Exploring for high-grade critical rare earth elements and uranium in Canada - November 2019 A Clean Energy Company - Appia Energy Corp.
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November 2019
A Clean Energy Company
Exploring for high-grade critical rare earth
elements and uranium in Canada
CSE:API CSE:API | OTCQB:APAAF | Germany:A0I.F, A0I.MU, A0I.BE
appiaenergy.ca 1
Disclaimer Forward Looking Statement This presentation contains forward-looking statements which may include but are not limited to statements with respect to the future financial or operating performance of Appia and its projects, the future price of uranium, capital operating and exploration expenditures, success of exploration activities, permitting timelines, government regulation and environmental risks and costs. Appia has tried to identify these statements by using words such as "plans", "proposes", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are not based on historical facts and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or events, to be materially different from any future results, performance, achievements or events express or implied by the forward-looking statements. These forward-looking statements reflect current expectations of management regarding future events and performance. Such forward-looking statements are based on a number of assumptions which management believes to be reasonable but may prove to be incorrect and involve significant risks, including but not limited to: the general risks associated with the mining industry, lack of operating history, dependence on key personnel, conflicts of interest, the need to raise additional capital, title to properties, competition, speculative nature of the business, acquiring additional properties, uninsured risks, external market factors, government regulation, environmental regulations, exploration risk, calculation of resources, insufficient resources, barriers to commercial production, maintaining property interests, commodity prices, exchange rates, lack of dividends, lack of public trading market, currency risk and controlling shareholder. Although Appia has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Anyone reviewing this Site should not place undue reliance on forward- looking statements. While the Company anticipates that subsequent events and developments may cause its views to change, Appia specifically disclaims any obligation to update these forward-looking statements, except as required by law. The factors identified above are not intended to represent a complete list of the factors that could affect the Company. Qualified Person The technical information in this Presentation has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The information was reviewed and approved by Mr. Thomas Skimming, P.Geo, P.Eng, a Director of Appia Energy Corp. and a Qualified Person as defined by NI 43-101 Standards. CSE:API appiaenergy.ca 2
Why Appia Energy?
Appia is a leading Canadian REE and uranium explorer with a large NI 43-101 REE & uranium resource
Award-Winning • Technical team is directed by renowned geologist James Sykes, who has been involved
Exploration Geologist with the discovery and delineation of over 550M lbs of uranium in the Athabasca Basin
• Over 600 km2 of highly prospective REE and uranium exploration ground
Exploring the Prolific
around the Basin. Saskatchewan is ranked as the best mining jurisdiction in
Athabasca Basin
Canada and number three worldwide
World-Class REE • High average grades of up to 31.8 wt% total REO and up to 7.3 wt%
Exploration Property critical REO* identified at the Alces Lake property in Saskatchewan
• Alces Lake is the highest known rare earth occurrence in the province of
Significant REE
