*Hell's Kitchen Lithium and Power Site, April 2022*

Picking up steam at Hell’s Kitchen!

I’m pleased to provide an update on CTR’s Q2 activities as we progress the Hell’s Kitchen Lithium and Power project in Imperial Valley, California.

It has been an incredibly successful 3 months for CTR and there is much to report.

I am delighted to share news that CTR signed a definitive offtake agreement with one of the world’s largest automotive groups, Stellantis, to supply up to 25,000 metric tons of lithium hydroxide each year, over a 10-year term.

CTR has further strengthened its Strategic Investment and Collaboration Agreement with General Motors.

CTR also signed a Letter of Intent with Statevolt to supply lithium and power for the company’s proposed 54GWh battery manufacturing plant to be built in Imperial County.

Through the exceptional work of our operations team and resource consultants, CTR has completed definitive resource analysis from the first two production wells which have exceeded all expectations. The report confirmed our wells, which were recently tested, will produce an additional 8MW of power capacity over what was anticipated, which is a 16% increase in production expectations. In addition, lithium concentration test results demonstrated actual concentrations over 20% higher than originally reported.

The CTR team kicked the dust off our boots to host U.S. Energy Secretary Jennifer Granholm, U.S. Rep. Raul Ruiz, D-La Quinta, and members of the White House National Economic Council at the Hell’s Kitchen development site in April.

I appreciated speaking with Secretary Granholm and was pleased to hear of the Department of Energy’s strong support for lithium recovery at the Salton Sea, including news of President Joe Biden’s directive authorizing the use of the Defense Production Act to secure American production of critical materials to bolster a U.S. clean energy economy.

CTR has received glowing praise from the White House and the federal government regarding Lithium Valley development and we continue to work closely with the auto and battery manufacturing industries to develop the cleanest and most sustainable EV battery eco-system in the world today. This includes lithium and rare earths recovery and production, cathode and battery manufacture and end-of-life recycling to close the loop - all powered by 100% clean energy. It is absolutely imperative this work continues to receive the support it deserves.

I’d like to acknowledge our partners, our CTR team, and our dedicated consultants. I have never been more confident that CTR has established itself as a vital clean energy and critical minerals resource developer, at a time when U.S. domestic supply is most urgently needed.

Now, onto the update…

*Drilling Rig at Hell's Kitchen Lithium and Power Site*

Engineering, Operations, and Resource Update

As previously reported, CTR successfully completed drilling two full-diameter commercial wells, HK1 and HK2. Both were directionally drilled and completed to measured depths of 8,000ft and 8,618ft, respectively. The wells were flow tested and a power resource analysis was completed. In comparison to typical production wells in the Salton Sea field, which average about 18-20MW for a triple-flash power plant configuration, I am very pleased to report that both wells have a demonstrated capacity in the 36MW to 38MW range, when compared in the same process configuration.

Further analysis of the minerals resource has confirmed strong demonstrated results with measured lithium concentrations recovered from HK1 and HK2 averaging 220 mg/kg. This represents a 22% increase from the previously reported estimates used in our engineering and financial modelling. This is a very significant result for our development and confirms what the experts, and those with Salton Sea geothermal experience, have seen elsewhere in the field. These numbers and the process engineering work continues to move our portion of the geothermal field towards reserve status in the United States.

A few other notable opportunities relative to previously reported concentrations: Zinc increased from 400 to 512 mg/kg, Manganese 1,000 to 1,511 mg/kg, and Strontium from 380 to 445 mg/kg, just to mention a few examples. Idaho National Labs is completing independent testing for rare earth minerals and other specialty minerals.

Engineering efforts for Stage 1 continue in line with previously reported development schedules. CTR’s operations team is in full swing to secure long-lead items and lock in quality suppliers, while also establishing a strong local workforce engagement program.

CTR’s world-class team continues to investigate all options available to minimize Project costs, maximize product delivery, and accelerate development timelines to meet the significant market demand for lithium offtake and clean, firm renewable power.

*CTR's Clean Energy Campus Concept Image*

Lithium Market Update

10-year definitive offtake agreement with Stellantis

On June 2, CTR, through its subsidiary Hell’s Kitchen Trading LLC, executed a binding offtake agreement with Stellantis, to supply battery grade lithium hydroxide for the auto group’s North American electrified vehicle (EV) production.

CTR will supply Stellantis with up to 25,000 metric tons each year of lithium hydroxide over a 10-year term.

Stellantis announced plans to have global annual EV sales of five million vehicles by 2030. The company has also committed to increasing battery capacity from 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants in Europe and North America.

We look forward to a strong and successful relationship with Stellantis.

General Motors Broadens Strategic Investment

CTR continues to strengthen its relationship with General Motors. The Strategic Investment and Collaboration Agreement, signed by the companies in 2021, was recently augmented with a Definitive Supply Agreement signed in 2022 extending delivery beyond 10 years. Further commercial terms with this customer continue to remain confidential at this time.

