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Advantage Lithium (TSX-V: AAL) CEO David Sidoo is a Serious Player in the Lithium Market, Mobilizes Drill Rig at Cauchari

May 2, 2017

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President of Advantage Lithium (TSX-V: AAL)(OTCL: AVLIF), Mr. David Sidoo. David, thank you for joining me this afternoon.

David Sidoo: Gerardo, thanks for having me on and letting me update all the shareholders that we have in Advantage Lithium.

Gerardo Del Real: Well, this is an important update. You have mobilized the rig for phase one drilling at the flagship Cauchari in Argentina. Can you provide the details? I know this is a milestone moment for the company.

David Sidoo: Yeah, it is actually. If you look at it, Gerardo, we just closed our deal with Orocobre on March 31st. All the funding went through. The deal got closed, signed, exchange approved it and less than a month later or just over a month later, we're in the ground mobilizing our rig, getting ready this week to drill our first hole, first of 17 holes in a basin that has over 18 million tonnes of proven lithium and we're right in the middle of it all. So you can't get any better than that in terms of location. It can't get any better than that in terms of timing, execution, putting up camp together, getting your permits, getting equipment, drill rig all ready, building the roadways, setting up camps.

It's been a whirlwind for us for the last 40 days but it just shows you how Advantage Lithium is serious about becoming a serious player in the lithium business. We're out to provide supply to the market. We're not waving our arms around saying we're on the outskirts, area play type of a deal. We're actually in the middle of a play that has massive production and we're in the ground ready to drill this week, Gerardo.

Gerardo Del Real: Let's talk about the program, David. I believe it's ultimately going to be a 17-hole program. Is that correct?

David Sidoo: That's correct. We're going to drill, initially, we're going to drill 5 rotary holes which are down to 400 to 450 meters. That's the deepest holes that have ever been drilled in this basin. We feel that the basin has a huge upside potential to increase reserves both in depth and in width. So we're going to drill five holes that are rotary and then off the success of those five holes, we'll drill another 12 diamond holes that are about 200 meters deep. So let's say in the northwest target which we're going to start first, we drill the first rotary hole. We get strong brine flow rates to the surface. That's where we'll start stepping out and drilling some diamond holes to build that resource quite quickly.

We believe that the southern portion, we're going to increase that 477 thousand tonnes of inferred resource significantly and we believe the northern portion has brine below the alluvial fan. If you go on our website and you go to the slide that has the Cauchari drilling program on it, the northern part we're drilling to 450 meters under the alluvial fan. We know there's brine in there. We just don't know how much. If we hit big there, I don't know what numbers of lithium we're going to have. But we know that we're going to have lithium and we're going to build out that 477 thousand tonnes by the end of this year to some number that's going to be higher than that. I'm not going to sit here on the phone and promote to shareholders, I'm going to tell them that we're going to have a greater concentration of brine in a larger resource than we have right now by the end of this year.

Gerardo Del Real: Excellent. Giving that resource and place is important because of your proximity to Orocobre's Olaroz operation obviously, is that correct?

David Sidoo: That's very strategic. The northwestern portion of where we're drilling under the alluvial fan, that first hole, it's only 10 kilometers away from Orocobre's facility where we could take our brine and pipe it directly to Olaroz and process it there. So we don't have the big Capex that some of these other larger companies would have to build a $400 million facility. It takes years to get permits to build those facilities and it takes a lot of money. So if we're successful in the north, it's only 10 kilometers away from Olaroz and in the southern portion of the basin where we have the 477 thousand tonnes, which we're going to build that resource out to a lot higher number this year, we're only 20 kilometers away. So we can quickly get into the market to produce brine and get it piped directly to our partner's facility at Olaroz, that's a very good point.

Gerardo Del Real: Excellent. I know the drilling program is fully funded. You're coming off a big financing. Can you remind us what the cash position is right now, David?

David Sidoo: Just at over $22 million Canadian. We're going to spend over the next six months here up until year end around $4 million US so we're fully funded for the next three years to develop Cauchari and also look at the other five exploration assets that we have. We'll be focusing on Antofalla and Guayatayoc and Incahuasi for now and doing some ground sampling, surface sampling and some geophysics on those with our exploration team and our development team will be fully focused 100% on building out the resource at Cauchari.

Gerardo Del Real: Excellent, excellent. Well, for anybody that's listening that's not familiar with the Advantage Lithium story, the lithium story is a real story. Most lithium juniors are not. I continue to say, that Advantage Lithium is the premier lithium junior in the space and I encourage everybody to go to advantagelithium.com to get familiar with the company. It's a company that's got management that has been seriously successful in the past and I think there's brighter days ahead for the company and the shareholders. David, anything that you like to add?

David Sidoo: I just wanted to let the shareholders know, it appears as though right now that the stock has bottomed out here in the 50, 55 cent range Canadian and I think it's an opportunity now just as we drill these holes. If you haven't taken a look at the company, if you've already bought the stock and you're in there at higher prices, this is a level where I've stepped in, Gerardo, and started buying some stock at the 47, 48, 49, 50, 51 range. My family has been doing the same thing. I'm here long term to support this company like I have in the past, the other ones that I've built. It takes a few years to get these things going but I think this one's quite further advanced than anything I've ever been involved in. I appreciate everybody's patience with it.

But we are definitely in the right market space. When you look at everything that's happening out there with electric vehicles, the gigafactories that are being built around the world, it's a true, true revolution from the hydrocarbon vehicle to electric vehicle. There were 20 different models last year that were out there in electric vehicles in the market and now today, there's over 70 models being pitched to come out in 2020. They're going to need to get the brine from somewhere and the lithium and we're hoping we're going to be one of those producers.

Gerardo Del Real: Absolutely. David, I want to thank you for your time. As the news comes in, I hope to have you back on to provide an update to everybody.

David Sidoo: For sure. I'd love to. Thank you very much.

Gerardo Del Real: Thank you.

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