Slides
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1 January 2025 Corporate Presentation (TSX: LIRC)
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Important Disclaimers Forward-Looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may relate to Lithium Royalty Corp.’s (the “Company”, “we”, “us” or “our”) future financial outlook and anticipated events or results and may include information regarding our business, financial position, business strategy, growth plans, the reorganization of our corporate structure and strategies, budgets, operations, financial results, taxes, dividend policy, plans and objectives or information regarding the underlying owners, developers and operators of the properties covered by our royalties. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward- looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “Net Asset Value”, “NAV”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or terminology which states that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding possible future events or circumstances. The forward-looking information included in this presentation is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. These assumptions include, but are not limited to, the following: our estimates of near-, medium- and long-term commodity prices, particularly prices of lithium-related products; the accuracy of public statements and disclosures made by the owners, developers or operators of properties covered by our royalty interests, including with respect to mineral resources, mineral reserves, construction timelines, production estimates and other related matters; the economic viability of the properties and projects covered by the Company’s royalty interests; that each counterparty will satisfy its obligations in accordance with the royalty and other contract to which it is a party with the Company, as such contract is understood by the Company, and that each such contract will be enforceable in accordance with its terms; that mines in production included in our asset portfolio will continue to operate and achieve stated production estimates and anticipated recoveries; that projects not yet in production included in our asset portfolio will be developed, transitioned into production and successfully achieve production ramp-up, in each case, in accordance with our expectations; no adverse development relating to any property covered by the Company’s royalty interests; no material changes will occur with respect to our existing tax treatment; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is also subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those described under “Risk Factors” in LRC’s Annual Information Form dated March 27, 2024, and in particular risks summarized under the “Risks Related to Mining Operations” heading. Although we have attempted to identify important risk factors that could cause actual results or future events to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained in this presentation represents our expectations as of the date of this presentation (or as of the date it is otherwise stated to be made) and is subject to change after such date. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable Canadian securities legislation. Except where otherwise stated, the disclosure in this presentation relating to properties and operations on the properties covered by the Company’s royalty or other interests is based on technical reports prepared and published by the relevant owner, developer or operator of these properties and other information and data available in the public domain (except where stated otherwise), and none of such information has been independently verified by us. Although the Company does not have any knowledge that such information may be inaccurate, there can be no assurance that such third-party information is complete or accurate. Non-IFRS Measures This presentation makes reference to certain non-IFRS measures, including Adjusted EBITDA. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, the non-IFRS measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. Adjusted EBITDA is a non-IFRS financial measure, which excludes the following from net earnings: 1) income tax expense, 2) finance costs, netted against finance income, 3) depletion depreciation, and amortization, 4) impairment charges and reversals, 5) gain/loss on sale or disposition of assets/mineral interests, 6) foreign currency translation gains/losses, 7) increase/decrease in fair value of financial assets, 8) expenses related to one-time share-based compensation granted at IPO, and 9) other non-recurring income and loss. Management believes that EBITDA and Adjusted EBITDA are valuable indicators of our ability to generate liquidity by producing operating cash flow to fund working capital needs and fund acquisitions. The metrics are also frequently used by investors and analysts for valuation purposes whereby the metrics are multiplied by a factor or ‘‘multiple’’ that is based on an observed or inferred relationship between Adjusted EBITDA and market values to determine the approximate total enterprise value of a company. We believes it assists analysts, investors and our shareholders to better understand our ability to generate liquidity from operating cash flow, as we believe that the excluded amounts are not indicative of the performance of our core business and do not necessarily reflect the underlying operating results for the periods presented. The technical and scientific information contained in this presentation relating to the Finniss project was reviewed and approved in accordance with NI 43-101 by Don Hains, P. Geo. of the Hains Engineering Company Limited, a “qualified person” as defined in NI43-101. 2
