Umbral Energy: On the right lithium brine track

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Information about Umbral Energy: On the right lithium brine track

Published on June 6, 2016

Author: StephanBogner

Source: slideshare.net

1. June 6, 2016 Research #4 Lithium in Utah & Nevada On the right lithium brine track Today, Umbral Energy Corp. provided a significant update on already completed exploration activities, which started on May 19 on the playa of its 100% owned Tule Valley Project in Utah, USA. Reconnaissance exploration consisted of 1) investigation of distribution of dry lake bed playa vs evaporite, 2) testing/sampling local feeder-springs, 3) wide-spaced “soil” sampling of the playa bed, 4) informative meetings with local BLM (Bureau of Land Managagement) personnel. The results have confirmed the potential for lithium-bearing brines in aquifers below surface. The company will now focus on geophysical surveying, particularly IP (Induced Polarisation), in order to detect conductive layers beneath the playa as brines are salty (therefore strongly conductive). The thicker and strongest conductive zones, identified by the upcoming IP survey, will subsequently be drill-tested for lithium brines. Company Details Umbral Energy Corp. 929 Mainland Street Vancouver, BC, V6B 1S3 Canada Phone: +1 604 628 1767 Email: jbal@umbralenergy.com www.umbralenergy.com Shares Issued & Outstanding: 58,016,972 Canadian Symbol (CSE): UMB Current Price: $0.09 CAD (June 4, 2016) Market Capitalization: $5 million CAD German Symbol / WKN: 2UE / A118T0 Current Price: €0.055 EUR (June 4, 2016) Market Capitalization: €3 million EUR Chart Canada (CSE) Chart Germany (Frankfurt) The hardpan of the Tule Valley playa, Millard County, Utah, USA (source)

2. 2 Umbral’s President commented today: “Our company is focused on evaluating the potential for development of lithium in Utah and Nevada. The lithium indus- try is growing very quickly, and Umbral is eager to be part of this. We strongly be- lieve in the properties we have acquired, and we are looking forward to further exploration on our Tule Valley project.” According to today’s press-release, the reconnaissance survey resulted in the following interpretation from Umbral: “Tule Valley playa is a dry lake bed, mostly covered with a thin layer of wind-blown sand, with several active “evaporite ponds”, where leakage from near-by springs brings water onto the low-lying areas of the playa, thereby producing active evaporation. Composed of dried mud/silt/ash, the compacted playa mud is salty (indicat- ing some form of evaporation from either surface or ground waters during the life of the playa), and displays gyp- sum crystals (calcium sulphate; indicat- ing the introduction of sulphate during the drying/evaporation process, which in turn suggests some form of ground- water influence). Tule Valley playa is a closed valley, has lithium source rocks located several kilometres north of the property, (see May 19, 2016 news release) has active groundwater flow along its western margin, and has been affected by evap- orite-style processes. Tule Valley may therefore be condu- cive to the presence of lithium-bearing groundwater. In this respect, Tule Valley has similar characteristics to Clayton Valley, Nevada, a dry lake bed where lithium is derived from brines located within more porous sediment layers at depth under playa. The Tule Valley exploration will focus initially on geophysical surveying, par- ticularly IP, to detect conductive layers beneath the playa. Brines are salty, and are therefore strongly conductive. The thicker and strongest conductive zones will subsequently be drill-tested for lith- ium content.” Rockstone is looking foward to the upcoming geophysiscs and drill program as more shareholder value could be produced with more positive news. Sunrise over the playa of the southern part of the Tule Valley (source): Research #4 | Umbral Energy Corp. Click on image for a 360 view of the Tule Valley hardpan near the geothermal Tule Springs on Death Canyon Road (source)

3. 3 Below right: Red arrows outline possible fluid mobilization from hard-rock lithium sources. Tule Valley is similar to that of Clayton Valley in Nevada, as both are closed basins and have similar horst and graben structures. • Tule Valley is an endorheic basin, which means that it retains water but does not allow any external outflow. This means that any element that mobilizes into the basin, can enter but never leave. That poses the possibility that the aquifer may have upgraded into an extremely mineralized brine over millions of years. •20kmsouthofRedhillResources’Honey Comb Beryllium-Rubidium-Lithium-REE Project (1,500-1,700 ppm lithium in initial surface sampling assays according to NI43-101 Technical Report, 2011). • 30 km southwest of Materion Brush Inc.’s Spor Mountain Beryllium Mine. • 60 km northwest of Crystal Peak’s Potash-Lithium-Magnesium Project (50- 200 mg/L lithium in brine according to NI43-101 Technical Report, 2013), an evaporite basin similar to Tule Valley. Research #4 | Umbral Energy Corp. Click on image to view video of Tule Valley weather time lapse in October 2015 (source)

