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Research, Development and Implementation of Efficient Processing Technologies For Specialty and Energy Metals. August 2016

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Page 1: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

Research, Development and Implementation of Efficient Processing Technologies For Specialty and Energy Metals.

August 2016

Page 2: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

Statements   contained   in   this   presenta0on   which   are   not   historical   facts   are   forward-­‐looking   statements   that   involve   risks,  uncertain0es   and   other   factors   that   could   cause   actual   results   to   differ   materially   from   those   expressed   or   implied   by   such  forward-­‐looking  statements.    Factors  that  could  cause  such  differences,  without  limi0ng  the  generality  of  the  following,  include:  risks   inherent   in   explora0on   ac0vi0es;   vola0lity   and   sensi0vity   to   market   prices   for   uranium   and   rare   earths;   vola0lity   and  sensi0vity   to   capital  market   fluctua0ons;   the   impact   of   explora0on   compe00on;   the   ability   to   raise   funds   through   private   or  public   equity   financings;   imprecision   in   resource   and   reserve   es0mates;   environmental   and   safety   risks   including   increased  regulatory   burdens;   unexpected   geological   or   hydrological   condi0ons;   a   possible   deteriora0on   in   poli0cal   support   for   nuclear  energy  and  rare  earth  technologies;  changes  in  government  regula0ons  and  policies,  including  trade  laws  and  policies;  demand  for   nuclear   power   and   rare   earth   products;   failure   to   obtain   necessary   permits   and   approvals   from   government   authori0es;  weather  and  other  natural  phenomena;  and  other  explora0on,  development,  opera0ng,  financial  market  and   regulatory   risks.    Although  Stans  Energy  Corp.  believes   that   the  assump0ons   inherent   in   the   forward-­‐looking  statements  are   reasonable,  undue  reliance  should  not  be  placed  on  these  statements,  which  only  apply  as  of  the  date  of  this  release.    Stans  Energy  Corp.  disclaims  any   inten0on  or  obliga0on  to  update  or  revise  any  forward-­‐looking  statement,  whether  as  a  result  of  new   informa0on,   future  events  or  otherwise    Cau0onary  Note  to  United  States  and  Other    Investors  Concerning  Es0mates  of  Measured,  Indicated  and  Inferred  Resources:    Certain   tables  may  use   the   terms  “Measured”,   “Indicated”  and  “Inferred”  Resources.  United  States   investors  are  advised   that  while   such   terms   are   recognized   and   required   by   Canadian   regula0ons,   however,   the   United   States   Securi0es   and   Exchange  Commission  does  not  recognize  them.  “Inferred  Mineral  Resources”  have  a  great  amount  of  uncertainty  as  to  their  existence,  and  as  to  their  economic  and  legal  feasibility.  It  cannot  be  assumed  that  all  or  any  part  of  an  Inferred  Mineral  Resource  will  ever  be  upgraded   to   a   higher   category.   Under   Canadian   rules,   es0mates   of   Inferred   Mineral   Resources   may   not   form   the   basis   of  feasibility  or  other  economic  studies.  United  States   investors  are  cau0oned  not  to  assume  that  all  or  any  part  of  Measured  or  Indicated  Mineral   Resources  will   ever   be   converted   into  Mineral   Reserves.   United   States   investors   are   also   cau0oned   not   to  assume  that  all  or  any  part  of  a  Mineral  Resource  is  economically  or  legally  mineable.  

