BUSINESS PLAN

ON

ENERGY MINERAL :
LITHIUM-TIN
MINING

BY
WALEXI NIGERIA
LIMITED

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 TABLE OFCONTENT PAGE

1.0 OVERVIEW 4

3.1 Company Structure, Management Arrangement and Team 8

3.2 Value Proposition, Mission and Vision 9
3.3 Business Model 9
3.4 Corporate Objective 9-10
3.5 Company’s Location and Required Facilities 10
4.0 THE INDUSTRY 11
4.1 Lithium Market Growth, Trend & Forecast(2020 – 2025) 11
4.11 Lithium Market Segmentation
4.2 Lithium Market Snapshot 11
4.3 Market Overview 11
4.31 Key Market Trend 11-13
4.4 Tin Market Growth, Trend & Forecast( 2020 – 2025) 14
4.41 Tin Market Segmentation 14
4.5 Tin Market Snapshot 14
4.6 Tin Market Overview 14-15
4.61 Key Market Trend( Tin) 15-16
4.7 Competitors/Competitive Landscape 16-17
4.8 Brand Differentiation 17
4.9 Local Mining Industry Outlook 17
5.0 PRODUCTS, MARKETING PLAN, & STRATEGIC IMPLEMENTATION 18
5.1 Products Description 18
5.2 Market Share of the Venture 18
5.3 Target Market 18
5.4 Distribution Channels 18
5.5 Price Strategy 18
5.6 Sales Strategy 19
5.7 SWOT Analysis 19-20
5.8 Checklist/Milestone 20

6.0 THE OPERATION PLAN 21

6.1 Pre- Operation Plans 21

6.2 Technology-Choice of Technology 21

6.3 Mine Capacity Model & Estimate 21-25

6.4 Raw Materials for Beneficiation 25

6.5 Company Location & Customer Support 25

6.6 Shipping & Fulfillment 25

6.7 Expansion Plan 25

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 7.0 FINANCIAL PLAN 26
7.1 Expected use of fund

7.2 Startup Expenses Year 1 26-27

7.3 Sales Forecast & Assumptions 27-28

7.4 Income/Outcome Statement 28-29

7.5 Balance Sheet Statement(Year 1-3) 29

7.6 Cash flow Forecast(Year 1-3) 30

7.7 Breakeven Analysis 30

7.8 Financial Ratio 31

8.0 CONCLUSION 32

3-D PHOTO PLAN OF THE BENEFICIATION PLANT 33

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 1.0 OVERVIEW
It is clear that the rapid increase in lithium consumption over the past few decades require an equal
expansion of lithium sources and production site. In 2009 the lithium-ion battery industries accounted
for 21% of all annual lithium concentrate. Today, that figure has doubled, and battery production-
especially batteries for the manufacture of electric vehicles- will continue to gobble up a progressively
large share of lithium. A single electric vehicle requires as much lithium as 10,000 mobile phones, and
global electric vehicle sales will essentially double in 2021, then double again by 2025. In other words,
expanding access to lithium most remain a priority for the EV and electronic industry.

A more diverse lithium supply could also help break-up the oligopoly that currently controls
the trade. Today, just four companies (Chile’s SQM, US –based FMC Corp, Abbermanle Corp and
Australia’s Talison) produce 85% of all lithium. Expanding lithium mining operation could insulate
lithium prices against potential shocks. For instance, if Chile (Which holds over half of all the
world’s knownlithium resource was destabilized , price would spike dramatically) as they did in
China a few years ago when an Australian Spodumene shortage led to a 300% price increase.
Price increase like these could threaten the entire lithium-ion battery industry and the
sustainable energy future along with it.

Starting the mining of this energy mineral is capital intensive, simply because of the type of heavy duty
equipment that are require to carry out the mining project and also the cost of managing alarge
work force .Despite the fact that this energy mining division requires huge start-up capital, the
industry is highly profitable, especially the expertise in place and capacity to deliver quality
products. Other important applications of lithium are chemicals, pharmaceuticals, glass, ceramics, and
lubricants, etc.

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 2.0 EXECUTIVE SUMMARY

INTRODUCTION

Walexi Nigeria Limited has a primary business location at block 4, App 33, suite 45, Ogba Ikeja Lagos.
Walexi is a Private Limited Company, incorporated under the allied and company act in Nigeria.
The Company centers on Energy, Mining and processing of chosen energy mineral resources.

DESCRIPTION OF THE BUSINESS

The business is to explore and acquire land leases on property known to contain Lithium-Tin mineral deposit
.The business will then develop mines on the property with the intent to exploit and
process(beneficiation) into high grade concentrate of 6% Li2O and 45% to 70% Tin for sale into
open market.

PURPOSE OF THE PLAN

The purpose of this plan is to find

Investor(s) and procure loan.

THE PRODUCTS

Lithium is a valuable mineral for energy generation, applicable for producing lithium battery and lithium-ion
battery. The simple product is minimum of 6% concentrate of lithium mineral. Tin is a base metal
appreciable as additives in clean energy device energy generation, electronics, solder making and
others. Tin concentrate of minimum of 45% to 70% would be produced.

TARGET MARKET

 Chemical Smelters and Refineries

 Lithium-ion batteries manufacturers

 Solders and Electronics

 Professionals & Business Experts

 Glass industries;
 Chemical industries;
 Pharmaceutical industries;
High temperature lubricant industry

BACKGROUND OF KEY

MANAGERS/FOUNDER(S)

 Mr. Adeyemo Adewale is the founder of the Company. A Bachelor of science degree in
Geology, University of Ibadan, Nigeria. A project management specialist and also commodity trader.
Others include;

 Madam Alice Adeyemo-Facilitator.

 Engr. Bisi Shoetan –Holds a Bachelor of Science degree in Geology, University of Ibadan, Nigeria.
 Engr. Folorunsho Victor – Chief Geologist at the Geological Survey Agency Ilorin , Nigeria.
 Engr. Ademola Bello-Member of Council of Mining Engineers & Geoscientist(COMEG).
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 Nigeria.
Walexi is also a member of Nigeria Export Promotion Council(NEPC).

FUNDING REQUIRED : US$50.0Million

The fund would be required to:
 Secure growth
 Land and Deposit Acquisition
 Further exploration and working capital
 Capital expenditure
 Building and Plant Construction
 Marketing and Sales

The Company also require the additional knowledge and network of potential investor(s)

RETURN ON INVESTMENT: Investor(s) is expected to reap at least x10 or 1000% benefit

of their investment.