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3 Table of Contents I. Lithium and the Global Energy Transition II. Lithium Royalty Corp - At a Glance III. LRC Royalty Map IV. LRC Royalty Business Model V. Value Creation / Growth Strategy VI. Net Asset Value Section Appendix A. Royalty Portfolio B. Lithium Demand
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4 Lithium Royalty Corp - At a Glance 1. As of December 31, 2024 2. Net Asset Value based on analyst consensus; see Disclaimer regarding forward looking information 3. Projected timeline only; actual experience may differ. Modelling assumptions derived from operator technical reports if avail able and/or LRC management estimates 4. Determined by the Fraser Institute Attractiveness Index C$327 million Market Cap1 C$659 million Net Asset Value2 0.5x Price to NAV1,2 35 Royalties 4 with operator market cap > C$500mm 8 Royalties Added in 2023 1 Royalty Added in 2024 7 Construction / Production3 Long Life Average LOM 17 years3 60% NAV > 20 years 7 Countries 54% NAV OECD, 49% Canada + Australia 35% Top 10, 54% Top 15 Mining Jurisdictions4 Diversification Top 3 = 44% NAV Top 10 = 85% C$6.8 million of insider buying since IPO
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5 CEO of CATL, Robin Zheng commented that the business of developing and managing “zero carbon” electric grids could be “ten times” larger than supplying electric -vehicle batteries 7 We have entered the “Lithium Age” Lithium is at the Nexus of the Energy Transition “800 kt LCE supply deficit estimated by 2030, implying 20% of demand. Prices >$20/kg LCE required over next decade to support >100 new projects needed to support demand” 6 Hyundai invests $16.7 billion in 2025 into EV development, its largest investment ever in South Korea Planned investment of $90 billion globally by the end of the decade 1 1. FT Jan 9, 2025 “Hyundai pours $16.7bn into EV development” 2. Based on Volkswagen’s media release, “Is lithium replaceable?”, May 4, 2019 3. Honda Strategy Day May 16, 2024 4. FT Oct 31, 2023 “Toyota to invest a further $8 billion in North Carolina” 5. Tesla Q3 Results October 2024 6. Based on Albemarle’s investor presentation, “2023 Strategic Update”, January 23, 2023 7. Reuters, “China’s CATL pushes beyond batteries into power grids”, November 13, 2024 Toyota is spending $13.9 billion on plant in North Carolina, one of the largest investments outside Japan 4 "Honda has not changed its belief EVs are the most effective solution in the area of small mobility” Investing $65 billion through 2031 to make EVs and FCEVs 100% of its global vehicle sales by 2040 3 “The energy storage business is growing like wildfire” Estimates energy storage deployments in 2024 could more than double compared to 2023 5
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6 • Mariana, Das Neves and Tres Quebradas projects expected to begin commercial production in 2025 • Royalty model most resilient to prolonged downturn in lithium prices compared to operators or explorers • Cash balance US$7.2M at YE 2024 • Sector seeing an influx of M&A, including from large diversified miners or OEMs such as Rio Tinto and GM • Supply curtailments across China, Australia and Zimbabwe Highlights Announced US$28M partial sale of 3Q royalty to Triple Flag, a leading precious metals streaming and royalty company • Replenishes balance sheet – pro-forma cash of US$34.9M • Daylights value – premium sale to purchase with lithium prices down 75% • Rebalances portfolio – reducing single asset exposure from 22% to 16% • Cements LRC’s ability to uncover best royalties in sector
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7 Adina Phase 1 first production, with nameplate capacity of 150,000 tonnes per annum (tpa) 2 Das Neves Tres Quebradas Modular plant ships to Brazil 2 Das Neves Mariana expected to produce first batch of products 1 20,000 LiCl capacity Mariana Catalysts H1 2025 Grota do Cirilo First production from Sigma Lithium phase 2, increasing nameplate capacity from 270,000 to 520,000 tpa 5 Mineral resource upgrade due 3 Adina H2 2025 First production phase 1 - 20,000 tpa LCE nameplate capacity 4 Anticipated Catalysts Announced by Project Operators Updated project study due 3 Grota do Cirilo Sigma guidance on commissioning of phase 3 expansion, increasing capacity to 920,000 tpa 5 Orion 2026 Damages trial for Orion litigation 1. Ganfeng 2024 Semi-annual report 2. Atlas 8k August 23, 2024 3. Winsome Resources Investor Presentation September 2024 4. Zijin 2024 semi-annual report 5. Sigma Lithium investor day September 27, 2024 Tres Quebradas Expected close of partial sale for US$28M in cash