Disclaimer

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Page 3: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

Stock Exchange HRE (TSX-Venture)

Shares Outstanding as at August 1, 2016

168,418,586

Warrants 10,908,100

Options 6,400,000

Total (fully diluted) 185,726,686

Market Cap C$2.5m

Share price (Aug. 10) C$0.015

52 week high/low C$0.035/ C$0.01

Net cash (Q3 2014) C$0.1m

Debt C$781,000

3  

Financial Summary

Page 4: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

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Lithium: Overview Lithium – 1st metal in Group 1 in Periodic table of elements Rare metal Unique properties of Lithium: -  Lightest of all metals (density - 535 kg/m3, 2 times lighter than water) -  Highest heat capacity among all solid materials - 3.56 KJ/kg -  Lithium ionization produces highest electromotive force among all metals

Key Element of Energy Revolution

*Source: International Energy Agency, World Energy Outlook – Special Briefing for COP21

Page 5: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

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“Our global Autos research team forecasts electrification of the fleet to hit 25% of auto sales by 2025 vs. 5% in 2015. In battery terms, we estimate this would equate to a robust 42% battery volume CAGR over the next decade, with battery demand from autos reaching ~175GWh and far eclipsing the 40GWh of batteries consumed by consumer electronics today.” GS The Low Carbon Economy, November 30, 2015

“Grid-scale power storage – long a “holy grail” for renewable energy – is gaining momentum as an investable theme. From Tesla’s Gigafactory to investments by utilities and mandates from regulators, a confluence of drivers is accelerating efforts to cost effectively store power for the electric grid”. The Great Battery Race, Framing the next frontier in clean technology – GS Electrical Energy Storage, October 18, 2015

Lithium  in:  

Cell  phone   3  g  

Laptop   30  g  

Hybrid  car   7  kg  

Electric  Vehicle   25-­‐50  kg  

Grid  storage   500  kg/MWh  

(Lithium  Carbonate  consump0on  by  applica0on)

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iCar Electric Vehicle Next market for Apple?  

Elon Musk (Tesla founder): «All modes of transport will become electric,

with the ironic exception of rockets.»  

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2015   2016   2017   2018   2019   2020   2021   2022   2023   2024   2025  

5,575   6,292   6,854   7,410   7,750   8,115   8,495   8,895   9,315   9,750   10,210  

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Product Lithium carbonate – highly sought after product in near term due to explosive anticipated growth in electric powered vehicles and power storage systems Annual Production – 9 000 t / annum

Resources Mineralization stockpile – NO mining required Volume – 19 mln. tons with average grade below Li2O 0.3%. Life of Ore storage – 13 years Zavitinsky Lithium Project - (open pit) located nearby with average grade above 0.3% Li2O. 20 years of mine life. NO license allocation – License Available

Processing facilities

Pervomaisky Processing Plant – prepared industrial site, currently suspended Only modernization of major equipment required – NO construction works

Infrastructure All necessary infrastructure available, including: local power station with all power lines and substation, heat and water supply, tailings storage facility, railway terminals for raw materials delivery and final product storage and packaging areas

Location Plant is located in Trans-Baikal region, Russia, about 250 km from Chita city Directly connected with Trans-Siberian railway High export potential - Proximity to large consumers of Li products (Japan, S.Korea, China)

Current status

Technical Economic Assessment prepared NI 43 101 compliant report preparation planned Preparation for Russian-standard Technical Documentation development for modernization permitting

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Pervomayskiy  Ore  Stockpile  

Pervomaisky  Processing  Plant  

Zavi0nsky  Deposit  Open  pit  

(suspended)  

Pervomayskiy Mineral Stockpile ~19M t with ~0.3%Li2O used as cutoff from Zavitinskoe Deposit Processing of stored ore for initial production Pervomayskiy Processing Plant Only plant in former USSR for lithium processing. Current status: Mining suspended in 90s; Processing plant produced concentrates from various local non-Li deposits until 2008. Currently under Care + Maintenance Modernization of equipment required All necessary infrastructure available (rail road, power/water supply, TSF) Zavitinsky deposit: 245 000 t Li2O (~0.6% Li2O) in open pit + underground License Unallocated – currently available

Page 10: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

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Only processing area in Russia specifically built and equipped for processing lithium ores. At Pervomaisky Plant ores from Ermakovskoe and Zavitinskoe deposits were processed with production of lithium and beryllium concentrates

All necessary infrastructure for lithium processing is available: -  Railway terminal for raw materials delivery and final

products storage and packaging (plant is directly connected to Trans-Siberia railway)