FURTHER INFERENCES

 Project reflect the return/pay-back period of the debt portion in 1year 5Monthsj.
 Average annual rate of return on equity is 25.0%.

 Projected revenue of approximately US$147,420,625 within 3 years of operation

 Projected net-profit after taxes , interest, deduction of depreciation and amortization of

US$33,533,534 within 3 years of operation.

EXIT STRATEGY

 IPO
 Management Buyout

WHY YOU SHOULD INVEST IN ME ?

 I am a honest and diligent person
 Endowed Management Capability
 Willing to explore knowledge and work in team
 Technical know-how of the business.

WHYINVESTINTHE BUSINESS?
 Black Gold of coming century
 Energy and Eco- friendly solution to climatic degradation
 The world market of the business is still at infant stage
 A value chain sector to

clean technology.

INVESTMENT RISKS & MITIGATING MEASURE

Investing in this business involve certain risks, and should only be considered by person able to afford the
loss of their entire investment as a condition to investing in the business. A prospective investor
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 must carefully understand among other things the risk with such an investment.

However, we all live in the world of risk, appropriate measures are put in place to seeing to the
Success based on improvement in Technology, Infrastructure, Finance, Human Resource and
Operation.

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 3.0 THE COMPANY
3.1 COMPANY STRUCTURE, MANAGEMENT ARRANGEMENT & TEAM

Walexi is a Private Limited Company by shares incorporated on November 1, 199 under the Allied and
Company act in Nigeria to carry on the business of Energy, Mining and Merchandising.

Adeyemo Adewale is the founder of the Company. Other key personnel, originator and subscribers are
slated(Founder included)

NAME % SHARES
Adeyemo Adewale 80%
Adeyemo Alice 10%
Abuba Peace 5%
Major Tobun 5%

Adeyemo Adewale holds a Bachelor of science degree in Geology{Upper division} , University of Ibadan,
Nigeria. This performance has been quantified with substantial academic and practical awards. He
had ventured into various exploration activities in Nigeria. Basic references are the exploration and
polishing qualities of the basement complex rocks of Ado Ekiti South- West Nigeria, Field mapping
and rock mechanism of Iseyin , Oyo southern area, and Analysis of the sedimentary terrains of central-belt
of Nigeria, along the Benue trough.

Mr Adeyemo has substantial years (12years) of trading experience in commodities like Geo-Materials, tin
concentrate and its derivatives. He also specializes in drilling, with preference to well-log interpretation, site
investigation and fresh water/salt interphase. His endowed skills and expertise ranges from Project
Management, Management Capability, Accounting Principles and Practices.

The Management arrangement is of ‘’Team’’ formation. The start-up team includes the founder and the
Directors, when the project has been fully secured, other Management team to boast the Engineering and
Production, Marketing and Planning and other employees will be recruited.

Bisi Shoetan, holds a Bachelor of Science degree in Geology (University of Ibadan). He has ventured
into earth science related activities, including drilling (Domestic and Industrial borehole, and Pilling
works). He also has vast experiences in electrical installation works, acquired through former Nigeria
Electric Power Authority.

Other advisory members and consultants are ;

 Engr Wasiu Bello : Member of Council of Mining Engineers and Geoscientist, Nigeria(COMEG).
 Engr Moron A: Federal Ministry of Mines and Steel Development, Abeokuta Ogun state Nigeria.
 Engr Folorunsho Victor : Former Chief Geophysicist at the Geological Survey Agency( Ministry of
Mines and Steel Development) Ilorin ,Kwara state, Nigeria.
 Barrister S.O.Oyeniyi: S.O. Oyeniyi & CO, Legal Practisoner and Consultant.

The Company is a registered member of Nigeria Export Promotion Council.

.
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3.2. VALUE PROPOSITION, MISSION & VISION
VALUE PREPOSITION
 To produce high quality lithium concentrate.
 Latest technology producing at cheaper cost.
 Environmental sustainability and responsible mining activities.

MISSION

To create values and improve lives through sustainable and responsible extractive activities.

VISION

We will be recognized and respected for exceptional economic, environmental and social
performance.

3.3 BUSINESS MODEL

KEY PARTNERS KEY ACTIVITIES VALUE PREPOSITION

*Suppliers (e.g bagco sack, *Prospecting & Exploration. *To produce high quality
mineral supplier specialist, *Mining Development. concentrate.
Kemcore). *Concentrating Processes. *Environmental sustainability
*Xinah, Sanders Geophysical, *Development of latest and responsible extractive
SAMCO. technology in mining. activities.
*State & Local Govt(Stimulating *Contract management.
legislation & provision of
mining).
*Nigeria Export Promotion
Council; Helps direct the
activities of the minerals export
produce.

CUSTOMER RELATION CUSTOMER SEGMENT KEY RESOURCES

*Direct contact with mineral *Metal commodity specialist & *Energy-Mining technology
product specialist (Customer traders –job to get done; leadership(leading Engineers
Acquisition). Getting from raw ore to high and Geologist).
*Long term contract. grade concentrate. *Brand.
*Refiners/Smelters; Job to get *High quality concentrate.
done; Getting from raw ore to
high grade concentrate.
CHANNELS COST STRUCTURES REVENUE STREAMS
*Online marketing (Social *Research and Development. *Direct sales of high grade
media & print marketing). (Very low compare to other lithium concentrate.
*Online distribution. companies). *Sales of waste product.
*Product specialist. *Further exploration cost.
*B2B : High touch *Infrastructural cost.
*Royalty.
*Variable production cost.
*Beneficiation & packing plant.

3.4 CORPORATE OBJECTIVES

The prime objective of the Company is to create shareholders value through participation in the
discovery, development and processing of mineral like lithium.
The Company seeks to attain cash flow through the acquisition or discovery of high quality mineral
deposits and concentrating it within its key region of interest.
We are of the view that the Company will achieve these objectives by:

 Focusing on Geological province with demonstrated strong mineral endowment.

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  Seeking to acquire advanced mineral (Lithium) project in low risk area where
undervalued opportunities are available.
 Buying ores from artisanal miners to further production quantity of lithium concentrate.
Applying advanced exploration techniques and concept to enhance the likelihood of exploration
success.

