·    Lagoon samples correspond to water brine samples from the surface lagoon, in an 800 m sampling grid, including eight (08) sampling duplicates in random positions. The samples were taken from 0.5 m depth and, for positions with above 5 m depth a bottom sample were also obtained.
 

·    For every sample, two (02) liters of brine were obtained with a one-liter double valve bailer, using a new bailer for each sampling position. All materials and sampling bottles were first flushed with 100 cc of brine water before receiving the final sample.

·    Sub surface brine samples were obtained with four methods: Packer sampling, PVC Casing Suction sampling, PVC Casing Discardable Bailer sampling, and PVC Casing Electric Valve Bailer.

·    For the Packer sampling, a packer bit tool provided by the drilling company (Big Bear) was used. Once the sampling support was sealed, a purging operation took place until no drilling mud was detected After the purging operation, half an hour waiting took place to let brine enter to the drilling rods thru the slots in the packer tool before sampling with double valve bailer.

·    Successive one-liter samples with half an hour separation were taken with a steel made double valve bailer. Conductivity-based TDS was measured in every sample with a Hanna Multiparameter model HI98192. The last two samples that measure stable similar TDS values were considered as non-contaminated and identified as the Original and Reject samples.

·    Packer samples were obtained every 18 m support due the tools movement involved to take every sample.

·    PVC Casing Suction brine samples were extracted after the well casing with 3-inch PVC and silica gravel and the well development (cleaning) process. The well development includes an injection of a hypochlorite solution to break the drilling additives, enough solution actuation waiting time and then, purging of three well volumes operation to clean the cased well from drilling mud and injected fresh water.

·    The developing process was made by OSMAR drilling company using a small rig, a high-pressure compressor and 2-inch threaded PVC that can be coupled to reach any depth. The purging/cleaning operation is made from top to bottom, injecting air with a hose inside the 2-inch PVC and "suctioning" the water, emulating a Reverse Circulation system.

·    Once the well is clean and enough water is purged (at least three times the well volume) and also, is verified that the purged water is brine came from the aquifer, the PVC Casing Suction samples are taken from bottom to top, while the 2-inch PVC is extracted from the well. A 20-liter bucket is filled with brine and the brine sample is obtained from the bucket once the remaining fine sediments that could appear in the sample decant.

·      PVC casing Suction samples were taken every 6 m support due the disturbing and mixing provoked by the suction process.  Conductivity-based TDS (Multi-TDS) and Temperature °C are measured for every sample with the Hanna Multiparameter.

·      After the development process and PVC Casing Suction sampling, a stabilization period of minimum 5 days take place before this sampling to let the well match the aquifer hydro-chemical stratigraphy.

·      PVC Casing Discardable samples were obtained by JCP Ltda.  specialists in water sampling. Samples were taken from the interest depths with a double valve discardable bailer. The bailer is lowered and raised with an electric cable winch, to maintain a constant velocity and avoid bailer valves opening after taking the sample from the desire support. A new bailer was used for each well

·      Discardable Bailer samples were obtained every 6 m support to avoid disturbing the entire column during the sampling process. Conductivity-based TDS (Multi-TDS), Temperature °C and pH were measured for every sample with the Hanna Multiparameter

·      On first quarter of 2023 Electric Bailer samples were taken from wells LV05, LV06 and LV02, after it´s proper development. The samples were obtained from the interest depths with a one litter electric  bailer, that seals in the sampling support with an electric valve activated by the operator. This sampling process was made by Geodatos specialists. 

·    On all sampling procedures the materials and sampling bottles were first flushed with 100 cc of brine water before receiving the final sample

·    Packer samples are available in wells LV01, LV02 and LV03. PVC Casing Suction samples are available in wells LV01, LV04, LV05 and LV06. PVC Casing Discardable Bailer samples are available in wells LV01 and LV02. Electronic Bailer samples are available in wells LV02, LV05 and LV06.

·    On wells LV01 and LV03 diamond drilling with PQ3 diameter were used up to 320 m depth. Below that depth the drilling diameter was reduced to HQ3

·    On wells LV02 and LV04 diamond drilling with PQ3 diameter were used to their final depth 

·    In both diameters, a triple tube was used for the core recovery.

·    Packer bit provided by Big Bear was used to obtain brine samples (Except in drillhole LV04).

·    Drillholes LV01, LV02 and LV04 were cased and habilitated with 3" PVC and silica gravel. LV03 was not possible to case due well collapse and tools entrapment

·    Wells LV05 and LV06 were drilled with Reverse Flooded method in 14 ¾ inches diameter to their final depth

·    Both wells, were cased and habilitated with 8-inch PVC and inert gravel  

·    Diamond Core recovery were assured by direct supervision and continuous geotechnical logging

·    For LV05 and LV06 only cuttings were recovered for geological logging purposes

·    Continue geological and geotechnical logging took place during drilling

·    For the surface lagoon brine samples, Ph and Temperature °C parameters were measured during the sampling.

