A Lithium Exploration Company Advancing Projects in Nevada

Transcription

1 A Lithium Exploration Company Advancing Projects in Nevada 7 Kilometer-Long Zone of up to 3,800 ppm Lithium Discovered at Surface in Highly Soluble Claystone November 2017

2 Forward Looking Statements Some of the statements in this document may be deemed to be "forward-looking statements". All statements in this document, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at for further information. Qualified Person Robert Marvin, BSc., P.Geo., Director and VP of Exploration for Cypress Development is the Qualified Person as defined by National Instrument and supervised both the project field exploration and the preparation of the technical information in this presentation.

3 Cypress Capital Structure TSX Venture Exchange Symbol: CYP US OTC Pink Symbol: Frankfurt Exchange Symbol: CYDVF C1Z1 Shares Issued & Outstanding: 51.8 million Fully Diluted Shares Outstanding: 77.4 million Market Capitalization: $9.3 million Year End: December 31st

4 Cypress Stock Chart

5 Management Donald C. Huston Chairman, President Don Huston serves as Chairman of the Board and as President of Cypress Development Corp. He has been associated with the mineral exploration industry for over 30 years and has extensive experience as a financier and in-field manager of numerous mineral exploration projects in North America. He was born and raised in Red Lake, Ontario and spent 15 years as a geophysical contractor with C.D. Huston & Sons Ltd. as mineral exploration consultants in northern Ontario, Manitoba and Saskatchewan. William Willoughby, PhD, PE, - Director, CEO Bill Willoughby, PhD, PE serves as a Director and Chief Executive Officer for Cypress Development Corp. Dr. Willoughby is a mining engineer with 38 years of experience in all aspects of natural resources development. Since 2014, he has been principal and owner of consulting firm Willoughby & Associates, PLLC. Prior to that, he was President and COO of International Enexco Ltd., which was acquired by Denison Mines in He previously held various positions with Teck (Cominco). Dr. Willoughby has been a Professional Engineer since 1985 and received his Doctorate in Mining Engineering & Metallurgy from the University of Idaho in Robert D. Marvin, BSc, P.Geo, - Director & VP of Exploration and QP Bob Marvin, P.Geo., serves as a Director and VP of Exploration and Qualified Person for Cypress Development Corp. He has been involved in mineral exploration and evaluation of lithium, gold, copper, zinc and uranium deposits in Nevada and throughout the Americas as an employee and as an independent consultant. He graduated from the University of New Mexico with a Bachelor of Science Degree in Geology in James G. Pettit Director, CFO Jim Pettit serves as a Director and acting CFO of Cypress Development Corp. Mr. Pettit offers over 25 years of experience within the industry specializing in finance, corporate governance, management and compliance. He specializes in the early stage development of private as well as public companies. His background over the past 25 plus years has been focused primarily within the resource sector where he has managed and directed junior resource companies through good times and bad. Jim was previously Chairman and CEO of Bayfield Ventures Corp. which was bought by New Gold Inc. in January 2015.

6 Cypress Lithium Claystone/Brine Projects in Nevada

7 Highlights of Cypress Lithium Projects in Nevada The discovered lithium mineralization at Cypress Dean and Glory Projects is ideally located within a basin that hosts the only significant lithium production in the United States. Cypress' Clayton Valley Projects are in close proximity to essential mining infrastructure. The consistent nature of the currently known lithium mineralization at Cypress Dean and Glory Projects is highly encouraging for both the potential size and potential resource extraction methodologies. The data to date outlines an area seven kilometers-long at Cypress Dean and Glory Projects which presents a strong starting point for planning a resource estimation. Cypress Development believes this discovery has the scale to significantly impact the future production of lithium in the Clayton Valley. Cypress also believes this new lithium source could well represent a long-term, reliable supply of lithium given the location, known size, chemistry and geometry of the discovery. Additional drilling should allow the Company to contemplate a sizable maiden lithium resource at Cypress Clayton Valley Project.

8 Lithium-Rich Claystone at Dean & Glory Projects

9 Dean Project Surface Claystone Sample Map Maximum value in Dean claystone was 3,730 ppm lithium (1.98% Li2CO3 equivalent); 8 Dean samples assayed greater than 2000 ppm lithium (>1.06% Li2CO3 equivalent); 29 Dean samples assayed greater than 1000 ppm lithium (>0.53% Li2CO3 equivalent); A 4 kilometers-long zone of Lithium-rich claystone identified at Dean Project.

