available. Future brine extraction was simulated in the Salar
Model with new wells screened in the “measured” resource interval for years 0–20. In years 21–
40, additional brine is produced with new wells screened in both the “measured and indicated”
resource interval. Considering anticipated pumping rate increases together with model
predictions and 25 years of performance monitoring data, it is reasonable to classify brine
produced in the first 10 years as “proven reserves.” Brine produced in years 11–40 is classified
as “probable” on the basis that new wells extract brine from the measured and indicatedresource in later years.

Figure 12-6. SA Plant Process Efficiency (2012–2022)

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12.4 MINERAL RESERVES ESTIMATE
Mineral reserve estimates for the 40-year period from January 1, 2023, through 2062 arepresented in Table 12-2. The reserve estimates are based on the anticipated lithium production
schedule following planned project expansions (Section 13.3). Mineral reserves are based on an
economic cut-off grade of 218 mg/L lithium, 76.6% time-weighted average process efficiency,
and assuming a future lithium carbonate price of $20,000 per Mt.
Table 12-2. Proven and Probable Lithium Reserves (starting January 1, 2023)
Reserve
Category

Years

Total Lithium(K Mt)

Total LCE
(K Mt)

Proven

0–10

153

815

Probable

11–40

578

3,076

731

3,891

Total Proven + Probable

Notes:
Assumes 76.6% time-weighted average process efficiency
K Mt = thousand metric tons
Values rounded to the nearest thousand

12.5 DISCUSSIONThe Salar Model was used to predict changes in brine levels and brine quality for a 40-year
period through 2062. It should be noted that 40 years was the chosen time frame for thenumerical simulation, based on the QPs’ understanding of the resource, 25-year operational
history, and anticipated lithium brine production schedule, which in turn is the basis forestablishing the life-of-mine. In the QPs’ opinion, based on available resources, current mineplans, and pricing assumptions, the life-of-mine will remain profitable and above the cut-off
grade beyond 40 years.
All of the brine produced to-date by Project Fenix is believed to have originated from measured
resources. The anticipated lithium production schedule is feasible and may be achieved by thepumping well configuration shown in Figure 12-5, according to the pumping rate schedule in
Table 12-1. Model predictions do not indicate excessive drawdown in the future, which isconsistent with expectations for a mature salar and brine level observations made since
operations began in 1997. Model-predicted lithium concentrations remain above the cut-off
grade (218 mg/L) throughout the life-of-mine.
Lithium-rich brine is a fluid resource and its grade is subject to change in response to pumping
and numerous other environmental factors. Factors other than brine grade and pumping may
affect reserve estimates, including the acquisition of new hydrogeologic and environmental

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data, changes in mine plans, or mining operations at neighboring locations. This reserve
estimate is based on the data and assumptions described in this report and is sufficient fordisclosure and mining planning purposes.
Lithium reserves extracted in years 1–10 are classified as “proven” by reducing the lithium mass
extracted by 23.4% to account for process inefficiencies. Proven reserves (153,000 Mt) represent
approximately 12% of the current measured and indicated resource (Table 11-5). Lithium
resources extracted in later years (11–40), also discounted for process inefficiencies, areclassified as “probable.” Reserves are classified as probable because a fraction of the brine
produced in years 21–40 originated in the measured and indicated resource intervals andcertain modifying factors (economic, legal, governmental, environmental, and social)necessarily introduce uncertainty in future operations. The total proven and probable reserves(731,000 Mt) make up approximately one-third of the total resource.

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13 MINING METHODS
Lithium mining at Project Fenix begins by pumping lithium-rich brine from beneath the surfaceof the Salar. When operations began, brine was pumped from a network of six wells (referred
to as the PWB) located near the geographic center of the Western Subbasin of SdHM. In 2012,
two additional wells (referred to as the SWB), located approximately 5 km south-southeast of
the PWB, were brought into service to increase lithium brine production. The location of key
mining features including the PWB and SWB is shown in Figure 4-2.

13.1 CURRENT WELLFIELD DESIGN
Existing lithium brine production wells are approximately 30–40 m deep. Each production wellis fitted with a submersible pump powered by a diesel generator installed at the wellhead.
Typical equipment used to operate a lithium brine production well is shown in the schematic in
Figure 13-1. Historically, five wells from the PWB produce brine, with one well in standby tomaintain target lithium brine production rates during well maintenance periods. In 2022, theaverage lithium brine production rates for the PWB and SWB were 1,031 and 735 m3/h,
respectively. Historical brine pumping rates are provided in Figure 13-2.

Figure 13-1. Surface Pumping Equipment

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Figure 13-2. Historical Lithium Brine Production from the Primary and Secondary Well Batteries (2000–2022)

Brine produced by the PWB and SWB is conveyed to two locations with a 24-inch pipeline: topre-concentrate ponds or to the SA Plant as direct feed for processing. The SA Plant is capableof processing native brine feed directly from the well batteries, from concentrated brine feedfrom the pre-concentrate ponds, or a combination of native and pre-concentrated brine.

13.2 ANTICIPATED WELLFIELD DESIGN
Additional lithium brine production wells are necessary to meet future lithium carbonate
production demands. Lithium brine is a fluid resource and its behavior (grade) changes in
response to environmental variables and pumping stresses. Thus, the Salar Model was used in
an iterative process to estimate the location of new wells and the pumping schedule necessary
to meet those demands by adjusting the number, location, and screened interval of new
pumping wells until the simulated produced lithium closely matched the anticipated lithium
carbonate production schedule.

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The locations of new (future) wells simulated in the Salar Model to meet the anticipated lithium
brine production schedule, and additional future mining features, are shown in Figure 12-5.
This future well configuration is only one of many potentially viable well configurations thatwill be evaluated/modeled in the future based on observed conditions at that time.

13.3 ANTICIPATED LITHIUM BRINE PRODUCTION SCHEDULES
The anticipated lithium brine production schedule is provided in Figure 13-3. For 2 years
leading up to the Third Expansion (discussed in Section 14.7), additional brine is extracted to fillponds. Lithium brine production beyond 2030 is assumed to remain constant at approximately
24,160 Mt lithium per year.

Figure 13-3. Anticipated Lithium Brine Production Schedule

The lithium carbonate production schedule is summarized in Table 13-1. Average annual
lithium carbonate production is anticipated to be 98,000 Mt by 2030, and this rate can besustained for the next 40 years through 2062. The lithium brine production schedule exceeds
the lithium carbonate production schedule to account for process inefficiencies and a portion ofIntegral Consulting Inc.

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the brine feed directed to the Güemes Plant for lithium chloride production. As a conservative
measure, intended to bias revenue lower than anticipated, lithium chloride production is not
currently modeled in the Economic Analysis (Section 19).
Table 13-1. Anticipated Lithium Carbonate Production Schedule (2023–2030)
Year

2023

2024

2025

2026

2027

2028

2029

2030

Total Carbonate
Production (Mt)

24,00034,00038,00056,00068,00068,00077,00098,000Notes:
Lithium carbonate production expressed in metric tons (Mt)
Production in years 2031–2062 is expected to continue at the rate of 98,000 Mt per annum.

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14 PROCESSING AND RECOVERY METHODS
Mineral processing at Project Fenix requires lithium-rich brine and fresh water. The process
involves three primary steps: raw brine and freshwater extraction (lithium brine production),
lithium removal via SA (concentrated lithium brine production), and concentration andconversion to lithium carbonate (lithium carbonate production). In 2022, the process extracted
1,770 m3/h of raw brine and 355 m3/h of fresh water to produce 4,903 Mt of concentrated lithium
at the SA Plant. During the same period, approximately 43% of the brine and fresh water usedin the process was returned to the Salar at the artificial lagoon. Brine extraction is described in
Section 13 (Mining Methods).
This section focuses on lithium removal and recovery processes after brine extraction. The mainprocessing facilities at Project Fenix include the SA Plant, pre-concentrate ponds, FSB ponds, aCarbonate Plant, and Auxiliary Services Plant. All of Livent’s plants are certified by theInternational Organization for Standardization (ISO) standards for Environment (14001),
Occupational Health and Safety (45001), and Quality (9001). Additionally, Livent’s lithium
carbonate production plan is certified for lithium battery manufacturing (16949) by theInternational Standard for Automotive Quality Management Systems’ International
Automotive Task Force.
A photograph of the Project Fenix facility is provided in Figure 14-1 and a general flow diagram
is depicted in Figure 10-1.

Figure 14-1. Project Fenix Facilities

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14.1 SELECTIVE ADSORPTION (SA) PLANT
Feedstock brine is directed to the SA Plant where lithium chloride is removed from the raw
brine using a trade secret SA process. At the SA Plant, the brine is loaded into a column where
the lithium is adsorbed onto media. The medium is then stripped of the lithium-rich brinewhere it proceeds to the next step that removes water for recycle and further concentrates thelithium chloride brine. The brine is polished to remove other elements. The SA process isshown in Figure 14-2.

Figure 14-2. Project Fenix Selective Adsorption Plant Process

14.2 PRE-CONCENTRATE PONDS
In 2012, the facility began operating a series of evaporation basins (“pre-concentrate” ponds),
whereby some of the flow from the PWB was directed into these ponds located approximately
3 km north of the SA Plant on the Salar surface. These shallow ponds cover a large surface area

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(approximately 330 hectares) and promote evaporation and lithium concentration of the brine.
An aerial image showing the pre-concentrate ponds is provided in Figure 4-2.
The SA Plant can be fed with either fresh brine only, or with concentrated brine from the preconcentrate ponds. Raw brine is diverted into these ponds, which act like the sodium chloride
ponds of a conventional lithium removal pond series, dropping out sodium chloride and raising
the concentration of lithium (and other elements) through solar evaporation. The value of using
higher concentration brine as feedstock is an increase in lithium brine production capacity at the
SA Plant.

14.3 FINISHED SALAR BRINE (FSB) PONDS
After passing through the SA Plant, concentrated lithium brine is directed to a series of small
evaporation ponds (called FSB ponds) used to further raise the concentration of the brine. The
FSB ponds are much smaller (42 acres) than the pre-concentrate ponds, are located on the
alluvial terrain adjacent to the SA Plant, and are lined to prevent leakage. An aerial image
showing the FSB ponds is provided in Figure 4-2.

14.4 CARBONATE PLANT
A concentrated brine stream is directed from the FSB ponds to the Carbonate Plant (Figure 14-3)
as feed for finished lithium carbonate, or the concentrated brine is transported to the lithium
chloride processing facility in Güemes. At the Carbonate Plant, concentrated brine isconditioned and reacted with sodium carbonate to produce lithium carbonate and sodium
chloride. The slurry is filtered, repulped, centrifuged, and dried before packaging. Finishedlithium carbonate is packaged into 0.5- or 1-cubic-yard woven polyethylene super sacks andstored onsite until they are shipped. Livent also has the capability to micronize lithium
carbonate to meet specific customer requirements.

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Figure 14-3. Project Fenix Carbonate Processing Plant

14.5 AUXILIARY SERVICES PLANT
The Auxiliary Services Plant is responsible for generating electricity, steam, and compressed air
for the operating plants and for the rest of the service buildings.
Electrical power is generated from liquid fuel (diesel) or natural gas. Steam is generated using
demineralized water (osmosis) and condensate recovered from the plants as secondary inputs
to the system. Corrosion-inhibiting chemicals are sometimes added to the water injected to theboilers, which improve function and reduce chemical attack on the internal structures of theequipment. A process flow diagram for the Auxiliary Services Plant is provided in Figure 14-4.

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Figure 14-4. General Flowchart of Auxiliary Services Plant

14.6 ARTIFICIAL (SPENT BRINE) LAGOON
Livent’s operations at SdHM are unique because no other active mining operation uses thesame methods to process lithium from brine. Brine extraction does not create “tailings” like ahard rock mine. Livent manages the return of produced water to the salar via infiltration
following land application. Thus, the best management practices employed at Project Fenix are
not directly comparable to other lithium brine mining operations.
According to the U.S. Department of the Interior (Guerra et al. 2011), returning produced water
to the aquifer as storage for future use is beneficial. Other beneficial uses of produced water
include crop irrigation, livestock watering, streamflow augmentation, and municipal andindustrial uses. The type of beneficial use most appropriate for a produced water application
depends on the geographical location of the produced water generation, the location of thebeneficial use, and the constituent concentrations in the produced water.
At Project Fenix, returning produced water back to the aquifer is the most beneficial use
because the quality of produced water is not suitable for agricultural or livestock use or for
stream augmentation. The quality of produced water at Project Fenix is essentially identical to
fresh brine. Thus, infiltration of produced water is a viable beneficial use at SdHM.
Effluent from the SA Plant, referred to as spent brine, is a mixture of brine that has been
stripped of lithium and fresh water. Spent brine is directed north of the SA Plant toequalization ponds before being discharged to the artificial lagoon (Figure 4-2). At the artificial
lagoon, spent brine provides recharge to the Salar through infiltration or is evaporated.
Average annual flow to the artificial lagoon is shown in Figure 14-5.