·    For the sub surface brine packer samples conductivity-based TDS and Temperature °C parameters were measured during the sampling

·    Samples taken on first 2023 quarter, conductivity-based TDS, Temperature °C and pH were measured during the sampling procedure

·      During the brine samples batch preparation process, the samples were transferred to new sampling bottles. Standard (internal standard composed by known stable brine), Duplicates and Blank samples (distilled water) were randomly included in the batch in the rate of one every twenty original samples. After check samples insertion, all samples were re-numbered before submitted to laboratory. Before transferring each sample, the materials used for the transfer were flushed with distilled water and then shacked to remove water excess avoiding contamination. The author personally supervised the laboratory batch preparation process.

·      During 2022, brine samples were assayed on ALS Life Science Chile laboratory, by Li, K, B, Mg, Ca, Cu and Na by ICP-OES, method described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2.

·      From year 2023 the samples were also assayed on ALS Life Science Chile laboratory by ICP-OES method, described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2, but now the full element suite was requested as recommended by Don Hains in his auditory  

·      Total Density use the method described on THOMPSON Y, TROEH DE. Los suelos y su fertilidad.2002. Editorial Reverté S.A. Cuarta Edición. Págs.75-85.

·      Chlorine detemination described on QWI-IO-Cl-01 Emisión B mod. 1 Método basado en Standard Methods for the Examination of Water and Wastewater, 23st Edition 2017. Método 4500-Cl-B QWI-IO-Cl-01 Emisión B, mod. 1. SM 4500-Cl- B, 22nd Edition 2012.

·      Total Disolved Solids (TDS) with method describe on INN/SMA SM 2540 C Ed 22, 2012

·      Sulfate according method described on INN/SMA SM 4500 SO4-D Ed 22, 2012

·      Duplicates were obtained randomly during the brine sampling. Also, Blanks (distilled water) and Standards were randomly inserted during the laboratory batch preparation.

·      The standards were prepared on the installations of Universidad Católica del Norte using a known stable brine according procedure prepared by Ad Infinitum. Standard nominal grade was calculated in a round robin process that include 04 laboratories. ALS life Sciences Chile laboratory was validated during the round robin process.

·      Check samples were inserted in a rate of one each twenty original samples during year 2022. From year 2023, check samples were inserted in a rate of one each ten original samples  

·      For the bathymetry a Garmin Echomap CV44 and the Eco Probe CV20-TM Garmin were used. The equipment has a resolution of 0.3 ft and max depth measure of 2,900 ft.

·      The bathymetry data was calibrated by density, using 1.14 g/cm3, modifying the propagation velocity from the nominal value 1,403 m/s (1 g/cm3 density at 0°C) to a corrected value of 1,660 m/s (1.14 g/cm3 density at 0°C), reducing the original bathymetry depth data in 15%

·      For the TEM Geophysical survey a Zonge Engineering and Research Organization, USA equipment was used, composed by a multipurpose digital receiver model GDP-32 and a transmitter TEM model ZT-30, with batteries as power source.

·      For the first survey campaign, made in May, 2021 a coincident transmission / reception loop was used, were 167 stations use 100x100 m2 loop and 4 stations use 200x200 m2 loop, reaching a survey depth of 300 m and 400 m respectively, arranged in 11 lines with 400 m of separation.

·      For the second TEM geophysical survey made in March 2022, 32 TEM stations, arranged in 6 lines, with 400 m separation were surveyed. A coincident Loop Tx=Rx of 200 x 200 m2 that can reach investigation depth of 400 m were used for this survey
    

·    The assay data was verified by the author against the assay certificate.

·    Data from bathymetry and geophysics were used as delivered by Servicios Geológicos GEODATOS SAIC

·    Geological and geotechnical logs were managed by geology contractor GEOMIN and checked by the competent person

·    Brine samples batches were prepared personally by the competent person. All data are in EXCEL files   

·    Samples coordinates were captured with non-differential hand held GPS

·    The bathymetry coordinates were captured by differential Thales Navigation differential GPS system, consisting in two GPS model Promark_3, designed to work in geodesic, cinematic and static modes of high precision, where one of the instruments is installed in a base station and the other was on board the craft.

·    The TEM geophysical survey coordinates were captured with non-differential hand held GPS.

·    Drillhole collars were captured with non-differential hand held GPS. Position was verified by the mining concessions field markings. Total station topographic capture of the drillhole collars is pending 

·    The coordinate system is UTM, Datum WGS84 Zone 19J

·    Topographic control is not considered critical as the lagoon and its surroundings are generally flat lying and the samples were definitively obtained from the lagoon

·    Geochemical lagoon samples spacing is approximately 800 m, covering the entire lagoon area

·    Packer brine samples were taken every 18 m

·    PVC Casing Suction samples were taken every 6 m

·    PVC Casing Bailer samples (discardable and electric) were taken every 6 m

·    For bathymetry two grids were used, one of 400 m and the other of 200 m in areas were the perimeter have more curves

·    For TEM geophysical survey a 400 m stations distance was used

·    The author believes that the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Resource Estimation

·    The lagoon is a free water body and no mineralized structures are expected in the sub surface deposits

·    All brine samples were marked and keep on site before transporting them to Copiapó city warehouse

·    The brine water samples were transported without any perturbation directly to a warehouse in Copiapó city, were laboratory samples batch was prepared and stored in sealed plastic boxes, then sent via currier to ALS laboratory Antofagasta. All the process was made under the Competent Person direct supervision.

