rb milestone group, new york initiating coverage on lrs

Growing Lithium Player in Argentina

Latin Resources Limited (ASX: LRS) (“Latin” or the “Company") is a mineral

exploration and development company operating in Latin America. The Company’s

shares are traded on the Australian Stock Exchange. Latin owns lithium projects in

Argentina and copper projects in Peru. At present, the Company is mainly focused on

developing its lithium projects in Argentina, and it currently holds the largest

concessions holdings covering Lithium rich (spodumene) pegmatites in Argentina, a

historical spodumene producing country covering more than 100,000 hectares.

Argentina is one of only a handful of countries in the world that have produced

spodumene and is one of only two countries in South America to have done so. The

Company currently owns mineral exploration rights in two key provinces, namely,

Catamarca and San Luis. It also holds an option on a Salta lithium/tantalum project in

Argentina. Recently, the Mining Authority of Catamarca granted exploration rights to

the Company at the Catamarca Province. Further, the Company is expected to

commence drilling at its Catamarca concessions in December 2016, and obtain JORC

complaint resource estimates in 2017.

Investment Rationale

Catamarca Project has tremendous Lithium potential

Latin’s Catamarca Project is close to commencing exploration and drilling for pegmatite

hosted lithium deposits. As of November 29, 2016, the Company has obtained

exploration permits for nine exploration tenements at Catamarca, Argentina, extending

approximately 76,700 hectares. The Company plans to commence its drilling program

in December 2016, and subsequently obtain JORC mineral resource estimates in the

first half of 2017. Eventually, Latin then plans to successfully mine spodumene and/or

lithium carbonate by 2018, essential to producing high grade lithium (in high demand

today).

San Luis Project adds significant value to the Company’s portfolio of rich lithium

mining concessions

On November 2, 2016, Latin claimed exploration rights in six lithium concessions

covering 24,769 hectares in the San Luis Province, Central Argentina. Eventually, Latin

plans to commence drilling operations in the 1st Quarter 2017, and consequently obtain

JORC resource estimates. Exploration concessions in San Luis have been blessed

with rich lithium bearing pegmatite deposits. Specifically, “Maria Del Huerto”

concession has been the Company’s prime target of interest, due to the presence of

rich spodumene deposits enclosed in explorable dykes. Further, Latin‘s exploration

concessions have been historically mined for lithium, along with other minerals such as

feldspar, quartz, tantalite and others, which further supports the Company’s operations.

Significant opportunities from pending acquisition of Ansotana Project in Salta

Recently, Latin has entered into a purchase and earn-in agreement to acquire up to

90% interests in various lithium mining concessions (collectively called the Ansotana

Project), located in Salta, Argentina. The Ansotana Project holds 24 concessions,

covering approximately 44,290 hectares in the El Quemado pegmatite district,

Argentina. The Ansotana pegmatites are highly fractionated and are known to contain

valuable minerals such as tantalite-columbite as well as the lithium bearing minerals

such as spodumene, lepidolite, and montebrasite. Some of these pegmatites are

known to have been historic producers of tantalite-columbite and bismuth, Latin could

produce lithium from all 24 concessions quickly, as these concessions are already

vested with mineral exploration rights by the Mining Authority of Argentina. As a result,

once the acquisition due diligence is completed, the Company could initiate lithium

exploration immediately.

Latin Resources Ltd

(ASX: LRS)

November 30, 2016

Price (as of Nov 29, 2016): AUD $0.012

Beta: N/A

Price/Book: 6x

Debt/Equity Ratio: 0.10

Listed Exchange: ASX

16,000

50,016,000

100,016,000

150,016,000

200,016,000

$0.00

$0.01

$0.01

$0.02

$0.02

$0.03

Oct

-15

No

v-15

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Ap

r-16

May

-16

Jun

-16

Jul-

16

Au

g-16

Sep

-16

Oct

-16

No

v-16

Source: Yahoo Finance

Recent News

21-Nov-16: Latin obtained two additional exploration rights in Vilisman and Ancasti project areas totaling over 7,050 hectares.

02-Nov-16: Latin claimed exploration rights in six new Lithium exploration concessions and one vacant concession, in the San Luis Province, Argentina

20-Oct-16: Received exploration rights for its seven exploration tenements (over 70,000 hectares) in the Catamarca Province.

22-Sep-16: Signed a binding agreement with the Ansotana group of concessions to acquire up to 90% ownership of the Ansotana Pegmatite Project in Salta, Argentina

15-Aug-16: Raised $3.4 million from PAC Partners Pty Ltd and EverBlu Capital Pty Ltd. through the issuance of 309,090,909 shares at a share price of $0.011 per share

27-July-16: Latin’s fully owned subsidiary, Peruvian Latin Resources SAC (PLR) signed an agreement with the Minera Antares Peru SAC (Antares) to transfer up to 80% ownership of its copper project to Antares.

31-May-16: Appealed 70,000 hectares in seven Lithium exploration tenements in the Catamarca Province.

Shares Outstanding: 1.5 billion

Market Cap: $19.5 million

52 Week High: $0.024

52 Week Low: $0.003

Cash (as of Qtr end Sept 30) $1.97 million

Note: All $ symbols represent Australian

dollars (AUD) unless otherwise specified.

www.RBMILESTONE.com

http://www.rbmilestone.com/

2

Latin Resources Ltd

Joint Venture with First Quantum provides timely revenue

Latin has successfully entered into an earn-in agreement with First Quantum Minerals Ltd (FQM), a global mining company, to

transfer up to 80% of Latin’s interest in its Pachamanca/MT-03 copper project, located in Peru to FQM. This agreement is in line

with the Company’s strategy of focusing more on its lithium projects and developing this copper project with joint ventures. The

Company is set to receive a consistent revenue of 2% Net Smelter Return (NSR) from FQM, upon sale of copper. Additionally, if

FQM reduces NSR to 1%, Latin could also receive a royalty of $40 million.

Lithium Market Dynamics remains robust

Lithium demand continues to increase significantly, driven by its wide industrial applications in batteries, ceramics, polymers, air

treatment and others. Batteries are expected to play a crucial role in driving global lithium demand. Falling manufacturing costs,

coupled with scaled up production facilities, have made Li-ion batteries ideal for usage in transportation and energy storage

sectors. Li-Ion production costs have fallen from US$900/kWh to US$225/kWh in the last five years; and this, has in turn,

increased usage and opened up new markets/applications as well. Further, surge in global electric vehicles production rate

plays an important role in augmenting lithium demand growth. According to the International Energy Agency (IEA), the Paris

agreement on climate change calls for a global deployment target of 500 million electric vehicles (including cars, two & three

wheelers) by 2030, thereby increasing the need for Li-ion batteries utilizable in EV’s. Planned production of electric vehicles by

various auto makers should play an integral part in driving the demand for lithium in the years to come. Therefore, increasing

demand coupled with existing supply deficit should lead to short term increase in lithium prices, benefiting lithium miners such

as Latin Resources.

Qualified and experienced management team should help Latin achieve operational success

Latin has an experienced management team with immense knowledge in drilling and exploring mineral services. The combined

experience of Latin’s management team is more than 100 years. Mr. Christopher Gale, Managing Director of the Company, has

over 14 years of experience. Mr. Gale has been advisor for many companies in the mining, oil & gas and technology sectors.

