Tantalex Lithium Presents Remarkable Manono Lithium Tailings Preliminary Economic Assessment Showing IRR of 87.4% and NPV10 of $764 Million


Tantalex Lithium Announces Impressive Manono Lithium Tailings Preliminary Economic Assessment With IRR of 87,4% and NPV10 of US$764 Million

(TheNewswire)






Key PEA Highlights


Excellent project economics and financial
returns

  • Robust pre-tax NPV

    10%

    of approximately $764
    million and 87.4% IRR on a nominal basis, and a pre-tax NPV

    10%

    of approximately $638 million and 82.3% IRR on a
    real basis.

  • Rapidpaybackof1 yearafterfirstproductionusingaLife of
    Minespodumeneconcentratepriceof US$2,800/t SC5.5 (FOB, Africa) as
    forecast by Fastmarkets, an internationally recognized price
    reporting

    agency.

  • Project Capital Cost Estimate (CAPEX) of US$147,7M including
    contingencies,

  • Life-of-Mine (LOM) of 6 years with an estimated annual production of
    112,000 t of spodumene concentrate


Low risk plant operation and tailings
reclamation

  • Ready to use tailings dump resources to feed beneficiation plant with
    minimum cost of mining, crushing, grinding, and processing.

  • Processplant

    nameplate capacity is 1.26Mtpa of
    run-of-mine (


    ROM


    ) ore

    basedonrobustflowsheetusinglearningsfromotherlithium

    producers.

  • Anumberofopportunitieshavebeenidentifiedtoimprovecapital and
    operatingcostsandplantcapacity. The exploration program is being
    finalized with a focus on increasing indicated resources and extending
    life of project.


Toronto, Ontario –


TheNewswire –


October 6, 2022 –


Tantalex Lithium Resources Corp.


(CSE:TTX


)


(


FSE:DW8


)


(


OTC:TTLXF)


(“


Tantalex


” or the



Corporation


”), is


pleased to report results from
its Preliminary Economic Assessment


(‘’PEA’’)for its majority owned Manono Lithium Tailings
project in the Democratic Republic of Congo.


The PEA was prepared by Sedgman Novopro of Montreal,
Canada with Mineral Resource and Mining contributions from MSA Group
in accordance with National instrument 43-101, Standards of Disclosure
for Mineral Projects (NI 43-101).


An NI 43-101
Technical Report will be prepared and posted on




www.tantalexlithium.com




and the Company’s profile on




www.SEDAR+.com




within 45
days of the date of this news release.


The key
financial metrics are compelling,


and


the


Company


Board


has


recommended


the


Project


to


proceed


to


a


Feasibility


Study.




Eric
Allard, President and CEO


commented:


‘’


This PEA is perfectly
aligned with the results of our Maiden Resource Report filed in
January 2023. It was our decision to focus our efforts on completing
this PEA as a priority which now allows us to progress on our
Feasibility and ESIA Studies. We have sized the project scope in order
to use existing infrastructures but as the Manono region develops into
an important lithium mining region, we are confident that energy and
logistics costs will significantly reduce.


Additionally, we will pursue with our resource
definition works to increase the Life of Mine on both the Tailings
Property and our highly prospective hard rock lithium Pegmatite
Corridor


.’’


Executive Summary


Key metrics are shown below in


Table 1


for the Manono PEA assume a
weighted average lithium concentrate price of $2,800 USD/t FOB Africa,
based on Fastmarkets average forecast price from 2025-2026 and
adjusted for a 5.5% Li2O spodumene concentrate (SC 5.5) product.
Lithium price forecast is discussed in more detail in Appendix 1.



Table

1

: Key
Financial Metrics


Tantalex Lithium Presents Remarkable Manono Lithium Tailings Preliminary Economic Assessment Showing IRR of 87.4% and NPV10 of $764 Million


Click Image To View Full Size


The PEA has been completed with the assistance of
highly experienced and reputable independent consultants,
including:

  • Mineralresourcemodellingandestimation–MSA Group

  • Flowsheetdevelopment,engineeringandcostestimation–Sedgman Novopro


The PEA was completed to an overall estimating accuracy
of +/-35% (Class 5 estimate) and has a base date of Q4 2023. The
Project is based on a 112,167 tpa spodumene mining and processing
operation with the Study demonstrating very strong financial metrics.
The preliminary economic evaluation indicates the Manono Lithium
Tailing Project will generate significant net cash flows over an
initial 6-year life-of-mine (LOM) with a capital payback of 1 year
following first production.