·    ALS personnel report that the samples were received without any problem or disturbance

·    CleanTech Lithium holds in Laguna Verde 2,437 hectares of Exploitation Mining Concessions that cover the entire lagoon area under an Option Agreement and 4,235 hectares of Exploration Mining Concessions outside the lagoon area.

·    All prohibition certificates in favour of Atacama Salt Lakes SpA were reviewed by the Competent Person. The Competent Person relies in the Mining Expert Surveyor Mr, Juan Bedmar.

·    All concession acquisition costs and taxes have been fully paid and that there are no claims or liens against them

·    There are no known impediments to obtain the licence to operate in the area
 

·    Exploration works has been done by Pan American Lithium and Wealth Minerals Ltda.

·    Laguna Verde is a hyper saline lagoon that is classified as an immature clastic salar. The deposit is composed of a Surface Brine Resource, formed by the brine water volume of the surface lagoon and the Sub-Surface Resource, formed by brine water hosted in volcano-clastic sediments that lies beneath the lagoon

·    The following drillhole coordinates are in WGS84 zone 19 J Datum

·    LV01 E549,432 N7,027,088 ELEV 4,429 m a.s.l.

·    LV02 E553,992 N7,024,396 ELEV 4,358 m a.s.l.

·    LV03 E549,980 N7,028,434 ELEV 4,402 m a.s.l.

·    LV04 E556,826 N7,024,390 ELEV 4,350 m a.s.l.

·    LV05 E550,972 N7,027,908 ELEV 4,335 m a.s.l.

·    LV06 E555,912 N7,026,004 ELEV 4,335 m a.s.l.

·    For the Surface Brine Resource no low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data

·    For the Sub Surface Resource, a cut-off of 150 mg/l Li was applied in the above 4,112 m Block Model for resource reporting, to cap diluted water in the aquifer ceiling, in the salty water / brine transition area. The samples with 150 mg/l Li in general have assayed TDS values above 100,000 mg/l, defined as brine according the water classification table of the Complementary Guide to CH20235 Code to Report Resources and Reserves in brine Minerals (Comisión Minera, July 2021)
 

·    Only one auxiliary average composite sample from deepest seven (07) PVC Casing Bailer samples from well LV02 were used to calculate resources (Inferred) from 4,074 m a.s.l. to the basement level at 3,955 m a.s.l. in the LV02 drillhole near area

·    The relationship between aquifer widths and intercept lengths are direct, except in LV03 were a dip of -60° should be applied

·    Addressed in the report

·    All results have been included.

·    Pump tests were performed in wells LV05 and LV06.

·    A 50 hp submergible electric pump, piping with flowmeters were used for the pump tests. The tests consist in 6-hour variable pump test to verify the aquifer capabilities and a constant 48-hour pump test

·    In LV05 the pump was installed at 156 m and in LV06, at 150 m   

·    Cross-check of laboratory assay reports and Database

·    QA/QC as described in Section 4.7

·    All databases were built from original data by the Competent Person

·    A site visit was undertaken by the Competent

Person from June 2nd to June 4th, 2021. The outcome of the visit was a general geological review and the lagoon water brine geochemical sampling that lead to the July 2021 JORC Technical Report

·    The January to May 2022 drilling campaign was continually supervised by the Competent Person, that led to the September 2022 updated JORC Technical Report

·    The October 2022 to May 2023 drilling campaign was constantly supervised by the Competent Person

·    For the Surface Brine Resource, the interpretation is direct and there is no uncertainty.

·    For the Sub-Surface Resource, the geological interpretation was made based in the TEM study and gravimetry (SRK, 2011). The lithological interpretation was confirmed by the January - May 2023 diamond drillhole campaign.

·    Low resistivities are associated with sediments saturated in brines, but also with very fine sediments or clays. The direct relationship of the low resistivity layer with the above hypersaline lagoon raise the confidence that the low resistivities are associated with brines.

·    Drillholes confirm the geological interpretations

·    For the Surface Brine Resouce the lagoon dimensions are 14,682,408 m² of area with depths ranging from 0 m to 7.18m with an average depth of 4.05 m

·    The Sub-Surface Brine Resource is a horizontal lens closely restricted to the lagoon perimeter with an area of approximately 55 km² and depths for more than 300 m, from approximately 4,309 m a.s.l. to the basement level. 

·      For the Surface Brine resource, the surface lake brine water volume is directly obtained by the bathymetry study detailed on Section 4.2.

·      Lithium (mg/l) samples values are in general homogeneously distributed along the lagoon with a narrow value distribution. the lagoon is a free water
body where the ionic content is dynamic for every specific position, there is no point in estimate the lake lithium content via Kriging or other geostatistical method. The use of the total samples average value 245.794 mg/l was used for the Surface Brine Resource Estimation.

·      The Sub-Surface geological 3D model was built modifying the 50 m plans constructed for the September 2022 resource, considering the drillholes interceptions, the TEM geophysics continuity from all the available geophysical sections (in general < 4 Ohm-m zones). The constructed 3D model was clipped above the brine aquifer ceiling surface, formed by the first brine intercepts on the drillholes and also, below the basement surface that was constructed using the basement intercepts on drillholes LV01 and LV02 and structural geological information. This geological 3D model corresponds to the Sub-Surface Brine Ore Volume

·      Two block models were constructed for resource calculation due the different type of brine samples used for resource estimation, one above the 4,112 m a.s.l. and the other, below 4,112 ma.s.l.