4. 4 To the right: Tule Valley is surrounded by 3 other lithium rich areas. The Honey Comb Project, located 20 km north of Tule Valley, reported surface sampling assays between 1,500-1,700 ppm lithium from a rhyolite dome in 2011. The Spor Mountain Beryl- lium Mine from Materion Corp. is located 30 km northeast of the Tule Valley. Both Honey Comb and Spor Mountain indicate that the volcanics surrounding Tule Val- ley are rich in lithium and therefore may have acted as a source of lithium for en- riched brines in aquifers below the sur- face. With a market capitalization of $75 million CAD, Crystal Peak Minerals Inc. is currently completing a feasibility study of its near-by Sevier Playa Potash-Lith- ium-Magnesium Project in Utah. Crystal Peak is targeting the production of potash, lithium and other minerals, through the use of a cost-effective solar evaporation process, and as such is a potential blue- print for Umbral and other companies targeting saturated brines hosting mul- tiple minerals with economic potential. Research #4 | Umbral Energy Corp. Above: The hardpan of the Tule Valley (southern part; the property from Umbral is in the northern part; source)

5. To the right: Sunrise over the playa of the southern part of the Tule Valley in May 2015 (source) Umbral’s Tule Valley Property Size: 1,943 hectares (4,800 acres) Location: 190 km southwest of Salt Lake City in Utah (USA), crossing over the Juab and Millard counties. Access: By all-weather, hard surface road from Delta and from Wendover, or by paved road to the south. Further access is by gravel roads in fair condition. Infrastructure & Power: The terrain is readily amenable to the construction of the necessary infrastructure related to mining operations. This includes, but is not limited to, potential tailings stor- age sites, potential waste disposal areas, heap leach pad areas and potential pro- cessing plant sites. It would be necessary to access electrical power from Gold Hill or Callao (Lee, 2003). Surrounding area is sparsely populated, with ranching and livestock being the primary economic activities. Climate: The basins in this area are defined as arid, generally receiving less than 8” of precipitation per year. Evaporation exceeds precipitation. Hot dry summers and cold dry winters. Geology: The area to the north of the Tule Valley contains volcanic rocks such as rhyolite flows and tuffs ranging in age from 3.4 to 4.7 Ma, and are known to contain significant values of lithium, beryllium, rubidium and REEs. Chemical and mineralogical studies of samples from shallow excavations and drill holes revealed abnormal quantities of cesium, rubidium and lithium in the beryllium- bearingtuffs.(Stonehouse,1985).Results from the soil grid suggest that lithium (Li), beryllium (Be), rubidium (Rb) and TREO (total rare earth oxides, including lanthanum to lutetium plus yttrium) mineralization may be present under shallow cover to the east flank of the Big Honey Comb Hill. Honeycomb Hills are 2 domelike bodies of rhyolite with a total volume of 0.5 km3, contained within an area approximately 1.5 km in diameter. 5 Research #4 | Umbral Energy Corp.

6. 6 Above: A small, temporary pool on the playa of the Tule Valley in the south (source); Below: The hardpan of the Tule Valley as seen from the top of a hill in the southern part of the Tule Valley (source) Research #4 | Umbral Energy Corp. Analyst Coverage Research #3: “Umbral Energy starts lithium exploration at Tule Valley in Utah“ (May 19, 2016) Research #2: “Umbral Energy Acquires Gerlach Lithium Brine Project in Nevada“ (May 10, 2016) Research #1: “Umbral Energy to explore for lithium brines in Utah“ (April 26, 2016) About Umbral Energy Corp. Umbral Energy Corp. is currently listed as a junior resource issuer having mineral exploration projects. It is listed on the TSX.V (Toronto Venture Exchange) under the symbol UMB and in Germany under 2UE. Recently, 2 lithium brine projects were acquired in Nevada (Gerlach Property; only 120 km north of Tesla‘s Gigafactory #1) and Utah (Tule Valley Property). Both properties have key characteristics for hosting lithium bearing brines in an acquifer: (1) nearby geothermal clusters with hot springs; (2) large, closed basin; (3) gravity low / basin low with pleistocene lake bottom; (4) within ashfall deposition; (5) potential lithium source rocks in vicinity; (6) ideal desert evaporation climate. The company also has a mineral exploration project in Quebec (Canada) as well as an interest in oil and gas property in Alberta (Canada). In addition, the company is conducting diligence in regards to the commercial cultivation of marijuana under the newly established Health Canada regulations, through its subsidiary PhyeinMed.

