Wealth Minerals Ltd. (TSXV: WML; OTCQB: WMLLF; SSE: …Source: U.S. Geological Survey, FRC In 2016,...

Siddharth Rajeev, B.Tech, MBA, CFA

Anthony de Ruijter, BA

April 12, 2018

2018 Fundamental Research Corp. “10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront” www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Wealth Minerals Ltd. (TSXV: WML; OTCQB: WMLLF; SSE: WMLCL; Frankfurt: EJZN) - Initiating

Coverage: Lithium Brines in Chile

Sector/Industry: Junior Resource www.wealthminerals.com

Market Data (as of April 12, 2018)

Current Price C$1.48

Fair Value C$1.93

Rating* BUY

Risk* 5 (Highly Spec)

52 Week Range C$1.16 - C$2.34

Shares O/S 111,189,566

Market Cap C$164.56 mm

Current Yield N/A

P/E (forward) N/A

P/B 4.6x

YoY Return 4.2%

YoY TSXV -6.0% *see back of report for rating and risk definitions. * All figures in C$ unless otherwise specified.

Investment Highlights

Wealth Minerals Ltd. (“WML”, “company”) is building a portfolio of high quality lithium assets in South America.

The current portfolio has four early stage assets totaling 75,500 hectares in highly prospective regions in Chile. Chile accounted for approximately a third of global lithium production in 2017

One of WML’s projects is located on the northern part of the Salar de Atacama – the largest and highest-grade producing lithium brine in the world.

The company has been acquiring assets since 2016, and is planning aggressive exploration campaigns on all four assets this year.

Management has extensive capital markets experience, as well as technical experience in South America.

The company has raised a total of $37 million since 2016, and has quickly become a prominent player in the lithium exploration space.

We are initiating coverage with a BUY rating and a fair value estimate of $1.93 per share.

Risks

The value of the company is highly dependent on lithium prices. The company’s projects are in very early stages. Exploration and development risks. The company’s projects do not have a NI 43-101 compliant

resource estimate. Exchange rate risks.

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Background

Wealth Minerals, headquartered in Vancouver, B.C., Canada, is led by founder and CEO, Hendrik van Alphen. The company started focusing on lithium assets in 2016. WML’s business plan is to capitalize on the growing demand for lithium by advancing a portfolio of high quality lithium assets in South America. Management was focused on acquiring assets in 2016 and 2017. The company is planning aggressive exploration campaigns on the acquired assets in 2018.

WML’s history is summarized in the below chart:

Source: Company

The current portfolio has four assets, totaling 75,500 hectares (“ha”), in Chile – one of the largest producers of lithium in the world. Chile is also the lowest cost lithium producer in the world.

The projects’ locations are shown below:

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Brine Lithium /

Chile

Project Portfolio

Source: Company

In March 2018, the company entered into an agreement with the state-owned National

Mining Company of Chile (“ENAMI”) to potentially jointly advance WML’s projects in the Salar de Atacama and Laguna Verde. As per the agreement, the two entities will have 24 months to enter into a definitive agreement and form a partnership in which ENAMI will own a 10% free-carried interest. We consider this a significant milestone as, if the parties advance to a definitive agreement, ENAMI’s support and resources will be a significant value-add for WML.

Lithium is extracted from two sources: hard-rock (spodumene) and brine-based deposits. Lithium hard rock deposits are commonly found in spodumene bearing pegmatite mineral deposits. The below chart outlines notable hard rock lithium deposits in the world:

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Source: Golden Dragon Capital

Lithium brines are accumulations of saline groundwater that contain dissolved lithium. Brine mining is typically a significantly cheaper alternative to hard rock mining. The below chart outlines notable lithium brine deposits. Note that Salar de Atacama (Chile) has the largest

and the highest-grade brine resource – one of WML’s core projects is in this region.


The chart below demonstrates how lithium hard rock and brine deposits are processed into end-products.