Letter of Intent signed with Statevolt for Lithium and Power

A Letter of Intent (LOI) was signed by Lars Carlstrom, the founder-CEO of Italvolt, to secure both renewable power and lithium from CTR. He also publicly announced that his new company Statevolt plans to develop a ‘Gigafactory’ in Imperial Valley at an expected cost of $4 billion.

Once fully operational, the proposed Gigafactory would be one of largest in North America, with a battery production capacity of 54GWh, serving approximately 650,000 electric vehicles a year at full capacity.

Further Offtake Negotiations

CTR is in advanced negotiations with several significant lithium and power offtake partners.

*Rod Colwell with DOE Secretary Jennifer Granholm*

DOE Secretary Jennifer Granholm Visits Hell’s Kitchen

Secretary Granholm, U.S. Rep. Raul Ruiz, D-La Quinta, and members of the White House National Economic Council visited our Hell’s Kitchen Lithium and Power development site to see, first-hand, the progress CTR is making in the region as we work towards creating the world’s first “Clean Energy Campus”.

CTR wholeheartedly agrees with Secretary Granholm’s comment reported in the Desert Sun. “The energy security piece of things is so fundamental,” Sec. Granholm said. “This region, (Imperial County) could play an important role in making the United States clean energy independent.”

The Secretary’s comments are in lockstep with President Joe Biden’s directive, authorizing the use of the Defense Production Act to secure American production of critical materials to bolster a U.S. clean energy economy.

*Sergio Cabanas speaking with students on Ride your Bike to School Day*

Environmental, Social, and Governance - ESG

CTR supported several events where industry and the community could connect. This included the 3rd Salton Sea Symposium at the University of California, the Imperial County’s State of the County Address, and the Imperial Valley College Career Day.

CTR also assisted at this year’s Ride Your Bike to School events in Niland and Calipatria and also supported the Southwest Eagles High School Varsity Softball Team.

The team took to the shores of the Salton Sea for the inaugural ‘Salton Sea Stroll’, planned by the NorthEnd Alliance 111, to raise awareness for the communities of Niland, Calipatria, and Bombay Beach. CTR attended town hall meetings in Niland and Calipatria to hear from the community, and to discuss environmental benefits of lithium recovery from geothermal brines.

CTR joined NAATBatt International. NAATBatt promotes the revitalization of advanced battery manufacturing in North America. Rod Colwell was invited to join the organization's Board of Directors to work alongside other industry leaders in the development of the U.S. battery supply chain.

The highly respected Wilson Center in Washington DC extended CTR an invitation to join the organization’s Critical Mineral Working Group as an official member. Recently ranked the #1 think tank globally for regional studies, the Wilson Center regularly hosts events and research initiatives on the many geopolitical trends directly influencing supply chains. In partnership with Wilson Center experts, and other stakeholders, the working group will study today’s most pressing risks to critical supply chains, synthesize findings into publicly available reports, and issue recommendations to the Biden administration and Congress.

CTR participated at the American Australian Association Business Council CEO Roundtable with The Hon. Arthur Sinodinos AO in June.

The CTR Team

CTR has added five new members to the team:

Danny Sims, Ph.D., PG - Manager, Geology
Danny is a leading structural geologist. With 35 years experience in the mining and geothermal industries. Danny’s was previously VP Geology at EnergySource.

Faye Winkler – Assistant General Counsel
A 4th generation Imperial Valley resident, Faye worked for public agencies within Imperial County including the County of Imperial and Imperial Irrigation District. Faye graduated law school with a concentration in energy and environmental law and brings a deep knowledge of local matters.

Larissa Hansen – Financial Analyst
Also, an Imperial County local, Larissa graduated Cum Laude with a Bachelor of Arts in Economics from San Diego State University. Previously working within the community as a teacher, Larissa is currently completing an innovative rotation program before selecting a permanent role that best suits her talents and the needs of the company.

Chad Beltz – Treasury Manager
Chad most recently worked for the Bank of Montreal in Chicago. He brings vast experience in the debt market. As Treasury Manager, he is responsible for optimizing CTR’s working capital and projecting cash flow requirements.

Samantha Mordah – Accounts Payable/Accounts Receivable Manager
Sam joined CTR in April as the new Accounts Payable/Accounts Receivable Manager. She brings with her a wealth of knowledge in invoice management and has been instrumental in the development of the Supplier Database.

Will Osborn – Promoted to General Manager
Will has assumed the position of General Manager. Will’s extensive 25+ years’ experience in the geothermal industry, both at the Salton Sea and abroad, will allow him to effectively manage the technical and operational aspects of the company.

Moving Forward

We continue to solidify CTR’s position as a leading lithium supplier in the United States and I look forward to sharing more significant announcements as several major pieces of the Project come together.

Many thanks to our team for their outstanding dedication to the work at hand, to our Board of Directors, and to our shareholders for your overwhelming encouragement and support.

Best regards,

Rod Colwell
Chief Executive Officer

Note to Readers:

This is a ‘General Information Only’ article. It includes personal opinions and forward-looking statements and should not be considered as advice. This email contains links to external websites and other information platforms. CTR takes no responsibility for the quality or accuracy of these external links or reports, nor should any reader rely on any information provided. Please do your own research.

CTR Update - Q2 2022