·      The block model above level 4,112 m a.s.l. properties are:
Block size: 200 m x 200 m x 6 m.
Block Model Origin: 547,000 East, 7,026,000 North, Level 4,328 m a.s.l.
N° Columns: 72

N° Rows: 40
N° Levels: 36

Rotation: 20° Clockwise

·      The block model below level 4,112 m a.s.l. properties are:

Block size: 200 m x 200 m x 6 m.

Block Model Origin: 547,000 East, 7,026,000 North, Level 4,112 m a.s.l.

N° Columns: 72

N° Rows: 40

N° Levels: 35

Rotation: 20° Clockwise

·      On both block models the individual block variables are:

Rock Type: 0=No Ore, 1= Brine Ore

Density

Percent

Economic

Material

Li (Lithium)

Mg (Magnesium)

K (Potash)

B (Boron)

SO4

Ca (Calcium)

Category: 1=Measured, 2=Indicated and 3=Inferred

Porosity

Elevation

·      The traditional Inverse to the Square Distance method to estimate the block variables was used. To accomplish this, the samples from the Sub-Surface Assay Resource Database were manually assigned to their correspondent block levels on both block models. Once assigned, the block variable values were calculated by levels with the correspondent assigned samples and their horizontal distances from the individual block to estimate. All calculations were performed in EXCEL files.

·      The Sub-Surface Assay Resource Database was constructed according the following considerations:

·      PVC casing Bailer samples from drillholes LV01 and LV02 were used from level 4,309 m a.s.l., down to 4,112 m a.s.l.

·      Samples evidently contaminated with drilling water were extracted from LV02 preliminary PVC Casing Bailer samples and the gaps were replaced with the correspondent LV02 Packer sample.

·      Packer samples from LV01 and LV03 drillholes plus the deepest seven (07) PVC Casing Bailer samples from well LV02 and, a final auxiliary average composite sample from the seven before mentioned samples were used to calculate resources below level 4,112 m a.s.l. to the basement level at 3,955 m a.s.l.

·      The validation process was mainly visual check in plans along block model levels and, on the estimation EXCEL files

·      For both block models, the blocks inside the Sub-Surface Brine Ore Volume have variable Rock Type = 1 (Brine Ore). Only blocks with Rock Type = 1 were reported as resource 

·    Not applicable for brine resources

·    A cut-off of 150 mg/l Li was used to report resources in the Above 4,112 m block model, mainly to discount blocks estimated with low grade samples located in the fresh water / brine transition zone

·    Mining will be undertaken by pumping brine from production wells and re-injection

·    Pump tests were performed in wells LV05 and LV06

·      A 50 hp submergible electric pump, piping with flowmeters were used for the pump tests. The tests consist in 6-hour variable pump test to verify the aquifer capabilities and a constant 48-hour pump test

·      In LV05 the pump was installed at 156 m and in LV06, at 150 m   

·      The metallurgical capacity of lithium recovery in the process has been estimated at 85.2% to obtain lithium carbonate in battery grade.

·      The process of obtaining lithium carbonate considers the following stages:

o  The Lithium is obtained using selective adsorption of lithium-ion from Laguna Verde brine through the Direct Lithium Extraction (DLE) process. This stage has 90.4% recovery of Lithium.

o  The spent solution (without Lithium) will be reinjected into the Laguna Verde salt flat.

o  The DLE process allows impurity removal waste to be minimal.

o  The diluted lithium solution recovered from the DLE process is concentrated utilizing water removal in reverse osmosis. The removed water is recovered and returned to the process to minimize the water consumption required. 

o  Ion exchange stages remove minor impurities such as magnesium, calcium, and boron to obtain a clean lithium solution.

o  Lithium carbonate is obtained with a saturated soda ash solution to precipitate it in the carbonation stage. Lithium recovery from this stage is 87.2%.

o  The lithium carbonate obtained is washed with ultra-pure water to get it in battery grade with the minimum of impurities.

o  From the carbonation process, a remaining solution (mother liquor) is obtained, which is treated to concentration utilizing evaporators to recirculate in the carbonation process and ensure the greatest possible recovery of Lithium. The removed water is recovered and reintegrated into the process.

o  The water recovery in the process is 74% which reduces the water consumption required.

·      The Direct Extraction process has been tested by Beyond Lthium LLC at its facilities in the city of Salta, Argentina. The stages of removal of impurities and carbonation have been tested, obtaining a representative sample. The sample was analyzed in Germany by the laboratory Dorfner Anzaplan showing 99.9% Li2CO3 and reduced contaminants.

·      The process has been modeled Ad infinitum using the SysCAD simulation platform and the AQSOL thermodynamic property package. With the model, simulations of the process were made to obtain  the appropriate mass balances with which the process stages and the recovery of Lithium are described for obtaining 20,000 tons of Li2CO3 per year.