Sensitivity analysis was completed to determine the
impact of various factors on the project economics (see


Figure 1)


.


Lithium


price


has


the


largest


influence


on


the


Project


financials.


For


every


10%


increase


in


the


lithium


concentrate


price,


the


project


NPV


10


increases


by


US$ 133 Million.


The


Project


demonstrates


it


is


resilient


to


capital


escalation


with


a


10%


increase


in


the


total


project


capital


cost,


reducing


the


NPV


10


by
only US$ 14 Million


.



Figure

1

:
Sensitivity Diagram showing the impact of various sensitivities to the
Project economics.





Click Image To View Full Size


Next Steps


The results of the PEA study demonstrate that the
Manono Lithium Tailings Project has the potential to be technically
and economically viable as a producer of lithium spodumene
concentrate. This section lists recommendations for updating the
resource, optimizing the process flowsheet and completing a
Feasibility Study (FS).


Mineral Resource


A strategy to drill the sloped area of the stacked
tailings of the K deposit is currently being investigated, with the
aim of providing sufficient data for higher confidence estimates for
this material. This would allow to transfer these currently classified
inferred resources into the Measured and indicated category.


Recovery Methods


Additional metallurgical testing will be performed
during the FS as the bulk samples tested to date are not considered
fully representative when compared with the core rejects samples
presented in the MRE. New samples for K, G, and I dump, based on the
existing drill hole rejects grade and granulometry, have been prepared
and sent to laboratory for future metallurgical testing during the FS.


There are several opportunities to optimize the process
flowsheet by conducting additional testing of the representative
samples. The testing will include as a minimum the following:

  • Confirm DMS parameters on the representative samples;

  • Confirm flotation parameters on the representative samples;

  • Gravity separation for tin and tantalum concentrate recovery;

  • Gravity separation of slimes (-106µm) to recover spodumene, tin
    and/or tantalum;

  • A technology trade-off for mica removal.


Significant opportunities exist to increase the project
robustness and financial metrics, notably:


The Feasibility Study execution is estimated at $4.0
million and involves additional exploration drilling, mineral
processing test work, Geotechnical investigation, completion of the
ESIA program, engineering and cost estimation producing an AACE Class
3 estimate. Predicated on a potentially positive FS outcome, an
investment decision to develop the Manono Lithium Tailings Project is
expected to occur in CY2024.


Technical Summary





MANONO


LITHIUM




TAILINGS


PEA


Introduction


Tantalex Lithium Resources Corporation (Tantalex) is a
Canadian exploration company listed on the Canadian Securities
Exchange, the Frankfurt Stock Exchange and the United States OTCQB
Venture Market. Tantalex Lithium Resources owns 52% of the Manono
lithium-tin-tantalum tailings deposit, located 490 km north of
Lubumbashi, in the Tanganyika Province of the Democratic Republic of
Congo (DRC) (see


Figure 1


).


The Manono Lithium tailings are located within the
Tailings Exploitation Permit PER 13698, which is located adjacent to
the town of Manono. It consists of 11 tailings dumps spanning a length
of 12 km from the southwest towards the northeast. The license is held
by Minocom Mining SAS, of which Tantalex holds 52%; 18% is held by
MINOR SARL and the remaining 30% by state owned company Cominière
SA.


The Manono Lithium Tailings Project has a
mineral resource estimate of 3.77 million tonnes at 0,86% Li2O in the
Measured classification, and 1.69 million tonnes at 0,42% Li2O in the
Indicated category, and 6.63 million tonnes of Inferred Mineral
Resources at a grade of 0,49% Li2O;


The PEA has assumed a processing plant capable of
treating 1.6 Mtpa of run-of-mine (ROM) ore. SEDGMAN NOVOPRO (SN) were
engaged to complete sufficient engineering to generate a capital and
operating estimate with an accuracy of +/-35% (Class 5). The MSA Group
(Pty) Ltd (MSA) completed the relevant mineral resource estimate
components of the PEA, which are discussed further within this
announcement. All costs and financials are presented in US dollars
unless stated otherwise.