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8 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 - 500 1,000 USD per tonne Kt LCE Cost Curve Arcadium Lithium Bid October 9, 2024 Rio Tinto announces US$6.7 billion proposed acquisition of Arcadium Lithium, a premium of 90% to Arcadium’s unaffected closing price Pricing Into Cost Curve1 Sector Update Thacker Pass Financing October 16, 2024 GM acquires 38% asset-level stake for US$625 million Closing of US$2.26 billion loan from U.S. Department of Energy’s Loan Programs Office Latin Resources Bid August 15, 2024 Pilbara Minerals announces agreement to acquire Latin Resources at an implied 67% premium Majors Committing to Lithium Supply Being Curtailed CATL Supply September 11, 2024 CATL reportedly suspends its Jiangxi lepidolite mine; analysts estimate ~5% of global, ~20% of Chinese primary supply in 2025 Sinomine Supply October 1, 2024 Sinomine partially suspends petalite mining at its Zimbabwe Bikita lithium project Spot Price Pilbara Supply October 30, 2024 Pilbara places its 150,000 tpa Ngungaju spodumene plant into care & maintenance Mt Marion Supply October 30, 2024 Mineral Resources defers underground development of Mt Marion, places Bald Hill into C&M 1. Source: Benchmark Minerals Intelligence Q3 2024 2. Spot LCE = US$10,343/t as of December 31, 2024 3. Bloomberg News November 15, 2024 Arcadium September 2024 investor day highlighted 100kt of oversupply in 2024 MS estimates 99kt of supply cuts announced in 2024 as per November 5, 2024 note Zinbabwe miners asked for royalty relief and subsidized power 3
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9 LRC Royalty Map 1. Net of Altius’ 10% indirect interest in the royalty; Altius has no interest in the second acquisition LRC made of a 0.5% GOR on Tres Quebradas 2. Interest on the Lithium Springs project is an option, exercisable until March 1, 2025 3. Based on latest technical report disclosed by operator; Tres Quebradas based on Zijin 2023 Annual Report 4. As of December 31, 2024 Best-In-Class Operating Partners US$5,518M / A$163,380M US$8,784M C$1,799M A$191M US$53,550M A$122M A$312M A$97M US$97MMarket Capitalization 4 Operator Asset LRC Royalty Currency Stated Nameplate 3 LCE (ktpa) 1 Arcadium Mt. Cattlin A$1.5/t AUD 119ktpa SC5.3 16 2 Core Lithium Finniss 2.50% USD 175ktpa SC5.8 25 3 Sigma Lithium 1 Grota do Cirilo 0.90% USD 768ktpa SC5.5 104 4 Zijin Mining 1 Tres Quebradas 1.40% USD 50ktpa LCE 50 5 Ganfeng 1 Mariana 0.45% CAD 20ktpa LiCl 17 6 Atlas Das Neves 3.00% USD 7 Sinova Global Horse Creek 8.00% USD 8 GT1 Seymour 1.00% USD 207ktpa SC5.5 28 9 Arcadium Galaxy 0.85% USD 321ktpa SC5.6 44 10 Winsome Adina 3.00% USD 282ktpa SC5.5 38 11 Winsome Adina.NSR 1.50% USD 12 Sayona Moblan 2.50% USD 300ktpa SC6 45 13 Grid Donner Lake 2.00% USD 14 Delta Lithium Yinnetharra 1.00% USD 15 M4E Whitebushes 1.50% USD 16 Winsome Cancet 4.00% USD 17 Winsome Cancet.NSR 0.70% USD 18 Morella Mallina 1.50% USD 19 Noram Zeus 1.00% USD 32ktpa LCE 32 20 GT1 Root 1.00% USD 207ktpa SC5.5 28 21 Larvotto Eyre 1.00% USD 22 Power Metals Case Lake 2.00% USD 23 EuroLithium Valjevo Various USD 24 Winsome Sirmac 4.00% USD 25 Sayona Tansim 1.50% USD 26 Lithium Springs 2 Lithium Springs 1.50% USD 27 Bradda Head Basin E&W 2.00% USD 28 Grid Campus Creek 2.00% USD 29 ACME Shatford Lake 2.00% USD 30 Morella Tabba Tabba 1.25% USD 31 Morella Mt Edon 1.25% USD 32 GT1 Wisa 1.00% USD 33 Arvo Kaustinen 1.25% USD 34 Q2 Metals Mia 0.85% USD 35 Pinnacle Minerals Adina East 2.00% USD HORSE CREEK Sinova Global ZEUS LITHIUM Noram Lithium BASIN E & W / WIKIEUP Bradda Head SHATFORD LAKE / CAT-EUCLID LAKE ACME Lithium CAMPUS CREEK Grid Metals DONNER LAKE Grid Metals SEYMOUR LAKE Green Technology ROOT LAKE Green Technology WISA LAKE Green Technology TANSIM Sayona MOBLAN Sayona 2X CANCET Winsome Resources 2X ADINA Winsome Resources SIRMAC-CLAPIER Winsome Resources MARIANA Ganfeng 1 TRES QUEBRADAS Zijin Mining 1 GROTA DO CIRILO Sigma Lithium 1 VALJEVO Euro Lithium YINNETHARRA Delta Lithium MT. CATTLIN Arcadium MALLINA Morella TABBA TABBA Morella MT EDON Morella FINNISS Core Lithium LITHIUM SPRINGS Lithium Springs EYRE Larvotto KAUSTINEN / ILMAJOKI Arvo Lithium GALAXY Arcadium DAS NEVES Atlas Lithium CASE LAKE Power Metals ADINA EAST Pinnacle Minerals MIA Q2 Metals Production Development Exploration and Evaluation WHITEBUSHES / MT. ELEPHANT M4E Lithium
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10 Enhanced protection through GORs Higher grade, lower cost projects Conventional resource focus Advantages of LRC Royalty Business Model 1. Each corporate and portfolio acquisition is counted as a single acquisition; numbers for other royalty companies are presented a s of the effective date of the most recently available financial results Pure-Play Battery Metal Royalty Company With Differentiated Lithium Exposure LRC Lithium Developers Precious Metal Royalty Companies Direct Cost Exposure Diversified Asset Concentration ? Exposure to Commodity Prices Project Expansion Secular Growth Dynamic “First Look” Lithium Pipeline ESG / Decarbonization Thematic Favourable Government Policies Acquisition Cadence 1 Top-tier jurisdictions (55% NAV OECD) Diversification Hardrock bias: lower capex and ramp-up timelines ✓ ✓ ✓ ✓ ✓ ✓ Risk Management Royalty Structure No capital inflation exposure Easy to scale High-margins and free cash conversion provides options on capital allocation decisions Limited competition to date Proprietary deal flow Full partnerships with project developer management teams LRC Optionality: asset expansion, extension, commodity price Capital light Multi-project ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ In-house sector leading IP Outsized optionality for free Diversified, high-grade, low- cost, long-life assets 2018 2019 2020 2021 2022 2023 2024 Average Annual Franco Nevada 4 6 5 5 9 14 13 8 Wheaton Precious Metals 3 0 2 3 4 8 4 3 Royal Gold 2 2 2 2 5 3 2 3 Triple Flag 5 4 2 4 5 5 3 4 Osisko Gold Royalties 3 1 3 9 5 4 2 4 Sandstorm 1 2 0 9 4 1 0 2 Average 3 3 2 5 5 6 4 4 LRC 3 1 0 11 12 8 1 5