·      Metallurgical testing and process is described and detailed in the CleanTech Lithium Scoping Study-Laguna Verde Project (December 2022)

·    The main environmental impacts expected is the main plant installations, estimated to be located at 8 km to the south west of the lagoon edge. In the near lagoon area, the impact is the surface disturbance associated with production wells and brine mixing ponds. These impacts are not expected to prevent project development

·    Undisturbed diamond drillhole core samples with 3 to 5-inch length in both PQ and HQ diameter were obtained every 10 m from all drillholes for porosity testing.  Samples were prepared and sent to Daniel B. Stephens & Associated, Inc. laboratory (DBS&A) in New Mexico, USA. Samples underwent Relative Brine Release Capacity laboratory tests, which predict the volume of solution that can be readily extracted from an unstressed geological sample.  This method by itself is insufficient for calculating an effective porosity (specific yield) value for resource estimation as the laboratory test is performed on an unstressed core sample and doesn´t account for the host lithology geotechnical condition. To attain a more realistic specific yield value, the rock quality designator ("RQD") logged during the drilling was used with a regression analysis. This provided specific yield values that are consistent with the basin lithology.

·    For the Surface Brine Resource, the data is considered sufficient to assign a Measured Resource classification

·      For the Sub-Surface Resources classification, the considered criteria were based on the recommended sampling grid distances of the complementary guide to CH 20235 code to report resources and reserves in brine deposits from the Comision Calificadora en Competencias en Recursos y Reservas Mineras, Chile.

·      Besides that, the Sub-Surface Resources categorization is dependent of the brine samples availability and their quality in terms of confidence. Considering the above, the Sub-Surface resources categorization conditions are:

·      For the Above 4,112 m a.s.l. block model.

Blocks estimated at 1,250 m around LV01 PVC Casing Bailer samples were considered as MEASURED

Blocks estimated between 1,250 m to 3,000 m around LV01 PVC Casing Bailer samples were considered as INDICATED

Blocks estimated at 3,000 m around the LV02 PVC Bailer samples were considered as INDICATED

The rest of the blocks that don't match the above conditions were considered as INFERRED

·      For the Below 4,112 m a.s.l. block model.

Blocks estimated at 3,000 m around LV01 and LV03 Packer samples were considered as INDICATED

Blocks estimated at 3,000 m around the available LV02 PVC Bailer samples (discounting the AVERAGE auxiliary sample) were considered as INDICATED.

The rest of the blocks that don't match the above conditions were considered as INFERRED

·    The result reflects the view of the Competent Person

·      The July 2021 JORC technical report were reviewed by Michael Rosko, MS PG SME Registered Member #4064687 from MONTGOMERY & ASSOCIATES CONSULTORES LIMITADA

·      In the report he concludes that "The bulk of the information for the Laguna Verde exploration work and resulting initial lithium resource estimate was summarized Feddersen (2021). Overall, the CP agrees that industry-standard methods were used, and that the initial lithium resource estimate is reasonable based on the information available".

·      The September 2022 JORC Report LAGUNA VERDE UPDATED RESOURCE ESTIMATION REPORT, data acquisition and QA/QC protocols were audited on October, 2022 by Don Hains, P. Geo. from Hains Engineering Company Limited (D. Hains October 2022 QA/QC Procedures, Review, Site Visit Report).

·      In the report he concludes that "The overall QA/QC procedures employed by CleanTech are well documented and the exploration data collected and analysed in a comprehensive manner. There are no significant short comings in the overall programme.

·      Respect the exploration program his comments are "The overall exploration program has been well designed and well executed. Field work appears to have been well managed, with excellent data collection. The drill pads have been restored to a very high standard. The TEM geophysical work has been useful in defining the extensional limits of the salar at Laguna Verde".

·      Respect the Specific Yield his comments are "RBRC test work at Danial B. Stevens Associates has been well done. It is recommended obtaining specific yield data using a second method such as centrifuge, nitrogen permeation or NMR. The available RBRC data indicates an average Sy value of 5.6%. This is a significant decrease from the previously estimated value of approximately 11%. The implications of the lower RBRC value in terms of the overall resource estimate should be carefully evaluated".

·      Several recommendations were made by Mr. Hines in his report to improve the QA/QC protocols, data acquisition, assays, presentation and storage. His recommendations have been considered and included in the exploration work schedule since October 2022.

·      After the FB01 well casing with 8-inch PVC and silica gravel, a development process took place. The well development includes an injection of a hypochlorite solution to break the drilling additives, enough solution actuation waiting time and then, purging of minimum three well volumes operation to clean the cased well from drilling mud and injected fresh water.
 

·      The developing process was made using a small rig, a high-pressure compressor and 2-inch threaded PVC that can be coupled to reach any depth. The purging/cleaning operation is made from top to bottom, injecting air with a hose inside the 2-inch PVC and "suctioning" the water, emulating a Reverse Circulation (Air-Lift) system.

·      Once the well is verified, clan assuring that the purged water is brine coming from the aquifer, the PVC Casing Suction (Air-Lift) samples were taken from bottom to top, while the 2-inch PVC is extracted from the well. A 20-liter bucket is filled with brine and the brine sample is obtained from the bucket once the remaining fine sediments that could appear in the sample decant.

·      One-litre Samples every 3 m were taken and, every 6 m sent to laboratory to preserve a second sample set for auditory purposes.
 