Figure

1

: Manono
Lithium Project Location





Click Image To View Full Size


Mineral


Resource




Geology


The Manono Lithium tailings are technogenic deposits,
created from the processing of material from the Manono‑Kitolo
deposit, which was mined from 1919 to the mid-1980’s for tin and
columbite-tantalite (coltan). Nine out of the eleven tailings were
drilled, of which five form this Mineral Resource Estimate. The
tailings deposits stretch over a length of 12 km, in a
northeast-southwest direction, immediately adjacent to the mined pits.
Several of the deposits consist of a mixture of material types,
typically pegmatite and laterite, with some clay material being
present in minor quantities in specific deposits.


The deposits are named alphabetically, with a suffix
used to differentiate between coarse (c) and fine (f) material. The
nine tailings that make up the project are from north to south named
Cc, Cf, Ec, Hc, Hf, Gc, Gf, Ic and K (see


).


The lithium mineralization is primarily hosted in
spodumene with minor lepidolite. Tin mineralization is hosted in
cassiterite and tantalum in tantalite.


The nine tailings deposits have been evaluated by air
core drilling, completed from September 2021 to July 2022. A total of
368 drillholes, amounting to 11,922.4 meters of drilling, have been
completed, which took place over two phases.

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Drilling was orientated vertically, with the densest
drilling found on the K deposit, where holes were spaced 40 m apart.
The Gf and Hf deposits were drilled at a spacing of 80 m. The
remaining deposits were drilled on an irregular spacing ranging from
20 m to 80 m. Most of the drilling has intercepted the contact
representing the pre-depositional surface. The positions of the
tailings deposits relative to one another are shown in.

Figure

3

:

Manono Lithium Tailings
Project Area





Click Image To View Full Size


Mineral


Resource


The Mineral Resource was estimated using The Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice
Guidelines (2019) and is reported in accordance with the 2014 CIM
Definition Standards, which have been incorporated by reference into
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (NI 43-101).


The Mineral Resources were classified into the
Measured, Indicated and Inferred categories for each deposit and
reported at a cut-off grade of 0.20% Li


2


O (


Table
2


). The cut-off grade was calculated based on a
mining cost of 2.17 USD/tonne, a processing cost of 11.18 USD/tonne,
transport cost of 361 USD/tonne, G&A costs of 76.5 USD/tonne,
marketing costs of 178.4 USD/tonne, a mining recovery of 99%, process
recovery of 63% and a lithium price of 2800 USD/tonne for spodumene
concentrate (SC6), which the QP considers will satisfy “reasonable
prospects for eventual economic extraction”. No Mineral Resources
for the Ec, Hc and Hf deposits were declared.











Table

1

: Manono Mineral
Resources at 0.20% Li2O Cut-Off Grade – 23 August 2023





Click Image To View Full Size



Notes:



  1. All tabulated data
    have been rounded and as a result minor computational errors may
    occur.



  2. Mineral Resources are
    not Mineral Reserves, have no demonstrated economic
    viability.



  3. Li




    2




    O % grades calculated by
    applying a factor of 2.153 to Li % grades.



  4. Mt = Million tonnes,
    ppm = parts per million



  5. Inferred
    Li




    2




    O, Sn and Ta Mineral Resources are totalled for the Southern
    Sector dumps (Ic, Gc, Gf and K).



  6. Inferred
    Li




    2




    O only Mineral Resources are for the Cc dump.


The Mineral Resources presented in this Technical
Report represent an update to the Mineral Resource estimate with an
effective date 23 August 2023 and now includes tin and
tantalum.


Additional drilling is recommended for several deposits
in order to improve the confidence in the Mineral Resource
estimates.




Mining


The tailings dumps will be reclaimed by an excavator at
each of K, I and G dumps and loaded onto dump trucks for transport
onto an overland conveyor that will feed a stockpile at the process
plant.


A series of three, 900 mm wide belt overland conveyors
will transport a total of 240 tonnes per hours to the process plant
stockpile approximately 3,300 m from the reclaimed dump blending pad.
The first two segments of the conveyors will be enclosed by guarding
and be elevated approximately 1.5 m off the ground on concrete
pedestals, elevating higher at the location of the two transfer
towers. The final, 295 m conveyor section will be elevated on trestles
at approximately 6 m heigh and to allow for safe crossing over a major
road and population center.