Saskatchewan and one of the highest in the world. Over 99% of the Alces
Exploration Potential
Lake property remains unexplored
NI 43-101 Resource in Past- • Indicated resource estimate of ~47.7M lbs of total REO and ~8.0M lbs of U3O8**
Producing Elliot Lake Camp • Inferred resource estimate of ~133.2M lbs of total REO and ~47.7M lbs of U3O8**
*See Appendix A
**Refer to “A Technical Report on the Appia Energy Corp. Elliot Lake Uranium-Rare Earth Property”, by Watts, Griffis and McOuat Limited (July 30, 2013)
CSE:API appiaenergy.ca 3
Capital Structure
Capital Structure Share Price Performance (Last 12 Months)
CSE:API
OTCQB:APAAF 0.40
Tickers
Germany:A0I.F,
A0I.MU, A0I.BE
0.35
Share Price (as of November 22, 2019) C$0.15
Basic Shares Outstanding 65.3M 0.30
Options (weighted avg. strike price of ~C$0.28) 4.1M
Warrants (weighted avg. strike price of ~C$0.32) 15.7M 0.25
Fully Diluted Shares Outstanding 85.1M
0.20
Market Capitalization (Basic) C$9.8M
Cash C$0.15M
0.15
Enterprise Value C$13.15M
Management & Director Share Ownership 49.9%
Mar-19
May-19
Nov-19
Aug-19
Dec-18
Sep-19
Feb-19
Apr-19
Oct-19
Jun-19
Jan-19
Jul-19
CSE:API appiaenergy.ca 4
Management and Directors
Over 250 Years Combined Industry Experience
Anastasios (Tom) Drivas | President, CEO & Director
• Business entrepreneur with over 30 years experience in various industries, including over 20 years in the mineral resource industry
• President and CEO of Romios Gold Resources Inc., a publicly traded company he founded in 1995
James Sykes | VP Exploration & Development
• Over 10 years of Athabasca Basin experience, most notably having worked on Hathor’s Roughrider deposits and leading the discovery team for NexGen
Energy’s Arrow deposit (Indicated & Inferred resource of 348.3M lbs U3O8)
Frank van de Water | CFO, Secretary & Director
• Involved in international mining, metals and resource companies in North and Latin Americas, Europe and Africa for over 40 years
• Serves as COO and CFO of Romios Gold Resources Inc. and as a Director at AurCrest Gold Inc., Inter-Rock Minerals Inc. and Razore Rock Resources Inc.
Douglas Underhill | Director
• Geologist with more than 30 years of international experience in uranium including seven years with the International Atomic Energy Agency (IAEA) in
Vienna and 10 years of experience evaluating international REE projects. He also serves as a Director at Stans Energy Corp.
Thomas Skimming | Director
• Over 50 years of experience in the mineral resources industry and was instrumental in the discovery and development of several deposits including the
world-class Teck-Corona gold deposit at Hemlo in Canada. He also serves as a Director at Romios Gold Resources Inc.
Brian Robertson | Director
• Registered professional engineer with extensive experience in all aspects of mine operations, development and construction. Previously served in a
number of senior management positions and is currently President of Mexican Gold Corp. and a Director at Romios Gold Resources Inc.
William R. Johnstone | Legal Counsel & Director
• Partner at Gardiner Roberts LLP since 2005 practicing corporate and securities law and is the leader of the firm’s Securities Law Group
• Director and Secretary at AurCrest Gold Inc., Romios Gold Resources Inc., Razore Rock Resources Inc., Bold Ventures Inc. and Rockcliff Metals Corp.
Dr. Nick Bontis | Director
• Tenured professor of Strategic Management at the DeGroote School of Business, McMaster University
• Serves as a Director at Harvest Portfolios Group Inc.
CSE:API appiaenergy.ca 5
James Sykes
A Leader in Athabasca Uranium Exploration
• James Sykes has over 10 years of highly successful Athabasca Trophy awarded to James Sykes by NexGen
uranium experience and has contributed to the discovery of over Energy for discovery of Arrow ‘RK-14-21’