·      Conductivity-based TDS and T°C were measured in every sample with a Hanna Multiparameter. All materials and sampling bottles were first flushed with brine water before receiving the final sample.

·      After the PVC Casing Suction sampling in FB01, a stabilization period of minimum 5 days took place before proceed with the PVC Casing Bailer sampling to let the well match the aquifer hydro-chemical stratigraphy.

·      PVC Casing Bailer sampling process at FB01was made by JCP Ltda., specialists in water sampling. Samples were taken from the interest depths with a double valve discardable bailer. The bailer is lowered and raised with an electric cable winch, to maintain a constant velocity and avoid bailer valves opening after taking the sample from the desire support.

·      PVC Casing Bailer samples were obtained every 6 m support to avoid disturbing the entire column during the sampling process. Conductivity-based TDS and Temperature °C were measured for every sample with a Hanna multiparameter.

·    Reverse flooded drilling system with 20 to 14 inch diameter was used in well FB01, FB02, FB03 (FB03A) and FB04.

·    FB01 was cased and habilitated from 0 m to its final depth 335 m with 8-inch PVC. FB02 was cased and habilitated from 0 m to its final depth 351 m with 4-inch PVC.

·    FB03 (FB03A), FB04 are in casing-habilitation process

·    Diamond Drilling system with PQ3 and HQ3 diameters were used in FB05 and FB06

·    FB05 is on casing - habilitation process with 2 inch PVC and inert gravel

·    FB06 is on drilling process 

·    On Reverse Flooded Drilling system, cuttings and 10 kg sample bags were recovered for geological logging and tests purposes. Direct supervision and continue geological logging were applied to assure recovery

·    On Diamond Drilling system, diamond core recovery was assured by direct supervision and continuous geotechnical logging

·    Continue geological logging took place during drilling

·    For all 2022 brine samples conductivity-based TDS and Temperature °C parameters were measured during the sampling

·    From 2023, for all brine samples conductivity-based TDS, pH and Temperature °C parameters were measured during the sampling
 

·      During the brine samples batch preparation process, Standard (internal standard composed by known stable brine), Duplicates and Blank samples (distilled water) were randomly included in the batch in the rate of one every twenty original samples.

·      After check samples insertion, all samples were re-numbered before submitted to laboratory. The author personally supervised the laboratory batch preparation process.

·      Brine samples obtained on 2022 were assayed on ALS Life Science Chile laboratory, by Li, K, B, Mg, Ca, Cu and Na by ICP-OES, method described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2.

·      From year 2023 all brine samples were assayed also on ALS Life Science Chile laboratory by ICP-OES, method described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2, but now reporting the full element swift

·      Total Density use the method described on THOMPSON Y, TROEH DE. Los suelos y su fertilidad.2002. Editorial Reverté S.A. Cuarta Edición. Págs.75-85.

·      Chlorine determination described on QWI-IO-Cl-01 Emisión B mod. 1 Método basado en Standard Methods for the Examination of Water and Wastewater, 23st Edition 2017. Método 4500-Cl-B QWI-IO-Cl-01 Emisión B, mod. 1. SM 4500-Cl- B, 22nd Edition 2012.

·      Total Dissolved Solids (TDS) with method describe on INN/SMA SM 2540 C Ed 22, 2012

·      Sulfate according method described on INN/SMA SM 4500 SO4-D Ed 22, 2012

·      Duplicates were obtained randomly during the brine sampling. Also, Blanks (distilled water) and Standards were randomly inserted during the laboratory batch preparation.

·      The standards were prepared on the installations of Universidad Católica del Norte using a known stable brine according procedure prepared by Ad Infinitum. Standard nominal grade was calculated in a round robin process that include 04 laboratories. ALS life Sciences Chile laboratory was validated during the round robin process.

·      All check samples were inserted in a rate of one each twenty original samples

·      For the TEM Geophysical survey a Applied Electromagnetic Research FAST-TEM 48 equipment was used, composed by a transmitter and receiver unit, a PC and the circuit cables (buckle), with batteries as power source. A coincident transmission / reception loop of 220x220 m2 was used for the 98 surveyed stations, reaching a survey depth of 400 m
    

·    The assay data was verified by the author against the assay certificate.

·    Geophysics were used as delivered by Terra Pacific

·    Geological logs were managed by geology contractor GEOMIN and checked by the competent person

·    Brine samples batches were prepared personally by the author or by JCP Ltda., with the supervision of the author. All data are in EXCEL files   

·    Drillhole collars were captured with non-differential hand held GPS. Position was verified by topographic features Total station topographic capture of the drillhole collars is pending 

·    The TEM geophysical survey coordinates were captured with non-differential hand held GPS.

·    The coordinate system is UTM, Datum WGS84 Zone 19J

·    PVC Casing Suction brine samples were taken every 3 m and, sent to laboratory every 6 m

·    PVC Casing Bailer brine samples were taken every 6 m

·    For TEM geophysical survey a 750 m stations distance, in lines every 750 m were used.

·    The author believes that the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Resource Estimation

·    All brine samples were marked and immediately transported them to Copiapó city warehouse

·    The brine water samples were transported without any perturbation directly to a warehouse in Copiapó city, where laboratory samples were prepared and stored in sealed plastic coolers, then sent via currier to ALS laboratory Santiago. All the process was made under the Competent Person direct supervision.