Mr. Vijay Mehta is the Process and Chemical Engineer of the Company and has more than 45 years of experience in the arena

of Ore and Brine technology used for recovery of lithium, potash, magnesium and boron. Mr. David Vilensky the Non-Executive

Chairman of Latin Resources has over 30 years of experience in the field of business and corporate law and also in commercial

and corporate management. Mr. Kerry Griffin, who was recently appointed as its Exploration and Development Manager, has

over 21 years of experience in the field of mining geology, resource development and exploration, including being for two years

the Chief Geologist at the Wodgina, which at that time was the world’s largest pegmatite hosted Tantalite mine.

Company Overview

Business Latin Resources Limited is a mineral exploration and development company operating in Latin America. The Company owns

lithium projects in Argentina and copper projects in Peru. Currently, the Company is primarily focused on developing its lithium

projects in Argentina and is actively involved in expanding its project pipeline through joint ventures. Latin controls the largest

lithium pegmatite deposits extending over 100,000 hectares in Argentina, and owns mineral rights in three key provinces

namely, Catamarca, Salta and San Luis. Recently, the Company obtained granted exploration rights for the Catamarca province

which now totals 76,700 hectares from the Mining Authority of Catamarca and is expected to commence drilling operations in

December 2016. On November 2, 2016, Latin claimed exploration rights in six new Lithium exploration concessions and one

vacant concession in the San Luis Province, Argentina. Latin Resources recorded cash at hand of $1.97 million as of 30th

September quarterly.

Lithium Projects in Latin America The Company has identified favorable lithium rich pegmatites in the Pampean Pegmatite Province of northwest Argentina and

the Precambrian Gneiss territories in Peru. As a result, the Company is in the process of acquiring concessions, prospective for

lithium mineralization in both these areas.

Specifically, lithium bearing minerals such as Lepidolite, Spodumene, Lithiophilite, Amblygonite, and Petalite are widespread in

the Pampean pegmatite province and the Company has successfully achieved mineral rights in three provinces, Catamarca,

Salta and San Luis, of Argentina. Currently the Company controls more than 140,000 hectares of concessions prospective for

pegmatite hosted lithium mineralization. Exhibit 1 shows the location of Latin’s target areas, highlighting the lithium rich

pegmatite province of North-West Argentina

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Latin Resources Ltd

Exhibit 1: Pampean Pegmatite Province of North-West Argentina

Source: Company presentation

Lithium Pegmatite Concessions, Catamarca On October 20, 2016, the Company obtained exploration rights for more than 70,000 hectares of lithium pegmatite concessions

in Catamarca from the Ministry of Mining authority, Catamarca Province. Recently, on November 21, 2016 Latin also received

exploration rights for two additional exploration tenements in areas namely, Vilisman and Ancasti extending over 7,051.6

hectares. These two concessions are located near pre-existing seven other exploration lithium concessions as shown in Exhibit

2. Therefore, in total, the Company has received exploration rights for approximately 76,700 hectares in Catamarca Province.

On November 16, 2016, the Company also appointed Mr. Kerry Griffin, as Exploration and Development Manager to oversee

drilling on the Catamarca project and coordinate exploration all other Latin Resources projects. The Company is now expected

to commence drilling in December 2016.

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Latin Resources Ltd

Exhibit 2: Location of Vilisman and Ancasti ranges (marked in dark red) near to existing Catamarca concessions


The areas covered by Latin’s Catamarca’s concessions were the source of spodumene production from 1936 into the 1970’s.

During and since that time, numerous technical articles and publications have described both the overall geology of the

pegmatite belts and individual lithium (spodumene) mines. Initial field investigations have visually confirmed the presence of

spodumene at this location with recent analysis of three samples collected by Latin from within the concession areas confirm

potentially economic grades of Li2O (6.6%, 6.3% and 4.9% respectively). The Company has a significant opportunity in

exploring the concession areas with the objective of discovering a commercially viable lithium (spodumene) deposit.

Past & Upcoming milestones Control the majority of the known hard rock lithium bearing pegmatites in Argentina – Completed

Commence field work on Catamarca to define drill targets and lodge EIR and drill permits – Completed

Start drilling on the Catamarca concessions – December 2016

Carry out assays on drilling and release results on Catamarca project – January-February 2017

Commence field work on San Luis concessions to define drill targets – January 2017

Start drilling on the San Luis concessions – March 2017

Drill and define a resource by 2nd

Quarter 2017

Complete design work on the spodumene concentrate plant in 3rd

Quarter 2017

5

Latin Resources Ltd

Ansotana Pegmatite Project in Salta (Pending Acquisition), Argentina

Location and Geography

In September 2016, the Company entered into an earn-in agreement to acquire up to a 90% of interest in 24 concessions

(collectively called the Ansotana Project) from the mineralized El Quemado Pegmatite District. The location of the 24 Ansotana

Project concessions are shown in Exhibit 3 and 4. The Ansotana project is located in the El Quemado district, just 75 kilometers

to the west of Salta. The project area concessions cover approximately 44,290 hectares of the El Quemado Pegmatite District

which is known to contain numerous mineralized pegmatites some of which have been historically exploited for Tantalite and

Bismuth deposits. El Quemado is the northern most located pegmatite district in the 800km long Argentine Pampean Pegmatite

province, extending approximately 60km. The Ansotana project contains pegmatites that carry high valued lithium minerals such

as spodumene, amblygonite and Lepidolite.

Exhibit 3: Location of the Ansotana Pegmatite Project, (grey line is access route from Salta) in the mining friendly Salta

Province, host to one of the world’s richest source of lithium. The 24 Ansotana concessions cover approximately 44,290

hectares.

Exhibit 3: Location of Ansotana Lithium-Tantalum Project


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Latin Resources Ltd

Exhibit 4: Map of Ansotana Lithium-Tantalum Project with 24 concessions


The Ansotana pegmatites also contain various high valued minerals such as Tantalite, Beryl and Bismuth. The Ansotana mining

area has been mined as early as 1943, when the Ansotana Mining Company mined Tantalum and Bismuth in these

concessions to export pegmatite minerals such as tantalite and bismuth to the USA during World War II. Further, all

concessions in the Ansotana project area have already received mining permits during the past exploration period, benefitting

Latin resources. The Ansotana Project is also ready to drill once the due diligence process with respect to the pending

acquisition is completed. Therefore, Latin can seize the immense opportunity in utilizing Ansotana’s known lithium exploration

targets, and substantially increases its portfolio of lithium exploration concessions. Exhibit 4 shows the geology of the Ansotana

Project area.

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Latin Resources Ltd

Exhibit 5: Geology and mineralization on the Ansotana Lithium-Tantalum Project


Ansotana Binding Terms for Earn-in Agreement

As discussed previously, Latin has entered into an earn-in agreement to acquire up to a 90% interest in the Ansotana Project.

The agreement allows Latin to conduct exploration work, and identify feasible lithium mineralization, before initiating the

payment process. As per the agreement,

Latin will pay Minera Ansotana S.A./Mr. Enrique Vidal (“Vendor”) USD 10,000 in cash and shares equivalent to USD 1

million, over a period of three years

Latin will pay a total of USD 2 million in four installments to the vendor commencing in 2018.

Latin will pay exploration expenditures of USD 3 million over a period of three years

Also, the Company can conduct a feasibility study or make a mine report. Subject to positive results from either of them, the

Company could construct the production plant and commercialize Lithium and Tantalum within a four-year timeframe.

