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Clayton Valley, Nevada
From Drilling to Major Lithium Resource in under 2 Years
August 2018
CYP (TSX-V), CYDVF (OTCQB), C1Z1 (Frankfurt)
Shares Issued and Outstanding: 61.3 million
Fully Diluted Shares Outstanding: 79.1 million
Market Capitalization: $22.1 million
Forward Looking Statements
Some of the statements in this document may be deemed to be "forward-looking statements." All
statements in this document, other than statements of historical facts, that address events or
developments that management of the Company expects, are forward-looking statements. Although
management believes the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance, and actual results
or developments may differ materially from those in the forward-looking statements. The Company
undertakes no obligation to update these forward-looking statements if management's beliefs,
estimates or opinions, or other factors, should change. Factors that could cause actual results to
differ materially from those in forward-looking statements, include market prices, exploration and
development successes, continued availability of capital and financing, and general economic, market
or business conditions. Please see the public filings of the Company at www.sedar.com for further
information.
Qualified Person as defined by National Instrument 43-101 and supervised the preparation of the
technical information in this presentation is William Willoughby, PhD, PE, Director and CEO of Cypress.
2
Management
• William Willoughby, PhD, PE – Director, Chief Executive Officer
• Donald C. Huston – Chairman, President
• James G. Pettit – Director, Chief Financial Officer
• Donald G. Myers – Director, Corporate Communications
• Amanda Chow, CPA, CMA – Director
• Donald Mosher – Corporate Development
3
Cypress Capital Structure
• TSX Venture Symbol: CYP
• US OTCQB Market: CYDVF
• Frankfurt Exchange Symbol: C1Z1
• Basic Shares Outstanding: 61.3 million
• FD Shares Outstanding: 79.1 million
• Market Capitalization: 22.1 million
• Year End: December 31st
4
Maiden Resource Estimate
5
• Prepared by Global Resource Engineers, Ltd
Denver:
• NI 43-101 Compliant Mineral Resource Estimate
(see also disclosures in June 11 2018 Press Release)
• 23 core holes drilled by Cypress 2017 -2018,
using 300 ppm cut-off grade
• Indicated 697 Mt @ 886 ppm Li = 3.287 Mt LCE
• Inferred 643 Mt @ 852 ppm Li = 2.916 Mt LCE
• Current prices for LCE = $16,000/t - $22,000/t
Clay in DCH-09, 1100 ppm Li
Lithium Comparable Companies
Source: Google Finance May 10 2018
6
Lithium: US “Critical Mineral”
• US Government designated Lithium as a “Critical Mineral” of
strategic importance in December 2017
• “Critical Mineral” designation favours domestic sources of Lithium
across the supply chain
• December 2017 Executive Order Stated: "It shall be the policy of
the Federal Government to reduce the Nation's vulnerability to
disruptions in the supply of critical minerals, which constitutes a
strategic vulnerability for the security and prosperity of the
United States."
7
Key Events
• 2014 - Albemarle Corporation (NYSE: ALB) acquires Rockwood Holdings for $6.2B
- purchase includes Silver Peak Lithium Mine located in Clayton Valley
• 2015 - Tesla Motors breaks ground on USD $5 billion, 35 GWh factory near Reno
• 2016
• January - Cypress acquires Clayton Valley lithium brine project
• February – Cypress reports 3,070 ppm Li in surface sample of claystone
• Mar-Dec - Cypress receives drilling permit, conducted surface sampling and permitting
• March 2017 – Drilling commences on Dean property
• Sept 2017 – Begins leach testing on Dean drill core
• June 2018 – Files Maiden 43-101 Resource Estimate
8
Clayton Valley Highlights
9
• BIG -It is likely bigger
• NEW -First hole collared February 2017
-RE in June - PEA by August
• LOCATION -Next to world’s 1st lithium brine operation
• IDEAL -Simple mining
-flat, no overburden; clay, no drill & blast
• UNIQUE -Mineralogy is unlike other claystone
-easily leachable with low acid consumption
Project Highlights
• Two claim blocks, Dean & Glory Properties consisting of 4,200 acres, located
south and east of the Albemarle brine field
• Drilling at Dean in 2017 encountered mineralization averaging 921 ppm Li over
an average thickness of 77 meters in 14 holes drilled
• Lithium occurs in illite and montmorillonite clays throughout the sediments to
a depth of at least 112 meters
• Metallurgical tests have shown the claystone is acid leachable with lithium
extractions over 80% in agitated leach using sulfuric acid.