·    ALS personnel report that the samples were received without any problem or disturbance

·    CleanTech Lithium holds in Francisco Basin 12,579 hectares of Mining Concessions, separated in 6,479 hectares of Exploitation Concessions and 6,100 of Exploration Mining Concessions.

·    The Competent Person relies in the Mining Expert Surveyor Mr, Juan Bedmar.

·    All concession acquisition costs and taxes have been fully paid and that there are no claims or liens against them

·    There are no known impediments to obtain the licence to operate in the area
 

·    No Lithium Exploration works has been done by third parties in the past

·    Francisco Basin is classified as the "Salar Marginal Facies" of a hyper saline lagoon that approaches to an immature clastic salar classification (Negro Francisco lagoon), with the lagoon corresponding to the "salar nucleus"

·    The following drillhole coordinates are in WGS84 zone 19 J Datum

·    FB01 E479,907 N6,959,310 ELEV 4,151 m a.s.l.

·    FB02 E483,350 N6,957,900 ELEV 4,164 m a.s.l.

·    FB03 E483,949 N6,959,090 ELEV 4,161 m a.s.l.

·    FB03A E483,835 N6,959,040 ELEV 4,160 m a.s.l.

·    FB04 E482,715 N6,956,410 ELEV 4,177 m a.s.l.

·    FB05 E482,000 N6,957,900 ELEV 4,159 m a.s.l.

·    FB06 E485,600 N6,957,900 ELEV 4,181 m a.s.l.

·    No low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data

·    No data aggregate of any kind has been implemented

·    The relationship between aquifer widths and intercept lengths are direct

·    Addressed in the report

·    All results have been included.

·    Pump Test on FB01 well just finished

·    A 50 hp submergible electric pump, piping with flowmeters were used for the pump tests. The tests consist in 6-hour variable pump test to verify the aquifer capabilities and a constant 12-hour pump test

·    In FB01 the pump was installed at 159 m   

·    Cross-check of laboratory assay reports and Database

·    QA/QC as described in Sampling Section

·    Continue supervision of March to May 2022 drilling campaign.

·    Continue supervision on October 2022 to May 2023 drilling campaign

·    For the geological interpretation was made based in the TEM study and drillholes FB01 and FB02  

·    Low resistivities are associated with sediments saturated in brines, but also with very fine sediments or clays

·    Drillholes confirm the geological interpretations

·    The Brine Resource is a horizontal lens with an area of 12.56 km2 (2.5 km radius around FB01) and 212 m wide

·      Lithium (mg/l) PVC Casing Suction samples values are in general homogeneously distributed along the FB01 drillhole, there is no point in estimate the lithium content via Kriging or other geostatistical method given that there is only one drillhole. The use of the samples values average 305.04 mg/l Li was be used for the Brine Resource Estimation.

·      The geological units in the basin filling correspond to variable proportions of gravels, sands and clays These units have a moderately to very high porosity so, a conservative specific yield of 12.2% was estimated, depending on the logged proportions of its content

·    Not applicable for brine resources

·    No cut-off parameters were used

·    Mining will be undertaken by pumping brine from production wells and re-injection

·    Pump Test on FB01 well just finished

·    A 50 hp submergible electric pump, piping with flowmeters were used for the pump tests. The tests consist in 6-hour variable pump test to verify the aquifer capabilities and a constant 12-hour pump test

·    In FB01 the pump was installed at 159 m

·    Direct Lithium Extraction technology (DLE) with spent brine reinjection is planned for Francisco Basin. Production Plant / Camp, production/reinjection wells, and brine mixing ponds are planned to install on the concession area.

·    The main environmental impacts expected is the Production Plant / Camp and the surface disturbance associated with production wells and brine mixing ponds. These impacts are not expected to prevent project

·    Bulk density is not relevant to brine resource estimation.

·    For porosity a conservative specific yield of 12.2% was estimated, depending on the logged proportions of the sediments content

·    For the brine Resource, the data and assumptions are only considered sufficient to assign an Inferred Resource classification

·    The result reflects the view of the Competent Person

·    No audit or reviews were undertaken.

·    Sub surface brine samples were obtained with Packer sampling, using a packer bit tool provided by the drilling company (Big Bear).

·    Once the sampling support was sealed, a purging operation took place until no drilling mud was detected

·    After the purging operation, half an hour waiting took place to let brine enter to the drilling rods thru the slots in the packer tool before sampling with double valve bailer.

·    Successive one-liter samples with half an hour separation were taken with a steel made double valve bailer. Conductivity-based TDS was measured in every sample with a Hanna Multiparameter model HI98192. The last two samples that measure stable similar TDS values were considered as non-contaminated and identified as the Original and Reject samples.

·    On drillhole LL01 the purging / sampling operation was in process at 290 m when the natural gas upwelling took place. Only two consecutive samples were possible to obtain, which are contaminated with drilling mud 

·    On well LL01 diamond drilling with PQ3 diameter were used up to 197.7 m depth. Below that depth the drilling diameter was reduced to HQ3 to its final depth at 292 m

·    LL01 well was sealed with cement as a safety measure

·    On well LL02 diamond drilling with PQ3 diameter is been using to its up to date depth

·    In both diameters, a triple tube was used for the core recovery.