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11 Hard-Rock Focused Mineral Resource Base 11 Long-Life Asset Base 2 Assets by Operator Diversified Asset Base / Supply Chain Exposure in Favourable Jurisdictions1 Broad-Based Supply Chain Exposure 2023 Revenue by Region 1. Relative weighting based on analyst consensus NAV estimates 2. Expected figures based on internal management assessment and discussions with operators and third -party consultants; see Disclaimer regarding forward looking information Assets by Stage Today >20 Years 59% 10-20 Years 34% <10 Years 7% Australia 91% South America 9% Production 16% Development 37% Evaluation and Exploration 47% Canada 38% Argentina 29% Brazil 12% Australia 11% United States 5% Europe 5% Spodumene 53%Brine 29% Clay 9% Silica Quartz 9% Zijin 22% Winsome 16% Sigma 9% Sinova 9% Sayona 6% Core 6% Atlas 5% Ganfeng 5% Arcadium 1% Other 21%
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12 Illustrative Royalty Revenue Sensitivity 1. Finniss placed in Care & Maintenance June 2024; Arcadium announced plans to place Mt. Cattlin in C&M by H2 2025 2. Processing plant ore capacity per Allkem June 30, 2023 Technical Report 3. Includes Phase 1-3 production per January 16, 2023 Technical Report 4. Zijin Mining Annual Report 2023 5. Ganfeng Lithium Annual Report 2022; 87% factor to convert LiCl to LCE 6. Atlas Lithium Press Release December 4, 2023 7. Winsome Resources September 2024 Scoping Study 8. Core Lithium DFS July 2021; Open pit mining currently suspended 9. Assumes US Silica Holdings 2023 ASP of $89.31/t per February 27, 2024 10-K 10. Sayona Moblan DFS February 20, 2024; LRC royalty covers Sayona attributable production (60%); 2.1% effective GOR rate based on varying applicable LRC royalty rates on Moblan 11. Arcadium James Bay DFS January 2022; assumes Arcadium exercises buyback and that mining occurs on the portion of claims subject to LRC royalty at project nameplate production 12. Grid Metals Press Release October 25, 2023 13. GT1 PEA December 6, 2023 14. Information based on internal management assessment and discussions with operators and third-party consultants; see Disclaimer regarding forward looking information 15. Sigma NSR is subject to deductions; 0.7% used as estimated equivalent GOR rate 16. Realized price would be impacted by actual grade and purity of product delivered by project operator 17. LCE calculated assuming SC6 sells for 9% of chemicals price Illustrative Royalty Revenue (US$M) at Nameplate Production 1 3 3 5 2022 2023 2024 2025 Expected Revenue Contributing Projects1 Assumptions SC6 Price (US$/ tonne )16 Nameplate (t) Grade1 4 Royalty Rate 750 1,000 1,250 1,500 1,750 2,000 Mt. Cattlin 1,800,0002 N/A A$1.5/t ore $1.8 $1.8 $1.8 $1.8 $1.8 $1.8 Grota do Cirilo 776,0003 5.5% 0.9%15 $3.7 $5.0 $6.2 $7.5 $8.7 $10.0 Tres Quebradas 50,0004 N/A 1.4% $5.8 $7.8 $9.7 $11.7 $13.6 $15.6 Mariana 17,4005 N/A 0.5% $0.7 $0.9 $1.1 $1.3 $1.5 $1.7 Das Neves 300,0006 5.50% 3.00% $6.2 $8.3 $10.3 $12.4 $14.4 $16.5 Adina 282,0007 5.50% 4.0% $7.8 $10.3 $12.9 $15.5 $18.1 $20.7 Finniss 175,0008 4.8% 2.5% $2.6 $3.5 $4.4 $5.3 $6.1 $7.0 Horse Creek 300,0009 N/A 8.0% $2.1 $2.1 $2.1 $2.1 $2.1 $2.1 Moblan 180,00010 6.0% 2.1% $2.8 $3.8 $4.7 $5.7 $6.6 $7.6 Galaxy 311,00011 5.6% 1.0% $2.2 $2.9 $3.6 $4.4 $5.1 $5.8 Donner Lake 75,00012 5.5% 2.0% $1.0 $1.4 $1.7 $2.1 $2.4 $2.8 Seymour 207,00013 5.5% 1.0% $1.4 $1.9 $2.4 $2.8 $3.3 $3.8 Root 207,00013 5.5% 1.0% $1.4 $1.9 $2.4 $2.8 $3.3 $3.8 Yinnetharra TBD TBD 1.0% - - - - - - Total $39.6 $51.5 $63.4 $75.3 $87.2 $99.1
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13 8.5 (1.57%) 45.2 (1.43%) 4.4 (1.55%) 49.1 (1.43%) 0.6 (1.47%) 14.6 (1.43%) Royalty Acquisition³ Current ⁴ Measured Indicated Inferred Exceeded underwriting assumptions via Asset Expansion / Extension / Commodity Price Inflation 33,000 1 04,000 April 20 19¹ Current² 13 GROTA DO CIRILO ANNUAL PLANNED PRODUCTION GROWTH 1 Organic Value Creation Sigma Lithium’s market cap increased from $104 million to $2 billion from time of royalty acquisition to today GROTA DO CIRILO MINERAL RESOURCE GROWTH Royalty Optionality / Organic Growth Lithium Production (tpa of LCE) (millions of tonnes, % of Li2O) 1. Based on a September 16, 2019 Technical Report “Grota do Cirilo Lithium Project, Araçuaí and Itinga, Brazil, Technical Report”, 2. Based on January 16, 2023 Grota do Cirilo Technical Report. Mineral Resources are reported inclusive of Mineral Reserves 3. Based on January 29, 2018 Technical Report “Northern and Southern Complexes Project, Araçuaí and Itinga, Brazil, Technical Report” 4. Based on March 19, 2024 Technical Report 3.2x increase from royalty acquisition 8.1x increase from royalty acquisition
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14 Primary Royalties • Acquired from companies as financing • Typically earlier stage when conventional capital is not available • LRC IP and network sources these “first look” opportunities • Competition is limited Secondary Royalties Royalty Acquisitions • Acquired from prior resource owners (prospectors or resource developers) • LRC is competing with project operators trying to buy back royalty, if they are capitalized to pursue as well as develop project • Option to pay with LRC shares offers competitive advantage over operators: 1. Tax deferral 2. Multi-project exposure 3. Continued royalty or top-line exposure 1 2 14 LRC targets double digit returns on conservative underwriting assumptions
