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Nevada Lithium Exploration

Nevada Lithium Exploration, Inc. engages in the acquisition, exploration, and development of mineral properties. The company has entered into a strategic partnership with Gold Mountain Nevada Mining, Inc and Weepah Hills Lithium Partners, LLP. that control or hold a 100% interest in gold and Lithium bearing properties situated in the Weepah Mining District of Esmeralda County, Nevada.

The technical team competed phase 1 in late October 2023 and phase 2 in late November of our 4 stage comprehensive staking, claiming and advanced prospecting program to map and identify the true potential lithium occurrences over 6000 acres on the cusp of the Clayton Valley Basin and the Big Smokey Basin. Located east of the Weepah Hills and west of Rhyolite Ridge on the piedmont and playa of Weepah Nevada.

The team will be deployed and equipped with SciAps 901Z LIBS analyzers, a tool that allows onsite lithium and pathfinder element testing and composite sample collection from prioritized clays and outcrops. The initial phase will consist of 300+/- sample locations spaced 1000 ft. apart are planned over the properties.

This approach will assist in creating a preliminary geochemical map of the lithium bearing anomalies on our properties. High-resolution (5cm-7cm pixel resolution) orthophoto and DEM Digital Elevation Model on the first identified targets will be undertaken using drone-assisted orthoimage and Lidar. Samples will be prepared and dispatched from the exploration camp located in Goldfield Nevada to the nearby Reno Nevada lab for assaying.

Nevada Lithium Exploration

LITHIUM MINING CLAIMS ARE A NEW INVESTABLE ASSET CLASS

For most investors, exposure to alternative assets may include hedge funds, private equity funds, real estate. Alternative assets offer higher returns than traditional asset classes such as stocks and bonds.

Mining claims, which represent a right to explore, develop, mine and sell minerals, have increasingly become an investable asset class. Mining claims present a unique return profile and low public market correlation, which make them an attractive alternative asset class to consider adding to a diversified investment portfolio. Mining claims make a good substitute for commodities, mining stocks, and royalty investments.

The most sought-after minerals in mining claims are gold, silver, copper, lithium, and uranium. It is critical to have qualified geological advice when selecting a property for staking. For example, some advanced exploration properties have massive data packages and are worth more than former production properties, which can vary in terms of size and data availability.

Raw properties can be more valuable if they are near large deposits or prospective for a commodity in current high demand (ie. lithium).After a property is selected, the claim must be staked by filing a notice of location and map with the U.S. Bureau of Land Management (BLM). A staked claim gives the holder exclusive rights to the minerals within the boundaries of the claim, with the exception of placer and lode claims, which can overlap. The claim exists in perpetuity as long as maintenance payments are made. The U.S. Government does not charge a production royalty on federal mining claims.

Anything under this, including the exploration only companies,

are referred to as “juniors.” There are about 1,500 publicly traded juniors worldwide. Landowners or claim holders play a wholesaler role in the market. They have an ability to acquire properties inexpensively, provide value-added services (i.e., drilling and exploration), and then monetize those properties at a significant profit. Junior mining companies purchase mining claims from claim holders and

monetize the underlying commodities.

Junior mining companies are a middleman between claim holders and public market investors. The value of these companies is driven by the value of their underlying properties, which often represents greater than 90% of their market capitalization. The remaining value of junior mining companies is in their property acquisition costs, which are only a small percentage (2-3% median) of their market caps. A $1 million cost property (claim) can be sold to a junior mining company for $10 million, which supports a $100 million market cap.

Those who invest directly in the property (claim) at $1 million capture more of the value than those investing in the junior mining company at a $100 million market cap. Said differently, investors in junior mining companies immediately take 90% dilution on the value of the underlying properties they’re investing in.

Mining properties are both scarce and plentiful.

There is a scarcity of properties with economic mines, but a surplus of those with exploration potential. This perceived scarcity drives the retail premiums outlined above, creating a structural inefficiency in the market. Asymmetric information about properties, where sellers have an advantage, creates further structural inefficiency. These structural inefficiencies create opportunities to generate higher levels of alpha for those with market knowledge.

Like venture capital investments, investing in a single mining claim is too risky for most investors. However, holding a diverse portfolio of claims, like a venture capital fund, where one property can generate an attractive return for the whole portfolio, presents an attractive risk-return profile. Ten properties in a variety of commodities and a reasonable time horizon of ten years could generate returns similar to venture capital and private equity funds.

