Jun 11
2
June 1, 2011
Dear SHAREHOLDERS,
On behalf of Rodinia Lithium Inc. (“Rodinia” or the “Company”), we would like to express our appreciation of your ongoing support as a shareholder, and share with you our excitement and vision for the Company as we continue to develop the Salar de Diablillos Project (“Diablillos”).
Despite challenging times in the global capital markets, we were able to close an $11.5 million bought deal equity financing on February 8, 2011. Since that time, we have been extremely busy. We have taken numerous steps towards the development of the Diablillos project in Salta Province, Argentina. In doing so, we have been actively deploying the funds raised to further the project in hopes of generating returns for shareholders. Notably:
- Defined an In-Situ Inferred Brine Resource. On March 2, 2011, we completed our initial inferred brine resource estimate under the guidelines of National Instrument (“NI”) 43-101. This initial inferred brine resource estimate was independently completed by the internationally recognized, professional engineering and consulting firm AMEC Internacional Ingenieria y Construccion Limitada (“AMEC”). At that time, we proudly press released 4.9 million tonnes of lithium carbonate equivalent inferred resource and 19.8 million tonnes of potassium chloride equivalent inferred resource. This resource estimate positions Diablillos amongst the premier lithium and potash bearing salars in the world.
- Defined a Recoverable Inferred Brine Resource. On April 1, 2011, one month after releasing an in-situ inferred brine resource at Diablillos, we completed additional work and analysis to define a recoverable inferred brine resource estimate. This work was again completed independently by AMEC. The recoverable inferred brine resource was 2.8 million tonnes of lithium carbonate equivalent and 11.2 million tonnes of potash. As a team we were very excited by this development, a recoverable resource provides additional confidence for a significant portion of the in-situ resource, and with additional work and economic data, could represent an expectation for an eventual brine reserve level.
- Initiated a Preliminary Economic Assessment (“PEA”). Following from the positive information learned with the recoverable inferred brine resource, we initiated a PEA for Diablillos on April 4, 2011. The PEA will review the economic parameters for the development of a 10,000 to 15,000 tonne per annum lithium carbonate operation and management expects the PEA to be completed before calendar year end. We are in the process of entering into various engagement letters with the appropriate consulting groups involved in this process and wish to express to shareholders that we will only be working with the industry’s top tier consultants to ensure the integrity of the work.
We are also working on a number of initiatives that we believe will help generate interest in the Rodinia story and that will ideally have a direct and positive impact on our share price. Specifically:
- Continue to Attract Top-Quality Professionals. Over the past month, we have retained the services of Bob Cinq-Mars to advise on processing methodologies. This was yet another significant addition for the Rodinia team as Bob comes with an extensive lithium and lithium processing background, but more importantly with direct experience with salars in Argentina having spent 20 years with FMC Lithium Division (“FMC”). Our team already includes key professionals that helped successfully define and build lithium operations for FMC and for the Argentine government. We believe this addition will solidify our processing capabilities, but more importantly highlights that top-quality industry professionals view Rodinia as having significant potential.
In addition to adding Bob, we are in active discussions with a few other industry professionals that also boast impressive lithium resumes, and with a number of successful and well connected lithium-focused, end-market professionals that we hope to include as part of a Business Advisory Board for the Company or as additions to our Board of Directors. In this last light, we recently added Xizhong Shi to our Board. Mr. Shi is the CEO of Hong Kong Shanshan Resources Co. Ltd., a strategic investor in Rodinia and one of the world’s largest producers of materials used for the manufacturing of lithium ion batteries. Mr. Shi is a graduate of Beijing University, the most prestigious post secondary institute in China, and has a track record of success that has made him a known and highly regarded figure in China. Mr. Shi provides valuable insight into the end-market for lithium carbonate and is able to open doors for Rodinia to meet many other key industry players.
- Working to Initiate Equity Research Coverage. A key part of getting the Rodinia story out to the market and to attracting new investors is coverage from third party equity research analysts. We have been fortunate over the past 16 months to have developed a following and support from Byron Capital Markets, however we believe that more research coverage is vital to getting our story out, and we are working diligently to try and attract the attention of these analysts. We believe in the coming weeks or months we will see the results of these efforts through various initiation reports. To date we have spent one-on-one time with over eight analysts; five analysts have spent time visiting our project sites and another three are in the process of scheduling visits.
- Continuing our Broad Marketing Initiatives. Throughout the past two years we met with a number of institutional investors across the Americas, Europe and Asia. We have continued to meet with new institutional accounts and with a number of retail groups, but understand that we have really only begun to scratch the surface of potential investors and supporters. Over the summer months, we plan to be very active marketing Rodinia to new potential investors and to those who saw us before our recent Diablillos advancement efforts. We have a compelling story to tell and the more we tell it, the more support we will see in the market.
- Advancing Relationship with Shanshan and Other Strategic Investors. During 2010, Rodinia was successful in establishing a relationship and exploration funding from Shanshan Enterprise, based in Ningbo, China. As previously mentioned, Shanshan is China’s largest lithium battery materials provider and one of the largest end users of lithium products in the country. Over the past few months, and in the weeks to come, Rodinia’s senior management team will be travelling to China in order to meet with Shanshan to further our strategic releationship. It is our expectation that both Rodinia and Shanshan can mutually benefit from a closer working relationship consisting of broader cooperation developing the Diablillos deposit into an operating mine.
We also continue to receive inbound calls from other strategic end-users of lithium carbonate. These inquiries range from well-known international businesses, to smaller cutting-edge technology companies. We actively engage with all interested groups and are hopeful that in the near-to-mid-term we can broaden our off-take horizons while securing additional development capital.
As a team, our top priority is the successful development of our lithium projects. An extension of this priority is making sure that our efforts are accurately reflected in our share price. While we are disappointed with recent trading we maintain our positive attitude and are working hard to develop the company and to unlock value for shareholders. With the work we have completed since the last financing, the news flow that will follow our recent initiatives (drill results, processing work, etc.), and support from new and existing shareholders, we remain highly motivated to continue to grow the Company and execute our strategic plan. As we progress, we will continue to update you through our website and press releases.
Thanks again for your continued support.
Sincerely,
RODINIA LITHIUM INC.
Farhad Abasov – Executive Chairman Aaron Wolfe – VP, Corporate Development
William Randall – President & CEO Jennifer Wagner – Corporate Secretary
Ryan Ptolemy – Chief Financial Officer Investor Cubed Inc. – Investor Relations