Measured, Indicated and Inferred mineral resources were
included in tailings dumps reclaiming schedule as potential mineral
inventory, and while the Indicated were primarily targeted to show
where additional resource drilling should be


targeted, the inclusion of Inferred, and the nature of a PEA
has removed the possibility of the declaration of an Ore
Reserve.


The tailings dumps reclaiming schedule indicates
approximately 55% of the LOM production is in the Measured and
Indicated Mineral Resource category and 45% is in the Inferred Mineral
Resource category.


The Company has concluded it has reasonable grounds for
disclosing a Production Target, given that the PEA


only focused on the mining of a high-grade part of the
Mineral Resource Estimate (Dumps I, G and K). So, the PEA only covers
7.58Mt of the estimate at


1.26Mt of ROM ore to
the mill each year.


The mining rate required to ensure continuous mill
feed, and the production targets, is determined by the production
schedule, however the rate needs to be cognizant of mining fleet size,
equipment productivities and shift arrangements.




Processing


Material from the tailings dumps will be processed into
a 5.5wt% Li


2


O concentrate
using a robust process flowsheet consisting of crushing, dense media
separation and flotation, dewatering and bagging.


The Manono tailings dumps has two broad ore types that
will be presented to the process plant:


• Coarse grained spodumene





Fine grained spodumene


The process flowsheet is based on a typical hard rock
spodumene resource, which is amenable to both Dense Media Separation
(DMS) and froth flotation to achieve a target concentrate grade of
5.5% Li2O, and incorporates the current understanding of resources
size, grade, mineralogy and crystal grain size, as well as information
from Heavy Liquid Separation (HLS) test work undertaken to
date.


Stockpiled material in proximity to the processing
facility is reclaimed by front end loader onto a belt conveyor that
feeds a vibrating screen with a 5 mm deck. Oversize material falls
into a double roll crusher and is returned to the belt conveyor.
Screen undersize material is transported onto a wet vibrating screen
with a 500 µm deck. Wet screen oversize is transferred into the DMS
(Dense Media Separation) plant feed tank, while the wet screen
undersize falls into a pump box for feeding into the wet grinding and
flotation plant.


A two stage DMS plant is used to produce 5.5 wt%
Li


2


O concentrate where the
primary DMS floats (tailings) are transported by a series of moveable
conveyors to the TSF. Secondary DMS floats (middlings) are pumped to
wet grinding and the flotation plant, followed by dewatering by a
centrifuge and are then sent to the bagging plant. Secondary DMS sinks
are dewatered by a centrifuge and then sent to the bagging
plant.


Figure 4 shows a schematic of Manono process flowsheet,
which uses conventional processing technologies, however it is a
4


th


generation spodumene concentrator adopting learnings and optimizations
from existing spodumene operations to ensure high efficiency through
every process unit operation. These optimizations include:

  • Maximize mineral liberation for effective coarse and fine spodumene
    recovery

  • Minimize slimes losses

  • Effective rejection of gangue minerals including mica and iron
    silicates

  • Efficient milling, desliming and float conditioning to maximize fines
    recovery

  • Maximize plant availability by employing high wear resistant materials
    of construction and duty/standby equipment where necessary


Crushing and Screening


The 15,000 tonnes process plant stockpile will be
reclaimed by a front-end loader and fed onto a belt conveyor that will
transport the material onto the vibrating, crusher sizing screen. The
5mm screen deck will divert oversized material into a double roll
crusher, that will return the material onto the crusher feed conveyor.
Spray water will be used on this screen


deck to
push finer material to the undersize. Screen undersize will flow onto
a vibrating wet sizing screen with a 500 µm deck. The wet sizing
screen will divert the oversize material into the DMS plant feed tank
and the undersize into the wet grinding plant feed pump box.




DMS
Plant


The wet screen oversize material will be combined with
Ferrosilicon (FeSi) media to increase the specific gravity of the
slurry to 2.65


t/m


3


before entering
the primary DMS cyclones. The primary DMS cyclone overflow (floats)
will be dewatered through a screen to 15% moisture and transported by
a series of grasshopper conveyors to the Tailings Storage Facility
(TSF). Primary cyclone underflow (sinks) will be combined with
additional FeSi to increase the specific gravity to 2.85


t/m


3


before entering the secondary DMS cyclones. Overflow from
the secondary cyclone (middlings) will be pumped to the wet grinding
plant. Secondary cyclones underflow is transferred to a dewatering
centrifuge. FeSi media is recovered from primary and secondary DMS
cyclones through drain and rinse screens, and magnetic separators.