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Figure 14-5. Annual Flow to Artificial Lagoon

14.7 PROJECT FENIX EXPANSIONS
Mineral processing capacity at Project Fenix is scheduled to expand in future years. The First
Expansion is currently underway. A Second and Third expansion are both in the early
development (Capital Deployment Process Front End Load) stage. Brine demands are expected
to increase with increased lithium carbonate production. New lithium brine production wells
within the Western Subbasin will supply additional brine feedstock, and additional fresh water
will be obtained from the Los Patos Aquifer and from engineered conservation and recycling
technologies. Following each expansion, the ratio of spent brine return to lithium brine
production is expected to decrease as recovery technologies are introduced into the process.
Within these expansions, no new or novel processes will be introduced that have not alreadybeen proven to be effective in lithium extraction. Livent’s SA process and later use ofevaporation ponds are established extraction processes, and water recovery methodologies
being applied to auxiliary streams are utilized in multiple industries. Future expansions will
focus efforts on reducing the intensity of freshwater use. Descriptions of each expansion,

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including the technologies considered to increase production efficiency and to conserve andrecycle fresh water, are provided in the sections that follow.

14.7.1First Expansion

In 2016, the first in a series of planned expansions was initiated. The project scope was split into
two phases to achieve an ultimate increase in lithium carbonate production capacity of 20,000
Mt of lithium carbonate per year. Phase A includes scope to support lithium carbonate
production of the first 10,000 Mt per year of lithium carbonate and is expected to bemechanically complete in 2023. Phase B (a replica of Phase A) is expected to begin production
in 2024. The final design of the first full expansion of the Fenix facility, currently underconstruction, is shown in Figure 14-6.

Figure 14-6. Project Fenix Facility First Expansion Process Flow Diagram

The First Expansion involves constructing a new SA Plant, a small section of interim FSB ponds,
a new mechanical evaporation system designed to replace the finishing ponds, and a new
Carbonate Plant. The expansion will include additional brine wells, ponds, piping, utilities, andbuildings to support increased lithium carbonate production and administration. In addition, a
new raw water pipeline and water treatment plant will be installed to deliver additional fresh
water to the SA Plant from the Rio de Los Patos Aquifer (Section 15, Infrastructure).

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As part of this expansion, a change will be made to allow recovery of water in the finishedbrine, as well as reduce contamination and seasonal changes in brine grade introduced by the
FSB ponds. A mechanical evaporation process utilizes vapor recompression technology as afully contained concentration process for lithium chloride brines, which displaces water andremoves impurities. Water recovered by this process can be used in the same or other parts ofthe process. This project addition minimizes equipment footprint when compared to theexisting process technology. A future independent project will add a second train of
mechanical evaporators to allow for closure and reuse or removal of the FSB pond system.
Construction of the First Expansion is shown in a photograph from January 2023 (Figure 14-7).

Figure 14-7. Photograph of Project Fenix Current Facility First Expansion, January 2023

Significant brine testing was conducted with potential equipment providers before the final
technology was chosen. The first unit is under construction for delivery and installation in
2023.

14.7.2

Second Expansion

Expansions beyond the First Expansion have been included in modeling of the resource andfinancials, but are presented here in concept only.
The Second Expansion is currently in early design phase, with the announced intent to increase
capacity by another 30,000 Mt of lithium carbonate in total per year. Similar to the First
Expansion, the Second Expansion will include another SA Plant, mechanical evaporation
system, Carbonate Plant, additional brine wells, ponds, piping, utilities, and buildings.
Additional water recovery is part of the design considerations of the Second Expansion to allow
for a reduced intensity of the demand on freshwater resources.

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The Second Expansion will also include a process technology designed to reduce the volume ofa lithium-rich liquid effluent stream from the lithium carbonate process by recovering thelithium and a fraction of the free water in the stream and to produce a crude primary lithium
carbonate suitable for use as a feedstock to lithium hydroxide facilities. It is expected thatapproximately one-third of the expanded capacity will be made available by this unit and isintended to be targeted for use in lithium hydroxide production.
The Second Expansion project is in early development; it is expected to be completed in a single
construction phase and mechanically complete in late 2025. A conceptual flow diagram for
Project Fenix after the Second Expansion is depicted in Figure 14-8.

Figure 14-8. Project Fenix Facility Second Expansion Conceptual Process Flow Diagram

14.7.3

Third Expansion

The Third Expansion will increase capacity by another 30,000 Mt of lithium carbonate per year.
The Third Expansion is in early conceptual design and will consider a wider set of options
including the re-use and expansion of the pre-concentrate ponds used for existing operations as
the basis for a conventional brine pond evaporation technology with enough feed for a 30,000Mt Carbonate Plant. A flow diagram of Project Fenix after the Third Expansion is provided in
Figure 14-9.

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Figure 14-9. Project Fenix Facility Third Expansion Conceptual Process Flow Diagram

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15 INFRASTRUCTURE
The infrastructure to support Project Fenix is well established and reliable. Access to the site byroad and aircraft is described in Section 4. Infrastructure to support mineral processing andrecovery is discussed in Section 14.
This section focuses on site infrastructure including the utilities and support facilities necessary
to support operations at Project Fenix.

15.1 SITE FACILITIES
Project Fenix includes an operations camp with two facilities to house personnel, and related
infrastructure for water supply and distribution, shop and warehouse facilities, andadministrative offices. Construction to expand the operations camp ahead of planned
manufacturing plant expansions is nearing completion. Piped natural gas provides the energy
for heating and steam needs at the facilities. Site facilities are shown in Figure 15-1. Dedicatedsecurity personnel secure the site, which has a full communications system installed.
A description of the ponds used at various stages during mineral processing to store andconcentrate brine is provided in Section 14. Maintenance on the site’s ponds involves the
management of solid precipitates, including treating or recycling solids into the process.
Raw water, coming from the Rio Trapiche surface impoundment and Trapiche Aquifer
groundwater wells, is filtered, preheated, and conditioned at the water treatment plant. A
recovery reverse osmosis rejection plant is available to improve water quality and increase
yield.

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Figure 15-1. Project Fenix Site Facilities

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15.2 ENERGYPower for Project Fenix is generated onsite at the Auxiliary Services Plant. Natural gas
conveyed via pipeline is the primary fuel source to the Auxiliary Services Plant. Natural gas
delivered by pipeline arrives at 50 kg/cm2 of pressure at a rate of 3,800 m3/h (normal).
The industrial and household supply facilities (camps) of the site are fed from the main
regulation and measurement station, where it goes from 50 kg/cm 2 to a distribution of 7 kg/cm2;
this being an internal distribution to the other regulation substations that feed the different
operation plants.
General loads of consumption and associated energies for the Fenix plant are provided inTable 15-1.
Table 15-1. General Load Consumption and Associated Energies for Fenix Plant
Position

Equipment

Energy
Max
3171

Units
MBTU/hUnits
Kg/cm2Natural Gas Consumption
Min
Max
Units
72
85 Nm3/h

LiCa

D-7600Min
2686

Utilities

Gen X-9202

4351

4351

MBTU/hKg/cm2

117

117

Nm3/h

Gen X-9203

4351

4351

MBTU/hKg/cm2

117

117

Nm3/h

Gen X-9204

4495

5394

MBTU/hKg/cm2

121

145

Nm3/h

Gen X-9205

4495

5394

MBTU/hKg/cm2

121

145

Nm3/h

Gen X-9208

12434

12434

MBTU/hKg/cm2

333

333

Nm3/h

Gen X-9209

4351

4351

MBTU/hKg/cm2

117

117

Nm3/h

Gen X-9210

4351

4351

MBTU/hKg/cm2

117

117

Nm3/h

Cald BO-8810

30215

35064

MBTU/hKg/cm2

810

940

Nm3/h

Cald BO-8820

30215

35064

MBTU/hKg/cm2

810

940

Nm3/h

Cald BO-8830 bkup

29469

30961

MBTU/hKg/cm2

790

830

Nm3/h

System

1492

1492

MBTU/hKg/cm2

40

40

Nm3/h

132,903

146,377

3,563

3,924

Nm3/h

Camp
Total

Diesel is used for fuel generators at lithium brine production wells, and in bi-fuel generators
and as backup for the Auxiliary Services Plant. Six underground and two aboveground tanks
provide 500,700 liters standard capacity with the ability to store up to 777,000 liters. Tank
characteristics and their capacities are provided in Table 15-2.

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Table 15-2. Fuel Storage Tank Capacity
PositionTAG Internal

Utilities

T-900160,000T-9002OthersStandard

Units

Type

94,000

LitersUnderground60,00094,000

LitersUndergroundT-9003/4

120,000

188,000

LitersUndergroundT-9005/6

120,000

188,000

LitersUndergroundT-9007/8

120,000

188,000

LitersUndergroundT-9227A

10,00012,000

LitersUndergroundT-9227B

10,00012,000

LitersAerial

T-9035700

1,000

LitersAerial500,700

777,000

LitersTotal

Max

15.3 WATER AND PIPELINES
In addition to brine extracted from the Salar, the SA Plant also requires fresh water, which isused in its SA process to extract lithium. From 1997 to the present, fresh water has been
withdrawn from a small dammed surface water impoundment (dique) located at the terminusof the Rio Trapiche, and from a series of groundwater pumping wells installed in the Trapiche
alluvial aquifer. Additional pumping wells in the Trapiche Aquifer have been added over timeto increase freshwater extraction rates. Groundwater conveyed from the Los Patos Aquifer willaccommodate anticipated future freshwater demands following plant expansions.

15.3.1

Trapiche Aquifer

Surface water from the Rio Trapiche and groundwater from the Trapiche Aquifer are directedto the SA Plant for processing along with the brine. A network of pumping wells provides fresh
groundwater extraction, with four to five wells operating at any given time. Groundwaterlevels and quality are measured in pumping and monitoring wells installed in the alluvial fan
downstream from the dique. The locations of freshwater extraction wells and monitoring wells
are shown in Figure 15-2. Average annual withdrawals and diversions from the Trapiche
Aquifer system are shown in Figure 15-3.
Since 1997, fresh groundwater from the Trapiche Aquifer has been used to supply operations at
Project Fenix. Livent manages groundwater resources to prevent groundwater overdraft(excessive drawdown) and minimize the potential for brine upwelling, by monitoring and using
numerical modeling tools. Livent monitors and reports aquifer conditions (water levels andwater quality) to local authorities in accordance with its Environmental Control Program(Section 17.2).

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Figure 15-2. Trapiche Aquifer Well Locations

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Figure 15-3. Average Annual Extraction Rates, Trapiche Aquifer

In 2015, a numerical groundwater flow and transport model (Trapiche Model) was developed toquantify groundwater flow within the Trapiche Aquifer and to evaluate future pumping scenarios.
The Trapiche Model was updated in 2018 and recalibrated in 2022 (Integral 2022). Following each
update and recalibration, predictive simulations were conducted to optimize the use of freshwater
resources. The optimization process involves adjusting groundwater extraction rates and thelocations of freshwater extraction wells based on monitoring data and modeling predictions.

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15.3.2

Los Patos Aquifer

Freshwater supply from the Trapiche Aquifer is not sufficient to meet the projected demands
following plant expansions. Starting in 2016, Livent began a freshwater reconnaissanceprogram to identify locations suitable for freshwater development (Conhidro 2012). In theyears that followed, additional investigations were carried out with progressively increasing
rigor (Conhidro 2016; Integral 2018).
During its freshwater resource reconnaissance program, Livent installed a network ofsix freshwater extraction wells and 10 monitoring wells (Figure 15-4). Step-tests and aquifer
tests with 72 hours of constant pumping were performed in three of the freshwater extraction
wells (PBLP-01 through PBLP-03). Analytical and numerical methods were used to estimate
aquifer properties from test data and optimal well spacing. Results of the comprehensive
aquifer testing program and associated numerical modeling indicate the Los Patos Aquifer is asuitable freshwater resource and is capable of providing the amount of fresh water required tomeet future demand for Project Fenix.
Construction of a 31-km aqueduct to convey fresh water from the Rio de Los Patos Aquifer to
Project Fenix is currently underway (Figure 15-5). Once fresh water from the Los Patos Raw
Water Aqueduct is available to Project Fenix, freshwater demand from the Trapiche Aquifer
will be reduced.

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Figure 15-4. Rio de Los Patos Aquifer Infrastructure

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Figure 15-5. Los Patos Aquifer Raw Water Aqueduct

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15.4 WASTE DISPOSAL
Industrial effluents (sorbents used at the SA Plant or water treatment plant rejectate water) arereturned to the Salar onsite.
Hazardous solid wastes are contained in temporary storage onsite before shipment offsite to an
authorized disposal facility. Non-hazardous, non-recyclable waste is disposed of in an
approved onsite landfill. Recyclable waste streams including plastics, metal, wood, and paper
products are separated and shipped offsite to an authorized recycling facility.
Sanitary wastes are conveyed from facilities to a central treatment facility where effluents
undergo aerobic treatment before being discharged to leach fields.

15.5 TRANSPORTATION
Access to Project Fenix by vehicle and aircraft is discussed in Section 4. Transportation
infrastructure used to ship lithium products by rail and ship is described below.