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15 Asset Operator LRC Royalty Country Announcement Mt Cattlin A$1.5/t Treated Suspension of expansionary investment, placing the site in Care & Maintenance by the end of 1H 20251 Rio Tinto announced agreement to acquire Arcadium Lithium Grota do Cirilo 0.9% NSR2 Achieved phase 1 annual nameplate production of 270,000 tonnes3 FID approved for phase 2 production, binding commitment from BNDES to fully fund construction Finniss 2.50% GOR Updated mineral reserve to 9.3Mt at 1.38% Li2O4 Temporarily suspended mining operations. Restart studies underway, expect release in mid-20254 Moblan 2.50% - 1.50% GOR Updated mineral resource (MRE) from 49.9Mt measured and indicated at 1.2% Li2O to 65.1Mt at 1.3%5 Definitive Feasibility Study released for 300,000 tonnes annual production at 6% Li205 Adina 4.00% GOR Maiden MRE, upgraded to 61.4 Mt measured and indicated at 1.14% and 16.5 Mt inferred at 1.19% Li206 Exclusive option to acquire Renard - 2.2M tonne plant and C$900M of invested capital by prior owner Scoping Study released for 282,000 tonnes annual production at 5.5% Li2O Yinnetharra 1.00% GOR Maiden MRE of 19.0 Mt measured and indicated and 6.7 Mt inferred at 1.0% Li207 Mineral Resources (ASX: MIN) 17% shareholder, 2 board seats Das Neves 3.00% GOR Announced secured funding to first production of 150,000 tpa, targeted Q1 2025 Received operational permit for its first lithium mine and processing plant8 Root Lake 1.00% GOR Maiden MRE9, later upgraded to 9.4 Mt indicated at 1.3% and 5.2 Mt inferred at 1.0%10 Cam Henry joined as board member and subsequently Managing Director Donner Lake 2.00% GOR Maiden MRE of 6.8 Mt inferred at 1.39% Li2011 Scoping study released for True North Mill reconfiguration12 Seymour/Root Lake 1.00% GOR Preliminary Economic Assessment released, average annual production of 207,000 tonnes at 5.5% Li2013 Letter of Interest from Export Development Canada, to provide up to C$100M in project financing13 Project Highlights 1. Arcadium Press Release September 4, 2024, October 7, 2024 2. Net of Altius’ 10% indirect interest in the royalty 3. Sigma Lithium Press Release October 2, 2023, April 1, 2024, August 29, 2024 4. Core Lithium Press Release July 14, 2024, September 25, 2024 5. Sayona Mining Press Release February 20, 2024, August 27, 2024 6. Winsome Resources Investor Presentation September 2024 7. Delta Lithium Press Release December 27, 2023 8. Atlas Lithium Press Release December 4, 2023, October 28, 2024 9. Green Technology Metals Press Release June 7, 2023 10. Green Technology Metals Press Release October 17, 2023; June 20, 2024 11. Grid Metals Press Release July 18, 2023 12. Grid Metals Press Release October 25, 2023 13. Green Technology Metals Press Release December 7, 2023, December 23, 2024
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16 LRC Sues ORP ORP refuses to close, LRC sues for specific performance Sale to Trident ORP sells 60% of its royalty to Trident, frustrating its deal with LRC Court Rules for LRC Ontario Court rules that a binding contract was reached between ORP and LRC Injunction Granted Ontario Court grants injunction restricting ORP from transferring remaining 40% interest in the royalty Remedies Trial Damages trial expected in 2026 Orion Resource Partners Litigation Agreement Orion Resource Partners (ORP) and LRC agree terms for 85% of ORP’s royalty on Thacker Pass Jan 2021 Feb 2021 Mar 2021 2026Aug 2023 Dec 2023 Thacker Pass Technical Report December 2024 Phase 1 Production 40,000 tpa LCE Phase 2 Production 40,000 tpa LCE Phase 3 Production 40,000 tpa LCE Phase 4 Production 40,000 tpa LCE Total Production 160,000 tpa LCE DFS Lithium Price 24,000 $/t LCE Life of Mine 85 Years Operating Cost 8,039 $/t LCE Net Royalty Rate (100%) 1.75% GOR
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17 LIRC1 TSX Shares Outstanding 55.6M Fully Diluted Shares Outstanding 56.0M Share Price C$5.89 1 Market Cap US$227M 1 Cash US$7.2M 2 Debt $0 Corporate Snapshot Analyst Coverage 1. As of December 31, 2024 FX USDCAD = 1.4384 2. As of December 31, 2024 3. Average of available analyst NAV estimates P/NAV3 Consensus Franco-Nevada 2.0x Wheaton Precious Metals 2.2x Royal Gold 1.9x Triple Flag 1.6x Osisko Royalties 1.3x Sandstorm 1.1x Altius Minerals 1.1x Altius Renewables 1.0x Lithium Royalty 0.5x Waratah Royalty Capital Funds 52% Riverstone 29% Public Shareholders 16% Management & Board 3%
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18 Ernie Ortiz President & Chief Executive Officer • London Metal Exchange Lithium Advisory Committee member • Former Analyst at US hedge fund specialized in lithium, battery materials and specialty chemicals • Former Associate at Credit Suisse, leading research on lithium Blair Levinsky Executive Chair • Co-Founder, President, and CEO at Waratah, an alternative Toronto based asset manager with over $4 billion under management across market neutral, equity long short, alternative ESG, income, thematic, and specialty private equity • Former Managing Director at TD Securities • LLB / MBA Mark Wellings Vice Chair & Executive Vice President, Technical • Over 30 years of international experience in mining industry and mining finance sector • Former Managing Director of Investment Banking at GMP Securities L.P • Director on the board of Li-Cycle • Geological Engineer Advisors Management Team Philip Panet Vice President, Legal & Chief Operating Officer • General Counsel at Waratah • Former Chief Operating Officer and General Counsel at West Face Capital Matt Juneau Senior Technical Advisor • Spent over 30 years at Albemarle • Former EVP, Corporate Strategy and Investor Relations from 2015 until his retirement