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How Lithium Hard Rock and Lithium Brine are Processed


The chart below shows the cost of relative low cost of brines versus hard rock deposits around the world.

Brine versus mineral concentrate operations

In response to increasing demand, global lithium production has trended higher, with supply spiking upwards between 2009 and 2012, and again between 2015 and 2017. Lithium production has historically been dominated by Chile or Australia, with Australia claiming the title of largest lithium producer in 2017. Though minor compared to Chile and Australia’s combined output, China is also a significant producer of lithium.

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Source: U.S. Geological Survey, FRC

Chile is expected to have produced 32.8% of the world’s lithium output in 2017, and has historically produced a third of global lithium production.


Furthermore, Chile currently boasts the world’s largest reserves of lithium. In 2017, Chile was estimated to have 46.9% of the worlds lithium reserves, over double that of China, which is estimated to have the second largest lithium reserves. Chile lies in the “lithium triangle”: an area of land defined by high-altitude and salt flats that lies between Chile, Bolivia and Argentina.

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Atacama Salar


In 2016, WML acquired an option to acquire a 100% interest in the Atacama project (no royalties), consisting of 144 exploration concessions, covering 46,200 ha. It is located in the Atacama Salar in Region II of Antofagasta, northern Chile.

WML is required to make payments totaling US$14 million in cash, and 15 million shares over a three-year period, as shown below:

Property Payments

Source: Company

The land package is in the northern part of the Atacama salar – as mentioned earlier, it holds the largest and highest-grade producing lithium brine in the world. This brine accounts for 100% of Chile’s, and approximately one third of global lithium production. WML’s property is contiguous with concessions held by Sociedad Quimica y Minera de Chile (NYSE: SQM), BHP Billiton (ASX: BHP), and CORFO (Chilean Economic Development Agency).

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Source: Company

The project is adjacent to Highway 23 (which connects northern Chile and Argentina), and is 220 km east of the northern port city of Antofagasta. Calama and Antofagasta are major mining centers due to the region’s long history of copper / gold production.

Property Location

Source: Company

WML’s project is situated in the northern part of the Salar de Atacama. The current

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production of lithium comes from the south of Salar de Atacama, where SQM and Albemarle Corporation (NYSE: ALB) operate, producing potassium-lithium-in-brine mines. SQM is the world’s largest lithium producer.

Geology of the Salar de Atacama

Source: Company

Atacama Salar has the highest evaporation rate and a very low magnesium content – the key reasons for it being a cost leader. The following table shows its high grades versus other brines.

Source: Company

WML’s property, and the northern part of the Salar de Atacama, have never been explored for its brine potential. Although no lithium-bearing brine has been identified on WML’s project, there are strong indications (listed below) of potential for lithium-rich brines held in subsurface aquifers within the project.

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Proximity to existing producers

The geology and hydrogeology of the project area is similar to the area of production to the south. Note that significant studies of the geology, hydrogeology, and natural resources are available due to development of deep water sources for mining activities in the region.

Studies conducted by SQM on the region’s geology, stratigraphy, and structure, indicate that the salt formations found in the south probably extend north.

Salar de Atacama extends to a depth of 975 m. SQM and Albemarle extract lithium from the top 40 m from surface. WML’s primary target is between 200 m and 600 m.

Source: Company

WML conducted geophysical surveys in 2017, which identified near-surface (100 to 150 m) in the southwest, and deeper drill targets (500 to 900m) in the southeast, over an area of 10km by 15km. The geophysical data identified very high conductivity zones, which are indicative of lithium-bearing brines at depth.

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Laguna Verde

Geophysical Survey

Red and purple represent high conductivity and potential lithium-bearing brine.

