Bearing Lithium Corp. (fka BLILF)

[climber18]

Shareholder Update 7 August 2019

Dear Fellow Shareholder, I wanted to take this opportunity to thank you for your continued support and review the advancements we have made on the project, in addition to highlighting the value opportunity I believe exists in Bearing’s share price. In January we announced the results of our Definitive Feasibility Study (DFS), which was the culmination of many years of exploration and development, spearheaded by WorleyParsons. The DFS supported a 20,000 tonne per year (tpy) production profile of lithium carbonate equivalent (LCE) over a 20-year life at low operating costs of US$3,772 per tonne. This places the Maricunga project as one of the highest-grade and lower cost lithium brine producers globally[1]. On August 1st we announced the signing of a non-binding Memorandum of Understanding (MOU) with the largest copper producer in the world, Chilean state-owned CODELCO. The MOU outlined the terms for the establishment of a new joint-venture company (JV Co) allowing for the development of the Maricunga Salar into a significant lithium brine producer. This joint-venture would fast-track the development of the Maricunga project, with CODELCO’s key CEOL contract and CChen permit covering the entire salar complementing our DFS-stage Maricunga project and environmental permit (expected before year-end 2019). The importance of this potential agreement is that the new joint-venture company would have all the major permits required to develop a lithium brine project spanning the entire salar, which also makes it the likely consolidator of the basin. On the project financing front, we continue to advance discussions with a significant number of strategic partners and potential financiers. Our goal is to have the financing structure finalized and the environmental permits by year-end which would allow for construction to commence during the first half of 2020. Noting all these advancements, we believe Bearing represents tremendous value opportunity for shareholders to participate in the next long-life, low-cost lithium brine mine to be developed. Our current share price represents a significant discount to our Australian joint-venture partner, Lithium Power International (ASX:LPI). As both companies have their primary exposure to the same underlying company, it presents the basis for the same arbitrage calculation. If we look at LPI’s current share price of A$0.41 per share, and factoring in cash and dilutive securities, we derive an implied valuation for 100% of the project of A$197 million or C$220 million. The read-through valuation from LPI’s share price for the project implies a comparable valuation of around C$0.57 per share for Bearing. This analysis highlights the value proposition for Bearing for investors to gain exposure to this world-class development-stage lithium brine project. In summary, we look to having a very busy and exciting year, with anticipated announcements from the finalization of the new joint-venture company with CODELCO, the awarding of the environmental permits or EIA, and project funding with strategic and off-take partners by year-end 2019. We feel that this significant pipeline of newsflow coupled with a significant discount to our Australian JV partner Lithium Power International, provides a tremendous investment opportunity for new and existing shareholders alike.

Sincerely, Jeremy Poirier, President and CEO Bearing Lithium Corp.

( By eMail )