INVESTMENT THES IS INDUSTRY OVERVIEW AND COMPETITIVE POSITIONING Produc t of choice for glass producers Glass producers pay a premium for their lithium units when in chemical form and are seeking a new supply of lowimpurity spodumene Technical grade spodumene concentrates are inherently more valuable which stems from the increased presence of alumina and silica in the mineral both of which are key glassmaking materials The low level of iron as an impurity is also critical for the consumers who would otherwise need to use a converted lithium carbonate chemical and purchase additional fluxes at higher cost A glass ceiling to break Only four major global lithium producers exist and only one produces technical grade spodumene This oligopolistic market offers a rare niche market opportunity that Frontier can be the first to exploit Direc t Shipping Ore Sample Qualification in 20 1 8 The suitability of the spodumene to meet the most rigorous specifications of the lithium market has been confirmed through processing 200 tonnes by a global producer Spodumene technical grade concentrate specifications are the most stringent to meet and is the second largest market segment for global lithium demand In addition Frontiers deposit exceeds standard chemical grade feedstock requirements for further upgrading to produce compounds for the lithiumion battery market This quality increases optionality and greatly reduces potential technical risks and costs associated in possible downstream processing from the PAK project Bat ter y Minerals Ecosystem Frontier has identified specific technology and markets of interest for premium lithium compounds produced from the transformation of spodumene concentrate The company has entered into a strategic partnership agreement with XPS Expert Process Solutions XPS a Glencore company and Dr Ghahreman to develop a process for refining spodumene concentrate into lithium hydroxide Re s o u r c e N a t i o n a l i s m Increasingly the global trend is to secure resources locally especially those in close proximity to big consumer markets The American Mineral Security Act 2019 is progressing with the goal of protecting domestic mineral resources and the supply chains that refine the raw materials such as graphite cobalt nickel and lithium that form the core of the automotive and energy industries Also in recent news and a target market for Frontier is Apples USD 250m investment to further develop and grow Cornings Gorilla glass facility in USA Image sour ce Cor nings website automotive interiors