550M lbs of high-grade uranium deposits
✓ NexGen Energy Ltd. (2013-2015) – project lead in the
discovery of the Arrow deposit (Indicated & Inferred resource
of 348.3M lbs @ 2.05% U308 )1, which includes the high-grade
A2 sub-zone (Indicated resource of 181.0M lbs @ 17.88%
U308)1
✓ Hathor Exploration Ltd. (2008-2011) – developed the first 3D
geological model of the Roughrider West deposit, which
identified the structural trend that led to the East and Far East
deposit discoveries (combined Indicated & Inferred resource
of 57.9M lbs @ 4.73% U308)2
✓ Denison Mines Corp. (2006-2007) – part of the exploration
team that prioritized the targets that became the Phoenix
and Gryphon deposits (combined Indicated & Inferred
resource of 135.1M lbs @ 3.23% U308)3
1 NexGen Energy Ltd.; NI 43-101 Technical Report on Pre-feasibility Study (November 5, 2018)
2 Hathor Exploration Ltd.; Preliminary Economic Assessment Technical Report for the East and West Zones Roughrider
Uranium Project (September 13, 2011)
3 Denison Mines Corp.; Pre-feasibility Study Report for the Wheeler River Uranium Project (September 24, 2018)
CSE:API appiaenergy.ca 6
Property Locations
Athabasca Basin, Saskatchewan
I. Alces Lake, 143 km2 (100%)
• Highly prospective REE exploration
property with numerous identified high-
grade zones with average grade ranging
from ~8.9 - 31.8 wt% TREO and ~2.0 -
7.3 wt% CREO (see Appendix A)
II. Loranger, 264 km2 (100%)
• Uranium exploration property with
confirmed uranium mineralization in 2
near surface zones with ~2.5 km of
diamond drilling
III. Eastside, 49 km2 (100%)
• Uranium exploration property with
outcrop samples ranging from ~0.25 -
0.75 wt% U3O8 over 1.7 km strike
IV. North Wollaston, 114 km2 (100%)
• Uranium exploration property with four
surface outcrop and boulder occurrences
returning up to ~0.5 wt% U3O8
Elliot Lake Camp, Ontario
V. Elliot Lake, 125 km2 (100%)
• Advanced uranium and REE property with five mineralized zones
including NI 43-101 inferred and indicated mineral resources
CSE:API appiaenergy.ca 7
Athabasca Basin
Canada’s Premier Mining District
• Politically stable, pro-
mining jurisdiction
• Straightforward and
well-understood 143 km2
permitting process
• Excellent local
infrastructure with 427 km2
access to mills, power,
skilled labour as well as
highway and airplane
access
Appia controls over 600 km2 of highly
• Supplies ~22% of the prospective REE and uranium properties
world’s uranium in the prolific Athabasca Basin area
production
• Saskatchewan was
ranked the best
province in Canada and
the third most
attractive jurisdiction in
the world for mining
investment by Fraser
Institute in 20181
1 Refer to Fraser Institute Annual Survey of Mining Companies 2018
CSE:API appiaenergy.ca 8
Alces Lake Property
Property Summary
Property Location
Ownership • 100% owned by Appia Energy Corp.
Property Size • 14,334 hectares (35,420 acres)
Location • Located ~28 km north of the Athabasca Basin, ~34 km east of Uranium
City and ~135 km west of Stony Rapids
Geology • Alces Lake is located within the Beaverlodge Domain, which was host
to over 17 individual uranium mines, having produced a total of 70M
lbs of U3O8 at an average grade over 0.20 wt% U3O8
Zones • Numerous high-grade REE zones have been discovered to date, six of
which are at surface (Bell, Charles, Dante, Dylan, Ivan and Wilson) and Aerial View of Alces Lake Outcrops
many others are within 15 m of the surface (i.e. Charles Lower)
Mineralization • All REE elements are 100% hosted within monazite
― Monazite is enriched with critical REEs (Nd, Pr, Dy, Tb)
necessary for growing permanent magnet industry applications
(e.g. electric vehicles, wind turbines, robotics, personal
electronics and medical equipment)
― In particular, neodymium (Nd) and praseodymium (Pr) account
for ~20% and ~5% of REEs