Don Hains Senior Technical Advisor • President of Hains Engineering • 30+ years of mining experience • Qualified Person as defined by NI 43-101 Constantine Karayannopoulos Senior Technical Advisor • Former President and CEO of Neo Performance Materials • Prior Chairman of Neo Lithium Corp • Former CEO of Neo Material Technologies from 2005 until acquired in 2012 for C$1.3 billion Alan Lenczner Senior Legal Advisor • Practiced litigation 1969-2019 • Founding Partner Lenczner Slaght LLP • Member of the OSC 2013-2017 • Former director on the board of Hudbay Minerals Dominique Barker, CPA Chief Financial Officer & Head of Sustainability • Former Head of Sustainability Advisory at CIBC Capital Markets • Experience in portfolio management, investment banking, research, institutional equity sales, audit and corporate advisory Cameron Henry Senior Technical Advisor • Former Managing Director of Primero • Global expert on lithium mining and processing Rob Weir Vice President, Corporate Development • Prior Head of Sales and Trading, Stifel Canada • Early LP investor in LRC, driven by an interest in lithium though Stifel’s coverage of the electric vehicle thematic
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19 Elizabeth Breen Lead Independent Director • Chief Legal Officer at Manara Minerals • Former Senior Partner, Stikeman Elliott LLP • Extensive experience in royalty transactions, mergers & acquisitions, financings and private equity transactions Ernie Ortiz President & Chief Executive Officer • London Metal Exchange Lithium Advisory Committee member • Former Analyst at US hedge fund specialized in lithium, battery materials and specialty chemicals • Former Associate at Credit Suisse, leading research and due diligence on lithium Jesal Shah Independent Director • Managing Director, Riverstone Holdings LLC • Former banker at Credit Suisse involved with M&A and capital markets advisory for power, utilities, and renewables • 8+ years of public company board experience Blair Levinsky Executive Chair • Co-Founder, President, and CEO at Waratah, an alternative Toronto based asset manager with over $4 billion under management across market neutral, equity long short, alternative ESG, income, thematic, and specialty private equity • Former Managing Director at TD Securities • LLB / MBA Mark Wellings Vice Chair & Executive Vice President, Technical • Over 30 years of international experience in both mining industry and mining finance sector • Former Managing Director of Investment Banking at GMP Securities L.P • Director on the board of Li-Cycle • Geological Engineer 19 Board of Directors John Kanellitsas Independent Director • Executive Chair of Lithium Americas Argentina • Over 25 years of experience in the investment banking and asset management industries • Co-founded Geologic Resource Partners, LLP Tamara Brown Independent Director • Director at Orla Mining Ltd. and 29Metals Ltd. • Over 25 years experience in mining, capital markets and M&A sectors • 10 years of public and private company board and committee experience
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20 Argentina Increasing currency strength 2Dramatic inflation decrease 1 Improving country risk 1 Exchange controls “without a doubt” to be lifted next year, per Finance minister Caputo 2 • Spread between official exchange rate and black-market rate is now just 5% • Milei approval rating continues to hold strong • 2.7% in Oct 2023, from 25.5% in Dec 2023 • Spread over US 10Y bonds has come in dramatically, to 746 bps as of Nov 2024 from 2,719 bps in Oct 2023 1. Source: Banco Supervielle 2. “Argentina: has Javier Milei proved his critics wrong?”, Financial Times December 9, 2024
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21 21 Integrated sustainability investment process • Focus on sustainable resource extraction • Use of renewable power in extraction and processing • High grade focus = less waste and energy use • Infrastructure benefits to remote communities • Environmental and economic impact on local communities • Water use • Surface disruption and remediation plans as well as tailings management Lithium Royalty Corp. is a signatory of The Principles for Responsible Investment (PRI) supported by the United Nations. Decarbonization through electrification • Greenhouse gases (GHG) from transportation account for 24% of total global emissions1 • WHO attributes air pollution the largest environmental health risk contributing 3.7 million deaths per year2 • Full lifecycle emissions of an electric vehicle (EV) (taking into consideration total emissions from battery material extraction and processing) are 50% lower than internal combustion engines (ICE), with the potential for a further 25% reduction as the grid transitions to low-carbon electricity 3 • Daimler predicts advances in battery manufacturing will contribute a further 30% reduction in GHG4 Our Objective: Enable Decarbonization 1. IEA, “Greenhouse Gas Emissions from Energy Data Explorer”, November 2021 2. Economist, “The death of the internal combustion engine”, August 12, 2017 3. IEA, “The Role of Critical Minerals in Clean Energy Transitions”, May 2021 4. Financial Times, “Electric cars’ green image blackens beneath the bonnet”, November 8, 2017 Rock to road analysis shows EV emissions superior to ICE 3 19 .7 2 1.1 4 1.9 Base High-GHG Minerals BEV ICE tCO2e per Vehicle Lifetime