Lithium pegmatite concessions, San Luis On November 2, 2016, Latin successfully claimed mineral exploration rights in six lithium mining concessions, from the mining

authority of San Luis Province in Argentina. The mining concessions extend over 24,879 hectares, and are enclosed within the

three pegmatite fields namely, (1) El Totoral, (2) Conlara and (3) La Estanzuela (see Exhibit 5). These concessions have been

subject to significant mining activity in the past, primarily for lithium and other minerals such as tantalite-columbite, beryl,

feldspar and quartz. Exhibit 6 shows the detailed location of the Company’s mining claims in the San Luis Province, Argentina.

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Latin Resources Ltd

Exhibit 5: Lithium concessions in San Luis province


Latin considers that the previously mined “Maria Del Heurto” concession located in the Perto Colorado exploration claim, is a

high priority exploration target due to its history of being first producer of high grade Spodumene (lithium) concentrates in the

San Luis province.

Maria del Huerto Mining Concession

The Maria del Heurto mining concession is located in the Perto Colorada exploration claim, 20 km west of the town of Concaran.

The Maria del Heurto concession holds three lithium pegmatite dykes, outcropping over 370 meters NE-SW. These dykes

reveal significant evidence during past exploration activities, and the mineralization zones are well developed with explicitly

visible Spodumene (Lithium mineral) deposits. The Company has recorded the presence of Spodumene deposits of over a

meter length, in the intermediate zones of the dyke. Spodumene deposits occur in the form of colored prismatic crystals, with

colors ranging from pale green to pink. Exhibit 7 displays the spotted pin spodumene deposits located in the open pit of Maria

Del Huerto concession.

Exhibit 7: Visible spodumene in old workings on the Maria Del Huerto concession


The Company has planned to commence drilling in the first quarter of 2017. Further, the Company is in the process of

undertaking an environmental study and expects to receive drill permits soon, in order to begin its exploration campaign. The

addition of the Maria Del Huerto mine concession to the Company’s growing portfolio of hard rock lithium pegmatites in

Argentina, advances them in their strategy of acquiring and quickly commercializing high quality lithium deposits.

9

Latin Resources Ltd

Pachamanca/MT-03 Copper project in Peru - First Quantum JV

The Pachamanca/MT-03 copper project is located at a 400m to 600m altitude in the desert of the Tanca Region. The project

possesses 8,900 hectares of mining concessions. The project is gifted with good infrastructure facilities and is favorably

located, adjacent to the Pan-American Highway with access to 80 km of sealed highway and in near proximity to port Ilo, Exhibit

7 displays the location of the project region.

Exhibit 7: Location of Pachamanca/MT-03 copper project in Peru


On July 27, 2016, Latin’s fully owned Peruvian company Latin Resources SAC (“PLR”) signed a Binding Term Sheet (BTS) with

Minera Antares Perú S.A.C., (“Antares”), a subsidiary of First Quantum Minerals Ltd (LON: FQM, a Canadian mining company).

The BTS allows PLR to transfer up to 80% of its interest in Pachamanca/MT-03 copper project to Antares. As per the BTS

agreement,

Antares should complete the geophysical survey and subsequently can earn 51% ownership after the accomplishment

of 4,000m drilling in six months. Also, PLR could earn a total of USD 0.5 million during the period of initial drilling phase

through payments from Antares

Antares must provide a technical documentation of completed work in order to support mine production, and in turn can

claim the remaining 29% of the ownership

If PLR’s ownership is diluted below 10%, PLR still can earn royalty fee of 2% Net Smelter Return (NSR is a net

revenue received from the sale of copper). Further, Antares has the option to reduce NSR to 1% by paying USD 40

million in cash to PLR

The Company continues to focus on its lithium projects and is therefore well-positioned to receive significant revenue streams

from the Pachamanca/MT-03 copper project either by retaining 20% ownership or through substantial royalty payments.

Guadalupito Andalusite and Mineral Sands Project- Northern Peru

The Guadalupito project is located in Northern Peru, just 25km from the port city of Chimbote. Latin acquired the Guadalupito

Mineral Sands Project in February 2011. The Guadalupito project is the Company’s most advanced project. Further, attractive

JORC resource estimates and a successfully completed project scoping study, should help advance it quickly towards the

production phase. The Company is currently seeking joint venture partners to develop the project into a world-class mine. The

project area is gifted with excellent infrastructure facilities due to its close proximity to major mineral sector companies such as

Gerdau (Peru’s largest steel smelter) namely Rio Tinto, Xstrata Copper and others. Apart from producing valuable andalusite

mineral, the project area has the potential to produce economically valuable minerals such as limenite, garnets, zircon,

magnetite, monazite and others.

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Latin Resources Ltd

JORC resource estimates infers promising mining potential The project’s JORC mineral estimates revealed attractive results, with inferred mineral resources of 1.3 billion Metric tons (MT)

at 5.7% HM (Heavy Mineral). Further, the geological mapping study conducted in the project area, estimated a theoretical

exploration target of approximately 5 billion metric tons extending along 28 km. These extensive mineralizations have been held

in two blocks, namely “Los Conchales” and “Tres Chosas”, with the former holding more resources at a comparatively higher

grade than Tres Chosas as seen in Exhibit 8 below. Currently, extensive mineralogical work is being carried out along the

deposit area, in order to categorize economical target elements, including andalusite, zircon, magnetite and others.

Exhibit 8: JORC resource estimates

Inferred Resource Block Split Metric Tons HM %

Los Conchales 85.2 8

Tres Chosas 41.8 8.9

TOTAL 127.0 8.3

Los Conchales 987.6 5.9

Tres Chosas 214.5 3

TOTAL 308.4 5.4

Los Conchales 1072.8 6.1

Tres Chosas 256.3 3.9

TOTAL 1329.1 5.7

Above w ater table

Below w ater table

Total Inferred Resources

Source: Company press release

Company Timeline and Key Events

Exhibit 9 below shows the reverse chronological timeline of the evolution of Latin Resources, summarizing some key annual

events for the Company since 2010.

Exhibit 9: Timeline summarizing significant annual events since 2010

Dates Events

21-Nov-16 Latin Resources received two additional exploration rights in two Lithium exploration tenements namely, Vilisman and Ancasti ranges

16-Nov-16 Appointed Mr. Kerry Griffin as Exploration and Development Manager

02-Nov-16 Claimed exploration rights in six Lithium exploration concessions and one vacant concession in San Luis Province, Argentina

22-Sep-16 Signed a binding agreement with the Ansotana group of concessions to acquire up to 90% ownership of Ansotana Pegmatite Project in Salta, Argentina

15-Aug-16 Raised $3.4 million from PAC Partners Pty Ltd and EverBlu Capital Pty Ltd through the issuance of 309,090,909 shares at a share price of $0.011 per share

27-Jul-16 Latin’s fully owned subsidiary, Peruvian Latin Resources SAC (PLR) signed an agreement with Minera Antares Peru SAC (Antares). Latin could transfer up to 80% ownership of its copper project to Antares.

21-Jun-16 Lepidico (JV partner) received patent protection for L-Max Technology (International Patent Application PCT/AU2015/000608)

31-May-16 Claimed 70,000 hectares in seven Lithium exploration tenements at the Catamarca Province

27-May-16 Latin engaged in discussions with Antares (FQM) for potential joint ventures for development of Ilo projects and would consider other third party direct investment also

16-May-16 Raised $825,000 from PAC Partners Pty Ltd through the issuance of 82.5 million shares at a price of $0.01 per share

09-May-16 Signed an agreement with Lepidico Limited (LEP) to form a Joint Venture to acquire lithium projects in Peru and Argentina

30-Mar-16 Stopped Joint Venture agreement with Minera Activa, a Chilean company

03-Mar-15 Zahena (Latin’s JV partner) finished drilling campaign for first two holes at the Ilo Este Project in Peru and third and fourth holes are in the process

11-Nov-15 Started drilling campaign at the Ilo Este Porphyry Project

16-Jul-15 Signed a Memorandum of Understanding (MOU) with Minera Activa (“MA”) a Chilean company, to evaluate copper on Minera Activa’s Filipina Copper Project in Chile.