To support the achievement of these objectives, the Company will;

 Endeavour to recruit and retain high caliber personnel.
 Adding value to the minerals by adopting advance techniques and concept of beneficiation.
 Seek to maximize in-ground expenditure as a proportion of the total budget, and
 Recognize and value the interest of all stakeholders that do business with the company.

3.5 COMPANY LOCATION AND REQUIRED FACILITIES

The General Administrative units will be located in Lagos, a major commercial and economic
nerve center of Nigeria. The sub-administrative and processing(beneficiation) plant units will
be located within the acquired field area of mid-belt Nigeria.
The beneficiation plant will be located closer to the first acquired field-deposit area(Maximum
of 15km).
Contact with mining operators revealed that a standard mining company for minerals under
consideration will require the following for effective commencement and operation.
 Land and Building.
 Construction and Mining Equipment : Bulldozers, graders, loaders, shovel, trucks, drills
and water tankers, light plants and pumps.
 Beneficiation Plant.
 Transportation: Patrolling and officiating vehicles.
 Utility Equipment : Pipe borne water, fuel, power and communication equipment.
 Furniture and Fitting : Office equipment in administrative and sub-administrative units.
The Mine Capacity Model and Estimates are presented in the operation plan.

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 4.0 THE INDUSTRY
4.1 LITHIUM MARKET-GROWTH, TREND, & FORECAST(2020-2025)
4.11 LITHIUM MARKET SEGMENTATIONS
The market is segmented by;
 Type: (a) Metal (b) Compound (Carbonate, Chloride & Hydroxide) (c) Alloy.
 Traditional Application : (a) Battery (b) Lubricant (c) Aluminum smelting (d) Air treatment (e
)Medical (f) Glass & ceramics (g) Metallurgical(iron and steel coating) (h) Polymer (i) Others.
 End-User Industry: (a) Industrial (b) Consumer Electronics (c) Electric Vehicle (d) Energy
Storage (e) Medical.
 Geography: Asia-Pacific, North America, Europe, South America, Middle East and Africa (a)
Production Analysis (b) Consumption Analysis.

4.2 LITHIUM MARKET SNAPSHOT

31

30

29

28

27

26
2020 2021 2022 2023 2024 2025

Study Period: 2016 – 2025

Base Year: 2019
Fastest Growing Market: Asia Pacific
CAGR: Greater than 10%
Major Players: Albemarle Corporation, Todos los Derechos Reservados SQM S.A, Tianqi Lithium,
Livent, Avatum Advanced Materials etc.

4.3 MARKET OVERVIEW

The market for lithium is anticipated to register a CAGR of over 10% during the forecast period.
Key factors driving the market growth include the accelerating demand for electric vehicles,
growing usage and demand from portable consumer electronics, increasing demand from the
glass-making industry, and many others.
 The growing adoption of electric vehicles (EVs) is driven by the rising concerns for the
environment, as these vehicles help reduce carbon emission levels. Government across
the world are implementing stringent emission norms to control and reduce carbon
emission, thereby augmenting the growth of the market.

4.31 KEY MARKET TRENDS

 Electric vehicles have been increasingly used in most developed economies, and are fast
replacing traditional vehicles. Lithium batteries can be categorized into two segments,
namely, disposable and rechargeable. Disposable lithium batteries use lithium in the
metallic form, as an anode, and these batteries have a long life (high charge density)
compared to other standard batteries.
 Lithium is used in high-energy density, rechargeable lithium-ion batteries in full- electric,

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 plug-in hybrid, and hybrid vehicles (EVs, PEV, and HEVs), respectively. Due to the growth
in EV technology, as well as concern s over increased carbon dioxide pollution from
combustion engine and rising fuel costs, lithium has been put into wide spread use in EV
batteries.
 The major regions in which the production of electric vehicles is prominent include the
European countries, such as Norway, Iceland, Sweden and Belgium among others, it is
estimated that Norway accounted for almost one –third of the total market share in 2018.
This is expected to see a sharp surge in the coming year, due to the environment viable
nature of electric vehicles, over other/diesel-based cars in the automotive sector.
 Lithium-ion battery used in electric vehicles has a rechargeable nature and commendable-
life time. Moreover, EVs can also be used rapid charging points that can top up the
batteries to 80% capacity in around 30minutes. All the aforementioned factors have helped
electric vehicles gain popularity.
 Some of the major manufacturers of EV battery are Tesla, Nissan, General Motors,
Volkswagen, and BMW, among others.
 All the aforementioned factors are expected to drive the global market during the forecast
period.

Lithium Market Volume (%), by End-User, Global, 2019

A-Ceramic & Glass 29%

B-Batteries 25%
C-Lubricating Grease 9%
D-Air Treatment 6%
E-Primary Aluminum Production 6%
F-Continuous Casting 4%
G-Rubber & Thermoplastic 4%
H-Pharmaceutical 2%
I-Other Users !5%
TOTAL 100%

LITHIUM END-USE

A
B
C
D
E
F
G
H
I

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 WORLD PRODUCTION TREND OF LITHIUM

600000

500000

400000
North
300000 West
East
200000

100000

0
1960 1980 2000 2019

There is perceived growth in demand for lithium metal due to the wide spread adoption of lithium
batteries in emerging technologies. Lithium batteries have become a preferred power source for
energy-hungry devices such as cell phones because they are more effective and scalable than
previous generation nickel- metal hydride batteries; they are in support of automobile and
electronic manufacturing.

According to research findings, less than 1% market size for the energy mineral are yet to be covered. It is
still in the infant stage. There are enough rooms for investment.

Asia –Pacific Region to Dominate Market

 Asia-Pacific region is the largest consumer of lithium globally with majority of the
consumption coming from China.

 Rise in technological development and increasing need for cleaner energy sources have
brought Li-ion batteries on the forefront across various industries, as well as end-use
sectors.

 Japan is one of the prominent regions for the lithium battery market, along with China,
Korea, occupying a 96% market share in terms of battery capacity shipment.

 Energy economies are expected to increase the consumption of lithium in various end-
use products.