10 2017 Phase 1 Dean Exploratory Drill Program All 9 holes drilled on the Dean Property identified strong lithium mineralization; All lithium mineralized intercepts at Dean start at near surface; Explored portions of Dean Property averages greater than 1000 ppm lithium; Average lithium mineralized thickness is greater than 65 meters; The thick, tabular zone of pervasive lithium mineralization is considered to be open in all directions; Drill data to date outlines a lithium mineralized zone of 4 kilometers-long at Dean; Lithium mineralization appears to thicken and increase in grade towards the east.

11 2017 Phase 1 Dean Exploratory Drill Program

12 Glory Project Surface Claystone Sample Map Maximum lithium in claystone at Glory was 3,830 ppm lithium (2.04% Li2CO3 equivalent); Extended Glory corridor of high lithium to 3 kilometers-long; 9 Glory samples contained more than 2,000 ppm lithium (>1.06% Li2CO3 equivalent); 71 Glory samples contained more than 1,000 ppm lithium (>0.53% Li2CO3 equivalent); and Anomalous boron (B) and potassium (K) trends that correlate with the high lithium (Li) values.

13 Glory Project Surface Claystone Lithium Results Glory sampling returned the highest reported assay result for lithium in sediments (3830 ppm Li) known by the Company to be publicly reported in Clayton Valley, Nevada. Extensive sampling at Glory Project show a 3 kilometer-long zone of north-south strike of lithiumrich outcropping claystone that assay approximately 1,500 ppm Li (0.80% Li2CO3) on average. Results suggest a strong possibility of continuous mineralized volume of a highly leachable lithium-rich claystone at surface on the Cypress Glory Project in a position immediately southeast of the Albemarle Silver Peak Mine. Permit in place to drill a number of holes targeted to provide initial subsurface data and assays under the wide zone of strongly mineralized claystone outcrops. This drilling should allow Cypress to begin to estimate size, lithium (Li) grade and tonnage in the claystone at the Company's Glory Project.

14 Glory Project Lithium Brine Potential Cypress has reviewed the seismic data in Pure Energy Minerals NI Technical Report titled "Inferred Resource Estimate for Lithium, Clayton Valley South Project", dated July 17, The Pure Energy seismic data appears to indicate favorable lithium brine targets along the western and west central portions of Cypress' Glory Property. Future drilling at Cypress' Glory Project will include hole locations targeting potential lithium-rich brines within the Main Ash Aquifer projected to underlie the west and west-central portions of Glory Project. The Main Ash Aquifer is the primary target of these holes. Cypress expects to intersect this zone at 150 to 300 meters below surface. Additional deeper targets will also be tested including the potential presence of a coarse gravel aquifer near the base of the basin fill evaporite sequence.

15 Solubility Lab Testing on Glory & Dean Claystone Solubility lab testing on 7 kilometers of claystone samples from across Cypress' Glory and Dean Properties have shown an impressive average of 35% Li recovery using a water leach and 95% Li recovery using a dilute Aqua Regia leach process. The data shows that a readily soluble non-hectorite mineral form of lithium-rich claystone exist at surface covering an area 7 kilometers-long across Cypress' Glory and Dean Clayton Valley Projects. The goal of this work is to substantiate the potential to produce lithium directly from the mineralized claystone with a low cost and environmentally friendly approach without the need for roasting or other costly mining and complex treatments. Cypress is proceeding with additional leach studies with the Glory and Dean claystone to determine the amount of lithium extraction possible from the claystone and to provide further data on the feasibility of a large scale leach extraction method of lithium from the abundant mineralized claystone.

16 Claystone Water Leach & Synthetic Li Brine Study Dean water leach assays show strong extraction of lithium with very low extraction of magnesium and calcium. The water and soluble element "synthetic brine" produced has very similar chemistry to that of reported chemistry of production brines from the Clayton Valley Mine and to brines reported by Pure Energy Minerals. Table below compares chemistry of the Dean "synthetic brine" produced to actual production and resource brines in the Clayton Valley. Note that the lithium value for the water leach solution from the Dean claystone is more than double that of the Pure Energy brine and is four times that of the Albemarle production brine. Element Dean Claystone CV-1 feet) Well 392 Lithium % Magnesium % Calcium % Potassium % Sodium % Cypress Pure Energy Albemarle

