ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE  |  February 27, 2017  |  ASX:WCP

170227_wcp_new_landholding_at_piedmont_lithium_project-1.pdf

• Additional 113 acres of land secured adjacent to current Piedmont Lithium Project area, taking the total landholding to 528 acres, with multiple pegmatites mapped along strike on the newly optioned property
• Recent geologic mapping and rock chip sampling for the new property confirms multiple high grade lithium bearing pegmatites with all thirteen samples collected returning significant to high grade lithium including:
  • 3.44% Li2O at 16LL12-03
  • 2.56% Li2O at 16LL11-05
  • 2.37% Li2O at 16LL12-09
  • 1.91% Li2O at 16LL11-04
  • 1.80% Li2O at 16LL12-06
• The results continue to showcase the potential for the Piedmont Lithium Project to host a high grade, strategic US lithium deposit
• The Company’s current Phase 1 drilling on the original landholding continues to progress well with initial assay results expected over the coming weeks and completion of the campaign expected in early March
• The progress of WCP’s exploration campaign continues to leverage its initial land position with excellent access to infrastructure and nearby lithium processing plants, facilitating the Company’s efforts in restarting lithium production from this historic world-class lithium region

WCP Resources Limited (“WCP” or “Company”) (ASX:WCP) is pleased to announce that geologic mapping and rock chip sampling on newly secured land at the Piedmont Lithium Project (“Project”) has confirmed high grade lithium up to 3.44% Li2O. The Project is located in the Carolina Tin-Spodumene Belt (“TSB”), a historic lithium producing district in North Carolina, United States.

The newly secured property comprises 113 acres of surface and mineral rights which are immediately contiguous to the east of the Project. Geologic mapping and the rock chip sampling has uncovered further multi pegmatite potential with high grades which are along strike from the current Project area. The rock chip samples are grab samples from float blocks to outcrop, textures range from fine to very coarse grained pegmatite. Spodumene was observed in all samples. The Company intends to include this area of the Project within the planned Phase 2 drilling program.

The rock chip samples ranged in grade from 1.10% to 3.44% Li2O with the most impressive results including: 3.44% Li2O; 2.56% Li2O; 2.37% Li2O; 1.91% Li2O; and 1.80% Li2O (refer to figure 1 for location of the rock chip samples).

Figure 1: First Phase Drill Program on the Piedmont Lithium Project

The historic exploration data together with the progress of Phase 1 drilling campaign and rock chip samples give the Company confidence in the ability to define a high grade, domestic source of lithium which will showcase the potential for the Project to become a leading US based developer of lithium raw material supply into the growing US domestic Electric Vehicle and Battery Storage markets.

The planning for the Phase 2 drilling campaign is well underway which together with the historic results and the Phase 1 drilling program may lead to the determination of a Mineral Resource estimate in accordance with the JORC Code and NI 43-101 at the Piedmont Lithium Project.

WCP, through its 100% owned U.S. subsidiary, Piedmont Lithium Inc., has entered into exclusive option agreements with local landowners, which upon exercise, allows the Company to purchase (or long term lease) approximately 528 acres of surface property and the associated mineral rights from the local landowners. The new property being the subject of this announcement has been secured on substantially the same terms as the Company’s existing option agreements.

The Piedmont Lithium Project
The Piedmont Lithium Project is located within the world-class Carolina Tin-Spodumene Belt (“TSB”), and along trend to the Hallman Beam and Kings Mountain mines, historically providing most of the western world’s lithium between 1950 and 1990. The TSB is one of the premier localities in the world to be exploring for lithium pegmatites given its history of lithium bearing spodumene mining, favourable geology and ideal location with easy access to infrastructure, power, R&D centres for lithium and battery storage, major high tech population centres and downstream lithium processing
facilities.

Figures Above: Piedmont Lithium Location and Bessemer City Lithium Processing Plant (FMC, Top Right) and Kings Mountain Lithium Processing Facility (Albemarle, Top Left)

The TSB has previously been described as one of the largest lithium provinces in the world and is located approximately 40 kilometres west of Charlotte, North Carolina, United States. The TSB was
the most important lithium producing region in the western world prior to the establishment of the brine operations in Chile in the late 1990’s. The TSB extends over approximately 60 kilometres in length and reaches a maximum width of approximately 1.6 kilometres.

The Project was originally explored by Lithium Corporation of America which eventually was acquired by FMC Corporation (“FMC”). FMC and Albemarle Corporation (“Albemarle”) both historically mined the lithium bearing spodumene pegmatites from the TSB with the historic Kings Mountain lithium mine being described as one of the richest spodumene deposits in the world by Albemarle. These two mines and their respective metallurgy also formed the basis for the design of the two lithium processing facilities in the region which were the first modern spodumene processing facilities in the western world.

Albemarle and FMC continue to operate these important lithium processing facilities with FMC’s Bessemer City lithium processing facility being approximately 14 kilometres from the Project whilst Albemarle’s Kings Mountain lithium processing facility is approximately 17 kilometres from the Project.

The Company is in a unique position to leverage its position as a first mover in restarting exploration in this historic lithium producing region with the aim of developing a strategic, U.S. domestic source of lithium to supply the increasing electric vehicle and battery storage markets.

Forward Looking Statements
This announcement may include forward-looking statements. These forward-looking statements are based on WCP’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of WCP, which could cause actual results to differ materially from such statements. WCP makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.

Competent Persons Statement
The information in this announcement that relates to Exploration Results is based on, and fairly represents, information compiled or reviewed by Mr Lamont Leatherman, a Competent Person who is a Registered Member of the ‘Society for Mining, Metallurgy and Exploration’, a ‘Recognised Professional Organisation’ (RPO). Mr Leatherman is a consultant to the Company. Mr Leatherman has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Leatherman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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