7. Vancouver Commodity Forum June 14, 2016 at Hyatt Regency Hotel in Vancouver Click Here to Register Exhibitors: 92 Resources Corp. (TSX.V: NTY; Frankfurt: R9G2) ALX Uranium Corp. (TSX.V: AL; Frankfurt: 6LLN) Arctic Star Exploration Corp. (TSX.V: ADD; Frankfurt: 82A) Aurvista Gold Corp. (TSX.V: AVA; Frankfurt: AVA2) Belmont Resources Inc. (TSX.V: BEA; Frankfurt: L3L1) Canadian Zeolite Corp. (TSX.V: CNZ ; Frankfurt: ZEON) Commerce Resources Corp. (TSX.V: CCE; Frankfurt: D7H) Copper North Mining Corp. (TSX.V: COL; Frankfurt: 79M) Dunnedin Ventures Inc. (TSX.V: DVI; Frankfurt: 5DD) Electra Stone Ltd. (TSX.V: ELT; Frankfurt: 44E1) Equitas Resources Corp. (TSX.V: EQT; Frankfurt: T6UN) Group Ten Metals Inc. (TSX.V: PGE; Frankfurt: 5D31) MGX Minerals Inc. (CSE: XMG; Frankfurt: 1MG) Nevada Clean Magnesium Inc. (TSX.V: NVM; Frankfurt: M1V) Nickel One Resources Inc. (TSX.V: NNN; Frankfurt: 7N1) NRG Metals Inc. (TSX.V: NGZ; Frankfurt: OGPN) Scandium Int. Mining Corp. (TSX.V: SCY; Frankfurt: 0E6) True Leaf Medicine Int. Ltd. (CSE: MJ; Frankfurt: TLA) Umbral Energy Corp. (CSE: UMB; Frankfurt: 2UE) Vatic Ventures Corp. (TSX.V: VCV.H) Voltaic Minerals Corp. (TSX.V: VLT; Frankfurt: 2P61) Zimtu Capital Corp. (TSX.V: ZC; Frankfurt: ZCT1) Program: 12:00 pm: Exhibitor floor opens 1:00 pm: Welcome from Dave Hodge, President of Zimtu Capital Corp. 1:10 pm: Participant company introductions by Dave Hodge and Sven Olsson 1:30 pm: Joe Martin (Cambridge House International): The difference between exploration and mining, and the importance of Vancouver 1:40 pm: John Kaiser (Kaiser Researcb Online): “Criticality of Supply” and how it effects world prices, demand, and the ability to use that to your advantage in the market place 2:10 pm: BREAK - Networking with refreshments 3:00 pm: Stephan Bogner (Rockstone Research): How European markets impact Canadian markets 3:20 pm: John Hykawy (Stormcrow Capital): Demand & Pricing for lithium, cobalt and other battery materials 3:50 pm: Gerry McCarvill (Aurvista): Hedging the metals mar- kets - How to contain the large down drafts of the last 5 years 4:00 pm: Chris Berry (Disruptive Discoveries Journal): The future of lithium 4:30-6:00 pm: Networking Session with refreshments

8. 8 Disclaimer and Information on Forward Looking Statements: All statements in this report, other than state- ments of historical fact should be considered forward-looking statements. Much of this re- port is comprised of statements of projection. Statements in this report that are forward looking include that Umbral Energy Corp. or any other company or market will perform as expected; that Umbral Energy Corp. will complete the recently announced property transaction; that Umbral Energy Corp. or its partner(s) can and will start exploring or even producing and selling any kinds of products; that the company can raise sufficient funds for a transaction, exploration and corporate matters; that any of the mentioned plans, comparisons with other companies, regions or numbers are valid or economic. Such state- ments involve known and unknown risks, un- certainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-look- ing statements. Risks and uncertainties re- specting lithium and resource companies are generally disclosed in the annual financial or other filing documents of Umbral Energy Corp. and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to Umbral Energy Corp., a number of risks relate to any state- ment of projection or forward statements, including among other risks: the receipt of all necessary approvals and permits; the ability to conclude a transaction to start or continue exploration; uncertainty of future market regulations, capital expenditures and other costs; financings and additional capital requirements for exploration, development, construction, and operating of a facility; the receipt in a timely fashion of further permit- ting for its legislative, political, social or eco- nomic developments in the jurisdictions in which Umbral Energy Corp. carries on busi- ness; operating or technical difficulties in connection with production or development activities; the ability to keep key employees, joint-venture partner(s), and operations fi- nanced. There can be no assurance that such statements will prove to be accurate, as ac- tual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking in- formation. Rockstone and the author of this report do not undertake any obligation to update any statements made in this report. Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Rockstone, its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu Capital Corp. is to research and report on companies in which Zimtu has an investment. So while the author of this report is not paid directly by Umbral Energy Corp., the author’s employer Capital Corp. will benefit from appreciation of Umbral Energy Corp.’s stock price. The author does NOT own any shares or other kinds of interests in Umbral Energy Corp., but may initiate of stock position in future; however the author owns shares of Zimtu Capital Corp. and thus would also benefit from volume and price appreciation of its stocks. Thus, multiple conflicts of interests exist. Therefore, the information provided herewithin should not be construed as a financial analysis or recommendation but as advertisement. The author’s views and opinions regarding the companies featured in reports are his own viewsandarebasedoninformationthathehas researched independently and has received, which the author assumes to be reliable. Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Umbral Energy Corp.has not reviewed the content of this report prior to publication. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect. Please read the entire Disclaimer carefully. If you do not agree to all of the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information provided is educational and general in nature. Analyst Profile and Contact Stephan Bogner (Dipl. Kfm. FH) Mining Analyst Rockstone Research 8050 Zurich, Switzerland +41-44-5862323 sb@rockstone-research.com Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London) and the University of Queensland (Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller („Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland. Rockstone is a research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on exploration, development, and production of resource deposits. Through the publication of general geological basic knowledge, the individual research reports receive a background in order for the reader to be inspired to conduct further due diligence. All research from our house is being made accessible to private and institutional investors free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility. For more information and sign-up for free newsletter, please visit: www.rockstone-research.com Research #4 | Umbral Energy Corp.

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