The area within and just outside the 3Q Project catchment is characterized by volcanic cones reaching heights of 6,000 masl or greater. Successive tectonic episodes and reactivation of hydrogeomorphological dynamics in an extremely arid environment have formed low level drainage networks. This has resulted in conformation of inter-mountain basin areas and positive relief in the area. Salar in-fill units were differentiated in 3Q Salar and are the target of the current exploration. These salar in-fill units, or hydrostratigraphic units, from deepest to shallowest are:

- Fanglomerate - overlies the hydrogeologic basement and is composed of fanglomerates, medium-coarse sandstones and breccias;
- Lower Sediments - composed of sandstones and siltstones with minor gypsum laminae;
- Massive Halite - composed of fine to coarse-grained halite;
- Porous Halite - composed of medium to coarse-grained halite, with granular intervals of loose crystals;
- Upper Sediments - composed of reddish sandstones, silty sandstones, and plastic shales, mixed with halite crystals; and
- Hyper-Porous Halite - composed of medium to coarse-grained halite with high inter-crystalline porosity.

Overall, the information at the 3Q Project indicates that the lithium and potassium grades and the levels of impurities compare favourably against other brine deposits.

The 3Q Salar has aspects of both evaporite-dominant and clastic-dominant salar types. Within the salar, there is a substantial occurrence of evaporite sequences in excess of 200 m. However, there are also three laterally extensive clastic units (Upper Sediments, Lower Sediments, and Fanglomerate) that show evidence of extended periods of clastic-dominant deposition. Furthermore, there are frequent small clastic layers, ranging from a few to several cm, within the evaporite units. These small clastic layers tend to increase in frequency and/or thickness with proximity to the formal clastic units, often forming a gradual transition zone from the evaporite units to the clastic units.

A primary constraint for the production wells was that drawdown should remain above the screened section of the wells. If excessive drawdown was predicted, then additional wells would be added to the simulation at appropriate spacing. In terms of general well locations, the grade constraints required that the wellfield is located in the higher-grade northern area of the Resource Zone. This northern area also addressed the constraint for Reserves categorization which specified that recovery should focus on Measured and Indicated Resources.

Production wellfield scenarios were adjusted iteratively in the model to identify configurations that could effectively meet all constraints. The final selected scenario included a total of 15 production wells. The wells were grouped into the following three series:
• A-series wells – Selected to meet grade constraints. This series consisted of 9 wells (3 existing and 6 new) that targeted the highest-grade lithium Resource (>1,000 mg/L).
• B-series wells – Selected to meet early pond-filling requirements, and to blend with A-series wells to meet the lithium grade target of 940 mg/L. This series consisted of four wells, all existing, within the mid-grade lithium Resource (>650 mg/L) in the northern salar.
• C-series wells – Selected to enhance LCE recovery after the 20 years of production. This series consisted of 2 wells, 1 existing and 1 new, located east of Laguna 3Q. They target the highest-grade lithium Resource simulated to be available after 20 years of production (~ 800 mg/L).

Simulated production wells are screened within the Measured and Indicated Resource zones. Production well depth and screen placement were designed to minimize mixing between brine layers and the capture of any shallow freshwater that may be introduced to the system (i.e., through direct precipitation or lateral recharge). With the specified screen placement depth, there is minimal brine recovery from the Inferred Resource zone, which intersects the three deepest geological units (Massive Halite, Lower Sediments, and Fanglomerate). The QP considers that the simulated wellfield is appropriate for Reserve estimation

The following constraints were specified as targets for brine recovery:
• The target duration of production is 50 years.
• Production will commence with an initial pond-filling period consisting of:
- nine months of pumping at 196 L/s at a target blended lithium grade of 647 mg/L;
- followed by eight months of pumping at 305 L/s at a target blended lithium grade of 647 mg/L;
- followed by four months of pumping at 305 L/s at a target blended lithium grade of 940 mg/L.
• After initial pond-filling, the target for pumping is to maintain an average rate of 260 L/s.
• After initial pond-filling, the target wellhead production rate is approximately 40,000 tonnes/year of lithium carbonate equivalent (“LCE”). This is achieved with the target pumping rate (260 L/s) and a target blended lithium grade of 940 mg/L, with a tolerance of between 893 and 960 mg/L. The blended grade of recovered brine should be maintained in this range for as long as possible.
• Existing wells should be used to the maximum extent possible with new wells added as required, to meet LCE targets.

The 3Q Project production installations are split between two sites, the first one being located on the Tres Quebradas Salar, and the second one is in the vicinity of the Fiambalá town. Road distance between these places is approximately 160 km. The Salar Site is the location of the Brine Wells, the Evaporation Ponds, as well as the CaCl2 Crystallization Plant, while the Fiambalá Site will be the location of the Lithium Carbonate Plant. Concentrated brine will be trucked from the salar site to the Fiambalá site1.

The 3Q Project considers the design of production wells, evaporation ponds, a crystallization plant and a lithium carbonate plant, in order to obtain 20,000 TPY of battery grade Lithium Carbonate (Li2CO3). Brine extracted from the wells, will be sent, initially, to pre concentration ponds and later to concentration ponds. On both types of ponds, a high proportion of the water contained within the brine will evaporate, through the action of radiation, as well as win ........