Investor Materials

Dear Fellow Shareholders,

I am pleased to update you on an important milestone at Lion Rock’s past producing critical minerals and gold project at Volney, South Dakota.

We have received our Conditional Use Permit (CUP) from Lawrence County. This crucial permit grants local approval for mining on the property. Our team has now commenced the application process for a state mining license that will authorize the mining of lithium, tin, and tantalum at Volney.

Figure 1: Aerial view of the Volney Project highlighting the historic open pit where lithium-, tin-, and tantalum-bearing pegmatites were previously mined

So, what does this mean for Lion Rock and the future of Volney?

• The permit, which has been in place since 1995, has been transferred to Lion Rock Resources. Specifically, the CUP authorizes production from a ten-acre section of Volney. The Company already owns both the surface and mineral rights for Volney.

• Obtaining local government approval is the first, and often the most challenging, hurdle to be cleared when advancing towards production.  Having this permit in hand, means we have substantially derisked the project.

• The permit confirms Lion Rock’s potential to advance to production on an expedited timeline.

• As a past-producing property on private land with on-site power, an all-season road, proximal rail access, and local mining approval in hand, Lion Rock is able to submit a robust application for its state mining license.

• Metallurgical and mineralogical testing is already underway to evaluate concentrate grades and recoveries. By simultaneously pursuing the technical and permitting pathways for Volney, we are increasing the potential for early cash flow.

• Volney’s existing infrastructure gives Lion Rock a choice of commercialization pathways, including onsite production and direct shipping of ore.

• Management is now advancing its discussions with US-based refinery operations, to ensure Lion Rock continues to move Volney forward at pace.

Figure 2: Lithium-bearing spodumene-quartz pegmatite boulder from the Volney Project

Next Steps

For our immediate purposes, the greatest advantage of obtaining this permit is the acceleration of exploration across the Volney property. Thanks to the success of our phase one drilling, together with extensive regional sampling, we are confident that a property-wide mineralized system exists at Volney. With the CUP in place, we can make use of bulk sampling and targeted excavation to increase our rate of progress.  

This is particularly good timing because, with metallurgical testing and the state licensing process now underway, our technical team is turning its full attention to the plans for our next drill program.

I will leave you with this reminder: Volney’s well-documented history as a producer of tin, lithium, and tantalum, places Lion Rock in an exceptional position as the revival of US domestic critical mineral production gathers pace. 

On behalf of the Board of Directors,

Nav Dhaliwal
Executive Chairman and Director
Lion Rock Resources Inc.