Railroad Valley

Railroad Valley is a highly prospective Lithium Brine property located in south-central Nevada, and consists of 495 placer claims, totalling approximately 10,000 acres (~4,047 ha), spread over three separate claim blocks in close proximity.

The Railroad Valley Lithium Property is situated within east-central Nevada's Railroad Valley Basin, about 200 km east-northeast of Clayton Valley, which is host to Albemarle Corp's (NYSE-ALB) Silver Peak Lithium Mine, the only lithium brine operation within the United States. A comprehensive review of the available data completed for the Technical Report indicates the Railroad Valley Basin may be a larger analogue of the Clayton Valley Basin, with strong potential to host lithium brine of favourable size and grade.

The Railroad Valley Basin, which is host to Nevada's first oil production, is a sedimentary basin more than 37 km in length and 19 km across. The geologic setting is of a closed, fault bound, evaporitic basin, with over 1,000 metres of basin-fill sediments atop basement hosted petroleum reservoirs. To the west, Tertiary volcanic units are highly enriched in lithium, with a number of active thermal springs emerging along the basin faults. Collectively, these attributes indicate a favourable setting for lithium brine accumulation.

Since the discovery of oil at Eagle Springs in 1954, over 100 wells have been completed exploring for oil and gas within Railroad Valley, resulting in the discovery of multiple producing oil fields. The extensive historic geologic information developed from this oil and gas activity within the Valley provides an excellent database upon which brine rich units within the valley fill may be assessed.

Documented soil samples collected on the surface of the Railroad Valley playa by the U.S. Geological Survey contain elevated concentrations of up to 275 ppm Li, equivalent to 295 ppm Li2O.Documented soil samples collected on the surface of the playa, by the United Stated Geological Survey (USGS), contain elevated concentrations of over 500 ppm Li2O.

Management cautions that mineralization present in the Clayton Valley area is not necessarily indicative to the presence of mineralization in the Railroad Valley area