10
Project Location
Clayton Valley,
Nevada
11
Geology
• Extensive volcanic-derived claystone east
and south of brine field and Angel Island
• Lithium in illite and montmorillonite clays
to depth of at least 120 m below surface
• Fault bounded to east and west and east
• Shallow redox boundary.
12
2017 Drilling
Oxidized claystone, DCH-09 Reduced claystone, DCH-09
13
13
Drill Results
Drill
Hole
Thickness
(m)
ppm
Li
DCH-01 32 1146
DCH-02 112 852
DCH-03 77 860
DCH-04 71 1051
DCH-05 80 1063
DCH-06 38 903
DCH-07 77 777
DCH-08 75 714
14
Drill
Hole
Thickness
(m)
ppm
Li
DCH-09 98 963
DCH-10 64 1014
DCH-11 103 1029
DCH-12 66 678
DCH-13 107 1135
DCH-14 79 724
DCH-15 126 1068
DCH-16 121 1146
DCH-17 122 977
Drill
Hole
Thickness
(m)
ppm
Li
GCH-1 33 606
GCH-2 39 702
GCH-3 59 659
GCH-4 48 927
GCH-5 130 767
GCH-6 97 1144
Lithium Recovery
• Acid leachable clays, not hectorite
• Recover >80% Li in sulfuric acid
• 1 to 8 hours agitated leach
• Standard treatment adjusting pH to
low impurity solution
• Low reagent consumptions
• Recovery by ion exchange to battery
grade product on-site
15Increasing pH ->>>
Time Line
2018 May Jun Jul Aug Sep Oct Nov Dec Jan
Initial Resource Estimate
Bench tests and process engineering
Preliminary Economic Assessment
Drilling in-fill & met. samples
Preliminary Feasibility Study
16
Lithium Carbonate Price Trend
17
2018 Primary Global Lithium Uses
Batteries account for nearly
half of the world’s demand
for lithium
Source: USGS 18
Contact
Bill Willoughby – Chief Executive Officer
Don Huston - President
Don Myers – Corporate Communications
Suite 1610, 777 Dunsmuir Street
Vancouver, BC, V7Y 1K4, CANADA
Tel: (604) 687-3376
Fax: (604) 687-3119
info@cypressdevelopmentcorp.com
www.cypressdevelopmentcorp.com
19
19

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Cypress Development Corp. Presentation

  • 1. Clayton Valley, Nevada From Drilling to Major Lithium Resource in under 2 Years August 2018 CYP (TSX-V), CYDVF (OTCQB), C1Z1 (Frankfurt) Shares Issued and Outstanding: 61.3 million Fully Diluted Shares Outstanding: 79.1 million Market Capitalization: $22.1 million
  • 2. Forward Looking Statements Some of the statements in this document may be deemed to be "forward-looking statements." All statements in this document, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information. Qualified Person as defined by National Instrument 43-101 and supervised the preparation of the technical information in this presentation is William Willoughby, PhD, PE, Director and CEO of Cypress. 2
  • 3. Management • William Willoughby, PhD, PE – Director, Chief Executive Officer • Donald C. Huston – Chairman, President • James G. Pettit – Director, Chief Financial Officer • Donald G. Myers – Director, Corporate Communications • Amanda Chow, CPA, CMA – Director • Donald Mosher – Corporate Development 3
  • 4. Cypress Capital Structure • TSX Venture Symbol: CYP • US OTCQB Market: CYDVF • Frankfurt Exchange Symbol: C1Z1 • Basic Shares Outstanding: 61.3 million • FD Shares Outstanding: 79.1 million • Market Capitalization: 22.1 million • Year End: December 31st 4
  • 5. Maiden Resource Estimate 5 • Prepared by Global Resource Engineers, Ltd Denver: • NI 43-101 Compliant Mineral Resource Estimate (see also disclosures in June 11 2018 Press Release) • 23 core holes drilled by Cypress 2017 -2018, using 300 ppm cut-off grade • Indicated 697 Mt @ 886 ppm Li = 3.287 Mt LCE • Inferred 643 Mt @ 852 ppm Li = 2.916 Mt LCE • Current prices for LCE = $16,000/t - $22,000/t Clay in DCH-09, 1100 ppm Li
  • 6. Lithium Comparable Companies Source: Google Finance May 10 2018 6