Junior mining companies play an important role for investors by selecting high-value properties, and by holding a diverse portfolio of properties (thus eliminating risk in any single bad property). However, investors with access to direct

investment in mining claims and the ability to hold a diversified portfolio of claims (>10) will realize significantly higher returns than those investing directly in junior mining companies.

Target prices for selling Nevada Lithium claims could range from $1,000 to $2,500 per acre in short timeframes on raw properties prospects and $10,000 and up on an acre with advanced exploration on properties which have had some level of prior exploration such as drilling, geophysics, mapping, sampling, etc. – but no mining production. Mining claims can be viewed as a purchase option on the underlying commodity.

There is leveraged correlation between the mining claim and the underlying commodity, meaning a 1x move in the underlying commodity price can generate a

10x return on the claim value. Higher moves can generate 100x returns.

Institutional investors can put significant capital to work in this market without concerns of straining the market. For example, investors might put $10 million to work in a 20,000-acre claim package, yet there are approximately 60 million acres of mining properties in Nevada alone.

Mining claims are an investable asset class that offer secure title, attractive returns, leveraged exposure to commodity markets, low holding costs, and arbitrage type risk profiles. Additionally, investors should consider holding mining claims as a portfolio diversification tactic based on their low correlation to public equity markets. Investing directly in mining claims is the best way to gain commodity exposure, as we’ve shown the dilution that junior mining companies take on property values.

Institutional investors can profitably deploy capital in ranges from $10,000,000 to $100,000,000 in opportunities into proven reserves in Nevada lithium basins.

3 Types of Mineral Interests

The US Mineral Exchange defines mineral interest as “the ownership of all rights to gas, oil, and other minerals at or below the surface of a tract of land.” Mineral interests are divided into three categories – royalty interests, working interests, and overriding royalty interests. Each is defined as follows:

Royalty Interest – an ownership in production that bears no cost in production. Royalty interest owners receive their share of production revenue before the working interest owners.

Working Interest – an ownership in a well that bears 100% of the cost of production. Working interest owners receive their share of the profit after (i) royalty owners have received their share and (ii) after all operating expenses have been paid.

Overriding Royalty Interest (ORRI) – a percentage share of production, or the value derived from production, which is free of all costs of drilling and producing, and is created by the lessee or working interest owner and paid by the lessee or working interest owner.

A royalty interest is created when an exploration and production (E&P) company wants to extract gas, oil, or other minerals from privately held property. In this scenario, the E&P company could purchase the land, but it is generally much cheaper and more feasible to lease the rights to drill on the land. Under this type of agreement, the E&P company pays the landowner an up-front payment, called a lease bonus, as well as a monthly royalty payment – a specified percentage of all revenues generated by the minerals extracted from the land. Although the landowner profits from the drilling efforts on their property, they do not pay any production costs. A royalty interest is paid as long as minerals from the land generate revenue. Generally, if production stops so do royalty payments. Very rarely, however, some contracts specify certain levels of production which must be maintained.

In the aforementioned situation, while landowners have a royalty interest, the E&P company has a working interest. As a result of the leasing agreement, the E&P company acquires the rights to the minerals on the property. This means that they bear the costs of exploration, drilling, and production, but they have rights to future cash flows generated once the wells are completed. The working interest owner must pay royalty interests, overriding royalty interests, and expenses before receiving their share of these cash flows.

Overriding royalty interests are often used as an incentive for those who are affiliated with the drilling process but do not own the minerals or E&P company (a broker or geologist for, example). Owners of ORRI, like royalty interest owners, bear no cost of production but own a portion of the revenues generated by the drilling process. Unlike royalty interest owners, however, ORRI owners do not receive the royalty for the entirety of production; instead, they are bound by explicit leases, outlining the length of time in which the ORRI will be paid.

Nevada Lithium Exploration

NEVADA LiTHIUM Exploration

NEVADA LiTHIUM Exploration

Welcome to Nevada Lithium Exploration

DEVELOPING DRILL READY BRINE & CLAY LITHIUM PROJECTS IN CENTRAL NEVADA

Nevada Lithium Exploration

Nevada Lithium Exploration

3 Types of Mineral Interests

NEVADA LITHIUM NEWS

Drop us a line!

Nevada Lithium Exploration

NEVADA LiTHIUM Exploration

NEVADA LiTHIUM Exploration

Welcome to Nevada Lithium Exploration

DEVELOPING DRILL READY BRINE & CLAY LITHIUM PROJECTS IN CENTRAL NEVADA

Nevada Lithium Exploration

Nevada Lithium Exploration

3 Types of Mineral Interests

NEVADA LITHIUM NEWS

Drop us a line!

Nevada Lithium Exploration

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