The Atacama property outline is shown in blue. Source: Company

The company is preparing for a drill program to test the shallow targets. Management’s goal is to delineate a resource by the end of the year. The total budget for 2018 for this project is US$6 million. This 8,700 ha property is located in Region III, northern Chile, approximately 193 km east of regional capital of Copiapo. It is adjacent to Highway 60, and 15 km west of the Argentinian border. The company entered into an option to acquire a 100% interest (royalty free) in the project in 2017 for US$5 million in cash, and 7 million common shares to be paid as follows:

i) US$700,000 in cash and 1 million shares on signing (paid)

ii) US$1 million cash and 1 million shares by December 2017 (paid)

iii) US$1 million cash and 1 million shares by December 2018

iv) US$1 million cash and 2 million shares by December 2019

v) US$1.3 million cash and 2 million shares by December 2020

Similar to other lithium-bearing salars, Laguna Verde is within a closed basin surrounded by volcanic cones (see image below):

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Property Location

Source: Company

Laguna Verde has a known surface brine (lake) and is considered to have significant potential for additional subsurface brines.

The project has a historic inferred resource of 0.51 Mt of lithium carbonate equivalent (LCE) and 4.22 Mt of potassium chloride equivalent. However, this estimate is very conservative as it only accounted for potential mineralization to a depth of 33 m. The estimate was made from a sampling program conducted in 2010. A total of 78 samples were collected, which showed reasonably average grades of 213 mg/l for lithium, and 4,881 mg/l of potassium.

WML collected and analyzed geophysical data in 2017, which indicated the presence of brine at depth of 200 to 300 m. In addition, recovery testing (conducted by Tenova Advanced Technologies) indicated a potential recovery of approximately 88% of the calcium, and 97% of the magnesium from the brine, and yielded a lithium sulphate (Li₂SO₄) solution with purity greater than 99.9%. Tenova is currently completing preliminary CAPEX / OPEX estimates for a potential production scenario of 20,000 tons per annum LCE.

A two-hole drill program commenced in Q1-2018, targeting the east and west of the above ground brine lake to approximately 300 m depth.

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Trinity

Drill Targets

Source: Company

The Trinity project consists of land positions in two different salars (namely Aguas Calientes Norte and Quisquiro), covering 10,100 ha.

Property Location

Source: Company

At Aguas Calientes Norte, the company has an option to acquire a 100% interest (royalty free) on a 2,000 ha land package covering the Puritama 1 to 8 exploration concessions. The total acquisition price is US$2.65 million, which is to be paid over 3 years.

US$150,000 in 2016 (paid)

US$0.50 million in 2017 (paid)

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Five Salars

US$1 million by April 18, 2018

US$1 million by April 18, 2019 These concessions are located 320 km from the port of Antofagasta. Historic surface sampling of brines and springs in 1993 indicated a lithium concentration of up to 169 mg/l. An independent analysis conducted in 2015 showed concentrations of 205 mg/l to 290 mg/l. With regard to Quisquiro, the company has an option to acquire a 100% interest (royalty free) in exploration concessions totaling 8,100 hectares. The concessions are located 83 km from the town of San Pedro de Atacama, and in and adjacent to the Salar de Quisquiro – which is considered a high potential brine in the country. Independent studies have shown lithium concentration of 220 mg/l to 620 mg/l. WML’s strategy is to connect all of the salars of the project into one production unit. The company recently completed geophysical surveys, which identified a high-priority drill target. In March 2017, WML entered into an option agreement to acquire a 100% interest (royalty free) in five projects, totaling 10,500 ha – namely Ascotan, Piedra Parada, Huasco, Lejia, and Siglia. The concessions are located in Regions I, II and III

Property Package

Source: Company

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Development

Plan

The acquisition payment structure is shown below:

Source: Company

The following table presents a quick snapshot of each of the properties:

Source: Company

We believe the project is a good candidate for consolidation, considering the proximity of these properties to properties held by majors. Management’s near-term plan involves a geophysical survey, potentially with neighboring concession holders. The following chart summarizes management’s development strategy for each of its projects.