• REE mineralization occurs as isolated grains to 1-3 cm thin lenses to
isolated massive clusters to massive clusters (up to meters thick) of 1-3
mm sized grains (average) of coarse grain monazite
CSE:API appiaenergy.ca 9
Alces Lake Property
Summer 2018 Exploration Program
• Exposed six high-grade REO zones at surface (Bell, Charles, Dante, Dylan,
Ivan and Wilson) – total of 844 individual samples taken from 96 outcrop
channels spaced ~1-2 m apart
• All zones exhibited high-grade REE mineralization, in particular though, the
Ivan and Dylan zones displayed the highest individual grade results:
― Ivan: 53.01 wt% TREO over 1.23 m (highest grades returned on the
Property to date) and 22.35 wt% TREO over 6.21 m (Lines 4 & 6)*
― Dylan: 41.53 wt% TREO over 1.02 m (Line 10)*
• These results compare favourably with results from the Charles (14.90 wt%
TREO over 5.1 m) and Wilson (14.35 wt% TREO over 4.75 m) zones, but the
Ivan and Dylan zones truly showcase the high-grade REE potential of the
Property*
• The high-grade REO zones have proven to be continuous along strike, which
enhances the exploration potential of the Property
• An additional 9 surface zones are within 400 m of the recently exposed
zones
*See Appendix A
CSE:API appiaenergy.ca 10Alces Lake Property
Summer 2018 Exploration Program
Ivan Zone Dylan Zone
>85% monazite >57% monazite
(53.01 wt% TREO over 1.23 m) (avg. 34.37 wt% TREO for this body)
Note: See Appendix A for individual element grades supporting TREO results
CSE:API appiaenergy.ca 11Alces Lake Property
Summer 2018 Exploration Program
Completed first-ever diamond drilling program on the property
• A total of 15 short diamond drill holes (DDH) were drilled into three zones –
Charles (10 DDH), Wilson (4 DDH) and Ivan (1 DDH) – 12 of the 15 holes
intersected REE mineralization, of which 10 intersected high-grade TREO*
• The best drill hole was hole CH-18-008 from the Charles Lower zone which
returned 10.02 wt% TREO over 3.55 m (see Appendix C for all results)*
• The depth extensions of the surface REE zones (Charles, Ivan and Wilson)
were traced down to a range of 0.43 m to 7.27 m true depth from surface
and remain open in all directions
• To date, only four of the seven exposed REE zones have been drill-tested
superficially within an area measuring 1.5 ha (3.7 acres), which represents a
very small portion of the property
• REE mineralization continues below the surface and the sub-surface
discoveries provide evidence that the Alces Lake property remains highly
prospective for additional REE zones to be discovered
*See Appendix A
CSE:API appiaenergy.ca 12Alces Lake Property
High-Grade REE Zones at Surface
Wilson
Ivan Charles
80 m
Charles Lower
Dylan Bell
Dante
Seven high-grade critical REE zones at
and near surface (Bell, Charles, Charles
Lower, Dante, Dylan, Ivan and Wilson);
average grades range from 8.87 to 31.83
wt% TREO (see Appendix A)
CSE:API appiaenergy.ca 13Alces Lake Property
Summer 2019 Exploration Program
Completed 2,042.1 m in 44 short diamond drill holes
• 40 of 44 drill holes intersected monazite mineralization (90% success rate)
• Visible concentrations of locally banded to massive monazite (red mineralization in drill core on following slide) was intersected
in 20 drill holes
• Monazite mineralization defined in numerous new sub-surface exploration targets, including the discovery of the Richard zone
• Surface prospecting discovered 8 new monazite-bearing surface zones, including the Biotite Lake occurrences (1.8 km west of
main working area)
• Widespread nature of monazite indicates the mineralization system is extensive beneath the surface
CSE:API appiaenergy.ca 14Alces Lake Property
Summer 2019 Exploration Program
IV-19-012
• Returned 16.06 wt% TREO over 15.55 m starting at 8.7 m down hole depth which includes 49.17 wt% TREO over 3.70 m at 9.7 m