 Owing to the increasing population, increase in regional acceptance of solar thermal and
solar electric technologies (renewable heat) in energy countries ,such as Pakistan,
Bangladesh, Nepal, Sri-Lanka, Cambodia, Laos, etc, are expected to increase
consumption of lithium in energy storage, in the coming years.
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 4.4 TIN MARKET – GROWTH, TRENDS, & FORECAST(2020 – 2025)

4.41 TIN MARKET SEGMENTATION

The market is segmented by:

 Product type :(a) Metal (b) Alloy (c) Compounds.

 Application: (a) Soldering (b) Tin Plating (c) Specialized alloy (d) Lithium-ion battery
and Lead –acid battery (e) Chemicals (f) Other Applications

 End-User Industry: (a) Industry (b) Automotive (c) Electronics (d) Packaging(Food
and Beverage) (e) Glass (f) Other End-User industry.

 Geography; Asia Pacific, North America, Europe, South America, Middle East and
Africa. (a) Production Analysis (b) Consumption Analysis.

4.5 TIN MARKET SNAPSHOT

40

39.5

39

38.5

38

37.5

37
2020 2021 2022 2023 2024 2025

Market Summary: CAGR of 2%

Study Period : 2019 – 2025

Fastest Growing Market: Asia Pacific

Largest Market : Asia Pacific

Major Players : Yun am Tin Co Ltd, PT Timah, Malaysia Smelting Corporation,

Mansur S, etc.

4.6 TIN MARKET OVERVIEW

The tin market is expected to register a CAGR of over 2% during the forecast period. The
major factors driving the market studied are the rising demand for electronics, followed by
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 rising demand for clean energy driving source and lead-free solder. On the flip side, factors
such as stagnant or declining tin production in the upcoming years and availability of
substitutes are restraining the market growth.

 Increasing housing construction activities in emerging economies of Asia-Pacific are

expected to drive the demand for the market, during the forecast period.

 Stagnant or declining tin production in the coming years is likely to hinder the market
growth.

 New, cheap tin-aluminum alloy in lithium-ion batteries is projected to act as an

opportunity for the market, in the future.

4.61 KEY MARKET TREND (TIN)

Soldering to be the Fastest Growing Application

 Tin is an important component in solders, as it melts and adhere to many common

base metals at temperatures considerably below their melting points.

 Tin is alloyed with lead to produce solders with melting point lower than those of
either tin or lead.Small amount of different metals, notably antimony and silver, are
added to tin-lead solders to increase their strength.

 The electronics and electrical industries use solders containing 40-70% tin, which
provide strong and reliable joint under a variety of environmental conditions. At
present ,majority of the assemblers are using patented tin-copper-based solders

Tin use in batteries may rise to 60,000tonnes by 2030. Industry group

 According to recent research by the International Tin Association, tin could see
increased use in Lithium-ion batteries in the next decade. The ITA has identified a
strongly growing interest in tin in energy materials and technologies, including
Lithium-ion batteries. Tin has a wide range of technical properties that means its uses
extend to many areas of everyday life. For the same reason, it can adapt well to meet
emerging needs for new materials that can generate, store and deliver tomorrow’s
energy.

 ITA identified nine technology opportunities for tin in lithium-ion batteries, mainly in
high-capacity anode electrode materials, but also in solid state and cathode
materials. Lithium-ion batteries are used in a wide variety of applications, from
pacemaker’s cellphones and electric vehicles, etc.

 It was concluded that if tin does gain market share, Lithium-ion batteries could grow
to represent a significant near tin use in 2025- 2030 timescale.

Tin finds application for making can in food and drink packaging industries since it

Does not corrode and it is non-toxic.

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 Tin Market Volume (%), by End-Users, Global, 2019

A-Solder & Electronics 37%

B-Phones & Computers 26%

C-Tin Plating & Specialized Alloy 20%

D-Chemicals & Pharmaceuticals 12%

E-Others 5%

TOTAL 100%

TIN END- USE

A
B
C
D
E

Asia-Pacific to Dominate Market

The Asia-Pacific region is the largest producers and consumers of tin, globally. The
automotive industry, one of the major contributors in the tin market, has grown considerably
in the recent years. However, the Chinese automotive industry remains fragmented. This
scenario is likely to have a positive impact on the tin demand positive impact on the tin
demand from the Chinese automotive sectors.

In addition, the other major end-user industries for tin include electrical and electronics,
heavy engineering, packaging, etc. China’s information and communication technology (ICT)
sector has grown at a rapid pace in the past decades, owing to the support of the Chinese
government and favorable digitization plans and policies.

4.7 COMPETITORS/COMPETITIVE LANDSCAPE

We are quite aware that there are big-time lithium mining companies and investors in developed countries

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 like Canada, Australia, and China and even in triangle zone of Argentina, Bolivia, and Chile. Companies like
Advantage Lithium (Argentina), Bearing Resources (Canada), and Bacanora Minerals (Canada), Yunnan
Tin Group Co Ltd, PT Timah, Malaysia Smelting Corporation, to mention a few. They are well
recognized in the division and we may have to compete with them when it is time to sell to open
market or secure contract. These companies do have huge resources which are spent on maintaining
their dominant position of their existing products in the markets, and introducing products that will
quickly generate ‘’Noticeable’’ increase in sales (aka ‘’top line’’ of balance sheet). But, based on the
fact that our own has a differentiating strategy, that will give us a competitive edge, coupled with
the adoption of latest technology and cheaper labor force to produce at a low cost at a more
competitive price to bigger player.

Walexi’s substantial competitive advantages are its drive for advanced technology,custom system design,
and positioning.

For any of our model not to be copied easily we will have contractual control over a sales channel
which can be more powerful than having a patent. Also, getting big fast to generate large amount of
sales quickly to make cash, big enough to negotiate licenses.

4.8 BRAND DIFFERENTIATION

Walexi’s sustainable competitive advantage is its patentable advanced technology and custom system
design, packages and presentation, human capital and strategic positioning.

Differential strategy, offering something distinct and new as against other players.

Walexi’s increasing mineral recovery with real time data to monitor and adjust work-in-progress production
as well as empowering mine engineers with a continuous operation data log with which to make operations
adjustment for larger scope and cost control mechanism.

4.9 LOCAL MINING INDUSTRY OUTLOOK

The mining market in Nigeria is one of the developing types. Although, Nigeria is blessed with crude-
oil deposit that could last for the next 100years, the nation’s untapped and largely abandoned solid minerals
deposit are noted to be triple as much, especially when reference is made on basic and other metallic
minerals. About 365,500Square Kilometer of landmass area in Nigeria are composed of mineral deposits,
with about 126,000Square Kilometer of these area are for radioactive.