Wet Grinding


Wet screen undersize and DMS middlings are pumped to a
ball mill for wet grinding. The product slurry is pumped to a
hydrocyclone with a cut point of 300 µm. Cyclone overflow (-300 µm)
is fed to the flotation plant and the underflow (+300 µm) is recycled
back to the ball mill.


Flotation Plant


The ball mill cyclone overflow is pumped to a high
intensity scrubber followed by a desliming cyclone and a magnetic
separator. The iron-deficient slurry is then pumped into two-stages of
mica reverse flotation cells. The floated mica is pumped to the
tailings thickener with the remaining slurry being pumped into a
dewatering cyclone.


The mica-deficient, dewatered slurry passes through a
high-density scrubber and a desliming cyclone before being pumped into
four-stages of lithium spodumene flotation cells. Tailings from the
rougher and scavenger cells are pumped to the tailings thickener while
the concentrate is pumped to the cleaner cells. Concentrate from the
first cleaner stage is pumped into the second stage cleaner to produce
a final product concentrate that is pumped to the dewatering
centrifuge. Tailings from the cleaner cells are pumped to the tailings
thickener.

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Product Dewatering and Bagging


Spodumene concentrate from the DMS and Flotation plants
is pumped into dedicated screen bowl centrifuges for final dewatering,
targeting 5% moisture. The dewatered concentrate is transferred into
dedicated storage bins to feed the product bagging plants. Each
concentrate type will have a dedicated bagging plant that will include
automatically filling 1 tonne bulk bags, bag labeling, and
transporting the filled bags on an accumulating conveyor for forklift
handling. The 1 tonne bulk bags will be removed from the accumulating
conveyors by forklifts for storage on wooden pallets in a covered area
at the process plant. Forklifts will maneuver the palletized bags onto
transport trucks that will deliver the bags to a warehouse location in
Lubumbashi. From Lubumbashi, the palletized bags will be loaded onto
26 tonne capacity trucks for transport to the port of Dar es Salaam,
Tanzania.

Figure

4

: Manono spodumene concentrate process
flowsheet






Click Image To View Full Size


Tailings Dewatering


A single high-rate thickener will collect various
tailings streams generated throughout the process plant. These streams
consist of effluent from the DMS plant, fines in the desliming cyclone
overflow, overflow from the dewatering cyclones, magnetic separation
tailings, mica reserve flotation concentrate and spodumene flotation
tailings.


The solids present in the feed streams will settle to
the bottom of the thickener and water is recovered through the
overflow weir. The recovered water is pumped to the process water
pond. The underflow slurry will be pumped to the TSF at 55%
moisture.


Reagents


The DMS Plant will use ferrosilicon (FeSi) as the
densifying agent. The FeSi will be stored in waterproof steel drums
under a roof at the process plant.


The flotation plant will require several reagent types,
that will be stored in plastic totes under a roof at the process
plant. The reagents will include a frother, amine collectors and
sodium-based compounds as regulators. A flocculant will be added to
the tailings thickener to assist in solids settling. The flocculant
will be stored in plastic totes under a roof at the process plant,
near the thickener.










I


nfrastructure


All associated infrastructure required to support the
Manono operation is included in the PEA. Capital provisions were
included for the following items: power generation, site roads,
accommodation and mess facilities, water supply, wastewater treatment,
administration buildings, telecommunications, security, warehouse,
maintenance and tailings storage facility, bulk fuel farm, laboratory,
and emergency response facilities.


Energy consumption is estimated at 4MW and has been
costed using diesel generators. Significant improvement can be


made by incorporating the options for energy
supply from Piana Mwanga hydroelectric dam located 70km from Manono
and currently being refurbished.




Export
route


The export route considered in the PEA for bringing
material to site and export of product is the N33 between Manono to
Lubumbashi, a distance of approximately 600km.


Estimate has been made with current road conditions
which allow 6×6 trucks carrying 20 tons.


An allowance of USD$ 10 million has been allocated in
the CAPEX for improving certain sections of the road prior to start up
of the operations.