17 Water Leach Synthetic Lithium Brine Conclusions It appears that a lithium bearing mineral solution, that is chemically similar to the production and resource brines of the Clayton Valley, can be produced by the leaching of surface claystone in water. Comparison of ratios with other important elements also shows the Dean "Synthetic Brine" compares favorably with basin production brines. The data provides further strong support for the idea that the production brines of the basin are being continuously recharged by leaching of lithium and other elements from the uplifted and exposed former lake basin sediments that outcrop in a wide belt along the east margin of the Clayton Valley. This recharge mechanism strongly supports the importance of the outcropping and buried claystone as a very significant lithium source rock. Cypress chemistry work-up shows how rain water and underground aquifers would extract lithium and sodium from the mineralized basin sediments at much higher rates than the extraction of magnesium and calcium. Potential for existence of mineral brines under and immediately adjacent to the exposed belt of lithium rich rocks is high as the water flow pathways for the recharge system are likely to be vertical as well as horizontal.

18 Going Forward Cypress is proceeding with additional leach studies with the Dean and Gory core to determine the amount of lithium extraction possible from the Dean and Glory claystone. The goal of this work is to substantiate the potential to produce lithium directly from the highly mineralized claystone with a low cost and environmentally friendly approach without the need for roasting or other costly mining and complex treatments. Additional drilling should allow Cypress to contemplate a sizable maiden lithium resource at the Company s Clayton Valley Projects.

19 Clayton Valley Location & Infrastructure Well maintained state highways connect Silver Peak to the main road network in Nevada. Nevada has fostered a thriving mining industry with associated development expertise, construction and operations services and a mature regulatory environment. Single best mining jurisdiction in the U.S. and ranked 3rd globally by the respected Fraser Institute s annual Survey of Mining Countries. Graded and maintained gravel roads link Silver Peak to the southern half of Clayton Valley. Nearest rail system is in Hawthorne, Nevada, approximately 90 miles by road. Public use airport in Tonopah with two runways. Electrical connection is possible at the sub-station in Silver Peak. Water supply is currently served by the Silver Peak municipal water supply.

20 Lithium Timing The energy storage revolution is generating high demand for lithium, with analysts forecasting demand increases for the product (Li) in the near future. Battery giants are scaling up lithium-ion production with mega-factories and are actively acquiring the raw material through off take agreements. Companies already producing lithium are attempting to increase production. Rockwood Holdings was purchased by Albemarle Corporation (NYSE: ALB) in 2014 for $6.2 billion USD. This purchase included the Silver Peak Lithium Mine located in Clayton Valley, Nevada. Tesla Motors is building a $5 billion battery gigafactory outside Reno, Nevada. A large amount of the supply of lithium will have to come from Nevada production. Tesla received major state tax incentives ($1.3 billion over the next 10 years for Tesla). Electric vehicles and energy storage has become a huge demand driver for the increased production in Clayton Valley and for the exploration and discovery of more lithium deposits in Nevada.

21 Lithium Uses The most important use of lithium is in rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles. Lithium is also used in some non-rechargeable batteries for things like heart pacemakers, toys and clocks. Lithium is the most reactive metal known, also the lightest, with an atomic number of 3. Used in batteries, lithium provides much better energy per volume ratio or energy density than an ordinary alkaline battery or other common rechargeable battery such as a nickel-metal hydride. This is in part because lithium is the third-smallest element after hydrogen and helium, and thus a lithium ion can carry a positive charge in a very small amount of space. Lithium-ion batteries can be recharged by running the anode and cathode reactions in reverse and the ability to be recharged many times over without much loss of capacity is another major advantage of the lithium-ion battery. Lithium metal is made into alloys with aluminium and magnesium, improving their strength and making them lighter. A magnesium-lithium alloy is used for armour plating. Aluminiumlithium alloys are used in aircraft, bicycle frames and high-speed trains. Lithium oxide is used in special glasses and glass ceramics. Lithium chloride is one of the most hygroscopic materials known, and is used in air conditioning and industrial drying systems (as is lithium bromide). Lithium stearate is used as an all-purpose and hightemperature lubricant. Lithium carbonate is used in drugs to treat manic depression, although its action on the brain is still not fully understood. Lithium hydride is used as a means of storing hydrogen for use as a fuel.

22 Contact:. Don Huston President Don Myers Director, Investor Relations Suite 1610, 777 Dunsmuir Street Vancouver, BC, V7Y 1K4, CANADA Tel: (604) Fax: (604)