Haywood Research Reports 

Bearing Lithium Corp. (BRZ-V, $0.74) - Not Rated

Colin Healey, MBA, [email protected]

Visiting Chile:
Review of Maricunga Project Asset, Operator and Technical Team

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Highlights:

• Overview: Recently we met in Santiago, Chile, with the key parties involved in the management and operation of the Maricunga lithium brine project, located on the Maricunga Salar , where Bearing Lithium is under Definitive Agreement to acquire Li3 Energy’s 17.7% stake. The deal requires the approval of the U.S. Securities Exchange Commission (SEC) and Li3 Energy shareholder approval. Bearing recently filed an amended form ‘F4’ with the SEC (10 days from the May 24th to respond), and we expect a shareholder vote will be called for some time in mid to late July, with close of the acquisition anticipated to quickly follow in late July or early August 2017.
• With the transaction pending, we took the opportunity to meet in-country with Bearing Lithium and Li3 Energy (acquiree) management, as well as management of the project operator, private Chilean company Minera Salar Blanco (MSB, 32.3% project interest), as well as local lithium industry experts SignumBOX, and the project technical consultant FloSolutions, experts in hydrogeology and hydrology with significant experience with lithium brine deposits of the salars of South America, and which will be responsible for preparing the upcoming JORC/NI 43-101 resource estimate expected in late June. The update will integrate the new exploration and brine pump data, gathered since the initial resource estimate from April 2012, which was reviewed and supplemented to conform to the NI 43-101 standard in a March 2017 NI 43-101 report prepared for Bearing Lithium.
• Maricunga Lithium Project - Positioned to Grow in a Catalyst-Rich 2017/18:
  • Overview: The Maricunga brine project is touted by Bearing as the highest grade undeveloped lithium brine project in the Americas, where lithium brine concentrations underpinning the existing resource estimate on the Litio 1-6 tenements average 1,250 mg Li/litre. The total current all-categories lithium resource includes 630 thousand tonnes lithium carbonate equivalent (LCE), 91% of which sits in the 'Measured' category, and is set to be updated later this month with significant additional data gathered since the original 2012 resource...

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Bearing Resources Ltd. (BRZ-V, $1.35) - Not Rated

Colin Healey, MBA, [email protected]

Strong Assays from Maricunga Lithium Brine Project Highlight Growth Potential

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Highlights:

• Assay Results: Bearing has published results for five holes at the Maricunga project over the last two days. Two of these holes were originally disclosed earlier this month by Lithium Power, shortly after the announcement of the Definitive Agreement between Bearing and Li3, while the remaining three holes are new today. The holes were drilled on the San Francisco (hole S6), Cocina (holes S19, S2, M1A) and Litio (holeS18) tenements. Holes S6, S2 and M1A were drilled to a vertical depth of 200 metres, hole S18 was drilled to 173 metres, and hole S19 was drilled to 360 metres.
• Cocina Tenement (Holes S19, S2, M1A): Hole S19 returned an average grade of 975 mg/l lithium over a 336 metre sample interval, with a best assay of 1,614 mg/l lithium at 18 metres depth. Hole S2 returned an average grade of 954 mg/l lithium over a 192 metre sample interval,with a best assay of 1,940 mg/l lithium at 5 metres depth. Hole M1A returned an average grade of 822 mg/l lithium over a 186 metre sampleinterval (from 12 to 198 metres depth), with a best assay of 2,006 mg/l lithium over a 6-metre sample at 12 metres depth.
• San Francisco Tenement (Hole S6): returned an average grade of 1,368 mg/l lithium over a 186 metre sample interval(from 12 to 198 metres depth), with a best assay of 3,375 mg/l over a 6-metre sample from 12 metres depth, representing the best assay drilled thus far in the current 11-hole program.
• Litio Tenement (Hole S18): returned an average grade of 1,382 mg/l lithium over a 168 metre sample interval(from 5 to 173 metres depth), with a best assay of 1,740 mg/l lithium over at 65 metres depth

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Site visit highlights strong potential for upcoming PEA 

SPROTT Capital Partners

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Highlights:

Lithium Power is a catalyst-rich ASX-listed junior who released an impressive maiden 2.15Mt LCE resource earlier this
year on one of the highest-grade lithium salars globally, Maricunga (earning into 50%), one of the larger undeveloped
resources held by juniors in the space. The company will be releasing a maiden PEA/scoping study (±25%) in the current
quarter, which like peers of similar size we expect to show a DCF valuation variably in excess of a billion dollars. Our site
visit highlighted the good logistics and ample room for evaporation ponds, with extremely high grades and low sulphate
likely to enable reagent cost-savings to offset the higher calcium concentrations. Better still, although only the lowest
part of the ‘pay interval’ is in volcaniclastics, but the favourable drainability means this unit accounts for 80% of the total
resource to 200m; only a single hole went to 360m, hitting the friable volcaniclastic to end of hole, leading us to surmise
that the company’s +1-2.5Mt LCE exploration target is eminently achievable, potentially lifting the resource to a
‘strategic’ size once drilled.

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