Tailings Management





Primary DMS tailings pass a dewatering screen to
achieve 13% moisture and are directed to a series of conveyors running
from the process plant to dry stacking at the Tailing Storage Facility
(TSF). The system consists of mobile grasshopper conveyors which
direct the solids to an end section that distribute the solids in an
arc via a stacker conveyor.


Tailings from the flotation thickener underflow at 55%
moisture are pumped via an above ground pipeline to a spigot system
along the western side of the TSF.


The TSF is sized to store a total of 10 million tonnes
of tailings, over the six-year plant life. The TSF is located
southeast of the process plant, sloping eastward at an average grade
of 3.8%. The natural slope will ensure that the final tailings pile
does not exceed a height of 24 m. The entire 494,000 m


2


area will be
lined with EPDM.




Environmental Studies, Permitting and Social or Community
Impact


Collection of baseline data for the Manono Lithium
tailings project has been ongoing since October 2022 by a local DRC
contactor.


The baseline studies were designed
and implemented to support requirements for future planning and
permitting purposes. The baseline studies will be peer reviewed by an
independent consultant to ensure all activities are compliant with
international lending standards. An active program has already been
taken for communicating and consulting with the local
communities.






Capital Expenditures




The estimate meets the
minimum requirements of a Class V estimate as defined in AACE
International Recommended Practice No. 18R-97. The CAPEX estimate has
an intended accuracy of ±35%. The total Direct CAPEX to bring the
Project to operation is estimated to be


$80,611,000 with


a total of $34,157,000
allocated for the Indirect costs.


An additional
$10,000,000 allowance is allocated for the road’s rehabilitation.


An estimated budget of $22,954,000 is allocated
to


Contingency


, which
brings the


t


o


t


al CAPEX of


t


he


P


r


o


j


e


c


t


to


$147,722,000


.


The capital estimate has been developed using
preliminary MTOs and unit pricing obtained from either contractor or
vendor supplied quotations. Approximately 70% of total equipment
supply value for the Manono Lithium Project was based on budget quotes
for the Project. 90% of the total mobile equipment costs are based on
budget quotes received during this phase of the project. Concrete,
structural, piping, electrical and instrumentation are all factored
amounts based on the mechanical equipment costs. Civil works and
architectural are based on MTOs and using in-house unit rates
extracted from similar projects. Factored amounts have been calculated
from the direct installed capital cost for construction indirects,
freight, commissioning, first fill, vendor representative,
construction management (EPCM) components and Owner’s cost.


Contingency is intended to cover items that are
included in the scope of work as described in this report but cannot
be accurately defined due to the normal range of variability of
quantities, productivity, unit rates, the current level of Engineering
and other factors that affect the accuracy of the expected final cost
of the Project. The total for Contingency calculated 20% of the total
(direct + indirect) costs.


Table 3


below presents the
Project CAPEX Summary.









Table

1

: Project CAPEX Summary





Click Image To View Full Size






Operational Expenditures


(OPEX)


The estimate meets the minimum requirements of a Class
V estimate as defined in AACE International Recommended Practice No.
18R-97. The OPEX estimate has an intended accuracy of ±35%. The total
estimated OPEX is $44.9M per year or $402.00 per tonne lithium
spodumene produced (dry basis). Of this cost, $36.4M per year or
$325.50 per tonne are direct production costs (81%) and $8.5M per year
or $76.50 per tonne are indirect production costs (19%).


The project OPEX was based on Process Flow Diagrams and
Mass Balances, Load Lists and Layouts. Other supporting data includes
vendor pricing and specifications, and historical data from previous
projects. The full-rate operating hours for the process plant used in
the OPEX estimate was 7,600 hours per year. Annual spodumene
production was 112,167 tonnes per year on a dry basis and 118,071
tonnes per year on a wet basis. No contingency has been considered for
the OPEX for the project.


The OPEX summary excludes the following which are only
captured in the cash flow.


  1. a)

    Product Transport; (Included only in cash
    flow);


  2. b)

    Marketing; (Included only in cash flow);


  3. c)

    Royalties; (Included only in cash flow);


Table 4


presents a summary of the
Annual Operational Expenditures (OPEX) for the Project.