15.5.1

Rail

The railway network in Chile is operated by the company Ferronor; this network is made up of
2,300 km of rail with a line that runs from north to south of Chile, plus a set of branches that run
crosswise (Figure 4-5). One of the most important is the Augusta Victoria Station (Chile)–
Socompa Station (Argentina), on the border with Argentina. This network allows cargo to be
moved from the Antofagasta Port to the Socompa Station (300 km) and from the Socompa
Station, through the Belgrano Railway-C14, to the Salar de Pocitos Station (250 km) or Socompa
Station–Güemes Station (611 km) in Argentina (shown in a photograph on Figure 15-6).

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Figure 15-6. Livent Salar de Pocitos Railway Station

Figure 15-7. Super Sacks at the Antofagasta Port Railway Station

15.5.2

Port Facilities

Empresa Portuaria de Antofagasta (EPdA) is located in South America, specifically in the
Antofagasta Region, Chile (shown in photographs on Figures 15-7 and 15-8). The port is locatedin a strategic area that borders northwestern Argentina, a part of Bolivia, and the Pacific Ocean.

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It is located 676 km from Project Fenix, Livent, SdHM, in Catamarca; and 734 km from the
Lithium Chloride Plant, Livent, located in Güemes, Salta.
EPdA manages the terminal in accordance with the standards of ISO 9001 certification, underthe multi-operated modality with ship and wharfage agencies. It has three docking sites with a
total length of 600 m and a maximum draft of 9.14 m. The terminal has 11 hectares ofesplanades for the collection and operation of cargo, and three warehouses with a total capacityof 18,000 m2 for storage.

Figure 15-8. Empresa Portuaria de Antofagasta

15.6 LOCAL COMMUNITIESSdHM has very low population density, with approximately 40 inhabitants. The population
centers with more than a few families are located in villages outside the boundaries of SdHM,
including the villages of Antofagasta de la Sierra and el Peñón, and very small population
settlements such as Ciénaga Redonda, Los Nacimientos, and Antofalla (Figure 4-1).
Following applicable provincial regulations currently in effect, the Province of Catamarca hasestablished that the area of direct and indirect influence of Project Fenix is County(Departamento) of Antofagasta de la Sierra. Under applicable regulations, the only indigenous
community currently recognized within the County (Departamento) of Antofagasta de la Sierra,is the indigenous community of Antofalla - Kolla Atacameño (the “Indigenous Community”).

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As a result of these circumstances and as evidenced in Project Fenix’s approved environmental
impact assessments (EIAs), Project Fenix’s mining-related activities do not affect rights orinterests of the Indigenous Community. Those rights or interests include, but are not limited to,
impacts on lands, territories, and resources; requirements for the physical relocation of people;
disruption to traditional livelihoods; impacts on critical cultural heritage; or involve the use ofcultural heritage for commercial purposes.

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16 MARKET STUDIES
Lithium is a soft, naturally occurring, silvery-white metal that, due to its unique chemical andphysical properties, is widely used in a range of energy storage and industrial applications. Its
high specific heat capacity and charge density, as well as its low thermal expansion, enablehigh-performance characteristics that could not otherwise be achieved in end use applications.
Most markets for lithium compounds are global, with significant growth occurring in Asia,
eventually expected to follow in Europe, and then the U.S. Although lithium markets vary bylocation, global end-use markets are dominated by batteries and ceramics and glass. The
distribution of end-use by market is provided in Figure 16-1.

Figure 16-1. Distribution of End-Use Market

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Market supply and demand information in this section was obtained from industry consulting
experts Wood Mackenzie (woodmac.com) 2, Benchmark Mineral Intelligence(benchmarkminerals.com), and EV Volumes (ev-volumes.com) through subscription or pay-forservice fees.

16.1 DEMAND
Demand for lithium batteries has increased significantly in recent years because rechargeable
lithium batteries are used extensively in the growing market for portable electronic devices andincreasingly are used in electric tools, electric vehicles, and grid storage applications (USGS2022). Besides electrification of transportation, electricity generation continued its
decarbonization trend, with solar and wind installations crossing new milestones; many ofthese installations are coupled with lithium-ion battery-based energy storage systems.
Due to its highly reactive nature, lithium is rarely consumed in its pure form, and instead, isconsumed as a compound created through a chemical process.

16.1.1

Base Lithium Compounds

Base lithium compounds are produced through the extraction and processing of lithiumbearing resources, which are either brine or hard rock minerals. After extraction, the source
materials are further processed into higher concentration compounds that are typically used to
produce lithium carbonate and lithium chloride and, in the case of hard rock, lithiumhydroxide. Base lithium compounds are typically produced to standard specifications, such as
minimum lithium content or maximum impurity levels, depending on the end use application.
Base lithium compounds are primarily used in energy storage, glass, ceramics, and generalindustrial applications. Lithium carbonate and lithium chloride are also used as feedstock in
the production of performance lithium compounds.
Global consumption of lithium carbonate in 2021, according to Wood Mackenzie’s Global
Lithium Investment Horizon Outlook – Q4 2022 (published in December 2022), wasapproximately 288,700 Mt LCE. Wood Mackenzie forecasts lithium carbonate consumption is
expected to grow to approximately 958,500 Mt LCE by 2031, representing a 3.3x increase.
Demand from energy storage and some industrial applications is expected to be the primary
driver of this growth.

2 Livent obtained this information from the Lithium Market Service™ a product of Wood Mackenzie.

The data andinformation provided by Wood Mackenzie should not be interpreted as advice and you should not rely on it for any
purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in
writing. To the fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this dataand information except as specified in a written agreement you have entered into with Wood Mackenzie for theprovision of such of such data and information.

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In their Global Plug-in Passenger Cars and Light Commercial Vehicles Forecast published in
January 2023, EV Volumes expects global sales of fully electric light- and medium-duty electricvehicles to grow about 10 times from approximately 5 million units in 2021 to approximately 47
million units in 2031. China and Europe accounted for approximately 58% and 27%,
respectively, of global fully electric light- and medium-duty electric vehicle sales in 2021. In
2031, China and Europe are expected to account for approximately 39% and 27%, respectively,of global fully electric light- and medium-duty electric vehicle sales. Based on strong demand
growth expectations from electric transportation segments, particularly the light- and mediumduty electric vehicles segment, numerous major automakers have been investing in capacity
and capability in key regional markets followed by lithium-ion cells manufacturers’
investments. Asia, particularly China, has been a leader in installed and plant capacities ofelectric vehicle assembly, cell manufacturing, and cathode active material production. Within
the lithium-ion cell, cathode active material is the largest consumer of lithium compounds;
lithium compounds are also used in electrolytes and anode material. Producers of cathodeactive material and electrolyte salts are starting to build capacity in North America and Europe.
Provisions of the U.S. Inflation Reduction Act are driving demand growth as well as
investments in the supply chain.

16.1.2

Performance Lithium Compounds

Performance lithium compounds are produced through chemical processes that utilize baselithium compounds, primarily lithium carbonate and lithium chloride, as inputs, and lithium
sulfate intermediates. The production of performance lithium compounds requires extensive
manufacturing process technology and application know-how as products are required to meet
specific performance requirements in each customer’s manufacturing application. As a result,
performance lithium compounds are often developed in collaboration with customers andundergo rigorous qualification processes to ensure they can meet these requirements.
Customer qualification processes take approximately 12 months and may be longer dependingon the product, customer, and application. Performance lithium compounds are priced basedon product performance and the technical support producers can offer customers. Performancecompounds are primarily used in lithium-ion batteries for electric vehicles, polymer,
pharmaceutical, aerospace, and niche industrial applications.
Advancements in lithium-ion battery technology have resulted in increased adoption oflithium-ion batteries for use in powering electric vehicles. Accelerating electric vehicle sales,
particularly all-battery electric vehicles sales, are expected to be the dominant driver of thegrowth in demand for performance lithium compounds. Within performance compounds, intheir Global Lithium Investment Horizon Outlook – Q4 2022 (published in December 2022),
Wood Mackenzie forecasts that consumption of lithium hydroxide is expected to grow fromapproximately 160,200 Mt LCE in 2021 to approximately 1,063,200 Mt LCE in 2031, representing
a 6.6x increase. Lithium carbonate, for some demanding lithium-ion battery applications, could
also fall in this category.
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16.2 SUPPLY
Wood Mackenzie expects growth in refined lithium capacity largely from mineral conversion
capacity, as well as new and expanding brine capacity in South America. The production ofrefined lithium compounds is derived from output from mineral conversion, lithium brine
production, low-grade compound upgrading/reprocessing, and recycling refineries. Mineral
resources—spodumene and lepidolite—are predominantly mined in Australia, followed by
China and Brazil. Canada and some countries in Africa have been witnessing new mine andproject development activities. China leads the world in refined lithium production. Countries
having brine-based refined lithium capacity and output include Chile, Argentina, China, andthe U.S. The refined lithium capacity and output across the industry can also be classified
between integrated and non-integrated producers. China has a large concentration of nonintegrated converters, who have been constrained in the recent past on feedstock.
According to Wood Mackenzie’s base case in their Global Lithium Investment Horizon
Outlook—Q4 2022, the global supply of refined lithium compounds was 557,000 Mt LCE in 2021
and is expected to increase to 2,000,000 Mt LCE in 2031 with an additional 475,000 Mt LCE
approximately from new projects. Demand growth was higher than supply was able to meetthroughout most of 2021 and 2022.
In response to this significant supply/demand gap, several producers, including both existingand new entrants, have announced projects to build additional base and performance lithiumcompound supply. However, the industry has historically been challenged in bringing supply
online within the announced time frame and at full nameplate capacity. The wide range ofrecent challenges, including energy curtailments, geopolitics, pandemic-related restrictions, andlogistics difficulties, has been hampering industry supply. Wood Mackenzie estimates that thehistorical capacity utilization for the industry has rarely exceeded 75%. This is likely areflection of the significant challenges at each stage of the project development and production
process, which are commonly underestimated in projected supply figures and pose a risk to theeffectiveness of new supply to meet demand.

16.3 PRICING
A supply deficit across the refined lithium market in 2021 caused China spot market prices to
set new records through Q4 2022. A large part of the refined lithium demand is tied to longterm contracts, in which prices are either fixed or they move with a floor and ceiling dependingon spot price movements. Benchmark Mineral Intelligence’s historical and forecast prices forbattery-grade lithium carbonate under their conservative- and base-cases (from their Lithium
Price Forecast Q4 2022 (published in January 2023) are provided in Figure 16-2.

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Source: Benchmark Mineral Intelligence

Source: Benchmark Mineral Intelligence

Figure 16-2. Conservative and Base Case Forecast Prices for Lithium Carbonate

16.4 MATERIAL AGREEMENTS
16.4.1

Argentina Agreements

MdA’s mineral rights were obtained under, and the relationship between MdA, Livent (assuccessor of FMC), and Catamarca Province is governed by, the Exploration, Development andOperation Contract executed in 1991 (the Contract of 1991). Most of the provisions of thiscontract are no longer operative because they regulated the phases of exploration andIntegral Consulting Inc.

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construction that concluded more than 20 years ago and therefore are no longer applicable.
Other provisions were amended in 1994 to conform the text of the Contract of 1991 to theFederal Constitutional Reform of 1994 and the Federal Mining Code, Mining Investments Law
No. 24,196 (MIL) enacted in 1993 (the Amendment of 1994); and others have been recently been
amended or terminated in connection with the expansion of Project Fenix (e.g., the Amendmentof 2018).
16.4.1.1 Contract of 1991
The Contract of 1991 was entered into by and among MdA, FMC, DGFM, and Catamarca
Province. The Contract of 1991 regulated in general terms the relationship between the parties
and the three phases of the project containing specific rights and obligations: 1) exploration
phase, 2) project construction phase, and 3) exploitation/operation of the plant phase. The
exploitation/operation phase lasts for the life of the project and only the provisions of theContract of 1991 related to this phase continue to apply.
The material surviving the Contract of 1991 includes the following provisions:•

Catamarca Province is bound to indemnify MdA for any claim from third parties related
to the property, interprovincial limit conflicts, exploration, development, exploitation, orother claims that may affect MdA’s existing mining concessions.

•

Exempts MdA from any fees for the use of water or rights-of-way to any Catamarca
Province public agencies or governmental entities.

•

Requires MdA, with respect to its mining operations in the SdHM, to maintain aworkforce that is at least 50% composed of residents of Catamarca Province at
professional, technical, and operating levels, to the extent they are available andsufficiently qualified for their respective jobs. It also requires MdA to provide relevant
supplemental technical training and specialized know-how to qualified Argentine
employees.

•

Catamarca Province retains two shares of one class that entitle Catamarca Province toappoint two of MdA’s board members and one audit committee member. MdA’s boardof directors is composed of 10 members and an audit committee is composed of threemembers and three alternates. All dividends corresponding to the shares are deductedfrom royalty payments.

•

Permits MdA to abandon the exploitation of its mining properties without any
responsibility to the other parties, provided that MdA delivers, free of charge, toCatamarca Province all the assets affixed to the land of the mining concessions and theagreement shall be terminated.

•

Requires MdA to engage at least in the processing and commercialization of lithiumfrom the mining concessions. If MdA presents a plan for industrialization andIntegral Consulting Inc.