·    Packer bit provided by Big Bear was used to obtain brine samples

·    Diamond Core recovery were assured by direct supervision and continuous geotechnical logging provided by Roko Hydrogeología y Geología Aplicada  (Roko) contractor

·    Continue geological and geotechnical logging took place during drilling

·    For brine packer samples conductivity-based TDS Temperature °C and pH parameters were measured during the sampling

·      Only two contaminated samples were obtained from LL01, no check samples have been inserted

·      All materials were flushed with distilled water and then, set them by flushing with 100 cc of sampled water   

·      The samples were assayed on ALS Life Science Chile laboratory by ICP-OES method, described on QWI-IO-ICP-OES- 01 Edisión A, Modification 0 EPA 3005A; EPA 200.2 reporting the full element suite  

·      Total Density use the method described on THOMPSON Y, TROEH DE. Los suelos y su fertilidad.2002. Editorial Reverté S.A. Cuarta Edición. Págs.75-85.

·      Chlorine detemination described on QWI-IO-Cl-01 Emisión B mod. 1 Método basado en Standard Methods for the Examination of Water and Wastewater, 23st Edition 2017. Método 4500-Cl-B QWI-IO-Cl-01 Emisión B, mod. 1. SM 4500-Cl- B, 22nd Edition 2012.

·      Total Disolved Solids (TDS) with method describe on INN/SMA SM 2540 C Ed 22, 2012

·      Sulfate according method described on INN/SMA SM 4500 SO4-D Ed 22, 2012

·      As only two contaminated samples were obtained from LL01, no check samples have been inserted




    

·    The assay data was verified by the author against the assay certificate.

·    Brine samples batch were prepared by Roko personnel with the direct supervision by the competent person. All data are in EXCEL files   

·    Drillhole collars were captured with non-differential hand held GPS. Total station topographic capture of the drillhole collars is pending 

·    The coordinate system is UTM, Datum WGS84 Zone 19K

·    Only one support has been sampled on LL01

·    LL02 is on sampling process. The sampling spacing is one sample every 27 m and also, sampling on relevant geological features

·    The data is vertical along the drillholes, intercepting horizontal sedimentary brine aquifers
















 

·    All brine samples were marked and keep on site before transporting them to Antofagasta city and sent, vía Chilexpress currier to ALS laboratory

·    ALS personnel report that the samples were received without any problem or disturbance

·    CleanTech Lithium holds in Llamara 55,000 hectares of Exploration Mining Concessions (Pedimentos Constituidos) thru its Chilean subsidiary company CLS Chile SpA

·    All concession acquisition costs and taxes have been fully paid and that there are no claims or liens against them

·    There are no known impediments to obtain the licence to operate in the area
 

·    Exploration works has been done by several companies, including resources on hard Lithium ore located on surface clays and salt flats

·    No brine Lithium exploration has been reported by other parties

·    The exploration target is a Brine Lithium Mineral deposit

·    Llamara is an ancient basin that receive all deep ground water coming from the East.
The ground water and their physical and chemical elements are entrapped in the basin as the Coastal Cordillera, located to the West acts like a dam

·    Brine is expected in underground ancient sedimentary units (sandstones and conglomerates)

·    A secondary target is the hard Lithium ore, founded on Lithium rich clays ¨Hectorite", located on or near surface

·    The following drillhole coordinates are in WGS84 zone 19 K Datum

·    LL01 E466,999 N7,616,999 ELEV 1,133 m a.s.l.
Azimuth 0° Dip -90°
Length: 292 m

·    LL02 E461,042 N7,617,689 ELEV 1,065 m a.s.l.
Azimuth 0° Dip-90°
Length: On drilling process

·    No low-grade cut-off or high-grade capping has been implemented

·    No intercepts aggregation has been implemented in Llamara

·    The relationship between aquifer widths and intercept lengths are direct

·    Addressed in the report

·    All results have been included.

·      No other substantive exploration data has been included

·    Not applicable for Exploration results

·    The assay data was verified by the Competent Person against the assay certificate

·    From January 25 to January 27, 2023. Locate LL01 drillhole position, access and logistics

·    From April 05 to April 07, 2023. Confirm LL01 location with Big Bear supervisor. Assure general logistics

·    From April 20 to April 25, 2023. LL01 Drilling start-up supervision. Roko personnel brine sampling, geological and geotechnical logging procedures training

·    From May 11 to May 16, 2023. LL01 brine samples batch preparation supervision. Natural gas surge standby check and investors visit

·    From May 24 to May 25, 2023 LL01 closure supervision. LL02 drillhole positioning 
 

·    Not applicable for Exploration results

·    Not applicable for Exploration results

·      Not applicable for Exploration results

·    Not applicable for brine deposits

·    Not applicable for Exploration results

·    Not applicable for Exploration results

·    Not applicable for Exploration results

·    The main environmental impacts expected is the main plant installations and the surface disturbance associated with production wells and brine mixing ponds. These impacts are not expected to prevent project development

·    No official protected areas are located on or near the exploration mining concessions area

·    Not applicable for Exploration results

·    Not applicable for Exploration results

·    Not audits or reviews has been performed in Llamara