Speciality Metals International Limited Annual Report 2019

Page | 5 REVIEW OF OPERATIONS CHILE E XPLORATION C ONCESSIONS During the year the Company’s in-country consultants have held a number of meetings with the main environmental authorities (Regional Environmental Ministry, Regional Ministry of Mines, National Forest Corporation, General Water Bureau, Environmental Evaluation Agency and National Mining and Geology Service) of the Tarapacá Region to introduce the Company and the development activities it intends to undertake within the Tarapacá Region. A meeting has also been held with local politicians such as the Governor of the Tarapacá Region and the Mayor of Pozo Almonte, in order to introduce the project and the Company. The general reception has been highly positive as it will bring increased investment to the Tarapacá Region. A letter of relevance has also been lodged with the Environmental Evaluation Agency of the Tarapacá Region to request a pronouncement from the authority declaring it unnecessary to submit the exploration project in the Pinta and Bellavista mining concessions for assessment through the Environmental Impact System prior to executing exploration activities. In this regard, the Environmental Evaluation Agency has forwarded the file to the National Forest Corporation requesting additional information before issuing a definitive resolution. A final resolution from the Environmental Evaluation Agency regarding the letter of relevance is expected during the September 2019 quarter. In conjunction with this, Speciality Metals will benefit from a recently signed collaboration alliance between its in-country consultants and Santo Tomas University. The objective of this alliance is to attract young talent to do a tectonostratigraphic model of the Pampa del Tamarugal Basin. During July 2019 efforts were put into sourcing all available relevant information, consisting of old ENAP seismic lines and oil & gas holes drilled in the 60’s – 70’s. Additionally, public information from Sernageomin and DGA (Chilean Water Bureau) will be used to link geology, seismic lines and aquifers in the model. The selection of the students has also been completed. Work on the project started on 15 July 2019 and it is expected to be finalised by the end of September 2019. The main objective of this study will be to determine potential brine target depths within Speciality Metals’ concessions, define the stratigraphic sequence and associated aquifers and establish a preliminary 3D model of the area aiming to define drill targets. Upon completion of a comprehensive desktop and in-field review of the Company’s Chilean Exploration Concessions it was decided not to renew the 5 concessions within Salar de Miraje upon the expiration of their initial 3-year term which concluded on 10 May 2019. Summary map of Northern Chile showing locations of Salars de Bellavista and Pintados The Company is also reviewing the option to acquire additional concessions within the targeted exploration region. This review is expected to be completed by the end of August 2019.