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commercialization of a mineral other than lithium and MdA harvests the minerals but
does not exploit them commercially, those minerals shall be made available ex-factory,
free of charge to Catamarca Province, which may exploit these harvested minerals either
by itself or through another enterprise. In the event the exploitation of other harvested
minerals was carried out by Catamarca Province and/or another enterprise, they must
not interfere with MdA’s operations.
•

Establishes tax stability through 2026 for MdA and Livent (as FMC’s successor) at theprovincial and municipal level for the lifetime of the concessions.

•

Requires MdA to supply the needs of the Argentine domestic market for the
consumption of all the products it manufactures. As of the date of this report, MdA
does not have any lithium supply agreements in place with Argentine federal,provincial, or local government entities, and all production is sold under contract toLivent’s other affiliates.

16.4.1.2

Amendment of 1994

The Contract of 1991 was amended in 1994, mainly to conform the terms of the Contract of 1991
to the MIL that was enacted in 1993, and to the Federal Constitutional Reform of 1994 thatrecognized the eminent domain of the provinces over the natural resources located in theirjurisdictions. Prior to the constitutional reform of 1994, the Argentine federal government had
the eminent domain over the natural resources, and, accordingly, DGFM assigned all of its
rights and obligations under the Contract of 1991 in favor of Catamarca Province; title to themining concessions was simultaneously transferred by DGFM to MdA by way of Notary DeedNo. 117 entered into on March 9, 1994.
The royalty payments agreed under the Contract of 1991 were replaced by the provisions of the
MIL and its regulatory decrees. Under the MIL, MdA was required to pay royalties toCatamarca Province equivalent to 3% of the pithead value of the minerals extracted by MdA,
which allows for certain cost deductions (the "Pithead Royalty"). This royalty provisioncontinues to apply, but was complemented by the Amendment of 2018, as described below.
16.4.1.3

Amendment of 2018

The purpose of the Amendment of 2018 was to revise and adapt the Contract of 1991 and theAmendment of 1994 to enable MdA and FMC (as Livent’s predecessor) to expand the
production of lithium carbonate. Certain provisions of the Contract of 1991 and theAmendment of 1994 were also terminated, including the restriction on the change of control of
MdA and the prohibition on MdA’s grant of certain encumbrances on the concessions
transferred to it under the Amendment of 1994. In addition, MdA agreed to pay the Catamarca
province an additional monthly contribution (the "Additional Contribution") and to make CSR
expenditures.

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The following is a summary of the relevant material provisions of the Amendment of 2018.
MdA agreed to pay an Additional Contribution to Catamarca Province, in addition to theRoyalty payable on a monthly basis to the Argentine federal government under the MIL. The
Additional Contribution amount is equal to 2% of sales of products in a given month measured
at the higher of MdA’s average invoice price or an average export price for similar products
from Chile and Argentina, net of tax in either case (the "Contractual Price") less Pithead Royalty.
The total amount MdA pays will not be above 2% of sales of products at the Contractual Price ina given month.
In October 2015, MdA entered into the SdHM Trust Agreement with the Catamarca province,
which created a trust denominated SdHM Trust Fund (sometimes referred to as the Water
Trust) dedicated to financing the development of physical infrastructure works within the
territory of Catamarca Province. The SdHM Trust Fund, or the SdHM Trust, is aimed atmeeting the needs of the communities involved in the area of direct or indirect influence of themining activities in SdHM. MdA agreed to make certain contributions to the SdHM Trust as
part of its CSR activity. Under the Amendment of 2018, the parties agreed that MdA would
increase its contributions to the SdHM Trust to 1.2% of its annual sales (calculated using theannual Contractual Price described in the above paragraph).
MdA agreed that the aggregate amount of the CSR Budget to be spent in each calendar year
would equal 0.3% of MdA's annual sales of products at the Contractual Price. CSR Budget
means MdA’s calendar year budget for CSR programs and/or gratuities of any nature,including, without limitation, any and all cost and expenses incurred by MdA in connection
with: 1) the Three Pillars Program; 2) any local employee and supplier development programs;3) CSR or infrastructure trusts or schemes of similar characteristics, existing or future, at
national, provincial, or any municipal levels (other than the SdHM Trust); and 4) any othercharitable contributions or donations made by MdA associated with Project Fenix.
Since the entry into the Amendment of 2018, the maximum annual amount of royalties,
additional contribution, CSR and trust expenditures by Livent has amounted to 3.5% of its
annual sales (as defined above).
MdA committed not to mortgage its mining concessions.
.

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17 ENVIRONMENTAL STUDIES, PERMITTING,
AND SOCIAL FACTORSThe following section summarizes environmental, permitting, and social or community
considerations related to Project Fenix in the SdHM. These sections rely on information anddata collected through a desktop review of available documents for Project Fenix madeavailable to Integral by Livent. Recommendations for additional data collection, including
baseline data and/or management actions, are provided where needed.
Brine extraction does not specifically create “tailings” like a hard rock mine. Livent manages
the return of spent brine to the Salar through the artificial lagoon (noted in Figure 14-4). Excess
salt harvested from facility ponds is stockpiled or spread on the ground surface as a land
application.

17.1 ENVIRONMENTAL STUDIES
An initial EIA focusing on the proposed dam to create the surface water impoundment on the
Rio Trapiche was conducted in 1993. The original version was submitted to MdA in January
1997. Since that time, several additional EIAs have been conducted for various portions of thesite.

17.1.1

General Background

SdHM is located on a high plateau in the Central Andes in Argentina Puna at an elevation of
approximately 4,000 m above sea level. It is mostly located in Catamarca Province, between theprovinces of Salta (Department Los Andes) and Catamarca (Department Antofagasta de la
Sierra). The Salar occupies about 600 km2 of an approximately 4,000-km2 watershed.
The brines are processed at two manufacturing facilities: one located within SdHM at ProjectFenix, and the second located in Güemes, Argentina.
SdHM is Puneño Phytogeographic Domain, which is characterized by poor vegetation,
xerophytic grasses, and dicotyledons. The vegetation in these environments combines theherbaceous steppe with vegas, lichen deserts (typical of the High Andean region), and shrub
Yepa (characteristic of the Puna region).

17.1.2

Salar del Hombre Muerto (Project Fenix)

As mentioned above, a preliminary EIA was conducted by Parsons Engineering, and its
subsidiary Engineering Sciences, consisting of preliminary environmental impact studies for
FMC–MdA. The original EIA focused on the proposed dam and surface water impoundment

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on the Rio Trapiche. The final version of the EIA was submitted to MdA in January 1997.
Biannual environmental assessments were completed in 2002 and 2004 Biannual Renewal of theEnvironmental and Social Impact Assessments (ESIAs). The following environmental studies
were reviewed and relied on in this section:•

2002 Environmental and Social Impact Assessment of the Fenix Project, Salar Del
Hombre Muerto, Catamarca Province, Consultora Ambiental, July 2002.

•

2007 Biannual Renewal of the Environmental and Social Impact Study, Vector Argentina
S.A., February 2007.

The 2007 Biannual EIA for Project Fenix calculated the total environmental impact, andindicated that there were no measurable environmental impacts during the reporting period.
17.1.2.1

Hydrogeology and Water Quality

Groundwater
The 2002 EIA evaluated surface and groundwater resources, soil, and risk of contamination of
aquifers near SdHM. Three large hydrogeological systems were identified during theevaluation: the Salar del Hombre Muerto Aquifer System, the Los Patos River Aquifer System,and the Trapiche River Aquifer System. The results of the evaluation assigned a high,moderate, or low vulnerability index for a universal pollutant load and risk of contamination oflithium salts to the Trapiche River Aquifer System based on the presence of a high water table
and connection of the alluvial fan and the major river beds. The High Vulnerability zones (0.54)
are associated with the beds of river courses and the distal part of the alluvial cone, theModerate Vulnerability zone (0.38) extends between the middle and distal sectors of the alluvial
cone, and the Low Vulnerability zone (0.27) is located between the middle and apical part of theaquifer.
The 2007 Biannual Renewal (Vector Argentina S.A. 2007) noted an increase in production oflithium since 2002, and an increase in water consumption from 60 to 340 m3/h.
Surface Water
In the 2007 Biannual Renewal, no significant modifications were observed that could affect thesurface runoff of water in the area of the Trapiche dam and alluvial fan of the same name. The
only changes observed between 2002 and 2007 were the addition of 4 hectares of evaporation
ponds in the distal part of the Trapiche alluvial fan, adjacent to those already built before 2002.
The new ponds were located in the area where there was no surface runoff from the river andfar from the dry stream bed on the alluvial fan.

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17.1.2.2

Social Issues and Communities

Archaeological
The Puna Catamarqueña presents an important and varied archaeological record, not only intemporal depth with respect to significant sites for Argentine and South American archaeology
in general, but also a diversity of evidence resulting from human processes linked to different
economic and social activities over time. Monitoring tasks in the area have been concentrated
on the findings that are located in the sectors of Planta/Campamento, Rio Trapiche, Rio Peñas
Blancas, Poppy VI Quarry, and Rio de Los Patos, which are the result of a series of previous
surveys carried out within the framework of different environmental studies over the span ofthe development of the project (e.g., FMC 1997, 2000; Ambasch and Andueza 2010, 2013, 2015,2016, 2017). An archaeological record was formed that includes a total of 116 sites ofarchaeological significance. In reference to the monitoring tasks carried out on the set ofpreviously recorded findings, and the main objective of this study, it is concluded that ingeneral no significant modifications and/or alterations were detected on the registry.
Objectives of the Program
The evaluation of the patrimonial status of the archaeological record is within the framework of
the biannual environmental assessment required by National Law No. 24,585 and Provincial
Law 4218 on the Protection of Archaeological and Cultural Heritage of Catamarca Province.
The objective is to generate predictions about the possible impacts related to the activities
involved in this project, recommending the prevention and mitigation measures necessary toachieve a correct interaction between the archaeological heritage and the current mining work.
This Environmental Control Program of Social Action is framed under Resolution No. 119/2010(“Presentation Guide for technical or environmental risk control programs for mining industry
in the province of Catamarca”) and is approved by Resolution No. 243/2017.
Results of the Period
From the archaeological point of view, Project Fenix has an important accumulation of
information resulting almost exclusively from the development of environmental studies in all
its variants, including RABArq (bi-annual updates required following an EIA), MoArq (annual
monitoring events) and, EIArq (project-specific EIAs).
Through them, an archaeological record was generated that currently has a total of 57
archaeological discoveries (e.g., FMC 2002; Ambasch and Andueza 2010, 2015).

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17.1.2.3

Biodiversity

Flora and Fauna
Mitigation measures for impacts to vegetation by the construction of the water collection systemin the Rio Trapiche are included in the Mine Closure Plan.
Currently the restoration of the Vega de Trapiche is being carried out with a biologist
specialized in wetlands. There is a specific environmental control program for all the activities
regarding the redevelopment activities. A summary the following activities were carried out
since the beginning of the program:•February 2020: Start of continuous irrigation in Vega•

August 2020: Construction of a test plot (0.25 hectares) with closure and planting ofspecies•

August 2021: Development of institutional controls for the Vega to protect therestoration area (9 hectares)•

October 2021: Start of initial revegetation (2 hectares), using a scattered methodology
with 1 species every 2 m•

January 2022: Dense revegetation with plots of the same species, 1 species every 2 cm•

November 2022: Dense revegetation with mixed species plots, 1 species every 2 cm.

After the revegetation campaigns, good growth of the transplanted species was observed. In
addition, birds were observed, which shows that the Vega is being productive and offers food.
The specialist concludes that "This fact is extremely important because the elements of wetland
fauna are being reinstated again.” The activities and the monitoring studies will continue until
full redevelopment of the area.
Livent’s Project Fenix production facility is located approximately 4,000 m amsl and requires aunique approach to biodiversity management. To protect the Andean Mountain ecosystem thatis home to diverse flora and fauna adapted to extreme environmental conditions, Livent
regularly commissions third-party specialists to monitor the variety and abundance of local
plant and animal species, watershed properties, and limnology.
A 2017 study found that plant species variety and abundance were consistent with previous
years and the number of animal species had increased compared to a 2009 baseline, including
nine additional bird species. A 2021 study identified 23 additional plant species, and in a more
recent study from January 2022, 30 more plant species were identified. The increase in species
is most likely due to the seasonal changes, as individual species become easier to identify when
they bloom. The January 2022 report also noted the presence of halophytic plant species, which

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are plants that have adapted to living in areas with high soil salinity, and a number of
additional animal species, including 20 different birds, 7 mammals, 1 reptile, and 1 amphibian.
Flora was evaluated for diversity and cover, and fauna were identified and categorized as partof the 2002 EIA and in the biannual renewals. In the 2002 EIA, 30 plants were identified andspecies richness was almost constant in all areas.
The 2007 Biannual Renewal reviewed the following documents describing the plantcommunities in the project area and detailed the flora monitoring in the following areas: active
plain, Dry Valley, landing strip perimeter community, and community near the evaporation
ponds:•

Qualitative Study of the Flora of the Project, 1997•

Diagnosis and Environmental Monitoring of the Trapiche River, 2000•

Flora Monitoring Plan, 2001•

ESIAs of the Fénix Project – Salar del Hombre Muerto, 2002•

Trapiche River Flora Monitoring Plan, 2003•

Biannual Renewal of ESIAs-Fénix Project, 2004•

Trapiche River Flora Monitoring Plan, 2005.