25-Mar-15 Raised $285,000 through the issuance of 28.5 million shares to sophisticated investors at an average share price of $0.01 per share

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Latin Resources Ltd

16-Mar-15 Peruvian Latin Resources SAC (PLR) signed a MOU with Minera Antares Peru SAC (“Antraes”) to explore mineral deposits in Latin’s copper projects in southern Peru

03-Mar-15 Latin received owned back 100% interest in the Ilo Norte copper-gold project due to the termination of the earn-in option agreement by Minera Zahena

05-Feb-15 Latin’s fully owned subsidiary Peruvian Latin Resources SAC (PLR) signed an agreement with Compania Minera Zahena SAC (Zahena) to transfer 70% of PLR’s ownership of Ilo Este Project to Zahena

03-Feb-15 Confirmed more copper mineralization at Ilo Este Project

13-Nov-14 Signed a funding agreement with the Australian Special Opportunity Fund LP, an US based institutional investor

23-Oct-14 Continued drilling activities at Ilo Norte Project with 14 new permitted holes

11-Sep-14 Intersected copper porphyry at Ilo Este Project

23-Jul-14 Appointed Northcott Capital Ltd as a funding advisor for Guadalupito Project. Also, Latin produced Andalusite samples for market evaluation

09-Jul-14 Peruvian Ministry of Energy and Mines approved commencement of drilling activities at Ilo Este project

24-Jun-14 Raised $393,600 through the Share Purchase Plan (SPP) by the issuance of 10,357,914 shares

29-May-14 Started exploration work at the Borborema Iron Ore Project in Brazil

08-May-14 Received positive results from the Guadalupito Project and sent 1.8 metric tons of Magnetite concentrate for testing

29-Apr-14 Defined major copper-gold porphyry system and identified various drill targets at Ilo Este project

10-Feb-14 Started drilling at Ilo Norte Copper-Gold Project

28-Jan-14 Mobilized two drill rigs to Ilo Norte Project

20-Dec-13 Received surface rights to operate mine in the Guadalupito Project in Peru

19-Nov-13 The Company’s fully owned subsidiary Peruvian Latin Resource SAV signed a binding agreement to earn up to 70% of Latin’s Ilo Norte Project for USD 9 million

18-Sep-13 Discovered ten new target areas at the Ilo project

21-Aug-13 Accepted $2.5 million from Junefield High Value Investments Ltd through the issuance of Convertible Notes

30-Jul-13 Raised $800,000 through the issuance of 11,428,574 shares at an issue price of $0.07 per share

21-May-13 Confirmed copper-gold target at the Ilo Norte project as 80 meter at 0.19% Cu and 0.05 g/t Au

07-Feb-13 Snowden Group, an Australian based mining consulting company, estimated JORC inferred Resource of 1.073 billion tons at 6.1% Heavy Materials as a result the total JORC inferred resources increased to 1.465 billion tons at 5.7% heavy minerals at Guadalupito project

21-Nov-12 Increased exploration target to 4.5 billion tons at 6.1% Heavy Material content at the Guadalupito

19-Sep-12 Ausenco completed a scoping study for the Guadalupito Project. As a result, the Company could enhance inferred resources to indicated and measured resources.

10-Sep-12 Raised approximately $2.5 million through the issuance of shares to sophisticated investors

07-Aug-12 Announced JORC estimate of 119Mt @5.7% Heavy Mineral (HM) at the Guadalupito Iron and Heavy Mineral Sands Project in Northern Peru

12-Mar-12 Completed the previously announced share issuance to Junefield High Value Metals Investments Ltd and raised approximately $8.4 million. Also, the Company appointed Mr. Frankie Li as Non-Executive Director

21-Dec-11 Completed initial JORC estimate of 119Mt @5.7% total heavy mineral content at the Guadalupito Project

24-Nov-11 Appointed Snowden Group to conduct a maiden JORC complaint resource estimate at the Guadalupito Iron and Heavy Mineral Sands Project in Northern Peru

30-Sep-11 Ausenco Ltd, an Australian based mining consulting company, commenced a scoping study on the Guadalupito Iron and Heavy Mineral Sands Project in Northern Peru

15-Aug-11 Announced positive results from the exploratory work at Ilo Norte Project in the Southern Peru

07-Jul-11 Confirmed heavy mineral content at the Guadalupito Iron and Heavy Mineral Sands Project in Northern Peru

27-May-11 Issued approximately 15.4 million shares at $0.26 per share to raise approximately $4 million

22-Mar-11 Discovered Rare Earth Elements (REE) at Guadalupito Iron and Heavy Mineral Sands Project

22-Feb-11 Defined a high intensity magnetic anomaly at Mariela Iron Ore Project by using ground magnetic survey in Southern Peru.

10-Feb-11 Acquired additional 14,068ha of Iron and Heavy Sand deposits near existing Guadalupito Iron and Heavy Mineral Sands Project

29-Nov-10 Confirmed Magnetite with a low Titanium content in the Guadalupito Iron and Heavy Mineral Sands Project

20-Sep-10 The Company closed its Initial Public Offer (IPO) and raised $6 million. Cape Lambert Resources Limited (ASX: CFE) was the largest shareholder with 17% stake

13-Jul-10 The Company issued an initial prospectus to raise approximately $5 million

Source: Company Filings

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Latin Resources Ltd

Industry Overview

We now present a detailed description of the lithium industry dynamics followed by an overview of the copper industry and their

future direction.

Prices of Lithium should remain robust in 2017 & beyond

Lithium is primarily used in numerous industrial applications such as in electronics, ceramics, lubricating greases and others.

Over the past few years, new applications of lithium, specifically Lithium Ion batteries, have transformed the lithium industry.

Lithium-Ion battery technology has proved to be a vital source of energy storage, utilized in wide range of applications such as

Electric vehicles (“EV”), Home Energy Storage Solutions (“ESS”) and others. The need for electricity grid storage in order to

serve the growing energy demand, coupled with growing demand for electric vehicles, is expected to drive the growth of lithium

industry in the years to come.

As seen in Exhibit 10, since 2014, the price of lithium carbonate has increased rapidly. The sudden increase in the price of

Lithium carbonate may be attributed to a significant demand-supply imbalance prevailing in the lithium market. The global

demand for lithium has grown significantly in recent years, due to its usage in new applications such as EV and ESS. Further

demand from traditional markets (electronics, ceramics, medical, glass, etc.) remained active, adding up to its overall demand.

The supply side of the lithium market has been also unable to respond to swift increase in demand. Limited availability of lithium

concentrate feedstocks, coupled with inability of existing brine operators to expand their production quickly, has led to sudden

increase in lithium prices.

The rise in lithium prices coupled with unmet demand has also incentivized entry of new miners into the market. However, at

present, 83% of the global lithium supply is governed by four miners, with a combined market cap of US$26bn. The existing

miners’ inability to ramp up production in order to actively respond to the rapid rise in demand should favor new entrants such as

Latin. Even so, the supply due to an increase in production capabilities from new and existing miners is expected to just meet

the growing demand in near future. This should hold lithium prices at a firm level in the near future (while, not showing a

tremendous price rise as seen in 2015-16).