-  Tailings storage facility of beryllium flotation -  Power, heat water supply and other necessary

infrastructure -  Skilled personnel with experience in lithium extraction

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11  11  

Low-­‐grade  ore  transporta0on  

to  plant  

Ore  sor0ng  (x-­‐ray  fluorescence)  

Concentrate  flota0on  

Hydrometallurgy  Li2CO3  produc0on  

Capacity: 2 000 000 t/a 65% waste material rejected Ore grade after sorting: 0.6% Li2O

Product: flotation concentrate with 2.5% Li2O Flotation circuit modernization required

Product: Lithium Carbonate Installation of hydrometallurgical circuit in existing facility Production: ≈9 000 t/a

Technological Developer – JSC VNIIHT Institute Leading Research and Development Institute of ROSATOM - Russian Federation National Nuclear Corporation for Chemical Technologies VNIIHT carries out a complete cycle of scientific research and development works aimed at creating profitable highly effective technologies for the production of metals (lithium, beryllium, zirconium, hafnium, tantalum, niobium, etc.) for atomic industry and other branches of industry. Institute’s technologies became a production cycle base for largest hydro-metallurgical plants in Russia.

•  Technology  development  ongoing  (started  in  2014)  and  Pilot  Plant  planned  for  2017  •  Technology  development  for  associated  Lithium  Hydroxide  (LiOH)  is  being  explored  due  to  

market  demand  

All  technologies,  equipment  design  or  any  other  intellectual  property  developed  for  the  Project  will  be  owned  by  Stans  Energy  Corp.  

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DIDIM  Inc.  •  DIDIM   Inc.   is   Stans   in-­‐house  engineering   subsidiary   for   the  development  of   rare  earth   and  

specialty  metals  processing  and  separa0on  technologies    •  DIDIM  Inc.  is  an  approved  resident  company  of  Skolkovo  Founda0on  Ini0a0ve  

•  Through  Skolkovo  Founda0on,  DIDIM   Inc.   is  now  applying   for   its  first   government  grant  of  RUB  95  million  (~  USD  $1.5  m)  for  a  specific  rare  earth  separa0on  technology  

 •  Grants  will  be  used  to  develop   Intellectual  Property   (IP)   for   rare  and  special  metal  projects  

globally    

•  IP   will   be   owned   by   Stans   through   DIDIM   Inc.   and   will   be   developed   in   coopera0on  with  Russian  Ins0tutes  and  Engineering  firms  ac0ng  as  subcontractors  

   

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Page 13: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

 Arbitra0on  vs.  Kyrgyz  Republic:  Timeline  

October  2013:  Stans  Files  InternaQonal  

ArbitraQon  

July  2014:  Stans  Awarded  US$  118mm  

By  MCCI  in  Moscow  

2009:  Stans  Acquires  20  year  licence  for    

Kutessay  II    

✓ ✓ ✓ ✓ ✓ ✓April  2013:  Kyrgyz  General    Prosecutor  Files  Claims    

to  revoke  Stans’    20  yr.  Mining  License  

Nov  2014:  Stans  arrests    47  mm  (TSX:  CG)  shares    

In  Ontario  Courts  

Stans  secures  liQgaQon  from  Calunius  Capital  for  future  legal  costs  and  general  operaQng  

expenses  

Local  Russian  courts  overturn  MCCI  award  –  arrest  of    CG  shares  liced  

Stans  launches    US$  209  mm  UNCITRAL  arbitraQon  in  Paris  

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•  Develop  world  leading  technologies  for  separa0on  of  rare  and  specialty  metals    

•  Secure  specialty  metal  assets  for  development  globally    •  Pursue  collec0on  of  damages  from  Interna0onal  Arbitra0on  

•  Shareholder  Distribu0on  of  Arbitra0on  Award                            **There  can  be  no  assurance    that  Stans  will  be  successful  in  obtaining  an  order  for  recogni0on  and  enforcement  of  the  Award  in  Ontario    