The 2007 Biannual Renewal concluded that all vegetation communities were stable and total
vegetation coverage ranged from 75% to 100%.
Similarly, the 2007 Biannual Renewal reviewed the following fauna surveys near Project Fenix
and completed a detailed fauna survey in the same areas of the flora survey. The 2007 faunasurveys identified aquatic amphibians, at least 2 reptile species, 31 bird species, and 9
mammals:•

Qualitative Study of the Fauna of the Project, 1997•

Diagnosis and Environmental Monitoring of the Trapiche River, 2000•

Fauna Monitoring Plan, 2001•

ESIAs Phoenix Project – Salar del Hombre Muerto, 2002•

Biannual Renewal of ESIAs-Fénix Project, 2004•

Survey of Fauna, November 2005.

Flora, fauna and limnology are monitored every 6 months to ensure that there are no changes or
impacts on the biodiversity within the project's areas of influence.

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In the 2022 biannual report, it is observed that among all the groups studied, avian species
turned out to be the best indicators of existing conditions and potential impacts due to theirquantity and diversity.
The samplings carried out were useful to make consistent comparisons. For the period
considered, there are no significant changes, so it can be inferred that the conservation situationof the area involved in the project is the same as in previous years regarding to the species
numbers, coverage, and distribution

17.1.3

Los Patos Aqueduct Environmental Baseline

In August 2018, EC & Asociados completed an environmental and social baseline prior to theconstruction of the Los Patos Aqueduct. The EC & Asociados report describes theenvironmental system in the Los Patos Aqueduct study area systematically, adequately
documenting the primary environmental information, which can be used moving forward toaccurately evaluate environmental impacts of the work.

17.1.4

Known Environmental Issues

At this time there are no known environmental issues as a result of brine extraction from theSdHM. Environmental control programs described in the following section will continue tomonitor environmental impacts.

17.2 ENVIRONMENTAL CONTROL PROGRAM
There are 15 different environmental control programs developed for the SdHM, which include
an exhaustive regular data collection that monitors for environmental impacts (Table 17-1). The
results of these monitoring programs are reported to the enforcement authorities as required.

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Table 17-1. Environmental Control Program
Environmental
Component

Environmental
Variable

Parameters

Frequency

Legal
Requirements

Control
EntityReporting Requirement

ChemicalQuality

pH
Electrical
Conductivity
TDS
Majority anion
and cations

Weekly: pH and EC
in situMonthly: Sampling
and chemical analysisof all parameters

MSR 042/12

EMA

BM: EMA (reports)
BA: EMA (trends)
A: WRA (consumption

Consumption

Flows (m3/h)

Continuous

MSR 269/12
Res. 012/2016
Res. 011/2016

EMA,
PWRA

BM: EMA (reports)
BA: EMA (trends)

PiezometerlevelsDynamic andstatic piezometerlevelsMonthly

MSR 041/12

EMA

BM: EMA (reports)
BA: EMA (trends)

Brine flow

Flows (m3/h)

Continuous

MSR 040/12

EMA

BM: EMA (reports)
BA: EMA (trends)

Continuous

MSR 043/12

EMA,
PMS

BM: EMA (reports)
BA: EMA (trends)
BA: EIR

Weekly: Control of pH
and temperature ofTP
Bimonthly: Sampling
and analysis inexternal lab

MSR 274/12
EAR 011/01
EAR 065/05

EMA,
PMS

BA: EMA (reports)
A: EMA (trends)
BA: EIRpH% solids
Lithium
concentration

Daily: pH control inexit of EQ pond
Weekly: Sampling in
the artificial lagoon

MSR 272/12

EMA,
PMS

BA: EMA (reports)
A: EMA (trends)
BA: EIR

Domestic,
industrial,
hazardous waste

Daily: Inspection at
generation points
Weekly: Inspection at
disposals
Quarterly: Audits tohazardous waste
disposal

MSR 096/12
National Act
24,075

EMA,
PEA,
NEA

BA: EMA (reports)
A: EMA (trends)
BA: EIR

Water

Supplies
Hazardous
substances

SewageNumber of env.
incidents related
to discharge ortransport of hazmats.
Compliance audit
planning of
secondarycontainment andtransport units.
Maintenance oftransport units.
pH
Temperature
D.B.O 5
D.Q.O
Total sulfide
Settleable solids
Total
phosphorous
Ammonianitrogen
Oils and fats
Detergent

Waste
Industrial
effluents

Solids waste

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Environmental
Component

Environmental
Variable

ClimatePhysical

Air quality

Flora

Biological
Fauna

Limnology

Archaeology
SocialResponsible
care

Parameters
TemperatureWind speed
Wind Direction
Humidity
Air pressure
Rain
O2
NOx
CO
CO2
SO2
H2S
TemperatureWind speed
Diversity indices:
wealth,abundance,
dominance,
Simpson_1-D,
Shannon_H,
Margalef
Equitatividad_J
Diversity andabundance
Composite of
microorganisms:
phytoplankton,
zooplankton,
bacteria
Archaeologicalfindings
Community
satisfaction

Legal
Requirements

Control
EntityReporting Requirement

Continuous

MSR 277/12

EMA,
PMS

Q: EMA (reports)
BA: EMA (trends)
BA: EIR

Monthly: Gas
emissions at Fenix
Bimonthly: Gas
emissions at Guemes
and Pocitos
Annual: air quality at
Fenix

MSR 273/12
National Law
20284

EMA,
PMS

Q: EMA (reports)
BA: EMA (trends)
BA: EIR

AnnualMSR 278/12

EMA

A: EMA (report)

AnnualMSR 279/12

EMA

A: EMA (report)

Annual

None

None

None

AnnualMSR 095/12

EMA

A: EMA (report)

AnnualMSR 907/15

EMA

A: EMA (report)

Frequency

Notes:
A = annually
BA = biannually
BM = bimonthly
EAR = Environmental Agency Resolution
EIR = Environmental Impact Report
EMA = Environmental Mining Agency (e.g., DIPGAM; Direccion Provincial de Gestion Ambiental Minera)
MSR = Mining Secretariat Resolution
NEA = National Environmental Agency
PEA = Provincial Environmental Agency
PMS = Provincial Mining Secretary
PWRA = Provincial Water Resources Agency

17.2.1

Water Programs

Water control programs include monitoring of the water wells and Trapiche dam flows, water
quality monitoring in the Rio Trapiche, and piezometer level monitoring in Trapiche wells.
These programs are described below.

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17.2.1.1

Water Extraction Well and Trapiche Dam FlowsThe flow in cubic meters per hour is continuously measured at the Rio Trapiche and Trapiche
Aquifer groundwater extraction wells. Data are reported bimonthly to the Environmental
Mining Agency (EMA) (e.g., Direccion Provincial de Gestion Ambiental Minera [DIPGAM]).
Trend analyses are reported biannually to DIPGAM, and an annual consumption report is
submitted to the Catamarca Water Resources Agency of Catamarca Province.
17.2.1.2

Water Quality of Trapiche System

Electrical conductivity, TDS, pH, and anions and cations are monitored in the Rio Trapiche,
groundwater extraction wells, and monitoring wells (piezometers) to evaluate water quality in
the Rio Trapiche system. pH and electrical conductivity are monitored weekly in situ using a
Hach multiparametric meter, and monthly samples are collected for parameters listed above
and analyzed at both Livent’s Güemes Laboratory and an external laboratory. Data aresubmitted bimonthly, and trend analyses are submitted biannually to the DIPGAM.
17.2.1.3

Piezometer Levels of Trapiche Wells

Water levels are monitored monthly in monitoring wells (piezometers) and groundwater
extraction wells with a water level meter. Data are submitted bimonthly and trend analyses are
submitted biannually to the DIPGAM.

17.2.2

Supply Programs

17.2.2.1

Brine Control

Incoming brine is continuously measured with a flowmeter at the SA Plant to control the brine
flow and check the quantities of brine consumed. Data are submitted bimonthly and trend
analyses are submitted biannually to the DIPGAM.
17.2.2.2

Hazardous Substance Storage and Transport

Hazardous substance storage and transportation is monitored by tracking the number ofenvironmental incidents related to discharges and transport of hazardous substances.
Compliance audits are completed for secondary containment and transport units. Hazardous
substance storage and transport are monitored at both the Project Fenix and the Güemes Plant.
Every environmental incident related to discharge and transport of hazardous substances isimmediately reported to authorities. Additionally, biannual reports of data and annual reportsof trend analyses are submitted to DIPGAM–Catamarca Province for Project Fenix andenvironmental impact reports are submitted to the mining Secretary of Salta Province every
2 years for the Güemes Plant.

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17.2.3

Waste Management Program

17.2.3.1

SewageTemperature and pH are monitored weekly, and bimonthly samples are collected for laboratory
analysis at an external laboratory in both sewage effluent from Project Fenix and at the
Soakaway pit at the Güemes Plant. Data for Project Fenix are submitted biannually, and trend
analyses are submitted annually to DIPGAM. Data for the Güemes Plant are included inenvironmental impact reports submitted to the mining secretary of Salta Province every 2 years.
17.2.3.2

Industrial EffluentsThe equalizing ponds are monitored daily for pH, and the artificial lagoon is monitored weekly
for pH, percent solids, and lithium concentration. Data for the Project Fenix are submitted
biannually and trend analyses are submitted annually to DIPGAM. Data for the Güemes Plant
are included in environmental impact reports submitted to the mining secretary of Salta
Province every 2 years.
17.2.3.3

Solid Waste

Solid waste is monitored at the Project Fenix, Güemes Plant, MdA Hanger, Pocitos, and theSalta office. Monitoring includes daily inspection at generation points, weekly inspection at
disposals, and quarterly audits of hazardous waste disposal. Data for Project Fenix are
submitted biannually and trend analyses are submitted annually to DIPGAM. Data for the
Güemes Plant and Pocitos Plant are included in environmental impact reports submitted to themining secretary of Salta Province every 2 years.

17.2.4

Physical Components Programs

17.2.4.1

Meteorology

Meteorologic and climatic variables, including temperature, wind speed, wind direction,
humidity, air pressure, and precipitation are monitored continuously. Results for Project Fenix
are submitted quarterly and trend analyses are submitted biannually to DIPGAM. Results for
the Güemes Plant are included in environmental impact reports submitted to the mining
secretary of Salta Province every 2 years.
17.2.4.2

Air Quality and Gas Emissions

Air quality and gas emissions, including oxygen, nitrogen oxide, carbon monoxide, carbon
dioxide, sulfur dioxide, hydrogen sulfide, temperature, and speed are monitored at thefollowing points:

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•Project Fenix—Brine pumps, boilers, generators and monitoring points throughout the
field

•

Güemes Plant—Dryer and emergency generator•

Pocitos Plant—Generators.

Data for Project Fenix are submitted quarterly and trend analyses are submitted biannually to
DIPGAM. Data for the Güemes Plant and Pocitos Plant are included in environmental impact
reports submitted to the mining secretary of Salta Province every 2 years.

17.2.5Biological Component Program

17.2.5.1

Flora and Fauna

Flora and fauna are monitored biannually at Project Fenix by evaluating diversity indices andby trapping and watching surrounding areas to evaluate diversity and abundance. Finalreports from flora and fauna monitoring are submitted to DIPGAM annually.
As previously mentioned, the expansion of the productive capacity of Project Fenix implies thedecrease in the supply of fresh water from the Rio Trapiche basin, while Phase 1 lasts, waiting
for the beginning of the recovery process of the inactive wetland. The following is the proposal
for this protection measure and its consequent follow-up.
The mitigation process for the wetland complex (set of the units of vega vegetation, riparian
environment, and water grass) is facilitated by the increase of a constant supply of water and bytransplanting vegetation from the surrounding areas. To track the progress of these mitigation
measures, Livent will implement a monitoring program that covers the following aspects.
Related to the Wetland•

Coverage: Through vegetation plots, established both in the sector with and without
signs of recovery, the measurements will be carried out and the degrees of coverage willbe established. This monitoring will be seasonal (spring, summer, autumn, andwinter).

•Composition and floristic abundance: In general, the floristic diversity of the Andean
plains is low when compared to the hillside vegetation (Squeo et al. 1994). There arestrong changes in the composition of species, structure of dominances, andphysiognomy within and between Andean plains. Usually, the edges of the vegas aredrier and saline. This determines a floristic composition different from flooded places,
probably due to differences in the temporal availability and chemical quality ofwater. To differentiate the recovery method per unit of vegetation, the monitoring ofcomposition and floristic abundance must be carried out, for which the established plots

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(the same where coverage is measured) of the repopulating species will be identified.
This follow-up will be seasonal (spring, summer, autumn, and winter).
•

Productivity and biomass: During the vegetative period, the plains and bofedales
produce large amounts of plant matter per unit area, a variable that is known as net
primary productivity. The immediate consequence of wetland inactivity is the decline
in plant production and reduction of the surface and fragmentation of the forage patchesor paddocks. It is expected that the recovery of the wetland will reactivate the primary
net productivity of the inactive wetland (currently it is almost zero). The monitoring of
this indicator will be carried out on a seasonal basis.

