PRISM Has Created a Unique Business Model on Life-cycle Management of Mineral Resources and Related Technologies to Operational Startup

Our Business Model

Although PRISM owns a significant poly-metallic resource, it does not follow the traditional mining company business model involving resource definition followed by the production of commodities for export, such as low-cost iron concentrates or metallurgical coal targeted to overseas steel mills. Production of a single commodity with little or no value-add has inherent risks, and presents many challenges to traditional mining companies.

PRISM has adopted a business model that is designed to pair each of its multiple compliant and non-compliant mineral assets with proven, low-risk process technology to move through the typical development life-cycle to multiple commercial operations more quickly and efficiently.

PRISM will manage its multiple mineral asset development, including resource definition and compliance reporting, in addition to identifying, evaluating and adopting proven and/or near-commercial technologies designed to produce high-value products for existing and emerging markets. PRISM will manage each of its mineral assets as separate projects, and when a project has moved through its feasibility stage of development, a new wholly-owned subsidiary will be spun-out to move through commercialization and operational start-up.

Cash flows from each operating subsidiary will provide returns to its shareholders, with PRISM retaining the majority interest of each company.

Carbonyl Iron and Vanadium Project

PRISM's iron-vanadium project has already completed its resource definition and technology adoption stages, with a planned carbonyl iron powder pilot demonstration to be performed in Q2 2018 followed by a bankable feasibility study anticipated to be completed by late 2018. PRISM will then create its carbonyl iron powder and vanadium operating subsidiary(s) to move through commercial development.

Lithium Carbonate Project

PRISM's lithium project requires sourcing and deploying key process technology to rapidly and economically extract lithium from formation brines, and is critical to commercially producing battery-grade lithium carbonate. In this respect, PRISM has aligned itself with a Canadian process water extractive technology company to adopt their patented extraction system with minor adaptations for maximizing lithium recovery.

Preliminary extraction tests of a lithium-bearing brine sample from an operating well on PRISM's Clear Hills permit were successful, achieving lithium concentrations that exceeded a forecast economic threshold. PRISM plans on conducting pre-feasibility level work in Q2 2018, which includes sending concentrate samples for further refining into battery-grade lithium carbonate. This will be followed by a pilot demonstration of the real-time lithium extraction system on an operating well on a PRISM permit in mid-2018 to provide important data for a preliminary economic assessment, with a feasibility study to follow.

PRISM, in cooperation with its technology vendor, may also realize additional revenue opportunities by sub-licensing its lithium extraction system to other North American operators.

Other Projects

With a multitude of other mineral assets that have commercial potential, PRISM will follow its business model by conducting resource evaluations and the identification of complementary and proven process technologies on these assets. As each project moves through its feasibility stage of development, new operating subsidiaries may be created to contribute additional revenue streams for PRISM.