Standard Lithium Signs LOI for Development of Continuously-Operating Demonstration Pilot Plant
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STANDARD LITHIUM LTD.
Suite 835, 1100 Melville Street
Vancouver, British Columbia
V6E 4A6
NEWS RELEASE
Standard Lithium Signs LOI for Development of Continuously-Operating
Demonstration Pilot Plant
January 17, 2018 Vancouver, BC – Standard Lithium Ltd. (“Standard Lithium” or the
“Company”) (TSXV: SLL) (OTCQX: STLHF) (FRA: S5L) is pleased to announce that the
Company has signed a non-binding Letter of Intent with a non-affiliated NYSE-listed company
whereby, subject to the execution of a definitive agreement on terms acceptable to both parties
(the “Definitive Agreement”) and obtaining necessary consents and permits, the Company will
design, build and operate a continuous demonstration scale pilot plant (the “Pilot Plant”),
adjacent to certain existing chemical production facilities located in southern Arkansas.
The Letter of Intent provides for a ninety-day period within which the Company and the other
party will negotiate a Definitive Agreement in respect of the proposed Pilot Plant. Under the
proposed Definitive Agreement, Standard Lithium would be permitted to build an in-place,
continuously operating, pilot plant to explore and demonstrate a modern, selective extraction and
purification process to produce battery-grade lithium products from a variety of brine streams,
including tail brines from the Smackover Formation , which is one of the world’s largest brine
deposits,.
In addition, Standard Lithium seeks to expand its lithium brine footprint through the evaluation
of opportunities to obtain additional brine leases or sources located in southern Arkansas, which
may allow for the transport and testing of multiple sources of Smackover brine in the Company’s
proposed Pilot Plant.
Standard Lithium’s Chief Executive Officer, Mr. Robert Mintak commented, “The facilities in
southern Arkansas where we may build the Pilot Plant are fed by a network of brine production
wells in southern Arkansas that access underground brine from the Smackover Formation and
transport it via an extensive system of pipelines and related infrastructure. Our relationship
with this other party is expected to provide Standard Lithium with access to ‘tail’ brines to test
for the viability of lithium extraction. In signing this letter of intent and negotiating quickly an
agreement for pilot scale testing, Standard Lithium expects to de-risk and expedite the initial
phases of resource assessment and project development while realizing significant reductions in
both the capital and time associated with permitting and drilling test wells.”
President and Chief Operating Officer, Dr. Andy Robinson also commented, “ When the
definitive agreement with the other party is signed, it will allow us to move very quickly from the
process testing work that we are currently performing at several locations, towards the design
and fabrication of the continuous Pilot Plant. The location of the Pilot Plant could not be more
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favourable, as we will have direct access to the tail brine feed into the site, all necessary utilities,
and the access to the services of an existing workforce of skilled and trained brine handling and
processing technicians and engineers, all within an existing permitted and fenced brine
processing site. This relationship aligns fully with Standard Lithium’s goal to demonstrate the
efficient and effective use of modern processing techniques to produce battery-grade lithium
products from large and previously overlooked brine resources”.
Proposed Transaction Terms
Pursuant to the terms of the Letter of Intent, completion of the Definitive Agreement will be
subject to a number of conditions, including completion of satisfactory due diligence
investigation in support of the feasibility of the Pilot Plant and obtaining all necessary consents
and permits. In consideration for the right to conduct a due diligence investigation Standard
Lithium has made a non-refundable deposit of US$100,000, and will make a further cash
payment of US$100,000 upon signing of the Definitive Agreement. The Company will pay
certain recurring fees if the Pilot Plant is constructed. No partnership is created by any of these
agreements with the other party, and the other party has no obligation to fund any of the capital
costs of the Company’s lithium-related activities.
Quality Assurance
Raymond Spanjers, Certified Professional Geologist (SME No. 3041730), is a qualified person
as defined by NI 43-101, and has supervised the preparation of the scientific and technical
information that forms the basis for this news release. Mr. Spanjers is not independent of the
Company as he is an officer in his role as Vice President, Exploration and Development.
About Standard Lithium Ltd.
Standard’s value creation strategy encompasses acquiring a diverse and highly prospective
portfolio of large-scale domestic brine resources, led by an innovative and results-oriented
management team with a strong focus on technical skills. The Company is currently focused on
the immediate exploration and development of the Bristol Dry Lake Lithium Project located in
the Mojave region of San Bernardino County, California; the location has significant
infrastructure in-place, with easy road and rail access, abundant electricity and water sources,
and is already permitted for extensive brine extraction and processing activities. The Company
is also commencing resource evaluation on up to approximately 33,000 acres of brine leases
located in the Smackover Formation.
Standard Lithium is listed on the TSX Venture under the trading symbol “SLL”; quoted on the
OTCQX under the symbol “STLHF”; and on the Frankfurt Stock Exchange under the symbol
“S5L”. Please visit the Company’s website atwww.standardlithium.com.
For further information, contact Anthony Alvaro at (604) 240 4793.
On behalf of the Board,
Standard Lithium Ltd.
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Robert Mintak, CEO & Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”,
“expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or
expressions identify forward-looking statements or information. These forward-looking
statements or information may relate to future prices of commodities, accuracy of mineral or
resource exploration activity, reserves or resources, regulatory or government requirements or
approvals, the reliability of third party information, continued access to mineral properties or
infrastructure, fluctuations in the market for lithium and its derivatives, changes in exploration
costs and government regulation in Canada and the United States, and other factors or
information. Such statements represent the Company’s current views with respect to future
events and are necessarily based upon a number of assumptions and estimates that, while
considered reasonable by the Company, are inherently subject to significant business, economic,
competitive, political and social risks, contingencies and uncertainties. Many factors, both
known and unknown, could cause results, performance or achievements to be materially different
from the results, performance or achievements that are or may be expressed or implied by such
forward-looking statements. The Company does not intend, and does not assume any obligation,
to update these forward-looking statements or information to reflect changes in assumptions or
changes in circumstances or any other events affections such statements and information other
than as required by applicable laws, rules and regulations.
Neither the Company, nor any other party makes any representations as to the value of any
rights associated with the letter of intent announced hereby, the availability of any particular
resource or minerals that might be used for lithium extraction, or the merits of any proposed
technology to extract the lithium. Readers are cautioned that a “Qualified Person” (as that
term is defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects)
has not done sufficient work to specify any mineral resource or reserves on any of the properties
associated with this project.