•

Surface: Satellite images and drone images track the progress on the surface of thewetland. We will work with spectral indicators such as Normalized Difference
Vegetation Index (NDVI) and NDVI of change.

Related to Water Supply and Environmental Conditions
In the early stages of recovery, processes of colonization and plant establishment occur.
Established plants can provide organic matter, promote soil formation processes, cause
irregular water distribution, expand their wetting area, and produce seeds or retain other seeds
dispersed by wind or water. Therefore, the first colonizing plants facilitate the establishment ofother plants and thus increase green cover, productivity, and habitat availability and quality. In
this sense, the monitoring of the aspects listed below becomes relevant:•General characteristics of the soil and water flows in the plains: Assessing thehydrological dynamics and the real demand for water of the wetland (ecological flow);
inferred from the active wetland upstream of the dam. Daily measurements of the watertables and surface flows contributed to the wetland will be carried out.

•

Soil moisture level: Soil samples will be taken so that the parameters of organic matterand humidity can be determined in the laboratory. These samples will be collected atleast once per year. Additionally, field capacity tests will be performed on a monthly
basis.

•

Physico-chemical composition of the water: The physical and chemical parameters of thewater will be monitored from a multiparameter meter and the monthly data will betaken. Likewise, samples will be taken so that the physical and chemical parameters of
the water are determined in the laboratory: percentage of dissolved oxygen saturation,
concentration of suspended solids, pH, nitrate concentration, total phosphorus
concentration, chemical oxygen demand, electrical conductivity, and temperature. This
monitoring will be carried out quarterly.

This proposal must be incorporated into a new control program is generated.

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Regarding the measures related to the fauna component, it should be noted that the decrease in
the frequency of vehicles (due to the beginning of the operation of the gas pipeline) minimized
the risks of disturbing wild fauna.
However, the scenario that is analyzed with the expansion of productive capacity implies anincrease in vehicular movement and machinery that will require the application of thefollowing measures in Table 17-2, which are aimed at preventing the possible effects on fauna.
Table 17-2. Measures to Prevent or Mitigate the Impacts to Wildlife from Transport
Proposed action

Enforcement of traffic rules

Information and training for staff

Character

Mitigation

Prevention

NatureComplementary

Complementary

Duration

Permanent

Permanent

Application Opportunity
Spatial location

Operation
Routes to the Project Fenix from Salarde Pocitos (Pcia. Salta) andAntofagasta de la Sierra (Pcia.
Catamarca)- Speed control on roads- Placement of informative posters- Training of own staff and contractors.

Operation
Routes to the Project Fenix from Salarde Pocitos (Pcia. Salta) andAntofagasta de la Sierra (Pcia.
Catamarca)- Prohibition of hunting,capture and trade ofwild animals,
specifying the penalties for its
contravention.

Measurement Description /Specifications
Additional

17.2.5.2

Limnology

Limnology is monitored annually in the Rio Trapiche, artificial lagoon, and Catal lagoon by
sampling water for phytoplankton and zooplankton bacteria. There is no regulatory orreporting requirement for monitoring limnology.

17.2.6

Argentina Community Relations Program

Livent maintains a community relations program in Argentina aimed at improving thecommunity where they operate. Key elements of the social program include:
1. Local Development & Employment–“La Puna” Entrepreneurs Program–

Agro-Livestock Sustainable Development Program–

Local Hiring & Training–

Supplier Community Engagement

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2. Quality of Life–

Good Neighbors Program–

Health & Nutrition programs–

Donations–

Education Scholarships–

Community Dialogue Roundtable Meetings

3. Environmental Action–

Environmental & Climate Education–

Recycling–

Ecosystem Protection & Revitalization

4. Volunteering

17.3 PROJECT PERMITTING
MdA entered into an agreement with the Argentine federal government and the Catamarca
Province to develop SdHM in 1991. After 1993, the Argentine federal government assigned its
rights and obligations to Catamarca Province, which provides Catamarca Province jurisdiction
and a minority ownership stake in MdA. This allows Catamarca to receive defined dividends
and to appoint two of MdA’s board of directors. The relevant permits are summarized below.

17.3.1

Environmental and Operating Permits

The environmental and operating permits are included in Table 17-3

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Table 17-3. Environmental Permit Summary
No.

Location

Permit Name
Registration of aboveground fuel storage tanks(Aboveground Installations Certificate) Res.1102/04- FENIX
Registration of underground fuel storage tanks(Underground Installations Certificate)

Authority

1

Fenix, AR

National Ministry of Energy and Mining.

2

Fenix, AR

3Fenix, AR

SEDRONAR Registration Certificate for the National
Register of Chemical Precursors

4

Fenix, AR

Wastewater Discharge Permit

5Fenix, AR

Pathogenic Waste Generator Registration

6

Fenix, AR

Pathogenic Waste Operator Registration

7

Fenix, AR

Hazardous Waste Generator Registration

8

Fenix, AR

Hazardous Waste Operator Registration

9

Fenix, AR

National Hazardous Waste Generators Certificate

10Fenix, AR

Environmental Impact Declaration (DIA)

Mining Ministry of Catamarca

11

Fenix, AR

Municipal Permit

Municipality of Antofagasta de la Sierra

12

Fenix, AR

Environmental insurance

Provincial Directorate of Environmental
Management

13

Fenix, AR

Water Concession

Water Secretariat of Catamarca

17.3.2

Water Rights

National Ministry of Energy and Mining;
Secretariat of Planning for thePrevention of Drug Addiction and Action
against Drug Trafficking.
Provincial Directorate of Environmental
Management
Provincial Directorate of Environmental
Management
Provincial Directorate of Environmental
Management
Provincial Directorate of Environmental
Management
Provincial Directorate of Environmental
Management
Ministry of Environment and Sustainable
Development.

MdA holds water rights to the Rio Trapiche and Trapiche Aquifer to support current
operations. Water levels and salinity are regularly monitored as described above in
Section 17.2.1. MdA currently holds temporary rights to the Los Patos Aquifer. Permeantconcessions for groundwater from the Los Patos Aquifer to support planned expansion are
expected to be granted in the coming months.

17.4 MINE RECLAMATION AND CLOSURE
This section includes closure and reclamation planning as described below.

17.4.1

Closure Planning

The Project Fenix Closure Plan is a document that consolidates and synthesizes the company’s
strategy and vision regarding the closure of the activity, and also presents a sufficiently detailed
description of the measures or programs to be implemented so that closure objectives are
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achieved. Descriptions of each component of the mining complex must be sufficient to support
the design and cost estimation of the closure measures. With the closure of the mine as aperspective, the baseline should generate data and information that allow formulating futurescenarios and understanding the environmental and social dynamics of the region in which the
project is located. The mining activity constitutes a temporary form of land use. When theactivity ceases, new forms of use of the areas occupied by the mine must be viable, considering
the restrictions resulting from the permanent modifications, as well as the skills andopportunities associated with the period of operation of the mine. Closure is a process in which
actions such as monitoring, maintenance, and social programs are executed after the full
implementation of the closure measures. Accordingly, the Closure Plan provides a costestimate of the rehabilitation activities, which may be adjusted in each instance of its
renewal. Closure costs for current are accounted for in Section 19 (Economic Analysis).

17.4.2

Mine Closure Process in Argentina

Livent will submit revised closure plans following plant expansions. Mine closure costs forexisting operations and future expansion are included in Section 19.
Resolution 396/16 establishes that:
The owner of the mining activity will constitute guarantees of sufficient amountand timely realization for the fulfillment of the Mine Closure Plan, based on theestimated amounts, in the form, value and opportunities approved by theCompetent Authority based on what is established in this resolution and in otherspecific ones that may be issued for this purpose. The owner of the mining
activity must constitute the guarantee, after the approval of the Mine Closure
Plan in accordance with the procedure established in this standard.
Consequently, the company will make the corresponding closure plan calculations and adjust
guarantees after the approval of this plan.

17.4.3

Closure Cost Estimate

A closure plan has been submitted to Catamarca per Resolution 396/16. The final cost of closurefor existing facilities (prior to planned expansions), based on present-day costs to mobilize,
deconstruct, and rehabilitate Project Fenix, is summarized below in Table 17-4.

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Table 17-4. Final Closure Cost Estimate
Description

17.4.4

Cost (Million $USD)

Construction of Closure Works – Fenix Complex

$

14.5

Supplementary Closing Costs$

3.8

Subtotal$

18.3

Contingency: 10%

$

1.8

Total

$

20.1

Limitations on the Cost Estimate

Closure of the site is not expected before the cessation of the life of the mine, which is projected
to 40 years (through 2062) for practical, cost-forecasting purposes rather than technical or
resource constraints. Due to future expansion plans, site conditions at closure will be different
than currently expected and, therefore, the current estimate of closure costs is unlikely to reflect
the actual closure cost that will be incurred that far into the future. Closure costs at the end ofmine life, including all expansion, were included in the economic analysis discussed in
Section 19.

17.5 LOCAL PROCUREMENTThe SdHM watershed is extensive (approximately 3,900 km2) and has a very low population
density per the 2010 census. The majority of its inhabitants are concentrated in the towns of
Antofagasta de la Sierra and el Peñón, and very small population settlements such as Ciénaga
Redonda, Los Nacimientos, and Antofalla (EC & Asociados 2020).
Livent fosters development of a local workforce in Catamarca and Salta Provinces through a
resolution with the Catamarca Mining Authority (Res SEM 526/19). In 2022, Livent Argentina
employed 538 people, mostly from the northwest region of the country, particularly in
Catamarca Province and from the town of Antofagasta de la Sierra. For employment of its
contractors, Livent complies with other resolutions (Res SEM 278/13, Res SEM 520/14, and Res
SEM 498/14), which establish 70% local procurement criteria for goods and services. The
number of Livent employees from neighboring communities from 2016 through early 2022 isshown in Figure 17-1.

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Figure 17-1. Number of Employees from Neighboring Communities

17.6 SDHM TRUSTIn October 2015, MdA, Catamarca Province, and Bapro Mandatos entered into the SdHM Trust
Agreement, which created the Water Trust, which is dedicated to financing the development ofphysical infrastructure works within the territory of Catamarca Province, aimed at meeting theneeds of the communities involved in the area of direct or indirect influence of Project Fenix.
MdA agreed to make certain contributions to the SdHM Trust as part of its CSR activity. A
summary description of Livent’s contributions to projects funded by the SdHM Trust areprovided in Table 17-5.

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Table 17-5. SdHM Trust Activities
Project Description

StatusProvided financing for purchases of equipment required for road maintenance works at
Antofagasta de la Sierra.

Complete

Provided financing for the purchase of asphaltic materials required for road building andpaving of Provincial Route No. 43 which connects Antofagasta de la Sierra with El Peñón

Complete

Installation of a waste treatment trench for the proper disposal of urban solid waste in the
town of Antofagasta de la Sierra (La Villa)

Complete

Construction of a cistern intended to ensure the continuous supply and distribution ofwater for the population at Antofagasta de la Sierra.

Complete

Installation of a solar park in Antofagasta de la Sierra to meet the energy demand of thelocal population.

Complete

Construction of a sanitary waste landfill in order to stop waste disposal in open spaces.

Complete

Construction of a Park Ranger Station in the natural reserve Campo Piedra Pomez toprovide shelter to Park Rangers from the extreme weather conditions.

Complete

Construction of recovery of the reservoir of Las Pitas River and water supply cistern for
drinking water in Antofagasta de la Sierra in order to ensure the provision of drinking
water to the entire local population´s needs.

Complete

Improved sanitation by construction of a modern sewer network in Antofagasta de la
Sierra provided the deficiency of the existing network.

Complete

Construction of public utility improvements including a photovoltaic solar park in El Peñon
to extend the daily electricity provision.

Complete

Construction of a drinking water intake and network located in Antofalla, located in the
Department of Antofagasta de la Sierra.

Complete

Construction of a bridge over “El Bolson” river in order to improve communications
between the local population with the rest of the province.

Complete

Construction of a bridge over “Cura Quebrada” river to improve communications between
Antofagasta de la Sierra and the rest of the Province of Catamarca.

Complete

Purchase of flatbed trailers, two dump trailer units and a cart for transporting and carrying
firewood, maize and other materials to the inhabitants of the posts and places
surrounding the town of Antofagasta de la Sierra.

Complete

Purchase of two new vehicles in order to better the communications between Antofagasta
de la Sierra and the rest of the Province.

In Progress

Road improvements, including the pavement of the Villa of Antofagasta de la Sierra.

In Progress

Local building improvements, including the extension of the west wing of the municipal
hostelry.

In Progress

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17.6.1

Archaeology

Archaeology in the surrounding Project Fenix areas is monitored annually by an outside
consulting group and is reported to DIPGAM annually.

17.6.2

Responsible CareAn external consulting company also monitors socially responsible care around the ProjectFenix area to verify the activities of responsible care and the satisfaction of the community.
Results of these surveys are submitted to DIPGAM annually.