down hole depth
CSE:API appiaenergy.ca 15Alces Lake Property
Comparable Analysis
“The Alces Lake REE trenches rank as the highest-grade REE occurrence known in the province of Saskatchewan, with grades that are
comparable to those encountered in the world-class Steenkampskraal deposit, South Africa” – Dr. Charles Normand, Geologist
• The seven high-grade REE zones identified at Alces Lake yield average grades ranging from 8.87-31.83 wt% TREO which are several
times greater than the global average grade of 1.89 wt% TREO (excluding Gakara)*
― Only the highest grade deposits develop into mines (e.g. Gakara, Steenkampskraal, Mt Weld, Mountain Pass), which proves
that grade really is “king” and shows that Alces Lake is extremely well positioned amongst its peers
― TREO grades are far more important than relative distributions
― Near perfect positive correlation (>0.98 r2) between in-situ TREO grades and in-situ CREO grades – therefore higher TREO
grades almost always mean higher CREO grades
• To illustrate the importance of the REOs at Alces Lake, one metric tonne of mineralization from the high-grade Wilson
55.00
zone would contain ~90.7 kg of TREO of which ~19.9 kg are CREO (the potential quantity and grade is conceptual in nature)*
Global REE Projects – Average In-Situ TREO Grade (wt%)*
31.83
(Appia’s Alces Lake Zones shown in Red)
22.71
13.76 14.00
Peer Average (excluding Gakara): 1.89 wt% TREO 8.60 8.87 9.40 9.66
10.24
6.00 6.57
2.89 4.19 4.24
1.45 1.46 1.60 1.72 1.73 1.89 1.89 2.60 2.75
0.06 0.21 0.26 0.40 0.59 0.60 0.60 0.66 0.89 0.89 1.09 1.11 1.17 1.37
Based on internal study of publicly available information, as of May 29, 2019
Sources: Individual companies websites, resource reports, and Technology Metals Research Advanced Rare Earth Projects Index (as of November 19, 2015)
*See Appendix A
CSE:API appiaenergy.ca 16Alces Lake Property Exploration Potential • Airborne radiometric survey identified a 500 x 350 m anomaly (deep pink area) – over 90% of the anomaly is covered with overburden • Radioactive outcrops (circles) identified in 2010, 2011, 2013 and 2017 exploration programs lie within and outside the anomaly • All zones are open at depth and along strike Geological Schematic for REE Mineralization CSE:API appiaenergy.ca 17
Alces Lake Property Heavy Sands Potential • An initial heavy mineral sands study conducted 2.3 km north of the known high-grade zones revealed REE enriched sands with grade concentrations comparable to major heavy mineral sands producers • Six samples (red triangles on map) were collected from black heavy mineral sand surface layers along a 500 m shoreline and were processed by magnetic separation • Three REE-bearing non-magnetic minerals were identified: monazite, xenotime and zircon • The non-magnetic sub-samples are ~10 times more concentrated with respect to TREO (average 0.386 wt% TREO) than the ferromagnetic samples (average 0.041 wt% TREO)* • The study also revealed the presence of scandium (0.011 wt% Sc2O3) concentrated within the non-magnetic samples (zircon), which could represent a unique and easy way to bring scandium to the market* * See Appendix A CSE:API appiaenergy.ca 18
Alces Lake Property
Simple Metallurgy
• Preliminary petrographic studies indicate that “economic and critical Saskatoon Pilot Plant (2,000 tonnes per annum capacity)
REE mineralization is hosted solely by monazite”
• Monazite has simple metallurgical properties; the processing and
extraction techniques of REEs from monazite are well-documented
and successfully proven
Monazite hosted
within biotite
Rare Earth Element Extraction Lab
Large concentration
of monazite (>50%)
Source: Zip, H. and Pan, Y. (2014): unpublished MSc. summary report for Appia Energy Corp.