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Outlook on

Lithium

Source: Company

The most common rechargeable batteries in the market today are Lithium-Ion batteries (“LIB”). We expect LIBs to be the primary demand driver of lithium. LIB is the most common rechargeable battery in the market today. In a LIB, lithium is used as the electrolyte, graphite as the anode (negative electrode) and cobalt typically as the cathode (positive electrode). LIB is used in a wide range of electronic equipment, such as mobile phones, laptops, and digital cameras to name a few. However, the biggest growth driver is the use of LIBs in electric vehicles (“EV”)

Declining technology costs are also expected to drive demand for LIBs. The cost of a LIB pack dropped from US$1,000 per kWh approximately six years ago, to the current rate of approximately $350 per kWh.

One of the biggest developments in the battery space was the opening of the gigafactory (a $5 billion Lithium-Ion battery manufacturing facility) by Tesla (NASDAQ: TSLA) in 2016, in Nevada, in partnership with Panasonic (TSE: 6752).

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In addition to Tesla, several other EV (electric vehicles) manufacturers have announced strong projections: Volkswagen (XTRA: VOW3) expects to launch over 10 EV models by the end of next

year, with a long-term goal to have over 30 models by 2025. Volkswagen (XTRA: VOW3) estimates they will have 2 - 3 million EVs per year by 2025, requiring approximately 150 GWh of battery capacity.

Volvo (OM: VOLV B) has stated that they intend to sell over a million EVs by 2025. Ford Motor (NYSE: F) announced a commitment to invest US$4.5 billion to bring 13 new

EVs to its portfolio by 2020. Porsche AG (DB: PAH3) announced a €700 million investment to their main assembly

plant for EV production. Chinese backed Faraday Future plans to invest US$1.0 billion to develop intelligent EVs. In addition to the above, General Motors (NYSE: GM), Nissan (TYO: 7201), Audi (FWB:

NSU), BMW (FWB: BMW), Mercedes (FWB: DAI), BYD (SEHK: 1211), Mitsubishi (TYO: 6503), and Renault (Euronext: RNO) have EVs in their current / future portfolio.

The current production capacity of LIBs is approximately 75 GWh globally. However, once Tesla’s gigafactory and the other facilities being built by LG Chem (KRX: 051910), Foxconn (SEHK: 2038), BYD, and Boston Power are completed, total capacity is estimated to reach 285 GWh by 2020.

The following chart shows that EV car sales are estimated to be approximately 54% of light-duty vehicle sales by 2040 globally.

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The Commodities Research Unit (“CRU”) Group estimates electric car and plug-in hybrid vehicle sales could reach approximately 16 million by 2025 (up from 0.77 million last year), reflecting a CAGR of 40% per annum (“p.a.”) from 2016 to 2025.

Lithium prices are shown in the chart below.

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Lithium carbonate – battery grade - prices

A recent report published by Industrial Minerals indicated that Chinese battery-grade lithium carbonate (LCE) prices are at record highs now of approximately $23,000 to $25,000 per ton. The following chart shows that a 300% increase in lithium prices will only result in a 2% increase in battery cost.

The following table shows our estimate of the expected global demand for LCE from EVs. We estimated this based on Deutsche Bank’s (DB: DBK) projections for EV sales, and our estimate of the required LCE per vehicle (derived from multiple sources).

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Source: FRC and Deutsche Bank

The current global annual consumption is approximately 217,000 tonnes, and EVs account for under 20,000 tonnes. As shown in the above table, an expected increase in demand to 108,800 tonnes from EVs implies that the global LCE market will significantly increase over the next decade. According to Roskill, the global consumption of LCE will reach 785,000 tonnes by 2025, and that the market will be in a deficit by 26,000 tonnes. UBS estimates global consumption to reach approximately 1 Mt per year by 2025.

Source: UBS

The above demand projections imply that production has to reach capacity to meet demand.

Source: UBS

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Management

We estimate that management and the board own approximately 2.5% of the total outstanding shares.