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18 CAPITAL AND OPERATING COSTS
Project Fenix is currently in operation and producing lithium carbonate and lithium chloride.
Capital and operating costs are forecasted as a normal course of operational planning with a
primary focus on short-term budgets, then mid-term (5-year plans), and lastly long-term timeframes.
Estimation of capital and operating costs is inherently a forward-looking exercise. Theseestimates rely upon a range of assumptions and forecasts that are subject to change depending
upon macroeconomic conditions, operating strategy, and new data collected through future
operations.
Production expansion projects are complex undertakings; assumptions into the current plans
can change and therefore there could be no assurance that they will be completed within the
projected budget and schedule or that the anticipated benefits from them will be fully achieved.
Unforeseen technical or construction difficulties, lack of adequate water or energy, regulatory
requirements (including permits), labor or civil/political unrest, community relations or
logistical issues, or local hiring and procurement policies and requirements could change ourassumptions on cost, scope, and schedule.

18.1 CAPITAL COST ESTIMATES
Capital cost forecasts are estimated based on 1) a baseline level of sustaining capital
expenditures, in-line with historical expenditure levels and adjusted for changing production
rates; and 2) strategic planning for major capital expenditures. Future capital expenditure
estimates, including sustainable expenses are presented in Table 18-1.
Table 18-1. Capital Expenditure Estimate (2023–2031) in Million $USD
Year
Lithium Carbonate
2023

2024

2025

2026

2027

2028

2029

2030

2031

Total Carbonate CAPEX

$271

$315

$215

$45

$210

$135

$0

$0

$0

Sustaining CAPEX
Total Expansion andSustaining Capital

$11

$12

$14

$17

$18

$18

$21

$23

$25

$282

$327

$229

$62

$228

$153

$21

$23

$25

Notes:USD in millions
For fiscal year ending December 31 st

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There are planned expansions at the Salar to increase lithium carbonate capacity from 20,000 Mt
to 100,000 Mt through the rest of the decade, which requires substantial capital. The First
Expansion has been engineered and executed in two back-to-back phases (Phase A and B).
Phase A implemented a strategy of modular construction to mitigate potential equipment
delivery issues and to reduce construction activities onsite. Engineering for Phase A iscomplete, modules have been fabricated and are onsite, and the expansion is scheduled to bemechanically complete in 2023.
The capital estimate for Phase A was prepared using AACE International guidelines and isclassified as a Class 3 estimate (accuracy level of ±10%). The impact of delays associated withan earlier suspension period as well as additional costs incurred due to recent circumstances(e.g., COVID-19) are included in the current capital estimate. Considering the advanced level ofprogress in capital commitments made and construction activities completed, estimation of
costs for Phase A can be viewed with high confidence and are also well within the capital
parameters used in the economics sensitivity analysis performed by Livent.
Phase B of the First Expansion is expected to begin production in 2024, with a similar execution
strategy as for Phase A. Modular fabrication has been completed, shipments are being
delivered and onsite construction activities have begun for Phase B development. Capital costswith an accuracy level of a Class 3 estimate have been compiled. Capital cost estimates for bothPhases A and B were completed within the range used in the sensitivity analysis.
Livent has started the engineering development phase on the Second Expansion (increasing
annual lithium carbonate capacity from 40,000 Mt to 70,000 Mt). This expansion will also have amodular construction strategy and similar process technology, and an additional water
recovery unit to recycle fresh water from the SA Plant effluent. This expansion is in the prefeasibility design; capital cost estimates are based on a combination of available data from theFirst Expansion for the process plant and scoping level costs derived from past experience andbenchmarking against facilities of similar scope constructed in the region.
The Third Expansion will utilize conventional pond-based evaporation technology and theexisting infrastructure Livent has in place. This expansion is also in pre-feasibility design, andcapital costs were developed at scoping level based on past experience and benchmarking
methodologies. After the expansions are complete, future capital expenditures are primarily
sustaining capital and fall to lower levels. The amount of sustaining capital in future years
increases with the size of the asset.

18.2 OPERATING COST ESTIMATES
Historically, operating costs in Argentina have not changed significantly. Approximately 60%
of total operating cost in Argentina are U.S. dollar denominated and less subject to local

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economic factors. For the remaining balance of operating cost, denominated in Argentinianpesos, we assume inflation will be offset by increased devaluation over time.
Table 18-2 summarizes current key lithium carbonate cost components, including variable andfixed costs. Estimated carbonate cost throughout the forecast period assumes similar operations
as the existing facility with efficiency on fixed cost from higher production volume, but nochanges or efficiencies were assumed for variable consumption rates.
Table 18-2. Unit Cost Estimates in $USD
Carbonate Unit Costs/kg

Estimate $USD

Utilities$1.13

Soda Ash$1.73

Other Raw Materials$0.36

Packaging$0.11

Labor/Overhead$1.37

Unit Cost$4.70

Currently, operating costs in Argentina are not impacted by any corporate or headquarter costoutside of Argentina, but exclusively by labor and overhead costs incurred in Argentina for
local operations and supporting functions.
Operating unit cost estimates in Table 18-2 do not include Catamarca Royalties, CSR, Fund
Trust, and depreciation. Catamarca Royalties, CSR, and Fund Trust represent a combined unit
cost impact of 3.5% based on the higher of average invoice price or an average of Argentina andChile exports price for similar products, net of tax. Depreciation is calculated based on asset
useful life, usually varying from 40 years for buildings to 15 years for equipment andmachinery.

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19 ECONOMIC ANALYSISThe purpose of this section is to present an economic analysis of the project to determine its
financial viability. The financial evaluation is based on a discounted cash flow (DCF) approach.
The modeled cash flows include all production costs; general and administrative, maintenance,
initial and sustaining capital costs; taxes; government and commercial royalties/payments; andcommunity engagement contributions. The resulting cash flows are then discounted at an aftertax discount rate of 10% to produce a net present value. Financial metrics such as internal rates
of return and payback period were also calculated using the projections. A sensitivity analysis
then follows by varying key assumptions to projections to understand how the financial
viability of the project changes under different scenarios.

19.1 BASIC MODEL PARAMETERS
The following criteria have been used to develop the economic projections:•

Annual cash flow forecasts based on pricing for battery-grade lithium carbonate areassumed to be constant at $20,000 per Mt LCE throughout the life of asset.

•

Operating costs include all raw materials, packaging, labor, utilities, maintenance, andoverhead.

•

Catamarca Royalties, CSR, and Fund Trust represent a combined unit impact of 3.5% of
forecast pricing.

•

Expected asset operating life of 40 years is supported by sustaining capital as well as endof asset life closure costs.

•

Costs prior to January 1, 2022, are not included in the DCF analysis.

•

Effective corporate tax rate is assumed to be 22%.

•

DCF was carried out on a constant money basis, so there is no provision for escalation or
inflation on costs or revenue.

•

For project DCF evaluation purposes, it has been assumed that 100% of capital
expenditures, including pre-production expenses, are financed with owners’ equity.

The lithium carbonate production schedule is summarized in Table 13-1. Average annual
lithium carbonate production is anticipated to be 98,000 Mt by 2030, and this lithium carbonate
production rate can be sustained through 2062. Additional LCEs produced will be allocated tolithium chloride production, but economic value is excluded from this analysis.

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19.2 RESULTS
Results of the economic analysis, including annual cash flow forecasts based on an annual
lithium carbonate production schedule for the 40-year life-of-mine, and measures of economic
viability such as net present value, internal rate of return, and payback period of capital areprovided in Table 19-1.
Table 19-1. Key Financial Results
Post-Tax Net Present
Value (USD)

Post-Tax Internal Rate of
ReturnPayback Period(Years)Life-of-Mine (Years)

Total Initial Capital(USD)$6,346M

85%

3.6

40

$1,518M

19.3 SENSITIVITY ANALYSIS
Financial viability of the project was evaluated under a range of different scenarios tounderstand how resilient financial returns were under different favorable and unfavorable
changes to key assumptions across lithium chemical prices, capital, operating costs, andproduction volumes. A pre-feasibility level sensitivity analysis (without contingency) issummarized in Table 19-2.
Table 19-2. Economic Model Sensitivity Analysis Million $USD
Cost Variable

Sensitivity Factor
-25%

-10%

0%

10%

25%

Lithium Carbonate
Price $ / Mt

$3,772$5,316$6,346$7,375$8,919Initial Capital$6,627$6,458$6,346$6,233$6,065

Operating Expense$7,041$6,624$6,346$6,068$5,650

Production Volume$4,468$5,595$6,346$7,097$8,224Integral Consulting Inc.

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20 ADJACENT PROPERTIES
Information on adjacent properties was obtained from third-party websites operated by thecompanies with claims in SdHM. The QPs have not verified the accuracy of this informationand make no claims or warranties about the information contained in this section.
The Salar at SdHM is subdivided into two major subbasins: Eastern and Western. Livent’s
Contiguous Lease Area covers approximately 327 km2, or 94% of the Western Subbasin. The
properties that surround Livent’s Contiguous Lease Area are located along the margins of theWestern Subbasin, where the Salar meets bedrock to form the basin boundary. These properties
are generally less favorable for lithium brine operations for a number of reasons. First, there isrelatively limited access for equipment and level ground for facilities (i.e., ponds) than areas
internal to the Salar margins. Second, brine grade along the margins of the Salar can become
dilute from freshwater inflows from higher elevations, or brine may be enriched in an isolatedarea in the absence of freshwater inflows. Either situation could pose mine-planning problems
if the grade measured during exploration differs significantly from the grade after operations
begin and lithium concentrations begin to equilibrate towards concentrations reflective of thebroader resource. The process where lower-grade brine increased towards near equilibrium
concentrations reflective of the broader resource was observed in the SWB several years after
startup (Section 12.4). The opposite behavior could also occur. In this situation, concentrations
in high-grade brine extracted early on decrease over time until the grade reaches nearequilibrium with the broader resource at lower concentration than observed during exploration
or after a few years of pumping.
Currently, Livent is the only commercial lithium producer at SdHM. Adjacent properties havethe potential to affect Livent’s operations to various degrees and in limited ways. Consideringlithium brine is a fluid resource, hydraulic capture of brine across concession boundaries frompumping or dilution of brine from a neighbor’s pond operation pose the most significant
potential physical risks to Project Fenix. Other risk factors adjacent properties have on ProjectFenix include competition for human and natural resources. Based on Livent’s future mineplans, and the plans described by others and reviewed by the QPs at the time of this report, it is
the QPs’ opinion that risks posed by potential future operations at neighboring properties are
relatively small and should not significantly impact lithium carbonate production at ProjectFenix over the 40-year life of mine.
The three largest properties within SdHM that have stated ambitions to produce commercial
quantities of lithium are Allkem Limited (Allkem), POSCO Argentina (POSCO), and Galan
Lithium Limited (Galan) (Figure 20-1). A summary of mining claims for by adjacent property
owners is provided in Table 20-1.

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Figure 20-1. Adjacent Properties

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Table 20-1. Mineral Concessions Adjacent to Project Fenix
Concession Owner and
Description

Allkem Limited

Concession Name

Original File
NumberIntegral Consulting Inc.

Unified File
NumberAgostina

0168G2002

19

EX-2021-00233273

Agustin

1279G2006

263

EX-2021-00233273

Aurelio
Barreal 1

0054G2000
0077G1999

37
56

EX-2021-00233273
EX-2021-00233273

Centerario

0261G19978

EX-2021-00233273

Chachita

0185G2002

51

EX-2021-00233273

Delia

0398G2003

9

EX-2021-00233273

Don Carlos
Don Pepe0056G2000
0162G2002

46
46

EX-2021-00233273
EX-2021-00233273

El Tordo

1178G2006

173

EX-2021-00191729

Fidel

1281G2006

38

EX-2021-00191729

Juan Luis

0787G2005

19

EX-2021-00191729

La Redonda 4

0078G1986

56

EX-2021-00191729

La Redonda 5

0161G2002

56

EX-2021-00191729

La Redonda I

0055G2000

56

EX-2021-00191729

Los Patos

0210G1994

46

EX-2021-00191729

Luna Blanca

1280G2006

15

EX-2021-00191842

Luna Blanca II
Luna Blanca Oeste

0709G20090045G2020

14210

EX-2021-00275916
EX-2021-00275916

Luna Blanca VI

0814G200937

EX-2021-00275916

Maktub XXIII

0027G2000

90

EX-2021-00275916

Maria Clara

0913G2005

45

EX-2021-00275916

Maria Clara I
Maria Lucia

0914G2005
0788G2005

55
9

EX-2021-00275916
EX-2021-00275916

Meme

1430G2006

214

EX-2021-00275916

Monsterrat

0254G2011

325

EX-2021-00275916

Montserrat I

0065G2016

325

EX-2021-00275916

Quiero Retruco
Rodolfo

1198G2006
0657G200972
9

EX-2021-00275916
EX-2021-00275916

Sonqo

0754G200992

EX-2021-00275916

Truco

1197G2006

89

EX-2021-00275916

POSCO
Galan Explorations S.A.