Table

4

: Project OPEX Summary





Click Image To View Full Size






Product Transport


The product transport cost is based on a quote received
from a local transport agency (C. Steinweg Bridge). The cost is $361
per tonne and includes the manpower, the maintenance, the diesel and
the tire replacements to bring the material to an African port.
Several segments of the journey from Manono to Dar es Salaam were
provided as seen below in


Table 5


.



Table

5

: Product
Transport Cost Basis





Click Image To View Full Size


Financial Analysis


An engineering economic model was prepared for the
Project to estimate annual cash flows and assess sensitivities to
certain economic parameters. The Project shows a pre-tax cumulative
net revenue of $1,274M, a pre-tax NPV (10% discount) of $764M, with an
IRR of 87.4% on a nominal basis. The project shows a pre-tax NPV (10%
discount) of $638M, with an IRR of 82.3% on a real basis.

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The cash flow estimate includes only revenue, CAPEX,
and OPEX costs. Product transport, marketing and royalties were all
included as additional costs within the cash flow model. Corporate
obligations, financing costs, and taxes at the corporate level are
excluded.


The implementation schedule currently estimates the
construction timeline to be from March 2024 to October 2025 across 20
months. Each year contains 10 months of construction; thus the CAPEX
is spent by 50% across 2024 and 50% across 2025.


Key metrics are shown below in


Table 6


for the Manono PEA assumes a
weighted average lithium concentrate price of $2,800 USD/t FOB Africa,
based on Fastmarkets average forecast price from 2025-2026 and
adjusted for a 5.5% Li2O spodumene concentrate (SC 5.5) product.



Table

6

: Key
Project Financial Metrics





Click Image To View Full Size


A sensitivity analysis was completed to determine the
impact of various factors on the project economics (see


Figure 5


).


Lithium


price


has


the


largest


influence


on


the


Project


financials.


For


every


10%


increase


in


the


lithium


concentrate


price,


the


project


NPV


10%


increased


by


US$ 133 Million.


The


Project


demonstrates


it


is


resilient


to


capital


escalation


with


a


10%


increase


in


the


total


project


capital


cost,


only


reducing


the


NPV


10


by US$ 14 Million


.



Figure

5

:
Sensitivity Diagram showing the impact of various sensitivities to the
Project

economics.





Click Image To View Full Size


Project Development


The PEA has demonstrated that the Manono Lithium
Tailings Project has no critical technical flaws, and the FS is
anticipated to commence in October 2023. Predicated on a potentially
positive FS outcome, an investment decision to develop the Manono
Lithium Tailings Project is expected to occur in CY2024. Results from
the FS will be incorporated during Front-End Engineering and Design
(FEED) which is scheduled to commence immediately after FS completion.


Metallurgical testwork is planned in the course of the
FS. This work will include grinding, DMS, Flotation and Dewatering
tests, which will increase the definition of the process flowsheet.
This workstream will allow flowsheet optimisation and vendor testing
of preferred equipment for the process plant.


Environmental approvals and permitting for the Project
are on the critical path.


A high-level project schedule is provided in


Figure 6.



Figure

6

:
High-level Project Schedule





Click Image To View Full Size


Filing of Report

The NI43-101 compliant technical report (“Report”) will be filed
on SEDAR within the next 45 days.

The Qualified Person for the Mineral Resource estimate is Mr. Rui
Goncalves (BSc Hons, MSc (Eng.)) who is a geologist with 13 years of
experience in base and precious metals exploration, mining geology and
Mineral Resource estimation. He is a Senior Mineral Resource
Consultant for The MSA Group (an independent consulting company), is
registered with the South African Council for Natural Scientific
Professions (SACNASP) and is a Member of the Geological Society of
South Africa (GSSA). Mr. Goncalves has the appropriate qualification
and experience to be considered a “Qualified Person” for the style
and type of mineralisation and activity being undertaken as defined in
National Instrument 43-101 Standards of Disclosure of Mineral
Projects.

Neither Mr. Goncalves nor any associates employed in the preparation
of the Mineral Resource report (“Consultants”) have any beneficial
interest in Tantalex Lithium Resources Corporation.