Interestingly, underlying markets that are experiencing downsizing pressure and networking pressures
are the strongest markets for mining.

The fac t that Walexi’s program is early in its development life cycle indicates that revenue growth is
promising since its installed capacity has not even been established. The industry is characterized by rapid
innovation and high gross margin.

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 5.0 PRODUCTS, MARKETING PLAN & STRATEGIC IMPLEMENTATION
5.1 PRODUCT DESCRIPTION

Lithium is a soft silvery white metal which is highly reactive and does not occur in nature in its elemental
form. It has the highest electrochemical potential of all metals, a key property in its role in Lithium-
ion batteries. In nature it occurs as compounds within hard rock deposits and salt brines. Lithium and its
compounds have wide range of industrial application resulting in numerous chemical and technical uses.
Tin is silvery, malleable post-transition metal found in pegmatite and alluvial deposit.
The pegmatite under consideration is a coarse-grained intrusive igneous rock formed from crystalline
magma below the earth crust. Pegmatite Lithium deposit, also known as hard rock Lithium deposits can
contain extractable amount of a number of elements, including lithium, tin, tantalum and niobium. Lithium
in pegmatites is commonly found in the mineral Spodumene, but may also be found in minerals such as
Petalite, Lepidolite, Ambigolite and Eucryptile. Tin can also be commonly found in associated ore called
Casseterite.

5.2 MARKET SHARE OF THE VENTURE

Market share for the lithium concentrate to be produced at the early start average 0.55%, judging
from the current world lithium market of approximately 6.0Billion US$ While the market share of
the tin concentrate average 0.30%, judging from the world tin market of approximately 9.0Billion
US$.

5.3 TARGET MARKETS

Walexi’s target markets will focus on large customers in Lithium refineries, Tin smelters/refineries
chemical plants, specialist, battery industries, ceramic and glass, lubricant producers, air treatment
specialist, primary aluminum production companies, rubber-thermoplastic, Chemicals and
pharmaceuticals.

5.4 DISTRIBUTION CHANNELS

 Direct (internet) :( SEO) - Having us rank competitively for keywords like ‘’ Energy Minerals
Miner’’, ‘’Eco- Friendly Miner’’, ‘’Energy Minerals Commodity Trader’’.

 PAID SEARCH: Google Add words and Face book Ads to take advantage of their PPC
services with optimal landing pages for conversion.

 Direct/Catalogue.

 Specialist and Dealers.

5.5 PRICING STRATEGY

In a research carried out, it was clear that a number of industries are in need of this commodity
and presently there is no significant central metal exchange for lithium, may be in time to come unlike tin
where we have the popular LME. Reasonable price would be charged in comparison to open market
view.

Buyers who are able to pay effectively and have a record of healthy patronage shall
be given some determined percentage discount allowed.

The prevailing average FOB PRICE per ton for 6% Li2O Concentrate adopted is US$615 while that of tin
concentrate of 40-60% is US2,000.

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 5.6 SALES STRATEGY

We have established a sales plan. However,ourproduction will dictate h o w q u i c k l y t h e s a l e s

team will expand. As an experiment, one company we contacted expect us to supply 20,000 tons of the
concentrate in a year. If we are to capture a larger number contract, our production schedule would
be sold out within a few months.

Simplified products specification to be adopted for lithium concentrate:

Contract/Quality Minimum of 6% Li20

Concentrate
Form/Shape Grains/Granules
Contract Code Li
Model Number 001L
Packaging Bagco Sack of 50kg
Price Term FOB/CIF
Payment Term T/T, Western Union, C/C at sight
Origin Nigeria

Simplified product specification to be adopted for tin concentrate:

Contract/Quality Minimum of 45-60% Tin

Concentrate
Form/Shape Grains/Granules
Contract Code Sn
Model Number 001S
Packaging Bagco Sack of 50kg
Price Term FOB/CIF
Payment Term T/T, Western Union, C/C at sight
Origin Nigeria

5.7 SWOT ANALYSIS

The following table summarizes how our SWOT Analysis defines the key success factors of the market and
distinctive competencies.

STRENGTH WEAKNESS DISTINCTIVE COMPETENCIES

Skills in marketing, Few people will limit Geo-Mining experience, good
communication, local presence serviceable market. technology to reduce cost.
in major market,
entrepreneurial relationship.
Large deposit, Mining sector Small budgets, poor funding. Core strength in marketing
still underdeveloped in the strategic local presence, focus,
country, Government relationship and dedication.
cooperation, skills and focus on
project.

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 STRENGTH: The founder has a background in earth resources and marketing. As a Geologist, the founder
combines the training and knowledge gained from firms like Sambauna Nigeria Limited ,University of
Ibadan Geo-consult and WAPCO Cement PLC. Walexi has a local presence in Lagos state which
has been the number one metropolitan area for business in Nigeria. By using the latest technology
to communicate among consultants and work together on projects, Walexi will be able to control cost.

WEAKNESS: Currently, the core business of Walexi has not been actualized due to poor funding, thus
preventing Walexi from taking the real advantage of the opportunity available.

The founder along with two other co-founders is unable to handle more than one or two project
strata. This will be addressed as Walexi becomes more comfortable with their projects and is ready
to expand the size of the team.

5.8 CHECKLIST/MILESTONE

 Business name availability check—Done.

 Business incorporation --- Done, RC: 368119.

 Opening of corporate accounts in Nigeria--- Done.

 Opening online payment platform: - In Progress.

 Application and obtaining tax payer’s ID: - In Progress

 Purchase of all form of insurance for the business: In Progress

 Drafting of documents :Done

 Application for licenses and some business permit : In Progress, Partly done

 Renting of office facility in Lagos: Done

 Conducting administrative feasibility assessment: Done

 Application for loan from our banker: None

 Graphic design and printing of packaging, marketing/promotional materials: In Progress

 Recruitment of employees : In Progress

 Purchase of the needed furniture, office equipment, electronic appliances and facility facelift : In
Progress

 Creating awareness for the business :In Progress

 Health and safety, fire safety: In Progress

 Establishing business relationship with key players in the industry( networking and membership of
relevant bodies): Progressing

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6.0 THE OPERATIONAL PLAN
6.1 PRE-OPERATION PLAN

Prior to the onset of operations, we would have acquired a land lease on a property known to
contain lithium-tin bearing minerals and its associated deposits. The method that will be
applied in mining the pegmatite deposit is normal open-pit/surface mining, blasting and
excavation. The later stage is beneficiation of lithium-tin ore to achieve minimum 6% Li2O and
maximum of 0.5% iron content(Fe2O3) Concentrate, in addition to minimum of 45-60% tin
concentrate.

