TNR Gold provides updates on Mariana lithium royalty

Executive Summary

• Ganfeng Lithium officially commenced formal production of the first phase of its Mariana lithium salt-lake project in Argentina on February 12, 2025.
• TNR Gold Corp. holds a 1.5% Net Smelter Return (NSR) royalty on the Mariana project (with 0.15% held for a shareholder), positioning TNR to receive its first royalty cash flows from this production milestone.
• The first phase features a 20,000-ton-per-annum lithium chloride production line, with total explored lithium resources at the site estimated at approximately 8,121,000 tons of Lithium Carbonate Equivalent (LCE).

Key Details

• Production Start: Formal production ceremony held on Feb 12, 2025; announcement made by Ganfeng on Feb 14, 2025.
• Project Capacity: First phase includes a 20,000-ton-per-annum lithium chloride production line.
• Resource Base: Total lithium resources explored at the Mariana project are approximately 8,121,000 tons of LCE.
• TNR Royalty Interest:
  • TNR holds a 1.5% NSR royalty on the Mariana project.
  • 0.15% of this royalty is held on behalf of a shareholder.
  • Ganfeng’s subsidiary, Litio Minera Argentina (LMA), has the right to repurchase 1.0% of the NSR royalty.
  • Repurchase terms: LMA pays $900,000 to TNR and $100,000 to the shareholder.
  • Post-repurchase structure: TNR would hold 0.45% NSR; shareholder would hold 0.05% NSR.
• Operational & Environmental Details:
  • Project utilizes non-potable water with excessive heavy metal content and implements water recycling systems.
  • Powered entirely by renewable energy via a 120-megawatt photovoltaic power station and a 288-megawatt-hour energy storage system.
  • 19 ecological conservation zones established to protect local wildlife (flamingos, alpacas).
• Economic Impact: Project created over 11,600 jobs (direct and indirect) in Salta province.
• Strategic Context: Ganfeng is preparing to submit RIGI (investment incentive program) applications for Mariana, PPG, and Cauchari-Olaroz projects.
• TNR Corporate Update: Executive Chairman Kirill Klip stated TNR has repaid its investment loan in full, has no debt, and is transitioning from a project generation junior to a cash-flow-generating royalty company.

Notable Quotes

• Kirill Klip, Executive Chairman, TNR Gold: "We are building the green energy metals royalty and gold company and now we are graduating to the cash-flow-generating royalty company... We are very pleased that Ganfeng officially inaugurated the Mariana Lithium's start of production at a 20,000-ton-per-annum lithium chloride plant on Feb. 12, 2025. We are looking forward to our first NSR royalty cash flow payments from the Mariana lithium project."
• Gustavo Saenz, Salta Governor: "Mariana is one of the most significant projects in our province. Its development has not only driven economic growth but has also created over 11,600 and jobs both directly and indirectly, bringing transformative change to the region's mining industry."