•  Con0nue  discussions  and  nego0a0ons  with  poten0al  strategic  partners  

   

     

Corporate  Strategy  

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Page 15: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

Chief Operating Officer & Director; BORIS ARYEV, MSc, P.eng After migrating to Canada in 1983, he worked as a software development consultant with NCR Canada Limited & OPTIMOD Inc. until 1986 and then with Verifact Inc. until 1996. In 1990, Boris became and still is President of Marhope Systems Inc., providing management and consulting services to both public and private sectors. Boris is the founding Director of the Canada-Eurasia-Russia Business Association, founder and chairman of its Mining & Northern Development Committees and co-founder of IEC Minerals Working Group.

Management

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Chairman of the Board; Interim President and CEO RODNEY IRWIN, MA , Honorary Consul of Kyrgyz Republic in Canada From 1972 to 1974, Rodney joined the Department of External Affairs, in Ottawa, then in 1978 through to 1980, he served abroad in New-Delhi, Moscow & Port of Spain. From 1988 to 1990 Rodney served as High Commissioner, then in 1992, was named Ambassador to Yugoslavia. Due to the war with Croatia, he served as Ambassador to Albania, Bulgaria, Slovenia & Croatia. From 1993 to 1996, he was Ambassador to Hungary while retaining his Balkan country accreditations. From 1999 to 2003, he served as Ambassador to the Russian Federation with concurrent accreditation to the Republics of Armenia & Uzbekistan.

Chief Financial Officer; OLGA STEVENS, CPA, Olga is a Certified Public Accountant with over 15 years of progressive experience in the mining industry, having started her career at Ernst and Young managing audits of public companies. Prior to joining Stans Energy Olga spend a number of years with Eurasia Gold Inc., Romios Gold Inc. and Appia Energy

VP Corporate Development; DAVID VINOKUROV David has over 15 years of experience in a variety of financial services and financial sales roles. He is experienced in syndication, sales and marketing various investment vehicles. David attended York University where his studies included Economics and International Relations

Page 16: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

Directors

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Director; ALBERT GRENKE Albert is a founder of Stans Energy Corp., and was the Chief Executive Officer of Viol Energy Ltd., the Kyrgyz corporation that provided the personnel and asset base for Stans Energy Corp.’s Kyrgyz operations. Albert is a prominent entrepreneur who has served as Chief Executive Officer and Director of a number of private and public corporations with both domestic and international exposure. Prior to 1987 he had a career in the Ontario and Canadian Governments in a number of senior positions: administration, audit and investigation, treasury and strategic planning.   Director; VADIM VESHCHEZEROV Vadim has created and sold a number of companies in the microelectronics and IT industries.    He has held various senior advisory positions in the banking industry in Russia.  Since 2001 he has been the Investment Director of RUSNANO, a state sponsored investment fund that is charged with developing high technology industries within the Russian Federation.          

Director; DR. DOUGLAS H UNDERHILL, CPG, PhD, MSc, BA (Geology), MBA, Qualified Person (QP) From 1993 to 2002, Doug was a Uranium Resource & Production Specialist for International Atomic Energy Agency in Vienna. He has over 40 years of minerals industry experience with nearly 30 of those years dedicated to uranium (including experience in Kazakhstan & Uzbekistan). From 1985 -1993, Doug was a Senior Consultant with Nuclear Assurance Corporation (USA), he was responsible for consulting on Uranium supply strategy and maintaining a worldwide uranium production projects database. Doug represented IAEA in Joint IAEA-NEA Uranium Group. Has an MBA in Strategic Planning & Finance.

Vice - Chairman of the Board; Gordon R Baker, Q.C. In 1972, Gordon was called to the Bar of Ontario, then in 1983, he was appointed to the Queens Counsel. A highly regarded corporate law specialist, Gordon holds extensive experience in business law (mergers, acquisitions, joint ventures, financing & structuring) and has acted as counsel (including as a registered lobbyist) advising on government relations (strategic planning, negotiation, compliance issues).