Share Ownership

Source: Management Information Circular

Brief biographies of the management team and board members, as provided by the company, follow:

Hendrik Van Alphen – CEO

Henk has been directly responsible for raising $200 million in the last 10 years and has been closely associated in financing an additional $800 million. Early in his career, Henk founded and operated a number of service-related companies, beginning with a line cutting operation in northern BC and culminating in a drilling company (Hydracore) which was founded in 1985 and is still in operation today. In 1991, Henk founded Pacific Rim and travelled extensively throughout South America, acquiring the Taca, Diablillos, and Aqua Rica projects under his leadership. All of these projects have developed into significant deposits and/or high value M&A transactions. From 1994 to 1999, Henk served as Vice-President of Corriente Resources Inc. Henk founded Cardero Resource Corp. in 1999. Cardero became a successful exploration company, with multiple high-profile exploration projects including the Baja project in Mexico. In 2003, Cardero purchased the Pampa de Pongo iron deposit from Rio Tinto for $0.5 million. Following $3 million of expenditures, Cardero sold it to a Chinese company for $100 million cash in 2009. In 2010, Cardero acquired a 120 million tonne metallurgical coal asset in BC and in less than three years of exploration, grew it to be more than 5 times larger with a positive pre-feasibility study. Henk served as Chairman of ITH for 5 years, leading the course as the company went from a $0.60 IPO to more than $10.00 per share and a market cap of $800 million.

Tim McCutcheon, BA, MBA– President

Mr. McCutcheon is a mining and finance professional with over 20 years of international business experience. He has led several mining development companies with assets in Russia, Slovakia and Ghana. Additionally, Mr. McCutcheon has served as an advisor to a wide range of natural resource companies, playing key roles in administration and capital market strategy. Prior to moving to the mining sector, Mr. McCutcheon worked in multiple financial institutions such as Bear Stearns, Aton Capital and Pioneer Investments as an award-winning

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metals and mining sector analyst and as an investment banker. He also was a founder/partner of DBM Capital Partners Ltd, a leading boutique metals finance institution which managed the mining fund Sayan Investments Ltd and advised multiple base and precious metals mining companies active in Europe and Asia. Mr. McCutcheon has a BA and MBA from Columbia University, New York, USA.

Marcelo A. Awad - Executive Director, Chile

Mr. Awad started his career with Codelco, where he worked for 18 years in both Chile and the UK. During this time, Mr. Awad was elected as a Director of the London Metals Exchange (LME) from 1990 to 1993. Following his career at Codelco, Marcelo then spent 16 years with Antofagasta, initially joining as VP of Sales and Marketing in 1996 and serving most recently as Chief Executive Officer from December 2004 to March 2012. In 2012, Mr. Awad was appointed President in Chile of the multinational corporation Millenium Energy Industries. Later the same year Mr. Awad was appointed as a Director of the Chilean Copper Commission (Cochilco) and the Deutsche Bank in Chile. In 2013, Mr. Awad was appointed as the Deputy Director of Barrick-Chile, which manages the Pascua Lama project. Mr. Awad currently serves on the boards of Finning International Inc., the world’s largest Caterpillar dealer, Echeverría Izquierdo S.A., a Chilean engineering and construction company, and AC Perforaciones S.A., a Chilean drilling services company. Mr. Awad is also a senior advisor to both Mitsubishi Corporation Investments Chile and Sierra Gorda SCM (a major mine development in the Antofagasta region and a joint venture between KGHM Polska Miedz S.A. and Sumitomo Corporation).

John Drobe – Geologist

John is a geologist with over 25 years’ experience specializing in porphyry copper-gold, epithermal and skarn deposits throughout the Americas. Previously John held the position of Chief Geologist for Corriente Resources and was responsible for all aspects of exploration and resource definition at the company’s Mirador, Panantza, and San Carlos porphyry copper deposits. Corriente was sold in 2010 for CAD$679 million cash. Most recently John served as COO for Indico Resources Limited, where he helped advance the Irmin (formerly Ocaña) copper oxide deposit towards production prior to the project receiving financ from a new operating partner in 2015; this partner signed a letter of intent to purchase the project in mid-2016.John is also Chief Geologist for Cardero Resources Corp., which owns the Zonia copper oxide deposit in Arizona.