CSE:API appiaenergy.ca 19Athabasca Uranium Properties
Eastside, Loranger & North Wollaston
• Easy exploration/mining scenario: at/near surface high-grade
uranium, no sandstone cover, negligible overburden
• Proximity to infrastructure including two uranium mills – Orano’s
McClean Lake mill and Cameco’s Rabbit Lake mill
• All share similar geological features, structures and rock types with
other known high-grade uranium deposits in the Basin
Loranger (100% owned)
• 30,725 ha (307 km2) property
• Completed 2,524 m of diamond drilling over 15 holes confirming the
presence of uranium mineralization and anomalous radioactivity
• Only 2.3 km of the total 94 km of strike length has been tested
Eastside (100% owned)
• 4,933 ha (49 km2) property
• Identified three outcrop samples along a 1.7 km strike which
returned ~0.25-0.75 wt% U3O8
• 1,178 line-km airborne survey was completed in September 2017
and identified new radiometric anomalies
North Wollaston (100% owned)
• 11,371 ha (114 km2) property
• Historic ground exploration discovered four uranium bearing zones
at surface in outcrops and boulders returning up to 0.495 wt% U3O8
• An airborne radiometric, EM and magnetic survey is planned for
summer 2019 followed by additional ground work
CSE:API appiaenergy.ca 20Elliot Lake Property
Asset Overview
Ownership • 100% owned by Appia Energy Corp.
Location • 12,545 ha (31,000 acre) property located
near Elliot Lake in Northern Ontario
• Adjacent to Denison Mines and Rio Algom’s
past-producing uranium and REE mines
• Encompasses five mineralized zones
including an NI 43-101 estimated resource at
Teasdale Lake (effective July 30, 2013) and
Banana Lake (effective April 1, 2011) zones
History • From 1955 to 1996, a total of 362 M lbs of
U3O8 was produced from 13 underground
mines in the Elliot Lake camp
• Only mining camp in Canada with significant
commercial REE production (yttrium)
Mineralization • Uranium mineralization is stratabound,
showing good consistency in grade and
thickness over wide areas
• Uranium hosted predominantly in brannerite
and uraninite, which is readily leachable
• Monazite hosts the REE mineralization
Exploration • Strong potential to increase the size of the
current resources as they are largely * Source: “A Technical Report on the Appia Energy Corp. Elliot Lake Uranium-Rare Earth Property”, by Watts, Griffis and McOuat
Limited (July 30, 2013). Mineral resources are not mineral reserves and do not have demonstrated economic viability.
unconstrained along strike and at depth Note: Refer to Appendix B for more detail on the Teasdale Lake zone TREO grades.
CSE:API appiaenergy.ca 21Rare Earth Elements
Vital to Rapidly Growing Markets
Rare Earth Elements (REEs): Why Now?
• Potential supply chain disruption
• Automakers are committing to electric vehicles and all of them
require rare earths (especially critical rare earths)
• Governments are setting targets for greenhouse gas which
means a transition to renewables (wind and nuclear power)
• China controls 85% of rare earth production as well as they
control +/- 95% of the end use fabrication. Therefore, the world
is almost completely dependent on Chinese rare earth sources
and products
• Tensions between U.S. and China could result in China cutting
supplies to the U.S., leaving the U.S. and the rest of the world
with no alternate rare earth supply and products
• Global demand continues to grow as the world economy
becomes more and more dependent on advanced technologies
and their applications (e.g. electric vehicles, smart phones,
robotics, green energy, etc.)
• End-users (U.S., Japan, Europe, etc.) seek long-term supply, fear
risk of supply disruption
What are “critical” REEs?