The Company will also source for the necessary equipment once the explored ores have been claimed and
the land lease has been acquired. The mining facility will have necessary beneficiation equipment, packing
plant, chemical treatment and bag co- sacks of 50kg each.

The plant will allow Walexi to produce Lithium and tin concentrate with a production capacity of
200Tons and 50Tons respectively in 8hours

6.2 CHOICE OF TECHNOLOGY

Beneficiation line will come from Shandong Xinhai mining technology and equipment Inc., Sgs Technology,
and 911Metallurgy.

6.3 MINE CAPACITY MODEL & ESTIMATES

The mine producing 3,500Tons ore and 2,500Tons waste per day. Rock characteristics for both ore and waste
are typically of igneous pegmatite.

The key design criteria, operational schedule, equipment, personnel, supply requirement and costs are listed
below.

PRODUCTION

Main Type: Surface-Open pit mine.

Ore Production: 3,500Tons per day.

Waste Production: 2,500Tonsperday.

Minimum concentrate production: 200 & 50 Tons Li-Sn in 8hours in a day.

Haul Distance- Ore 1,532Meters

Haul Distance –Waste 1,300Meters

Envisaged Total Resources 7,500,000Tons

Hour per Shift 10

Shift Per Day 2

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 Day per year 312

EQUIPMENT NUMBER SIZE

Hydraulic Shovel 1 3.4Cubicmeter
Proof-End Loader 1 3.8Cubicmeter
Rear Dump Truck 5 41.0Metric tons
Rotary Drill 2 20.0--
Bulldozer 3 60KW
Grader 1 120KW
Water Tanker 1 9,500Litres
Service/Tire Trucks 3 1,800kg gvw
Bulk Trucks 1 500Kg/min
Light Plants 3 10.0Kw
Pumps 2 15.0Kw
Pick-up Trucks 5 700Kg
Weighbridge 2 ≥60,000Kg each

BENEFICIATION EQUIPMENT

Install Capacity to handle and contain 100 to 150Tons of ore per hour.

 Mineral Jig
 Jaw Crusher
 Duplex Agitator
 Vibrating Screen
 Standard Rotary Drier
 Steel Head Rod Mill
 Flotation Machine
 Belt Conveyor

BUILDING

Shop 583Square meter

Dry 244Square meter

Office 200Square meter

Warehouse 320Square meter

Storage bin 28Cubic meter

MINING COST SUMMARY

Supplies and Materials US$/MT 1.25

Hourly Labor US$/MT 3.54

Equipment Operation US$/MT 2.00

Salaried Labor US$/MT 1.16

Miscellaneous US$/MT 0.80

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 TOTAL OPERATING COST 8.75

DEVELOPMENT

Pre-Production Stripping 100,000Tons

Haul Road Construction 2,500Meter

HOURLY PERSONNEL REQUIREMENT

Drillers 2

Blasters 2

Excavator Operators 5

Truck Drivers 15

Equipment Operators 8

Utility Operators 5

Mechanics 10

Laborers 13

Beneficiation Plant Workers 100

TOTAL HOURLY PERSONNEL 160

SALARIED PERSONNEL REQUIREMENTS

Plant Managers (Shift) 2

Superintendents 2

Supervisors 10

Engineers 15

Geologist 8

Technicians 30

Accountants 8

Clerks 20

Secretaries 4

Other Personnel 30

s 23
 Security Operatives 25

TOTAL SALARIED PERSONNEL 154

PRIMARY SUPPLY REQUIREMENTS

Diesel & Petrol fuel Liter/day 4,751

Lubricant Liter/day 500

Electricity Kwh/day

Powder Kg/day 3,000

Caps №/day 33

Primers №/day 29

Drill bits №/day 1

Det cord M/day 1

MINING CAPITAL COST

Equipment Purchase 12,789,652

Haul Road/Site work 2,504,001

Pre-Production Stripping 577,489

Buildings 2,000,000

Electrical & Automation System 642,529

Sustainable Capital 2,155,073

Working Capital 967,376

Engineering 2,881,231

Contingency 724,952

TOTAL MINING CAPITAL COST 25,242,303

Land leasing & acquisition 4,000,000

Beneficiation Plant & Installation 5,600,000

Utilities, Raw Materials & Working capital 5,311,776

Power plant & Generation 3,920,000

Packing plant 2,903,190

Trucks (40Tons) -30 Units 2,005,921

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 Vehicles/Buses 1,016,810

US$ 24,757,697

6.4 RAW MATERIALS FOR THE BENEFICIATION PLANT

6.4.1 Bag co- supa sacks(50Kg size)

6.4.2 Cleaning agent
6.4.3 Reagents for removing iron minerals
6.4.4 A Frothier
6.4.5 PH Regulator
6.4.6 Ammonium nitrate for blasting work.

6.5 COMPANY’S LOCATION & CUSTOMER SUPPORT

Temporarily,Walexi’s office is located at Ogba Ikeja Lagos, where the founder in addition to two admin
and the sales and marketing support staffs will work out ways of handling all physical and online order
processing and ensuring the purchase to delivery of products run smoothly. It is also where all
requests, such as refunds and complaints will be handled.

6.6 SHIPPING & FULFILMENT

Shipment will be routed to our shipping partner(s)(to be decided). The Company will work closely with us
to ensure quality, through regular checks and audits. It is also where the products will ship out, through an
integrated backend system and order processing mechanism.

6.7 EXPANSION PLAN

We expect the business will aggressively expand during the first three years of operation. As the
business becomes profitable it will make substantial reinvestment into the Company’s mining and
beneficiation infrastructure. The company will seek to acquire more land lease son proven ground for the
associated minerals.

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 7.0 FINANCIAL PLAN
The total amount to complete the whole project/business is US$50Million. The US$ 30Million
will be equity, and then US$20Million as loan . This represents capital structure of 60% equity and
40% debt.