David Cross – Chief Financial Officer

Mr. Cross is a Chartered Professional Accountant, Certified General Accountant and is a partner in the CPA firm of Cross Davis & Company LLP which focuses on providing accounting and management services for publicly listed entities. Mr. Cross began his accounting career at a Chartered Accountant firm in 1997 and obtained his CGA designation in 2004. Gordon Neal – Director

Mr. Neal has more than 35 years experience in governance, corporate finance and investor relations. He founded Neal McInerney Investor Relations in 1991. Through marketing more than $4 billion in debt and equity financings, the company grew to be the second largest full

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service Investor Relations firm in Canada with offices in Vancouver, Toronto and Los Angeles. Clients included; BCE, Nortel, Bell Canada International, Bell Mobility, Clearnet, Intrawest, Canaccord Capital, BMO Nesbitt Burns, and Blackberry (RIM). Mr. Neal was VP Corporate Development at MAG Silver Corp. where he provided capital market strategies and solutions to the board. He is currently VP Corporate Development for Silvercorp Metals Inc. Mr. Neal has served on the board of Falco Resources, Balmoral Resources, Americas Petrogas, Rockgate Capital, and Xiana Mining. He has raised more than $500mn for resources companies since 2004. Mr. Neal graduated from Dalhousie University with a B.Sc. in Biochemistry. 1977. He has also served as a member of the Dalhousie University Senate and Board of Governors.

Leonard Harris – Director

Mr. Harris is a professional engineer with a Metallurgy diploma and 52 years’ experience in all aspects of mineral processing and mining operations world-wide, a significant part of which has been in South America. Mr. Harris spent 16 years with Cerro de Pasco Corporation before joining Newmont Mining Corporation, where he served as President and General Manager of Newmont Peru Limited and Vice-President and General Manager of Newmont Latin America. Mr. Harris was General Manager (involved in construction and operation) of the Minera Yanacocha gold mine in Peru. Since 1995, Mr. Harris has been a consultant to and a director of several public mining and mineral exploration companies including Glamis Gold Ltd., Indico Resources Ltd., Sulliden Gold Corporation Ltd., Golden Arrow Resources Corporation, Alamos Gold Inc., Pediment Gold Corp., Corriente Resources Inc. and Endeavour Silver Corp. He is currently a director of Canarc Resource Corp., Cardero Resource Corp., Batero Gold Corp., Standard Tolling Corp. and Solitario Exploration & Royalty Corp. Xiaohuan Tang – Director

Mr. Tang is an environmental engineer who most recently served as General Manager of Jinzhao Mining Peru (“Jinzhao”) and was responsible for the successful permitting of the Pampa de Pongo iron deposit, Arequipa, Peru. Prior to Jinzhao, Mr. Tang worked at Standard Bank London and Shanghai for structured mining project financing. Prior to Standard bank, he was a consultant for the British Foreign Office South American Group and Peruvian think-tank Macroconsult. He also completed research work at UN-ECLAC in Chile and has been involved in mineral exploration in Colombia and Honduras. Mr. Tang was originally educated as an Environmental Engineer with a Bachelor in Engineering (B.Eng.) from Tsinghua University in China. He subsequently received a Master of Engineering (M.Eng.) in Environmental Engineering from Imperial College London, a Master of Science (M.Sc.) in Environmental Politics from the University of Oxford, and most recently a Master of Philosophy (M.Phil.) in Environmental Economics from the University of Cambridge.