• “Seeds of Technology” – Nd (Pr), Dy, Y, Eu, Tb
• Scarce global supply, especially outside China
• High demand short-to-long-term
• Critical for high-tech applications; clean energy, transportation,
communication, robotics
• Lack replacement, recycling or re-invention
Source: EuRare, http://www.eurare.eu/RareEarthElements.html (2017)
CSE:API appiaenergy.ca 22Rare Earth Elements
Supply & Demand Catalysts
Chinese Dominance a Critical Threat to Supply China’s Share of Global REE Production in 2018
• China is the world’s largest producer of rare earths
accounting for 71% of global supply in 2018 (120,000 tonnes
mined) 29%
• China accounted for 80% of the U.S. imports of rare-earth
China
compounds and metals from 2014 to 2017
Rest of World
• Chinese government has threatened to weaponize its
strategic position to retaliate against the U.S. 71%
administration's decision to cut off supplies of microchips
and components to telecom giant Huawei
Source: S&P Global Market Intelligence (May 2019)
Demand Growth Driven by Technology Adoption Global Demand for Fresh NdPr Oxide
• Critical rare earth usage in electric vehicles, wind turbines,
consumer electronics (e.g. smartphones) and medical
technologies are expected to more than double by 2030
• Electric vehicles (EVs) are forecast to make up the biggest
growth segment of critical rare earth oxide
• According to Bloomberg New Energy Finance, EVs are
expected to make up about 54% of new car sales worldwide
by 2040, and account for 33% of all the light-duty vehicles
on the road
• A permanent magnet motor uses 1-2 kg of REEs (Nd, Pr, Dy)
Source: Lynas Corporation Limited (Investor Day Presentation, May 21, 2019)
CSE:API appiaenergy.ca 23Investment Summary
Large NI 43-
101 REE &
Uranium
Amongst the Resource
Award-
Highest TREO
Winning
Grades Ever
Geologist
Discovered
World-Class
Alces Lake
Property
Prolific Debt-Free &
Athabasca No Option
Basin Area Payments
Team with
Significant +250 Years of
Exploration Combined
Upside Industry
Experience
CSE:API appiaenergy.ca 24Appendix A
Alces Lake REO Summary Chart
Zone Slide # La2O3 wt% CeO2 wt% Pr6O11 wt% Nd2O3 wt% Sm2O3 wt% Eu2O3 wt% Gd2O3 wt% Tb4O7 wt% Dy2O3 wt% Ho2O3 wt% Er2O3 wt% Yb2O3 wt% Lu2O3 wt% Y2O3 wt% ThO2 wt% U3O8 wt% TREO wt%* CREO wt%**
Bell 13, 14 2.394 5.156 0.538 1.647 0.232 0.003 0.137 0.008 0.027 0.003 0.009 0.001 0.000 0.083 1.309 0.038 10.239 2.223
Charles 13, 14 2.308 4.766 0.529 1.603 0.213 0.003 0.129 0.006 0.022 0.003 0.007 0.001 0.000 0.067 1.181 0.036 9.656 2.163
Charles (Lower) 7, 13, 14 2.149 4.255 0.488 1.529 0.214 0.003 0.121 0.006 0.022 0.003 0.007 0.001 0.000 0.069 1.109 0.034 8.868 2.049
Dante 13, 14 3.181 6.940 0.711 2.303 0.311 0.004 0.178 0.009 0.030 0.004 0.010 0.001 0.000 0.082 1.814 0.047 13.763 3.057
Dylan 3, 7, 13, 14 7.407 15.841 1.719 5.444 0.708 0.010 0.407 0.020 0.066 0.008 0.021 0.001 0.000 0.174 3.842 0.100 31.827 7.259
Ivan 13, 14 5.247 11.274 1.227 3.945 0.507 0.007 0.289 0.015 0.048 0.006 0.015 0.001 0.000 0.131 2.737 0.070 22.711 5.242
Wilson 13, 14 2.267 4.668 0.497 1.535 0.210 0.003 0.121 0.006 0.021 0.002 0.007 0.001 0.000 0.060 1.162 0.034 9.398 2.062
Ivan (Line 4) 10, 12 12.343 26.186 2.875 9.260 1.171 0.016 0.663 0.033 0.110 0.013 0.035 0.002 0.000 0.302 6.179 0.143 53.007 12.293
