Bearing Lithium Corp. (fka BLILF)

[climber18]

Letter to Shareholders ... and also to BLILF Holders ?

10 September 2018


Dear Fellow Shareholder,
I wanted to take this opportunity to comment on the valuation of Bearing Lithium and the Maricunga Project in the context of the larger market. With respect to a direct benchmark for the value of Bearing Lithium, a logical comparison is Lithium Power International (ASX:LPI) given the common ownership on the Maricunga Project. Lithium Power International has a partially-diluted market capitalization of A$87 million, incorporating in-the-money options, which implies a value of A$171M or C$161 million for the Maricunga Project based on their 51% ownership. Comparatively, Bearing Lithium has a market capitalization of C$19 million which implies a Maricunga Project value of C$108 million based on our 18% ownership.
Based on exposure to the same underlying project, Bearing Lithium shares trade at a 33% discount relative to Lithium Power International’s shares.

Looking at recent acquisitions within the lithium market, there are two of note which highlight the opportunities within the space. Earlier this month, POSCO signed the deal to acquire the tenements on the northern portion of the Salar de Hombre Muerto which is located to the north of Galaxy Resources Ltd.’s Sal de Vida project for US$280M. This is largely exploration ground as Galaxy retains 100% in the tenements which are included in the updated feasibility for the Sal de Vida project. Last December, Nextview New Energy Lion Hong Kong Limited acquired Lithium X Energy Corp. for cash consideration of C$2.61 per share putting a value on the company and its flagship asset, the Sal de los Angeles, of C$265 million. The project had a mineral resource of 2.0Mt LCE at the time of the transaction and had yet to deliver a PEA or any project economics.

I hope that the above examples illustrate the opportunity we see in Bearing Lithium and the Maricunga Project as one of the most attractively valued advanced-stage lithium development projects. The Maricunga Project represents one of a handful of advanced-stage lithium brine projects and the highest-grade pre-production project in South America. The project team remains focused on the submission of our Environmental Impact Assessment (EIA) this quarter and the tabling of a Definitive Feasibility Study in December 2018.

I look forward to updating you as these exciting de-risking milestones occur over the coming months.

Sincerely, /s/ Jeremy Poirier President & CEO Bearing Lithium Corp.