Exhibit 10: Price trend of lithium carbonate indicates stability in 2017 and beyond

-

5,000

10,000

15,000

20,000

25,000

-

100,000

200,000

300,000

400,000

500,000

600,000

2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

Prices (

US

$ p

er

ton)

Dem

and &

Supply

(in

tons)

Global supply Global demand Lithium carbonate - 99.5% prices Lithium hydroxide prices Lithium carbonate - 98.5% prices

Source: Deutsche Bank Market Research

Lithium-ion batteries-well poised to become mass market devices due to declining manufacturing costs

Over the past few years, Li-ion battery production costs have been falling, due to increase in number of lithium ion battery

production plants and significant investments across the battery supply chain, which has created significant economies of scale

in lithium-ion battery manufacturing. The average lithium-ion energy cell costs have fallen from US$900 per kilowatt hour (kWh)

in 2010 to US$225 per kWh in 2016, or approximately 75% since 2010. Further, significant technological innovations are being

undertaken today to improve the energy density of batteries by removing inactive materials. This would further lead to reduction

in cost of materials and increase in battery efficiencies in the near future. As per Deutsche Bank’s Lithium Market Research

report, the production costs are estimated to fall further to US$150 by 2020 due to a favorable production environment. Such

cost reductions have made current applications inexpensive and opened up entirely new market opportunities for lithium. Exhibit

11 presents the fall of Li-ion battery cost across applications.

13

Latin Resources Ltd

Exhibit 11: New opportunities for lithium-ion applications on falling manufacturing costs

-

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

US

$ p

er

kW

h

Energy Cell Automotive System Stationary Energy System

Source: Company website

Significant demand from the EV and ESS market supports lithium miners

Stringent regulatory norms targeting carbon dioxide (CO2) emissions, cheaper availability of batteries and enhanced driving

experience have increased the growth rate of global EV market. Development in the electric vehicle arena has in turn

supplemented Li-ion battery market growth, through significant investments in the Li-ion battery space. Though Tesla has

pioneered the EV market growth in recent years, the Chinese market has also played a significant role in creating a much-need

global spur. The Chinese subsidies for passenger and commercial EVs have promoted mass adoption of EVs in China, one of

the biggest markets in the world. Exhibit 12 presents Deutsche Bank’s estimates of vehicle sales across categories. In 2015, full

electric vehicles and Plug-In Hybrids Vehicles (PHEVs) have accounted for a meagre 0.6% and 0.3% of the global automobile

sales, while Hybrid Electric Vehicles (HEVs) dominated the EV space and have contributed 3.6% to the global automobile sales.

Sales of EVs are also expected to reach 16 million by 2025, with full electric vehicles accounting for 3% of global sales. The

rapid rise in EV demand should increase the consumption growth of lithium in the years to come.

Exhibit 12: Lithium demand to grow on forecast of increase in EV sales

-

20

40

60

80

100

-

2

4

6

8

10

2015 2020 2025

Die

sel &

Gasolio

ne v

ehic

le s

ale

s (

in m

illio

ns)

HE

V, P

EV

& F

ull

EV

sale

s (

in

mill

ions)

Hybrid Plug-in Hybrid Full EV Diesel Gasoline

Source: Deutsche Bank Market Research

Additionally, the ESS segment is also expected to drive demand for lithium ion in the near future. Rapid growth in the renewable

energy generation, has led to surging penetration of renewables into the global electricity grid thereby increasing the need for

efficient battery energy storage systems. The International Renewable Energy Agency (IREA) estimates that the global battery

storage should reach 150 GW by 2030, in order to meet its target of sourcing 45% of the global energy need from the renewable

energy sources. The low cost of lithium-ion batteries has supplemented the rising demand and has made energy storage

applications economically feasible. The Lithium-ion-battery is well poised to lead in the battery storage segment due to its

efficient performance and low cost nature. As per Deutsche bank estimates, lithium battery consumption is estimated to reach

48GWh by 2025, resulting in a 54% CAGR growth; with the energy storage market expected to account for 6% of the global

lithium demand by 2025. Such exponential growth is projected to drive the lithium demand for battery industry from nearly zero

to 34 kilotons by 2025.

14

Latin Resources Ltd

Exhibit 13 presents the forecasted global solar capacity addition. Further, the rapid growth in solar capacity addition is creating

new demand for efficient and low cost energy storage solutions.

Exhibit 13: Solar capacity addition should drive demand for energy storage systems

0

50

100

150

200

250

300

350

400

0

10

20

30

40

50

60

70

80

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E

To

tal G

lob

al C

ap

acity (

GW

)

An

nu

al C

ap

acity A

dd

itio

n (

GW

)

Annual Capacity Addition Low Scenario Capacity Addition High Scenario Capacity Addition Total Global Capacity

Source: Global Market Outlook for Photovoltaics 2015-2019, EPIA

Further, traditional markets of lithium are expected to continue to grow and drive its demand in near future. Exhibit 14 shows the

traditional applications where lithium has been used over the years.

Exhibit 14: Solar capacity addition should drive demand for energy storage systems

35%

31%

8%

6%

5%

5%1%

9%Ceramics and glass

Batteries

Lubricating greases

Continuous casting moldflux powders

Air treatment

Polymer production

Primary aluminumproduction

Other


Exhibit 15 presents the estimates of lithium demand growth from traditional markets. The demand for lithium from traditional

markets is expected to grow at 3.6% per annum over the next decade, thereby, increasing the lithium consumption from 155

kilotons in 2015 to 222 kilotons in 2025. Such favorable demand growth from various end markets should favor lithium miners in

the years to come.

15

Latin Resources Ltd

Exhibit 15: Estimate of lithium demand growth in traditional markets

155162 170

177184

190196

202208

215 222

0

50

100

150

200

250

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025


Choppy Waters Ahead, but Copper prices may stabilize in near future

Copper is the major constituent in the manufacturing of major industrial goods ranging from electronics to cars, and hence its

demand is highly dependent on the global economic growth. Exhibit 16 presents the pricing trends in the global copper market.

The prices of copper have been experiencing a downturn since 2011, due to softening global economic growth. Copper prices

have fallen from 8811US$/ton in 2011 to 5503US$/ton in 2015, primarily attributable to the slowing demand growth and

increasing inventory levels in China, the major consumer of copper accounting for approximately 45.5% of the global

consumption. The International Copper Studies Group’s (ICSG) copper forecast for 2016-2017 suggests that the global refined

copper production is forecasted to grow by 0.5% to reach 23 million metric tons in 2016, while the consumption is expected to

remain flat, leading to further decline in copper prices. However, the prices of copper are forecasted to reverse trends in 2017

and beyond, due to the expected revival in the Chinese industrial growth and the worldwide copper demand growth. According

to the International Copper Study Group, the price of copper may therefore stabilize in 2017, when the global economy picks up

momentum, and is well poised to increase beyond $5100US$/ton.

Exhibit 16: Copper prices are well positioned to reverse gear beyond 2016

4000

5000

6000

7000

8000

9000

10000

0

5000

10000

15000

20000

25000

30000

2010 2011 2012 2013 2014 2015 2016(F) 2017(F)

Copper

Price (

US

$/ to

n

Dem

and &

Supply

(in

tons)

Global refined Production Golbal refined Cosumption

Copper Price (US$/ton)

Source: International Copper Study Group (ICSG)

16

Latin Resources Ltd

Company SWOT Analysis

We now discuss the various strengths and weaknesses of Latin Resources Ltd. Further, we also provide a brief outlook of the

various opportunities and threats that the Company is exposed to.