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22 Lithium Price History ($USD)1 1. As of December 31, 2024 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Jan-2018 Nov-2018 Sep-2019 Jul-2020 May-2021 Mar-2022 Jan-2023 Nov-2023 Sep-2024 Benchmark Minerals Asia Lithium Carbonate (LCE) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Jan-2018 Nov-2018 Sep-2019 Jul-2020 May-2021 Mar-2022 Jan-2023 Nov-2023 Sep-2024 Benchmark Minerals Asia Lithium Hydroxide $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Jan-2018 Nov-2018 Sep-2019 Jul-2020 May-2021 Mar-2022 Jan-2023 Nov-2023 Sep-2024 Benchmark Minerals Australia Spodumene (SC6) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Jan-2018 Nov-2018 Sep-2019 Jul-2020 May-2021 Mar-2022 Jan-2023 Nov-2023 Sep-2024 Asian Metal China Lithium Carbonate (China Spot LCE)
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Appendix A: Royalty Portfolio
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24 24 Expressed in 000’s of $US Q3 2024 Q2 2024 Q1 2024 Q4 2023 Royalty income 224 1,549 631 1,013 Depletion (94) (210) (142) (278) Gross profit 130 1,339 489 735 Gross profit % 58% 86% 77% 73% General, administrative and management expense (1,427) (1,515) (1,729) (1,430) Adjusted EBITDA1 (1,099) 138 (662) (694) Net income (Loss) (1,653) 317 (1,045) (825) (Loss) earnings per share (EPS) $(0.03) $0.01 $(0.02) $(0.02) Income Statement Highlights 1. Adjusted EBITDA is not calculated in accordance with IFRS. For a reconciliation to the most directly comparable measure prepared in accordance with IFRS, see ‘Reconciliation to IFRS Measures’ in this presentation
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25 DFS - Definitive Feasibility Study Current Royalty Portfolio 1. Net of Altius’ 10% indirect interest in the royalty; Altius has no interest in the second acquisition LRC made of a 0.5% GOR on Tres Quebradas 2. See detailed description in the IPO prospectus dated March 8, 2023 3. 2.5% of gross revenues for the first 1.0 Mtpa and 1.5% of gross revenue for any tonne of ore produced thereafter on Sayonas attributable production 4. Certain tenements comprising the property are assessed at 3.0% of quarterly gross revenues 5. Interest on the Lithium Springs project is an option, exercisable until March 1, 2025 Asset Operator LRC Royalty Name Country Type Product Stage Report (%) 1 Arcadium A$1.5/t Treated Mt. Cattlin Australia Hard Rock Spodumene Production FS 2 Sigma Lithium 1.00% NSR1 Grota do Cirilo Brazil Hard Rock Spodumene Production FS 3 Zijin Mining 1.00% GOR1 Tres Quebradas Argentina Brine Carbonate Development FS 4 Ganfeng 0.50% NSR1 Mariana Argentina Brine Chloride / Carbonate Development PEA 5 Sinova Global 8.00% - 4.00% GOR2 Horse Creek Canada Silica Quartz Silica Quartz Development FS 6 Atlas Lithium 3.00% GOR Das Neves Brazil Hard Rock Spodumene Development - 7 Core Lithium 2.50% GOR Finniss Australia Hard Rock Spodumene Exploration and evaluation DFS 8 Sayona Mining 2.50% - 1.50% GOR3 Moblan Canada Hard Rock Spodumene Exploration and evaluation DFS 9 Sayona Mining 2.00% NSR Tansim Canada Hard Rock Spodumene Exploration and evaluation IGR 10 & 11 Euro Lithium Various2 Valjevo Serbia Clay Carbonate / Boric Acid Exploration and evaluation PEA 12 & 13 Winsome Resources 4.00% GOR4 & 1.00% NSR Cancet Canada Hard Rock Spodumene Exploration and evaluation IGR 14 Winsome Resources 4.00% GOR4 & 2.00% NSR Adina Canada Hard Rock Spodumene Exploration and evaluation PEA 15 Winsome Resources 4.00% GOR Sirmac-Clapier Canada Hard Rock Spodumene Exploration and evaluation IGR 16 Grid Metals 2.00% GOR Donner Lake Canada Hard Rock Spodumene Exploration and evaluation MRE 17 Grid Metals 2.00% GOR Campus Creek Canada Hard Rock Spodumene Exploration and evaluation - 18 Lithium Springs5 1.50% GOR Lithium Springs Australia Hard Rock Spodumene Exploration and evaluation - 19 Noram Lithium 1.00% GOR Zeus United States Clay Carbonate Exploration and evaluation PEA 20 Bradda Head 2.00% GOR Basin E & W / Wikieup United States Clay Hydroxide Exploration and evaluation MRE 21 ACME Lithium 2.00% GOR Shatford Lake / Cat-Euclid Lake Canada Hard Rock Spodumene Exploration and evaluation - 22 Red Dirt 1.00% GOR Yinnetharra Australia Hard Rock Spodumene Exploration and evaluation MRE 23 Morella 1.50% GOR Mallina Australia Hard Rock Spodumene Exploration and evaluation - 24 Morella 1.25% GOR Tabba Tabba Australia Hard Rock Spodumene Exploration and evaluation - 25 Morella 1.25% GOR Mt Edon Australia Hard Rock Spodumene Exploration and evaluation - 26 Green Technology 1.00% GOR Seymour Lake Canada Hard Rock Spodumene Exploration and evaluation PEA 27 Green Technology 1.00% GOR Root Lake Canada Hard Rock Spodumene Exploration and evaluation PEA 28 Green Technology 1.00% GOR Wisa Lake Canada Hard Rock Spodumene Exploration and evaluation - 29 Larvotto 1.00% GOR Eyre Australia Hard Rock Spodumene Exploration and evaluation - 30 Arvo Lithium 1.25% GOR Kaustinen / Ilmajoki Finland Hard Rock Spodumene Exploration and evaluation - 31 Arcadium 1.00% NSR Galaxy (formerly James Bay) Canada Hard Rock Spodumene Exploration and evaluation FS 32 Power Metals 2.00% GOR Case Lake Canada Hard Rock Spodumene Exploration and evaluation - 33 Pinnacle Minerals 2.00% GOR Adina East Canada Hard Rock Spodumene Exploration and evaluation - 34 Q2 Metals 1.00% NSR Mia Canada Hard Rock Spodumene Exploration and evaluation - 35 M4E Lithium 1.50% GOR Whitebushes / Mt. Elephant Brazil Hard Rock Spodumene Exploration and evaluation - IGR – Independent Geologist’s ReportFS - Feasibility Study PEA - Preliminary Economic Assessment MRE - Mineral Resource Estimate