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Advisor; DR. GENNADY SARYCHEV Former Director of the Leading Research Institute of Chemical Technology (VNIIHT) is a former professor of the Moscow Engineering Physics Institute. He is currently rare earth program director for ROSATOM. He has held the position of Director/Department Head of the following institutions: Department of Scientific Research and Development, Department of Scientific Research Work, Department of State Policy on Science, Innovations and Intellectual Property, Department Head of Planning and Construction of Infrastructure Objects for Special Economic Zones. Dr. Sarychev adds invaluable experience to Stans Energy in areas of international cooperation amongst the scientific and business communities. 

Advisor; MR. JEAN PAUL TOGNET, Chemical and Nuclear Engineer Mr. Tognet is a French chemist and nuclear engineer who spent his 35 year business career in the Rare Earths sector. He started with ore processing projects specializing in beneficiation and cracking at the Pechiney-St. Gobain Research Center. In 1982, he began to lead the chemical engineering department at the Rhone-Poulenc Rare Earths plant in La Rochelle France. Then, as Industrial and Raw Materials Director from 1992-1999, he managed the development of Rhone Poulenc’s Rare Earth processing plants in France, USA, Japan, and China. After Rhone Poulenc’s name changed to Rhodia (now a branch of Solvay), he continued in global upstream management and finally was charged with the evaluation of new international Rare Earth projects until his retirement in 2005.

Advisor; DR. VALERY KOSYNKIN; Ph.D., Professor Dr. Kosynkin is one of the world’s preeminent chemists and metallurgists for Rare Earth Elements (REEs). Dr. Kosynkin holds a doctorate of philosophy from Moscow State University. His dissertation was on uranium and the development of REEs through processing loparite concentrate. Since 1959, Dr. Kosynkin has been employed by VNIIHT – The Russian Leading Institute of Chemical Technology, initially as a research in uranium technologies, and from 1973 as the Head of Research and Development for REE chemistry and technology. Dr. Kosynkin has overseen the commissioning of REE production and extraction facilities in Russia, Ukraine, Estonia, and Kazakhstan. In addition to his work at VNIIHT, Dr. Kosynkin served as a USSR IAEA representative from 1968-1973. He has lectured on REE metallurgy and chemistry in Russia, China and Korea.

Advisors

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Kashka Rare Earth Processing Plant (KRP)

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Page 19: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

Kashka Rare Earth Processing Plant (KRP)

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Kashka Rare Earth Processing Plant (KRP)

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Page 21: Research, Development and Implementation of Efficient ... · as at August 1, 2016 168,418,586 Warrants 10,908,100 Options 6,400,000 Total (fully diluted) 185,726,686 Market Cap C$2.5m

ü  Technologies  developed  in  the  Ins0tute  became  the  produc0on  cycle  base  for  over  20  hydrometallurgical  plants  

ü  Over  150  sorbents,  extractants  and  resins  were  engineered  ü  Over  3600  developments  were  industrially  implemented  ü  Over  2600  inventors  cer0ficates  and  patents  were  issued  ü  7  minerals  were  discovered  ü  Over  100  PhDs  are  employed  

Who is VNIIHT?

21  

VNIIHT Achievements

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•  VNIIHT’s  sixty  years  of  chemical  technology  experience  combined  with   their   capabili0es   of   execu0ng   the   complete   cycle   of   rare  earths   research,   development,   and   produc0on   will   give   Stans  Energy  a  significant  advantage  rela0ve  to  its  compe0tors.  

•  VNIIHT    will   also   assist  with   evalua0on   and   acquisi0on   of   other  HREE  proper0es  in  areas  of  the  Former  Soviet  Union  (FSU)  

 

Formula for Success

22  

VNIIHT`s Role

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Kutessay  III  

STANS  ENERGY  CORP.  8  King  St.  East,  Suite  205  Toronto,  ON,  M5C  1B5  Tel:  647  426  1865    Fax  647  426  1869  www.stansenergy.com  [email protected]    

 

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TSX-­‐V:  HRE  OTCQX:  HREEF