Strengths Successful JVs to augment shareholders’ value

The Company has a strong track record of acquiring and developing mining projects through quality joint ventures and

partnerships. The Company entered into a binding agreement to acquire up to 90% interest in various lithium concessions to

explore lithium in Salta Province, Argentina. In addition, the Company successfully signed an agreement with First Quantum

Minerals Ltd to divest its copper projects in Peru to earn significant revenue streams.

Experienced Management Team

Latin’s Non-Executive Chairman, Mr. David Vilensky has over 30 years of experience in the field of business and corporate law

and also in commercial and corporate management. He also specializes in the area of mining and resources, trade practices

law, contract law and complex dispute resolution. Christopher Gale, the Company’s Managing Director has more than 14 years

of experience in mining and technology. Mr. Gale has also been an advisor for many companies in mining, oil & gas and

technology sectors. Mr. Vijay Mehta is the Process and Chemical Engineer of the Company and has more than 45 years of

experience in the arena of Ore and Brine technology used for recovery of lithium, potash, magnesium and boron. Mr. Kerry

Griffin, who was recently appointed as its Exploration and Development Manager, has more than 21 years of experience in

mining geology, resource development and exploration, including being the Chief Geologist for two years at the Wodgina, which

at that time was the world’s largest pegmatite hosted Tantalite mine.

Weaknesses Negative cash flow from operations

The Company has not generated revenue from commercial operations for its plants and has negative operating cash flows.

Latin has primarily raised funds through equity issuances, to meet its operating and capital expenditure requirements. Further,

fund raising is a factor of equity market fundamentals and the ability of the management to successfully close equity

placements. Negative operating cash flows and dependence on equity funding also affects the Company’s going concern ability.

Though, the company has a good project pipeline, implementation of those future plans involves uncertainty, such as financial

instability or changes in law which may affect future revenue generating prospects.

Opportunities Supply deficit and growing end markets

Potential Lithium (Li-ion battery) markets have expanded form lone consumer electronics industry, to many over the years due

to rapid technological changes. Recent developments in electric vehicle and energy storage markets have extended Li-Ion

battery’s application into transportation, Energy storage and Consumer devices sector. Lithium’s wide industrial applications,

primarily from Li-Ion battery segment, have increased its demand over the past decade, leading to supply demand imbalance

and rise in prices. As mentioned above, Deutsche bank forecasts a 45% Y-O-Y growth in battery demand, and batteries are

forecasted to account for 70% of the global lithium demand. This poses significant advantages for lithium mining companies to

expand its operations and get benefited from supply deficit and increasing demand.

EVs – Growing potential market

The Electric and hybrid vehicles market has been growing in response to increasing demand for environmental friendly vehicles.

Regulatory norms supporting negligible greenhouse gas emissions have prompted auto makers across the globe to

manufacture and launch EV’s. For instance, Tesla has planned to produce 500,000 units annually by 2018 and recent

announcements from fellow EV manufacturers have increased the expected growth rate in the global EV market. Further,

Chinese EV market is expected to grow at a 27% CAGR in 5 years due to favorable government subsidies. This increases

lithium demand due to its substantial usage in EV’s and provides wide market opportunity for lithium miners.

Energy Storage market also continue to evolve

Declining manufacturing costs and superior performance have made Li-ion batteries a preferred choice in energy storage

applications. As per Deutsche bank estimates, the global energy storage market is estimated to reach 50GWh by 2025 due to

favorable macroeconomic environment supporting renewable energy technologies. Such increased growth in the energy storage

market is expected to drive the demand for lithium in the years to come.

17

Latin Resources Ltd

Threats Competition among lithium miners

Latin Resources operates in the mining and exploration industry, which is subject to high competition. The Company has to

compete with lithium miners across the globe, in aspects such as quality, price and others partners for sustainable operations. In

addition, falling lithium prices due to oversupplied market prompted by increased competition could potentially affect the

Company’s operations. Finally, the Company is yet to commence its exploration activities, which could lead to losing potential

customers to its competitors.

Changes in technology in the battery industry

The Company plans to produce high grade lithium in order to support its usage in Li-Ion batteries. Currently, researchers have

been actively searching for means to improve energy density of Li-ion batteries and reduce its charging time in order to enhance

its performance. Further, many new technologies such as hydrogen fuel cells, aluminum batteries and others which are in the

developmental stage may also enter the battery market and reduce the market share of Li-Ion batteries in the future. This would

in turn reduce the demand for lithium and affect miners engaged in exploration activities. Yet, these technology advancements

aren’t expected to occur in the near term, and Li-Ion battery applications are well poised to enjoy robust growth.

Regulations

The Company’s mining operations are subject to numerous laws and regulations, which the Company has to abide by. Latin

Resources has to follow regulations governing exploration, pricing, health and safety, environmental protection and others.

Exploration delays due to regulatory issues would affect its operations. Further, changes in laws and regulations could add to

compliance costs and in turn, affect the Company’s financial margins.

Financial Performance

We now present the financial performance of Latin Resources. We begin with a cash burn analysis followed by details on the

latest financial statements. Latin follows January-December as its fiscal financial period. All monetary units are expressed in

Australian Dollars (AUD), unless otherwise noted.

Exhibit 17 explains the cash burn analysis and financial sustainability of Latin. The Company’s average cash burn stood at

$231,000 per month with an average survival rate of 0.54 months. We consider only net operating cash flow for the calculation

of cash burn as investing cash flow includes non-core business activities such as loans received from other entities. Further,

Latin’s fundraising capabilities have been good with an average of $889,000 per quarter. During the nine months ended

September 30, 2016, the Company raised $4.730 million through equity issuance. The Company’s cash position stood at $1.974

million on September 30, 2016.

Exhibit 17: Cash Burn Analysis (in AUD ‘000s)

Period/ Amount (in '000) 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15 31-Dec-15 31-Mar-16 30-Jun-16 30-Sep-16 AVG

Net operating cash flow

(1,217)

(567)

(830)

(557)

(581)

(170)

(660)

(970)

(694)

Net investing cash flow

213

97

43

35

-

-

7

(200)

24

Net financing cash flow

1,106

264

760

552

495

179

771

2,984

889

Cash position (quarter end)

308

103

76

108

32

41

159

1,974

350

Burn Rate per month

(406)

(189)

(277)

(186)

(194)

(57)

(220)

(323)

(231)

Survival period (in months)

0.76

0.54

0.27

0.58

0.17

0.72

0.72

6.11

1.51

Source: RBMG Calculations per Company Filings

Exhibit 18 displays Latin’s income statement for the six months ended June 30, 2016 and June 30, 2015. During the financial

year 2016, the Company did not generate revenue from its core business. During the six months ended June 30, 2016, Latin’s

net loss also widened to $4.06 million from $1.69 million for the same period in 2015. The increase in net loss in June 2016 was

mainly attributable to a $2.7 million gain recorded during the prior period, i.e. the six months ended June 30, 2015, due to the

renegotiated terms with respect to the acquisition of the concessions related to the Guadalupito project.