Hectares1,000,000
El Deceo III
Rana de Sal I

0308G2010
0040G201815
132

EX-2021-00958201
EX-2021-00958201

Rana de Sal II

0041G2018

314

EX-2021-00958201

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20.1 ALLKEM LIMITED
Orocobre and Galaxy Resources Ltd merged in August 2021, and created Allkem. Sal de Vida,
the company’s brine project located in the Eastern Subbasin at SdHM, borders Livent’s
Contiguous Lease Area at the saddle that separates the two subbasins. Sal de Vida is designed
to produce predominantly battery-grade lithium carbonate through an evaporation andprocessing operation at the SdHM site.
Allkem’s numerical model projects that its wellfields, once constructed, will sustain operationsfor 44 years at an average projected lithium grade of 770 mg/L. Allkem estimated provenreserves (years 1–10) at 36,600 Mt lithium and 205,800 Mt lithium probable reserves (years 7–44). Its reserve estimate is based on a 500 mg/L cut-off and assumes 68.7% process efficiency(Galaxy Resources Ltd. 2021).

20.2 POSCO ARGENTINAPOSCO was constituted in 2018 following the sale of mineral rights by Galaxy of its claims
located in the northern portion of the Eastern Subbasin. The claims sold by Galaxy were locatedin the area where the provincial boundary is disputed between Salta and Catamarca. POSCO
manufactured a pilot plant in South Korea, which it transported and installed at SdHM in 2018.
It is currently in the advanced exploration stage and expects to have its lithium brinecommercialization facilities in Argentina completed by the end of 2023 (POSCO Argentina
2022).

20.3 GALAN LITHIUM LIMITED
Galan has two projects in SdHM: Hombre Muerto West (HMW) and Candelas. HMW is locatedwest of Project Fenix. Galan reports conflicting information on its website on the number ofconcessions included in HMW (Galan 2022). One webpage states HMW consists of fourconcessions and an additional two concessions under an option agreement from Portofino
Resources Inc. Another webpage states HMW comprises six concessions (Pata Pila, Rana de Sal,
Deceo III, Del Condor, Pucara, and Santa Barbara). Most of these concessions are located atop
outcropping shallow bedrock, which is generally considered unfavorable for brine extraction.
Small portions of the easternmost claims extend over alluvium and salar sediments, where brine
extraction is feasible.
Galan’s Candelas project is located south of the Eastern Subbasin, in the alluvial sediments
beneath the Los Patos River. Galan reports that recent drilling and geophysical results indicate
the potential for substantial brine at depth.

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20.4 WATER RIGHTS OF OTHER COMPANIESThe Contract of 1991 provides that FMC (as Livent’s predecessor) and MdA are not obligated to
pay fees for use of water or rights-of-way to Catamarca Province’s public agencies orgovernment. This is one of the surviving material provisions that has not been amended giventhat the use of water is an essential resource for the execution of the contract.
The aforementioned exemption was challenged by Catamarca Province, resulting in litigation.
The litigation was settled through an agreement endorsed by the Supreme Court of Catamarca,
whereby Catamarca Province agreed to accept the validity of the exemption and, in turn, MdA
agreed to expand its CSR activities by making monetary contributions to the SdHM Trust andmaking money contributions to such trust as long as Project Fenix lasts.
The purpose of the SdHM Trust is to allocate and apply the trust funds exclusively to financethe development of physical infrastructure works within the territory of Catamarca Province,
mainly and preferentially works focused on the needs of the communities involved in the areasof direct or indirect influence of Project Fenix, located in Antofagasta de la Sierra, Catamarca.
On January 14, 2016, the Ministry of Public Works of the Catamarca Province granted MdA a
concession for the use of public underground water on a permanent basis and under theconditions of the settlement agreement regarding the volume of water to be used by MdA. The
current volume of the concession amounts up to 4.1 Hm 3/year for the exploitation and use ofwater extracted from six boreholes located within MdA’s concessions. Granted water use rights
correspond to mining use in compliance with the provisions of Catamarca Water Law No. 2577.

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21 OTHER RELEVANT DATA AND INFORMATION
All data and information relevant to this resource and reserve disclosure are referenced in thisreport.

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22 INTERPRETATION AND CONCLUSIONSThis lithium resource and reserve disclosure may differ from other disclosures for projects
involving lithium-bearing brine extraction because Project Fenix is one of only a few long-term
operating projects (25 years of continuous operation) of its kind in the world. To the extent
known by the QPs, operations in Salar de Atacama, Chile, and Clayton Valley, Nevada, are theonly other lithium brine projects with a similar history of consistent long-term operation.
Currently, most lithium brine projects are for sites still in the exploration phase, have only a few
years of experience with commercial lithium production, or are not subject to disclosure
requirements. Because of the 25 years of operational history, information collected during
operations support the interpretations and conclusions made herein.

22.1 GEOLOGY AND RESOURCES
The sedimentary evaporite and associated clastic deposits of the Western Subbasin of SdHM,
which host lithium-rich brine, are characteristic of a mature salar with a halite core. Maturesalars have unique hydrogeologic characteristics (high transmissivity and high degree ofreservoir homogeneity) favorable to lithium brine extraction. Additionally, the Western
Subbasin contains brine with a low ratio of magnesium to lithium, which is preferrable formineral processing. The shallow (0–40 m bgs) geology at SdHM, where the measured lithium
resources occur, was thoroughly characterized prior to development. Pre-development
characterization in the early 1990s has been further supported by 25 years of operations at
Project Fenix, installation of a brine monitoring well network in 2017, and deep characterization(up to 200 m depth) exploratory boreholes in 2000.

22.2 MINING AND MINERAL PROCESSINGAt SdHM, lithium mining is performed by production well pumping of lithium-rich brine.
Pumping wells are a proven and reliable method for extraction of brine that has been usedsuccessfully at Project Fenix since operations began in 1997.
Livent uses a unique, proprietary, mineral processing technology (selective adsorption) to
extract lithium from brine and return spent brine back to the Salar. The SA process is provenand more efficient than any other commercial lithium-brine process currently in operation.

22.3 MINERAL RESOURCES AND RESERVES
Current in-place lithium resources as of December 31, 2022, have been estimated for the Livent
Contiguous Lease Area. A cut-off grade was not applied to this resource estimate because
economic viability is not a factor that affects the amount of resource in place. Lithium reserves

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are the economically mineable part of the lithium resource. Reserves are always a fraction of
the resource because the reserve estimate accounts for dilution and process-related losses before
the resource becomes a viable product (CIM 2014).
Total measured (0–40 m bgs) and indicated (40–100 m bgs) resources, inclusive of reserves, are
1,328,000 Mt lithium (7,071,000 Mt LCE) (Table 11-5). The total lithium resource (0–200 m bgs),
inclusive of reserves is 2,289,000 Mt lithium (12,183,000 Mt LCE).
Total measured (0–40 m bgs) and indicated (40–100 m bgs) resources, exclusive of reserves, are597,000 Mt lithium (3,180,000 Mt LCE) (Table 12-3). In addition, an inferred lithium resource(100–200 m bgs) consists of 892,000 Mt lithium (4,928,000 Mt LCE).
Lithium reserves were estimated using a numerical brine reservoir model to predict future
lithium grade (concentration) in produced brine using Livent’s anticipated future lithium
carbonate production rates. An economic lithium grade cut-off of 218 mg/L was applied.
Modeling indicates that lithium concentrations in brine produced over the next 40 years will notdegrade to below 218 mg/L. As such, proven reserves are calculated to be the total lithiumproduced in brine feedstock provided to the SA Plant, less any process-related lithium losses(23.4%) during years 1–10. Proven reserves during years 1–10 total 153,000 Mt lithium (815,000
Mt LCE).
Probable reserves, assigned to lithium resources produced in years 11–40, deducted by 23.4%
for process inefficiency, are estimated at 578,000 Mt lithium (3,076,000 Mt LCE) (Table 12-2).
Probable reserves account for 43% of the total measured and indicated resource and 25% of thetotal measured, indicated, and inferred resource. Total proven and probable reserves (731,000
Mt lithium or 3,891,000 Mt LCE) make up approximately 32% of the total resource.

22.4 INFRASTRUCTURE
Project Fenix consists of various infrastructure components including roadways, an airfield,
natural gas pipeline, camp facilities, brine and freshwater extraction wells and conveyancepipelines, lithium processing facilities, surface impoundments, and product packaging andstorage facilities. Facility expansion projects are ongoing, and further expansion projects are in
preliminary assessment phases.

22.5 ENVIRONMENTAL, PERMITTING, AND SOCIAL ISSUES
Environmental baseline investigations were conducted for Project Fenix and the Los Patos
Aqueduct projects. EIAs are updated biannually with data collected from ongoing monitoring
programs.

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SdHM is located in a remote, sparsely populated and hyper-arid region of the world.
Freshwater resources are scarce, and flora and fauna that inhabit the region have adapted to theharsh conditions that characterize the region.
Project Fenix operates under a variety of environmental and operating permits as described indetail in Section 17.3. Additional permits are obtained for facilities upgrades and expansion as
required by governmental agencies.

22.5.1

ClosureFacility closure is outlined in a Project Fenix Mine Closure Plan as described in Section 17.4.
Current closure costs for Project Fenix based on existing infrastructure (prior to planned
expansion) are estimated at $20.1 million (including contingency). Closure costs estimated at
the end of mine, including all planned expansions, were incorporated into the economic
analysis (Section 19). Modified closure plans to address plant expansions will be submitted infuture years.

22.6 CAPITAL AND OPERATING COSTS
Project Fenix is in operation and producing lithium carbonate and lithium chloride. Capital andoperating costs are forecasted as a normal course of operational planning with a primary focus
on short-term budgets, then mid-term (5-year plans), and lastly long-term time frames. Details
on Project Fenix capital and operating costs are provided in Section 18.

22.7 ECONOMIC ANALYSIS
Livent has performed financial evaluation based on a DCF approach. The modeled cash flows
include all production costs; general and administrative, maintenance, initial and sustaining
capital costs; taxes; government and commercial royalties/payments; and community
engagement contributions. The resulting cash flows are then discounted at an after-tax discountrate of 10% to produce a net present value. Financial metrics such as internal rates of return andpayback period were also calculated using the projections. A sensitivity analysis then follows
by varying key assumptions to projections to understand how the financial viability of the
project changes under different scenarios.
In summary, financial analysis results include post-tax net present value of $6,346 million,
85% post-tax internal rate of return, payback period of 3.6 years, 40-year life-of-mine, and total
initial capital expenditure of $1,518 million. See Section 19 for details on economic analysis.

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23 RECOMMENDATIONSThis section includes recommendations for future work and analysis in order to improveunderstanding of lithium resources and reserves. Recommendations are aimed at further
developing lithium resources at the Salar, supporting project expansion projects, and improvingsite operations and efficiency.

23.1 RECOMMENDED WORK PROGRAMS
23.1.1

Deep Exploration

Future exploration below 40 m bgs is recommended to improve confidence in deep resources.
The brine reservoir must be permeable at depth for the production of lithium-bearing brine tobe economically favorable. Packer testing in deep exploration boreholes indicates lithium brine
production at depth is feasible, albeit at lower yields than at shallow depths for the lithologies
encountered. Recommended future work at SdHM includes an exploration program to
improve understanding about reservoir depth, lithium grade, and reservoir hydrauliccharacteristics. Future exploration should focus on at depths greater than 40 and 100 m bgs topotentially upgrade resources currently considered indicated and inferred, respectively. A
deep exploration program work plan is currently in development.

23.1.2Spent Brine Return Evaluation

Since 1997, spent brine has been directed to the artificial lagoon, which has grown over theyears to its current extent, which is approximately 1.5 km2. A mass balance evaluation is aimed
at quantifying flows into and from the artificial lagoon and its storage capacity. To the extent
known to the QPs, a detailed mass balance for the artificial lagoon has not been completed. A
better understanding of the lagoon mass balance is necessary to manage future spent brine
disposition.
A detailed mass balance is one element of a broader evaluation into spent brine return options.
An evaluation of future return options may include an adaptive management program forsurface return of spent brine, mechanical evaporators, recycle technologies, injection wells, orsome combination thereof.

23.1.3

Numerical Modeling

Further numerical modeling work is recommended to support expanded lithium brine
production and optimize well configurations and pumping rates. Additional modeling work
should include validation and/or extending the calibration period to simulate a future brine
elevation and quality monitoring data set. Future numerical modeling work should incorporate

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relevant information collected during the other two recommended future work programs (deepexploration or spent brine return evaluation).
Incorporating new data collected following a future deep exploration program may have theadded benefit of increasing reserves.

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25 RELIANCE ON INFORMATION PROVIDED BY THE
REGISTRANT
Integral’s opinions contained within this report are based in part upon information provided byregistrant (Livent) which was deemed appropriate for use. The QPs relied on information
provided by Livent the for subject matters outside their areas of expertise. Such information,
including the report sections upon which the QPs relied on, provided by Livent includes:•

Mineral rights, ownership, and royalty status of Livent’s and its neighbors’ claims at
SdHM (Section 3)•

Legal and governmental factors related to operations at Project Fenix (Section 17)•

Operating and capital costs (Section 18)•

Forward-looking economic analyses (Section 19).

In preparation of this report, Integral relied upon third-party information, including but notlimited to published literature, technical reports prepared by other parties (including Livent’s
prior consultants and contractors), laboratory analyses performed by Livent and commercial
laboratories, and operational data supplied by Livent.

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26 SIGNATURE PAGE

Sean Kosinski, P.Hg.

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