7.1 EXPECTED USE OF FUND

The fund will be applied to;

 Secure growth
 Conduct further, Exploration and Working Capital.
 Claims, Land Acquisition and Development
 Acquire Assets
 Advert, Marketing and Sales.

7.2 START-UP EXPENSES

FIXED ASSETS AMOUNT $ DEPRECIATION(YEARS)
Land & Field Acquisition 4,000,000 Not Depreciated
Real Estate-Buildings 2,000,000 20
Leasehold Improvement 1,000,000 7
Equipment 25,000,000 7
Furniture & Fixtures 1,100,000 5
Vehicles 3,022,731 5
Other 2,877,269 5
TOTAL FIXED ASSETS 39,000,000

OPERATING CAPITAL AMOUNT $

Pre-Opening Salaries & Wages 3,885,000
Prepaid Insurance Premium 1,010,000
Inventory 928,000
Legal & Accounting fees 222,000
Rent Deposit 200,000
Utility Deposit 1,000,000
Supplies 300,000
Advertising & Promotion 455,000
Licenses 700,000
Other Initial Start-Up Cost 2,050,000
Working Capital(Cash on hand) 250,000
TOTAL OPERATING CAPITAL 11,000,000
TOTAL REQUIRED FUND 50,000,000

SOURCES OF FUND Percentage Total Loan Term in Monthly

Rate Month Payment
Equity 1 10.00% 5,000,000
Equity 2 50.00% 25,500,000
ADDITIONAL
LOAN/DEBT
Commercial Loan 20.00% 10,000,000 9.00% 84 160,891
s 26
 Commercial Mortgage 10.00% 5,000,000 9.00% 240 44,986
Credit Card Debt 3.95% 1,977,269 7.00% 60 39,152
Vehicle Loans 6.05% 3,022,731 6.00% 48 70,989
Other Bank Debt 0.00% 0 5.00% 36 -
TOTAL SOURCE 100.00% 50,000,000 316,018
OF FUND

7.3 SALES FORECAST & ASSUMPTIONS

Average growth rate of 10% per annum
Product Line Sales Price COGS Per Tons $ Margin Per Tons $
Per Tons $
Lithium Concentrate 615 160 455
Tin Concentrate 2,000 400 1,600
Other By-Products 1,000 370 630

YY

YEAR 1 YEAR 2 YEAR 3

LITHIUM CONCENTRATE 40,000Tons 44,000Tons 45,375Tons
SOLD
Total Sales $24,600,000 $27,060,000 $27,905,625
Total COGS $6,400,000 $7,040,000 $7,260,000
Total Margin $18,200,000 $20,020,000 $20,645,625

TIN CONCENTRATE 10,000Tons 11,000Tons 12,100Tons

Total Sales $ 20,000,000 $22,000,000 $24,200,000

Total COGS $4,000,000 $4,400,000 $4,840,000
Total Margin $16,000,000 $17,600,000 $19,360,000

OTHER BY-PRODUCTS 500Tons 550Tons 605Tons

Total Sales $500,000 $550,000 $605,000
Total COGS $185,000 $203,500 $223,850
Total Margin $315,000 $346,500 $381,150

TOTAL SALES $45,100,000 $49,610,000 $52,710,625

TOTAL COST OF GOODS $10,585,000 $11,643,500 $12,323,850
SOLD
TOTAL MARGIN $34,515,000 $37,966,500 $40,386,775

ADDITIONAL INPUT/ASSUMPTION
ACCOUNT RECEIVABLE YEAR 1 YEAR 2 YEAR 3
Percentage of Collection
Paid Between 30-60days 100% 100% 100%

ACCOUNT PAYABLE
Percentage of Disbursement
Paid between 30-60days 100% 100% 100%

LINE OF CREDIT ASSUMPTION

Desired Minimum Cash Balance US$500,000
Line of Credit Interest Rate 6.00%

s 27
 ADDITIONAL FIXED ASSETS PURCHASES

FIXED ASSETS YEAR 1 US$ YEAR 2 US$ YEAR 3 US$

Real Estate/Building 2,000,000 0 0
Leasehold Improvement 1,000,000 150,000 100,000

Equipment 25,000,000 1,200,000 1,200,000

Furniture & Fixtures 1,100,000 0 0

Vehicles 3,022,731 0 0
Other Fixed Assets 2,877,269 0 0
TOTAL ADDITIONAL 35,000,000 1,350,000 1,300,000
FIXED ASSETS

INCOME TAX ASSUMPTION YEAR 1 YEAR 2 YEAR 3

30.00% 30.00% 30.00%

ARMOTIZATION OF STARTUP COST

Amortization Period in Years 3

7.4 INCOME/OUTCOME STATEMENT YEAR 1-3

REVENUE ($) YEAR 1 YEAR 2 YEAR 3

Lithium Concentrate 24,600,000 27,060,000 27,905,625
Tin Concentrate 20,000,000 22,000,000 24,200,000
Other by-Products 500,000 550,000 605,000
TOTAL REVENUE($) 45,100,000 49,610,000 52,710,625
TOTAL COST OF GOODS SOLD 10,585,000 11,643,500 12,323,850
GROSS MARGIN 34,515,000 37,966,500 40,386,775
PAYROLL 3,647,800 4,241,808 5,480,974
OPERATING EXPENSES
Advertising 307,000 316,210 325,696
Car and Trucks Expenses 195,000 200,850 206,876
Commission and Fees 86,400 90,720 95,256
Contract Labor(Not included in 300,000 309,000 318,270
payroll)
Insurance(Other than health) 1,010,000 1,040,300 1,071,509
Legal & Professional Services 220,000 228,660 235,520
Licenses 574,429 603,150 633,308
Office Expense 95,500 98,365 101,316
Rent or Lease-Vehicle 120,000 123,600 127,308
,Machinery, Equipment
Rent or Lease-Other Business 60,000 61,800 63,654
Property
Repair and Maintenance 150,000 157,500 165,375
Supplies 240,000 247,200 254,616
Travel, Meal and Entertainment 350,000 360,500 371,315
Utilities 305,000 314,150 323,575
Miscellaneous 110,000 113,300 116,699
TOTAL OPERATING EXPENSES 4,125,329 4,265,305 4,410,292
INCOME(B/4 OTHER 26,741,871 29,459,387 30,495,509
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 EXPENSES)
TOTAL OTHER EXPENSES 10,136,171 11,198,901 13,247,932
NET INCOME BEFORE INCOME 16,605,700 18,260,486 17,247,577
TAX
INCOME TAX 5,963,910 6,460,346 6,156,473
NET INCOME/LOSS 10,641,790 11,800,140 11,091,104