18

Latin Resources Ltd

Exhibit 18: Income Statement for the six months ended June 30, 2016 & June 30, 2015

Particulars For the six months ended 30

June 2016 For the six months ended 30

June 2015 Y-o-Y (%)

Revenue $38,183 $1,559 NM

Other income 172,111

312,412

-45%

Gain from renegotiation of deferred consideration, net

-

2,737,169 NM

Gain from settlement of liabilities 21,797

-

NM

Depreciation expense (22,214)

(20,026)

11%

Employee benefits expense (484,138)

(715,374)

-32%

Finance costs (813,748)

(906,743)

-10%

Exploration and evaluation expenditure (2,766,078)

(3,255,252)

-15%

Other expenses (388,440)

(611,621)

-36%

Loss from continuing operations before income tax expense

($4,242,527) ($2,457,876) 73%

Income tax (expense) / benefit -

-

Loss after income tax ($4,242,527) ($2,457,876) 73%

Exchange differences on translating foreign operations

$173,752 $766,917 -77%

Net loss for the period ($4,068,775) ($1,690,959) 141%

Basic loss per share (cents per share) ($3.30) ($7.46) -56%

Diluted loss per share (cents per share) ($3.30) ($7.46) -56%

Weighted average number of ordinary shares at 30 June

123,474,776

22,676,454 445%

Source: Company filings Note: NM represents not meaningful

Exhibit 19 explains Latin’s balance sheet as of June 30, 2016, and December 31, 2015. As of June 30, 2016, the Company’s

cash and cash equivalents stood at $159,411, compared to $32,076 on December 31, 2015. The increase in cash and cash

equivalents was primarily attributable to recent proceeds from the issuance of shares and options. The Company’s financial

assets held for fair value profit or loss decreased to $27,370 from $28,024 in December 31, 2015. Due to dispositions, Latin’s

property, plant and equipment decreased to $92,703 from $121,877 in December 31, 2015. Furthermore, during the six months

ended June 30, 2016, the Company’s exploration and evaluation assets decreased to $8.9 million from $11.17 million in

December 31, 2015. The decrease was attributed to amount written off on impairment charges and an adjustment relating to

renegotiation of terms for acquisition of Guadalupito project. Further, interest bearing liabilities increased to $1.11 million from

$1.04 million in December 31, 2015, due to the issuance of convertible loans and loans from related parties.

19

Latin Resources Ltd

Exhibit 19: Balance Sheet as of June 30, 2016, and December 31, 2015

Particulars As of 30 June, 2016 As of 31 Dec, 2015 (% inc.)

ASSETS

Current assets:

Cash and cash equivalents $159,411 $32,076 397%

Trade & other receivables

183,358

1,148,021 -84%

Other financial assets

27,370

28,024 -2%

Total Current Assets $370,139 $1,208,121 -69%

Non-current assets:

Trade and other receivables

1,584,642

1,564,878 1%

Property, plant and equipment

92,073

121,877 -24%

Exploration and evaluation assets

8,904,325

11,170,432 -20%

Total non-current assets $10,581,040 $12,857,187 -18%

Total assets $10,951,179 $14,065,308 -22%

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Trade and other payables

1,257,897

1,998,824 -37%

Interest bearing loans and borrowings

1,115,600

1,040,594 7%

Deferred consideration

8,950

18,886 -53%

Provisions

52,715

336,352 -84%

Total Current Liabilities $2,435,162 $3,394,656 -28%

Non-current liabilities:

Interest bearing loans and borrowings

-

500,000 -100%

Deferred consideration

5,490,130

5,206,795 5%

Total non-current liabilities $5,490,130 $5,706,795 -4%

Total liabilities $7,925,292 $9,101,451 -13%

Net assets $3,025,887 $4,963,857 -39%

Equity:

Contributed equity

38,199,185

36,202,047 6%

Reserves

7,672,311

7,364,892 4%

Accumulated losses

(42,845,609)

(38,603,082) 11%

Total Equity $3,025,887 $4,963,857 -39%

Total liabilities and shareholders' equity $10,951,179 $14,065,308 -22%


Exhibit 20 details Latin’s cash flow statements for the six months ended June 30, 2016 and June 30, 2015. For the six months

ended June 30, 2016, the Company’s operating cash inflow stood at $97,168 compared to an outflow of $1.07 million in during

the same period in 2015. This was primarily attributable to increase in receipts from customers and R&D refund. Net cash used

in investing activities stood at $920,137 for six months ended June 30, 2016, due to the sale of other fixed assets. Further, cash

provided by financing activities decreased by 6%, primarily attributable to repayment of borrowings and capital raising costs.

20

Latin Resources Ltd

Exhibit 20: Cash Flow Statement for the three months ended June 30, 2016 & June 30, 2015

Particulars For the six months ended 30

June 2016 For the six months ended 30

June 2015 Y-o-Y (%)

Cash Flow from Operating Activities

Receipts from customers $149,374 $40,068 273%

Payments to suppliers and employees

(1,036,645) (1,193,594) -13%

Interest received

38,183 1,559 NM

Interest paid

(3,304) (30,626) -89%

R&D refund

949,560 - NM

Taxes refunded

- 104,962 NM

Net cash flows used in operating activities $97,168 ($1,077,631) -109%

Cash Flow from Investing Activities

Payments for exploration and evaluation expenditure

- (6,290)

-100%

Payments for plant & equipment

5,977 88,502 -93%

Proceeds from sale of plant & equipment

(926,698) (332,173) 179%

Payments from security deposits

584 89,312 -99%

Net cash flows (used in)/from investing activities

(920,137) (160,649)

473%

Cash Flow from Financing Activities

Proceeds from the issue of shares

1,390,128 285,000 388%

Capital raising costs

(73,859) (48,215) 53%

Proceeds from borrowings

- 769,374 NM

Repayment of borrowings

(365,793) - NM

Net cash from financing activities $950,476 $1,006,159 -6%

Net (decrease)/increase in cash and cash equivalents $127,507 ($232,121)

-155%

Cash and cash equivalents at 1 July $32,076 $308,008 -90%

Effect of exchange rate changes on cash and cash equivalents

(172) 122

-241%

Cash and cash equivalents at 30 June $159,411 $76,009 110%


21

Latin Resources Ltd

Key Risk Factors

Commodity price risk

Latin’s profitability is directly linked to the market price of lithium; hence any volatility in lithium prices would directly affect the

Company’s future cash flows. Mineral and commodity prices fluctuate widely, which are beyond the Company’s control.

Macroeconomic factors such as worldwide political and economic instability, inflation, value of U.S. Dollar, interest rates also

influence commodity prices. Hence, unfavorable commodity prices would affect the Company’s ability to maintain its profit

margins and also affect its operations.

Competition

The mineral exploration and development industry is highly competitive in nature. Latin may have to compete for the mineral

produce and mining concessions with other companies having greater financial resources, technical capabilities and exploration

resources. Such competition could lead to price wars, owing to oversupply, resulting in reduced margins and could adversely

affect the Company’s profitability.

Financial risk

Latin is an emerging company with limited access to funds and has not generated any revenues from its operations till date. The

Company is constantly raising funds through the issue of shares and options in capital markets. However, raising funds through

capital market is economically unviable in long term and will eventually lead to ownership dilution.

Regulatory risk

Latin is operating in a regulated industry where the Company should abide by all rules and regulations. The Company has to

follow laws such as waste and water management, disposition of hazardous materials and protection of natural reserve. Further,

If Latin fails to obey these laws and regulations it may result in enforcement actions which could delay completion of projects

affecting the Company’s profitability.