Ivan (Line 6) 10 5.147 11.099 1.204 3.886 0.502 0.007 0.286 0.015 0.048 0.006 0.015 0.001 0.000 0.131 2.739 0.070 22.349 5.160
Dylan (Line 10) 10 9.657 20.789 2.250 7.042 0.907 0.012 0.521 0.026 0.086 0.009 0.028 0.001 0.000 0.205 4.926 0.133 41.533 9.417
Charles (Line 14) 10 3.599 7.285 0.840 2.502 0.323 0.004 0.198 0.009 0.031 0.004 0.010 0.001 0.000 0.090 1.827 0.061 14.895 3.386
Wilson (Line 10) 10 3.513 7.140 0.768 2.293 0.310 0.004 0.179 0.009 0.031 0.004 0.010 0.001 0.000 0.090 1.513 0.055 14.351 3.104
Charles (Lower, CH-18-008) 11 2.400 4.886 0.545 1.685 0.240 0.003 0.137 0.007 0.025 0.003 0.008 0.001 0.000 0.076 1.274 0.038 10.016 2.265
Dylan (Lines 4, 9 to 13) 12 8.000 17.099 1.861 5.901 0.760 0.011 0.439 0.022 0.071 0.008 0.023 0.001 0.000 0.183 4.182 0.111 34.379 7.865
sand (non-magnetic) 16 0.082 0.169 0.019 0.055 0.009 0.001 0.006 0.001 0.005 0.001 0.002 0.003 0.001 0.032 0.038 0.003 0.386 0.081
sand (magnetic) 16 0.006 0.018 0.002 0.007 0.001 0.000 0.001 0.000 0.001 0.000 0.000 0.000 0.001 0.003 0.007 0.001 0.041 0.011
Highlighting Nd grades associated with high-grade Total REOs TREO = Total Rare Earth Oxide =
Highlighting Pr grades associated with high-grade Total REOs sum of La2O3+CeO2+Pr 6O11+Nd 2O3+Sm2O3+Eu2O3+Gd 2O3+Tb 4O7+Dy2 O3+Ho 2O3+Er 2O3+Yb 2O3+Lu2O3+Y 2O3
Highlighting " High-Grade" Total and Critical REOs (i.e. >1.897 wt%Total REO) CREO = Critical Rare Earth Oxide = sum of Pr 6O11+Nd 2O3+Eu2O3+Tb 4 O7+Dy2O3
Indicates light rare earth elements Conditions Used for Reporting Composite Summary Grades and Average Grades
Indicates heavy rare earth elements High-Grade REE Zones - individual sample cutoff grade = 4.0 wt%TREO
Indicates radioactive elements No cutoff grade was applied to the sand samples
LITHOGEOCHEMICAL RESULTS FOR DRILL HOLE IV-19-012 (slide 15)
La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Yb2O3 Lu2O3 Y2O3 ThO2 U 3 O8
Zone DDH From (m) To (m) Interval (m) TREO (wt%) CREO (wt%)
(wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%) (wt%)
Ivan IV-19-012 8.70 24.25 15.55 3.653 7.798 0.889 2.946 0.413 0.005 0.205 0.014 0.036 0.004 0.006 0.001 0.000 0.089 2.081 0.054 16.059 3.890
includes 9.70 17.60 7.90 7.130 15.219 1.735 5.748 0.805 0.010 0.400 0.027 0.071 0.007 0.012 0.002 0.000 0.173 4.058 0.105 31.339 7.591
includes 9.70 13.40 3.70 11.233 23.833 2.753 8.996 1.258 0.016 0.626 0.042 0.110 0.011 0.019 0.002 0.001 0.266 6.365 0.164 49.165 11.918
*Note: >1.897 wt% TREO represents >75th percentile for global REO deposit grades of advanced stage-projects (excluding Gakara, Steenkampskraal and Mount Weld CLD
deposits). The global REO deposit information was derived from publicly available information as of January 31, 2018, from individual company websites, SEDAR technical
report filings, and the Technology Metals Research Advanced Rare Earth Projects Index (http://www.techmetalsresearch.com/metrics-indices/tmr-advanced-rare-earth-
projects-index/)
CSE:API appiaenergy.ca 25Appendix B Elliot Lake’s Teasdale Lake Zone REE Resource Summary Chart CSE:API appiaenergy.ca 26
Appendix C Summer 2018 Drill Program Assays CSE:API appiaenergy.ca 27
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