Bearing Lithium Corp. (fka BLILF)

[climber18]

*REVISED* Shareholder Update
7 August 2019



NOTE: Revised the read-through valuation for Bearing based on LPI's current share price and exchange rates.

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$0.44 per share, and factoring in cash and dilutive securities, we derive an implied valuation for 100% of the project of A$215 million. The read-through valuation from LPI’s share price for the project implies a comparable valuation for Bearing of around C$0.50 per share. 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.

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[1] Definitive Feasibility Study of MSB Blanco Lithium Carbonate Project dated January 17, 2019


FOR FURTHER INFORMATION PLEASE CONTACT:
Jeremy Poirier-- President and CEO Bearing Lithium - Telephone: [phone]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements Regarding Forward Looking Information
This press release includes certain "forward-looking information” and "forward-looking statements” (collectively "forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, without limitation, statements relating the future operating or financial performance of the Company, are forward-looking statements.
The words "expect", "target", "estimate", "may", "will" and other similar expressions identify forward-looking statements. These forward-looking statements relate to, among other things, the Company’s ability to reach a definitive agreement with CODELCO, and the future prospects of the Maricunga Project. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Bearing’s ability to predict or control and may cause Bearing’s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, strategic, legal, planning and other risks, the impact of changes in, or to the enforcement of, laws, regulations and government practices, potential defects in title to the Maricunga Project that are not known as of the date hereof, the occurrence of unexpected financial obligations, fluctuations in the price of lithium and other commodities, fluctuations in the currency markets, changes in national and local government, legislation, taxation, controls, regulations and political or economic developments, risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding), risks related to operational matters and geotechnical issues, the success of future exploration and development activities, the occurrence of any labour unrest, the ability to accurately predict decommissioning and reclamation costs, the risk of budget and timing overruns, potential opposition to the Maricunga Project by local communities and the ability to secure construction financing. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect including changes in Maricunga Project parameters as plans continue to be evaluated as well as those factors disclosed in the Company's documents filed from time to time with the securities regulators in the Provinces of British Columbia and Alberta. Accordingly, readers should not place undue reliance on forward-looking statements. Bearing undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law.