Risk with the retention of employees and officers

Latin’s experienced key personnel would remain a critical issue for the Company in the long run. Success of any company is

highly dependent on performance of its employees and management team. Therefore, retention of key employees is paramount

for these companies and attrition of the Company’s key management personnel could have negative effects on its on-going

operations and business prospects.

Shareholding Pattern

As of September, 2016, the Company had 1,553 million shares outstanding, including 174 million of options as shown in Exhibit

21.

Exhibit 21: Capitalization structure as of September 2016

Shares Outstanding 1.5 Billion

Options Outstanding 174 Million

Fully Diluted Shares Outstanding 1.7 Billion

Management & Board share 15%

Top 50 shareholders 52%

Cash (as of 30th Sept Quarterly) $1.97 Million

Source: Company filings

22

Latin Resources Ltd

Profile of Directors and Management

David Vilensky

David Vilensky is the Non-Executive Chairman of Latin Resources, having over 30 years of experience in the field of business

and corporate law and also in commercial and corporate management. Mr. Vilensky specializes in the area of mining and

resources, trade practices law, contract law and complex dispute resolution. Currently, he is also a practicing corporate lawyer

and holds a position of Managing Director at a Perth-based law firm, Bowen Buchbinder Vilensky. He previously served as a

Chairman and Non-Executive Director at Zambezi Resources Ltd.

Christopher Gale

Christopher Gale is the Managing Director of the Company, having more than 14 years of experience in the area of mining and

technology. Over a period of 20 years, Mr. Gale has founded and managed several public and private businesses. He has also

held several executive positions in public and private companies. Mr. Gale has also been an advisor for many companies in the

mining, oil & gas and technology sectors. Currently, he is also the Chairman of the Council on Australian Latin American

Relations (COALAR).

Vijay Mehta

Vijay Mehta is the Process and Chemical Engineer of the Company, having over 45 years of experience in the arena of Ore and

Brine technology used for recovery of lithium, potash, magnesium and boron. Mr. Mehta has vast experience of using various

technologies in the process of extracting high quality lithium. He has visited various lithium resource sites worldwide. Mr. Mehta

holds over 12 US patents, has more than 50 technology reports and over 10 publications

Brent Jones

Brent Jones is the Non-Executive Director of Latin Resources. He has graduated from Australian Institute of Company of

Directors. Mr. Jones has vast experience in the field of finance and has held executive positions in several companies. He is

the member of the National Tax and Accountants Association.

Kerry Griffin

Kerry Griffin is the Exploration and Development Manager of Latin Resources and holds a BSc Degree in Geology) together

with a post graduate diploma in Engineering Geology from University of Canterbury, NZ. He has more than 21 years of

experience in the fields of mining geology, resource development and exploration which includes two years as the Chief

Geologist at the Wodgina mine, which at that time was the world’s largest pegmatite hosted tantalite mine with a significant

spodumene/lithium credit. Prior to joining Latin, Mr. Griffin has worked across the globe with various mineral exploration and

mining companies such as Altan Rio Minerals Ltd, Ivanhoe Mines (senior development geologist at Oyu Tolgoi, Mongolia),

Newcrest Mining Ltd (Telfer Gold Mine, Australia), Volcan Minera (Yaulli, La Oroya, Peru), Aspire Mining Ltd and Haranga

Resources Ltd.

Sarah Smith

Sara Smith is the Company Secretary of Latin Resources. She holds a Bachelor of Business degree and is a Charted

Accountant. Ms. Smith has worked with several ASX listed companies in administration and also has experience in capital

raisings and IPOs.

23

Latin Resources Ltd

Sources

Company Website

Company Press Release & Presentations

SEC Filings

Deutsche Bank Market Research

US Energy Information Administration (EIA)

Disclaimer

The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as

advice intended to meet the particular investment needs of any investor. The information contained herein is not a representation

or warranty and is not an offer or solicitation of an offer to buy or sell any security. To the fullest extent of the law, RB Milestone

Group LLC (“RBMG”), its staff, specialists, advisors, principals and partners will not be liable to any person or entity for the

quality, accuracy, completeness, reliability or timeliness of any information provided, or for any direct, indirect, consequential,

incidental, special or punitive damages that may arise out of the use of information provided to any person or entity (including but

not limited to lost profits, loss of opportunities, trading losses and damages that may result from any inaccuracy or

incompleteness of such information). Investors are expected to take full responsibility for any and all of their investment decisions

based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition.

Investors are further cautioned that small-cap and microcap stocks have additional risks that may result in trading at a discount to

their peers. Liquidity risk, caused by small trading floats and very low trading volume can lead to large spreads and high volatility

in stock price. Small-cap and microcap stocks may also have significant company-specific risks that contribute to lower

valuations. Investors need to be aware of the higher probability of financial default and higher degree of financial distress inherent

in the small-cap and microcap segments of the market. The information, opinions, data, quantitative and qualitative statements

contained herein have been obtained from sources believed to be reliable but have not been independently verified and are not

guaranteed as to accuracy, nor does it purport to be a complete analysis of every material fact regarding RBMG client companies,

industries, or securities. The information or opinions are solely for informational purposes and are only valid as of the date

appearing on the report and are subject to change without notice. Statements that are not historical facts are "forward-looking

statements" that involve risks and uncertainties. "Forward looking statements" as defined under Section 27A of the Securities Act

of 1933, Section 21B of the Securities Exchange Act of 1934 and the Private Securities Litigation Act of 1995 include words such

as "opportunities," "trends," "potential," "estimates," "may," "will," "could," "should," "anticipates," "expects" or comparable

terminology or by discussions of strategy. These forward-looking statements are subject to a number of known and unknown risks

and uncertainties outside of the company's or our control that could cause actual operations or results to differ materially from

those anticipated. Factors that could affect performance include, but are not limited to those factors that are discussed in each

profiled company's most recent reports or company filings or registration statements filed with the SEC or other actual

government regulatory agency. Investors should consider these factors in evaluating the forward-looking statements contained

herein and not place undue reliance upon such statements. Investors are encouraged to read investment information available at

the websites of Latin Resources Ltd (“Latin”) at www.latinresources.com.au and the SEC at http://www.sec.gov and/or FINRA at

http://www.finra.org and/or other actual government regulatory agency. RBMG is a consulting firm headquartered in New York,

New York, USA and is hired by client companies globally to carry out consulting services that include: corporate strategy

formation, business development, market intelligence and research. RBMG is not a FINRA member or registered broker/dealer.

RBMG research reports and other proprietary documents or information belonging to RBMG are not to be copied, transmitted,

displayed, distributed (for compensation or otherwise), or altered in any way without RBMG's prior written consent. RBMG has

received a cash fee equal to fifty thousand USD from Latin in exchange for RBMG consulting services. In this case, consulting

services consist of corporate strategy formation, business development, market intelligence and research. These services include

the preparation of this report and RBMG helping Latin communicate its corporate characteristics to applicable investment and

media communities. In addition, RBMG and/or its respective affiliates, contractors, principals or employees may buy, sell, hold or

exercise shares, options, rights, or warrants to purchase shares of Latin at any time. In the past, RBMG’s principal (“Principal”),

through a separate investment fund that was controlled by Principal (“Fund”), purchased 24,090,909 common shares plus

12,045,455 options to purchase 12,045,455 common shares of Latin from Latin. Currently, Principal, through Fund, indirectly

owns shares and options of Latin. Principal will directly or indirectly buy, sell, hold or exercise shares, options, rights, or warrants

to purchase shares of Latin at its lawful discretion and this can happen at any time.

rb milestone group, new york initiating coverage on lrs

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