  • 7. Lithium: US “Critical Mineral” • US Government designated Lithium as a “Critical Mineral” of strategic importance in December 2017 • “Critical Mineral” designation favours domestic sources of Lithium across the supply chain • December 2017 Executive Order Stated: "It shall be the policy of the Federal Government to reduce the Nation's vulnerability to disruptions in the supply of critical minerals, which constitutes a strategic vulnerability for the security and prosperity of the United States." 7
  • 8. Key Events • 2014 - Albemarle Corporation (NYSE: ALB) acquires Rockwood Holdings for $6.2B - purchase includes Silver Peak Lithium Mine located in Clayton Valley • 2015 - Tesla Motors breaks ground on USD $5 billion, 35 GWh factory near Reno • 2016 • January - Cypress acquires Clayton Valley lithium brine project • February – Cypress reports 3,070 ppm Li in surface sample of claystone • Mar-Dec - Cypress receives drilling permit, conducted surface sampling and permitting • March 2017 – Drilling commences on Dean property • Sept 2017 – Begins leach testing on Dean drill core • June 2018 – Files Maiden 43-101 Resource Estimate 8
  • 9. Clayton Valley Highlights 9 • BIG -It is likely bigger • NEW -First hole collared February 2017 -RE in June - PEA by August • LOCATION -Next to world’s 1st lithium brine operation • IDEAL -Simple mining -flat, no overburden; clay, no drill & blast • UNIQUE -Mineralogy is unlike other claystone -easily leachable with low acid consumption
  • 10. Project Highlights • Two claim blocks, Dean & Glory Properties consisting of 4,200 acres, located south and east of the Albemarle brine field • Drilling at Dean in 2017 encountered mineralization averaging 921 ppm Li over an average thickness of 77 meters in 14 holes drilled • Lithium occurs in illite and montmorillonite clays throughout the sediments to a depth of at least 112 meters • Metallurgical tests have shown the claystone is acid leachable with lithium extractions over 80% in agitated leach using sulfuric acid. 10
  • 12. Geology • Extensive volcanic-derived claystone east and south of brine field and Angel Island • Lithium in illite and montmorillonite clays to depth of at least 120 m below surface • Fault bounded to east and west and east • Shallow redox boundary. 12
  • 13. 2017 Drilling Oxidized claystone, DCH-09 Reduced claystone, DCH-09 13 13
  • 14. Drill Results Drill Hole Thickness (m) ppm Li DCH-01 32 1146 DCH-02 112 852 DCH-03 77 860 DCH-04 71 1051 DCH-05 80 1063 DCH-06 38 903 DCH-07 77 777 DCH-08 75 714 14 Drill Hole Thickness (m) ppm Li DCH-09 98 963 DCH-10 64 1014 DCH-11 103 1029 DCH-12 66 678 DCH-13 107 1135 DCH-14 79 724 DCH-15 126 1068 DCH-16 121 1146 DCH-17 122 977 Drill Hole Thickness (m) ppm Li GCH-1 33 606 GCH-2 39 702 GCH-3 59 659 GCH-4 48 927 GCH-5 130 767 GCH-6 97 1144
  • 15. Lithium Recovery • Acid leachable clays, not hectorite • Recover >80% Li in sulfuric acid • 1 to 8 hours agitated leach • Standard treatment adjusting pH to low impurity solution • Low reagent consumptions • Recovery by ion exchange to battery grade product on-site 15Increasing pH ->>>
  • 16. Time Line 2018 May Jun Jul Aug Sep Oct Nov Dec Jan Initial Resource Estimate Bench tests and process engineering Preliminary Economic Assessment Drilling in-fill & met. samples Preliminary Feasibility Study 16
  • 18. 2018 Primary Global Lithium Uses Batteries account for nearly half of the world’s demand for lithium Source: USGS 18
  • 19. Contact Bill Willoughby – Chief Executive Officer Don Huston - President Don Myers – Corporate Communications Suite 1610, 777 Dunsmuir Street Vancouver, BC, V7Y 1K4, CANADA Tel: (604) 687-3376 Fax: (604) 687-3119 info@cypressdevelopmentcorp.com www.cypressdevelopmentcorp.com 19 19