Stefan Schauss - Director

Mr. Schauss has over 20 years of sales and business development experience, with a focus in recent years on the integration of EV infrastructure in both residential and industrial areas. He has also served in product management and business development roles for several companies regarding semiconductors, integrated circuits, and other electronic goods. Mr. Schauss is currently an independent consultant, and prior to that he was head of sales for

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Gildemeister Energy Storage GmbH, Austria, which was a world-leader in development of vanadium redox flow batteries. Mr. Schauss has a MSc. Physics from The University Mainz, Germany. Our net rating on the company’s management team is 4.0 out of 5.0 (see below).

Source: FRC

The company’s board has five members, of which, four are independent. We believe that the Board of Directors of a company should include independent or unrelated directors who are free of any relationships or business that could materially interfere with the director’s ability to act in the best interest of the company. An unrelated/independent director can be a shareholder. The following table shows our analysis on the strength of the company’s board.

Strength of Board

Source: FRC

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Financials

Valuation &

Rating

At the end of FY2017 (ended November 30, 2017), the company had cash and working capital of $2.47 million and $1.93 million, respectively. We estimate the company had a burn rate (cash spent on operating and investing activities) of $1.5 million per month in FY2017. The following table summarizes the company’s liquidity position:

Data Source: Financial Statements

Subsequent to the quarter-end, the company raised $7.32 million by issuing 4.56 million common shares at $1.60 per share. The company has raised a total of $37 million since

2016. We estimate the company currently has 8.39 million options outstanding (weighted average exercise price of $1.13 per share) and 76k warrants outstanding. At this time, 6.09 million options are in-the-money. The company can raise up to $5.45 million if these options are exercised. Considering the early stage nature of WML’s projects, we have valued WML based on the average Enteprise Value (EV) to hectare ratio of juniors focused on brine lithium.

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Risks

Source: FRC

Based on the average value of $3,707, we estimate the WML’s shares should be currently valued at $1.93 per share.

Source: FRC

We are initiating coverage with a BUY rating and a fair value estimate of $1.93 per

share.

We believe the company is exposed to the following key risks (not exhaustive): The value of the company is highly dependent on lithium prices. The company’s projects are in very early stages. Exploration and development risks.

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The company’s projects do not have a NI 43-101 compliant resource estimate. Exchange rate risks. As with most junior resource companies, we rate WML’s shares a risk of 5 (Highly

Speculative).

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Fundamental Research Corp. Equity Rating Scale:

Buy – Annual expected rate of return exceeds 12% or the expected return is commensurate with risk Hold – Annual expected rate of return is between 5% and 12% Sell – Annual expected rate of return is below 5% or the expected return is not commensurate with risk Suspended or Rating N/A— Coverage and ratings suspended until more information can be obtained from the company regarding recent events. Fundamental Research Corp. Risk Rating Scale:

1 (Low Risk) - The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is conservative with little or no debt. 2 (Below Average Risk) - The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash flows (though current free cash flow may be negative due to capital investment). The company’s capital structure is conservative with little to modest use of debt. 3 (Average Risk) - The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and coverage ratios are sufficient. 4 (Speculative) - The company has little or no history of generating earnings or cash flow. Debt use is higher. These companies may be in start-up mode or in a turnaround situation. These companies should be considered speculative. 5 (Highly Speculative) - The company has no history of generating earnings or cash flow. They may operate in a new industry with new, and unproven products. Products may be at the development stage, testing, or seeking regulatory approval. These companies may run into liquidity issues, and may rely on external funding. These stocks are considered highly speculative.

Disclaimers and Disclosure

The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. FRC and the Analyst does not own shares of the subject company. Fees were paid by WML to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, WML has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. The distribution of FRC’s ratings are as follows: BUY (74%), HOLD (7%), SELL / SUSPEND (19%). To subscribe for real-time access to research, visit http://www.researchfrc.com/subscribe.php for subscription options. This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter. Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO. This REPORT is solely for informative purposes and is not a solicitation or an offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise stated, and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional information is available upon request. THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting information from this report. The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.

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Wealth Minerals Ltd. (TSXV: WML; OTCQB: WMLLF; SSE: …Source: U.S. Geological Survey, FRC In 2016,...

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