The qualified person for the above ground infrastructure and support
systems is Mr. Jim Brebner P.ENG. who is a mechanical engineer with 35
years of experience executing industrial projects, economic and
feasibility studies, process development, and due-diligence reviews,
and has participated in multiple mining and processing projects in
potash, lithium, and light metals in Canada, United States, Africa,
South America and Australia. He is the Engineering Manager at Sedgman
Novopro (an independent consulting company) and is registered with the

Ordre des Ingénieurs du Québec

and the
Professional Engineers and Geoscientists of Newfoundland and Labrador.
Mr Brebner has the appropriate qualifications and experience to be
considered a “Qualified Person” for the style and type of
processing plant and activity being undertaken as defined in National
Instrument 43-101 Standards of Disclosure of Mineral Projects.

Mr. Brebner nor any associates employed in the preparation of the PEA
report (“Consultants”) have any beneficial interest in Tantalex
Lithium Resources Corporation.

The qualified person for the mineral processing is Mr. Antoine
Lefaivre(P.Eng) who is a Process engineer with 15 years of experience
executing industrial projects, economic and feasibility studies,
process development, and due-diligence reviews, and have participated
in projects for potash, lithium, magnesium products, using both
conventional and solution mining for ore recovery in Canada, United
States, Africa, South America and Australia. He is lead process
engineer in Sedgman Novopro (an independent consulting company), is
registered with Order of Engineers of Quebec. Mr. Lefaivre has the
appropriate qualification and experience to be considered a
“Qualified Person” for the style and type of processing plant and
activity being undertaken as defined in National Instrument 43-101
Standards of Disclosure of Mineral Projects.

Neither Mr. Lefaivre nor any associates employed in the preparation of
the PEA report (“Consultants”) have any beneficial interest in
Tantalex Lithium Resources Corporation.

These Consultants are not insiders, associates, or affiliates of
Tantalex. The results of the report are not dependent upon any prior
agreements concerning the conclusions to be reached, nor are there
undisclosed understandings concerning any future business dealing
between Tantalex and the Consultants. The Consultants are to be paid a
fee for their work in accordance with normal professional consulting
practices.


Qualified person


Mr. Rui Goncalves, Pr. Sci Nat, is a Qualified Person
and has reviewed and approved this press release. The information in
this press release that relates to the estimate of the Mineral
Resources for the Manono Tailings Project is based upon, and fairly
represents, information and supporting documentation compiled by Mr.
Goncalves.


Mr.

Jim Brebner

, P.ENG. is a
Qualified Person and has reviewed and approved this press release. The
information in this press release that relates to the Manono Tailings
Project PEA report is based upon, and fairly represents, information
and supporting documentation compiled by Mr.

Brebner

.


Mr.

Antoine Lefaivre

, P.ENG, is a
Qualified Person and has reviewed and approved this press release. The
information in this press release that relates to the Manono Tailings
Project PEA report is based upon, and fairly represents, information
and supporting documentation compiled by Mr. Goncalves.


About Tantalex Lithium Resources
Corporation


Tantalex Lithium is an exploration and development
stage mining company engaged in the acquisition, exploration,
development and distribution of lithium, tin, tantalum and other
high-tech mineral properties in Africa. It is currently focused on
developing its lithium assets in the prolific Manono area in the
Democratic Republic of Congo; The Manono Lithium Tailings Project and
the Pegmatite Corridor Exploration Program.


Cautionary Note Regarding Forward
Looking Statements


The information in this news release
includes certain information and statements about management’s view of
future events, expectations, plans and prospects that constitute
forward looking statements. These statements are based upon
assumptions that are subject to significant risks and uncertainties.
Because of these risks and uncertainties and as a result of a variety
of factors, the actual results, expectations, achievements or
performance may differ materially from those anticipated and indicated
by these forward looking statements. Although Tantalex believes that
the expectations reflected in forward looking statements are
reasonable, it can give no assurances that the expectations of any
forward looking statements will prove to be correct. Except as
required by law, Tantalex disclaims any intention and assumes no
obligation to update or revise any forward looking statements to
reflect actual results, whether as a result of new information, future
events, changes in assumptions, changes in factors affecting such
forward looking statements or otherwise.


The Canadian Securities Exchange
(CSE) has not reviewed this news release and does not accept
responsibility for its adequacy or accuracy.


For more information, please contact:


Eric Allard


President & CEO


Email: ea@tantalex.ca


Website:


www.tantalexlithium.com


Tel: 1-581-996-3007

Copyright (c) 2023 TheNewswire – All rights reserved.

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