7.5 BALANCE SHEET STATEMENT YEAR 1 – 3

ASSETS YEAR 1 YEAR 2 YEAR 3

Current Assets
Cash 15,457,064 28,007,543 40,813,289
Account Receivable 3,117,500 3,495,250 1,984,400
Inventory 938,000 959,000 994,000
Prepaid Expenses 5,181,333 2,590,667 -
Other Initial Cost 1,366,667 683,333 -
TOTAL CURRENT ASSETS 26,120,564 35,735,793 43,791,689

Fixed Assets
Real Estate-Land/Field 4,000,000 4,000,000 4,000,000
Real Estate-Buildings 2,000,000 2,000,000 2,000,000
Leasehold Improvements 1,000,000 1,150,000 1,250,000
Equipment 25,000,000 26,200,000 27,400,000
Furniture and Fixtures 1,100,000 1,100,000 1,100,000
Vehicles 3,022,731 3,022,731 3,022,731
Other 2,877,269 2,877,269 2,877,269
TOTAL FIXED ASSETS 39,000,000 40,350,000 41,650,000
(Less Accumulated Depreciation) 5,214,286 11,682,143 20,417,857
TOTAL ASSETS 59,906,278 64,403,649 65,023,832

LIABILITIES & EQUITY

Liabilities
Accounts Payable 734,800 808,280 405,108
Commercial Loan Balance 8,925,714 7,750,652 6,465,361
Commercial Mortgage Balance 4,906,364 4,803,945 4,691,919
Credit Card Debt Balance 1,635,008 1,268,004 874,470
Vehicle Loans Balance 2,333,478 1,601,714 824,816
Line of Credit Balance 729,125 229,125 (270,875)
TOTAL LIABILITIES 19,264,489 16,461,720 12,990,798
EQUITY
Common Stock 30,000,000 30,000,000 30,000,000
Retained Earnings 10,641,790 22,441,930 33,533,034
Dividends Dispersed/Owners - 4,500,000 11,500,000
Draw
TOTAL EQUITY 40,641,790 47,941,930 52,033,034
TOTAL LIABILITIES & EQUITY 59,906,278 64,403,649 65,023,832

s 29
 7.6 CASHFLOW FORECAST ( YEAR 1-3)

YEAR 1 YEAR 2 YEAR 3

Beginning Cash Balance
CASH INFLOWS
Cash Sales - - -
Account Receivable 41,922,500 49,292,250 54,221,475
TOTAL CASH INFLOWS 41,922,500 49,292,250 54,221,475

CASH OUTFLOWS
Investment Activities
New Fixed Assets Purchased - 1,350,000 1,300,000
Additional Inventory 10,000 21,000 35,000
Cost of Goods Sold 9,850,200 11,570,000 12,727,022
Operating Activities
Operating Expenses 4,125,329 4,265,305 4,410,292
Payroll 3,647,800 4,241,808 5,480,974
Taxes 5,963,910 - 6,156,473
Financing Activities
Loan Repayments 3,792,220 3,789,545 3,792,220
Owners Distribution 0 500,000 1,000,000
Line of Credit Interest 55,102 43,747 13,747
Line of Credit Repayment 500,005 500,000 500,000
Dividend Paid 0 4,000,000 6,000,000
TOTAL CASH OUTFLOWS 27,944,565 30,281,426 41,415,728
NET CASH FLOWS 13,977,935 19,010,824 12,805,747

7.7 BREAKEVEN ANALYSIS

GROSS MARGIN % OF SALES $

Gross Margin 34,515,000

Total Sales 45,100,000

Gross Margin/Total Sales 76.5%
TOTAL FIXED EXPENSES $
Payroll 3,647,799.64
Operating Expenses 10,987,500.33
Operating + Payroll 14,635,300
BREAKEVEN SALES IN DOLLARS (ANNUAL) $
Gross Margin % of Sales 76.5%
Total Fixed Expenses 14,635,300
YEARLY BREAKEVEN AMOUNT 19,123,628
MONTHLY BREAKEVEN AMOUNT 1,593,636

s 30
 7.9 FINANCIAL RATIO (YEAR 1 – 3)

RATIOS YEAR 1 YEAR 2 YEAR 3

Liquidity
Current Ratio 1.4 2.2 3.4
Quick Ratio 1.0 1.9 3.3
Safety
Debt to Equity Ratio 0.5 0.3 0.2
Debt-to-Service Coverage Ratio-DSCR 0.8 1.1 1.5
Profitability
Sales Growth 0.0% 10.0% 6.3%
COGS to Sales 23.5% 23.5% 23.4%
Gross Profit Margin 76.5% 76.5% 76.6%
SG & A to Sales 17.2% 17.1% 18.8%
Net Profit Margin 23.6% 23.8% 21.0%
Return on Equity(ROE) 26.2% 24.6% 21.3%
Return on Assets 17.8% 18.3% 17.1%
Owner’s Compensation to Sales 0.5% 0.6% 0.7%
Efficiency
Days in Receivables 25.4 25.4 13.6
Accounts Receivable Turnover 14.2 14.2 26.6
Days in Inventory 31.9 30.1 29.4
Inventory Turnover 11.3 12.1 12.4
Sales to Total Assets 0.8 0.8 0.8

s 31
 8.0 CONCLUSION
In order to position the company for growth, we have been creating strong interaction with local and
foreign technocrats, including the Nigeria Government Energy and Mining Agencies, We are
highly optimistic that we will continue to receive orders and make sales appreciably. Our
marketing team will continue to get needed support and encouragement that they need in order
to deliver on set goals and target for the company, and we will continue to improve our
processes and structure to meet the changing trend in Energy-Mining industry.

On the bases of proceeding financial analysis, the business is viable and profitable which is evident
from the pay-back period within a year.

Finally, we will not relent in taking calculated business risks when it comes to venturing into bigger
venture and taking on new business challenges and new business frontiers.

s 32
 3-D PHOTO PLAN OF THE PROPOSED BENEFICIATION PLANT

s 33