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26 Spodumene Portfolio Resource Growth 1. Based on operator technical reports; assumes LRC royalty covers 15% of total resource at Galaxy 2. Includes measurand and indicated (M+I) and inferred (Inf) resources 0 50 100 150 200 250 300 350 400 450 2018 2019 2020 2021 2022 2023 2024 Resource (Mt) Mt Cattlin - M+I Mt Cattlin - Inf Grota do Cirilo M+I Grota do Cirilo - Inf Finniss - M+I Finniss - Inf Moblan - M+I Moblan - Inf Seymour - M+I Seymour - Inf Root - M+I Root - Inf Galaxy - M+I Grid - Inf Adina - M+I Adina - Inf Yinnetharra - M+I Yinnetharra - Inf
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27 Shaakichiuwaanaan Galaxy Grota do Cirilo Kings Mountain NAL PAK-SPARK Whabouchi Salinas Moblan Carolina Rose Itinga Mibra Authier Root Seperation Rapids Georgia Lake Seymour Thompson Brothers Tanco Zoro Sirmac Adina 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 0 20 40 60 80 100 Grade (Li2O) M+I Mineral Resource (Mt) North and South America Lithium Hardrock Projects 1. Bubble size equated to contained Li2O (Mt) for entire project 2. MRE data as of November 29, 2024 from corporate disclosure of NI 43-101, JORC 2012, or publicly available information 3. Only includes Measured + Indicated mineral resources LRC Royalty Mine in Production (formerly Corvette) (formerly James Bay)
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Reconciliation to IFRS Measures 28 Adjusted EBITDA Expressed in 000’s of $US Q3 2024 Q2 2024 Q1 2024 Q4 2023 Net (loss) income (1,653) 317 (1,045) (825) Income taxes (recovery) expense (713) 284 (163) (653) Net finance loss (income) 1 (34) (62) (54) Depletion 94 210 142 279 EBITDA (2,271) 777 (1,128) (1,253) Foreign exchange loss (gain) 5 7 30 (44) One time IPO share-based compensation 104 104 436 603 Impairment expense 1,063 - - - Other non-recurring income - 750 - - Adjusted EBITDA (1,099) 138 (662) (694)
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Appendix B: Lithium Demand
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30 Lithium Demand Overview EVs use ~6x more minerals than conventional vehicles 1 Growth of selected minerals, 2040 relative to 2020 1 Sustainable Development Scenario (SDS) Lithium is the unrivalled charge carrier for electrification 2 Lithium will in the near future be one of the most sought-after raw materials on earth.3 Lithium: The fastest-growing mineral, driven by surging EV deployment.1 While other minerals used in EVs are subject to uncertainty around different chemistry choices, lithium demand is relatively immune to these risks, with additional upsides if all-solid- state batteries are widely adopted. Additional Sources of Lithium Demand Larger batteries Silicon anodes Solid-state electrolytes Lithium metal anodes Growth in energy storage installations 1. IEA, “The Role of Critical Minerals in Clean Energy Transitions”, May 2021 2. Based on Volkswagen’s media release, “L is for Lithium-Ion Battery”, August 5, 2019 3. Based on Volkswagen’s media release, “Is lithium replaceable?”, May 4, 2019 Index (2020 = 1) - 50 10 0 15 0 200 250 300 Glider EV Motor + Generator Battery - NCA Battery - NCA+ Battery - NMC 333 Battery - NMC 532 Battery - NMC 622 Battery - NMC 81 1 Bat t ery - LFP Bat t ery - LMO Glider IC Engine + Powert rain BEVICE kg per Vehicle Copper Lit hium Nickel Manganese Cobalt Graphit e REEs 42x 25x 2 1x 19 x 8x 7x 3x Lit hium Graphit e Cobalt Nickel Manganese R are Eart hs Copper Lithium demand is expected to grow by 42x
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31 3 7 11 14 17 22 26 30 35 40 45 50 55 60 64 69 73 77 80 84 88 0 10 20 30 40 50 60 70 80 90 2020 2025 2030 2035 2040 Millions of Units U.S. China Europe India Ro W Electric Vehicle Model Availability 1 (# of Models Available) Global Electric Vehicle Sales Projections 2 Demand Fundamentals Support Robust Lithium Growth Profile Cumulative Energy Storage Installations are Accelerating 4 (in GW) 0 200 400 600 800 1,000 1,200 2020 2025 2030 2035 2040 South Korea Japan United Kingdom Australia France Latin America Germany India Southeast Asia United States Other China Lithium Market as a Whole 5 Lithium Market Supply / Demand Balance 3 (kt LCE) 1. BloombergNEF Electric Vehicle Models 2. Electric Vehicle Outlook 2022. BloombergNEF, June 2022. Passenger and Commercial Vehicles 3. Wood Mackenzie Global Lithium Investment Horizon Outlook, Q4 2023 4. BloombergNEF, 2H 2022 Global Energy Storage Market Outlook (October 2022) 5. LG Energy Solution Q4 2023 Earnings Conference Call, Fastmarkets 30% 24% 44% 27% 11% 9% 27% 0 100 200 300 400 500 600 700 2018 2019 2020 2021 2022 2023 2024 BEV PHEV YoY Growth - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Operating Base case expansion/projects Probable Reprocessing Possible Recycling
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32 32 OPERATIONAL PLANT PROJECT IN PROGRESS OPERATIONAL PILOT LINE OR IN -PROGRESS NORTH AMERICA EUROPE Expected Global Lithium Demand of: 2.7 Mt LCE in 2030 1 Expected Global EV Battery Demand of: 3.2 TWh in 2030 (~2.5M – 2.9Mt LCE) 2 Battery Plants Expected to Come Online in Europe and North America Source: IEA 1. Based on IEA’s “The Role of Critical Minerals in Clean Energy Transitions”, May 2021 2. Based on IEA’s “Global EV Outlook 2022”, May 2022. Assuming 0.8 - 0.9kg LCE/kWh
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33 33 Thank You Jonida Zaganjori Vice President, Investor Relations jonida@lithiumroyaltycorp.com Rob Weir Vice President, Corporate Development rob.weir@lithiumroyaltycorp.com