ABX GROUP LIMITED — AGM Information 2023

May 30, 2023

ASX Announcement

31 May 2023

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ASX: ABX

Material to be Delivered at Annual General Meeting 31 May 2023 – 11:00 am Sydney Time

ABx Group (ASX: ABX) (“ABx” or “the Company”) provides the attached material in compliance with Listing Rule 13.13.3.

Documents Attached

• Chairman’s address

• Director Presentation – Ionic Adsorption Clay Rare Earth Deposits in Tasmania

• Managing Director and CEO Presentation – Aluminium Fluoride Recycled from Industrial Waste

Paul Lennon, Chairman of ABx opens his address by saying, "ABx Group is driven to deliver projects with substantial commercial upside while also making a significant, positive ESG contribution. This strategy sits at the heart of everything we do. I think it is instructive to discuss the Company’s overall strategy and why your board sees so much exciting potential."

Meeting Notes

1. If you wish to attend the virtual AGM which starts at 11:00 am, 31 May 2023, you must register at:

2. • https://us02web.zoom.us/meeting/register/tZAlfu vpzssEtd6a3 jve1ScyQtRWOnR5AO

You will then be sent a link to the meeting webcast;

1. We will provide an opportunity to ask questions at the meeting however there may be connectivity and other issues during the video conference. Therefore, we recommend that any questions concerning the business of the meeting are submitted during registration or corporate@abxgroup.com.au in advance of the meeting;

2. Please mute your microphone unless you wish to ask a question; and

3. All resolutions will be determined by way of a poll. The poll will be conducted based on votes submitted by proxy and by Shareholders at the meeting.

ASX Release authorised by Mark Cooksey, Managing Director and CEO.

For further information please contact:

Dr Mark Cooksey

CEO ABx Group Mobile: +61 447 201 536 Email: mcooksey@abxgroup.com.au

Website: abxgroup.com.au

ABx Group Limited ABN 14 139 494 885

Level 5 52 Phillip Street Sydney NSW 2000 P: +61 2 9251 7177 F: +61 2 9251 7500

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ASX release 31 May 2023
page 2
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CHAIRMAN’S REVIEW OF 2022 DEVELOPMENTS

ABx Group is driven to deliver projects with substantial commercial upside while also making a significant, positive ESG contribution. This strategy sits at the heart of everything we do. I think it is instructive to discuss the Company’s overall strategy and why your board sees so much exciting potential.

At Alcore, the business is developing industry-leading technology that processes aluminium smelter waste, known as ’excess bath’, into high-value products such as aluminium fluoride. The only meaningful market for excess bath is new smelters, which require bath to commence operations. Aluminium industry forecasts suggest the global bath market will increasingly be in surplus, because far fewer new smelters are being constructed. All of the major global aluminium producers are eager for alternative applications for excess bath, to avoid the unpalatable options of on-site storage or landfill. Alcore has the potential to be the missing piece of this puzzle.

I mentioned ABx is not just focussed on ESG contributions, it is also dedicated to delivering financial returns. For Alcore, the aluminium fluoride market is very favourable with 1.2 million tonnes produced per annum, valued at US$1.5 billion. With a sizable addressable market, the next critical task for Alcore is to firmly understand the process performance at larger scale. This is why the pilot plant is so important. Its completion will provide valuable engineering data and better indications of capital and operating costs, ahead of a fullscale commercial facility. The pilot plant is expected to be completed in 2023 and I urge all shareholders to watch this story closely.

Meanwhile, the developments at our Deep Leads – Rubble Mound rare earths deposit are also closely aligned with our strategy. In November, ABx defined a maiden JORC compliant rare earths resource which provided an initial indication of the potential size and scope of our deposit. Since then, ABx has had the rig turning almost non-stop with plenty of targets to further expand the channel. We recently announced an upgrade to 21 million tonnes.

Looking deeper into the total rare earth oxide (TREO) grades, Deep Leads’ mineralisation is relatively rich in heavy rare earths, like dysprosium and terbium. These, along with neodymium and praseodymium, are used in permanent magnet technologies and are in high demand, fetching higher prices. There is a major financial and ESG opportunity to be realised at the project – and this is before we even consider that the mineralisation style is an ionic adsorption clay (IAC).

Not all clays are created equal and, in ABx’s case, its ionic adsorption clay is very special. At Deep Leads we are seeing rare earths attached (‘adsorbed’) to the surface of clay particles. Why is this important? The Australian Nuclear Science and Technology Organisation (ANSTO) have run desorption tests, where the rare earths are extracted from the clay into a solution. This process achieves high rare earth recoveries using a relatively benign salt solution with a pH of 4, which is less acidic than apple juice. This compares favourably to many other rare earth deposits, which need more aggressive and expensive acid processing. Due to this unique mineralisation, the potential for low-cost rare earths production at Deep Leads is phenomenal.

Finally, ABx Group continues to pursue the excellent potential at its bauxite projects in Queensland and Tasmania. These projects offer fantastic opportunity to advance towards the production phase. Our previous bauxite mining operations were conducted in close conjunction with the landholders, establishing a reputation for quality environmental management. I see no reason why ABx cannot continue to maintain this reputation into the future.

When looking at the strategy which ABx is pursuing and the track record of execution, I am exceptionally proud of the work completed to date and an excited for what the future may bring.

Thank you again to all shareholders and I look forward to updating you all on future progress.

Paul Lennon Chairman

Level 5 52 Phillip St Sydney 2000

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ASX : ABX

ABx’s ionic adsorption clay rare earth deposits in Tasmania, Australia

ABx discoveries

Ian Levy, Director +61 407 189 122 ilevy@abxgroup.com.au

31 May 2023

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Qualifying statements

Disclaimer Regarding Forward Looking Statements

This ASX announcement (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance, or achievements to differ materially from the expectations described in such forward-looking statements.

ABx does not give any assurance that the anticipated results, performance, or achievements expressed or implied in those forwardlooking statements will be achieved.

General

The information in this report that relate to Exploration Information and Mineral Resources are based on information compiled by Ian Levy who is a member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Levy is a qualified geologists and a director of ABx Group Limited.

Mr Levy has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of exploration Results, Mineral Resources and Ore Reserves. Mr Levy has consented in writing to the inclusion in this report of the Exploration Information in the form and context in which it appears.

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ABx rare earth discoveries in Tasmania contain the most critical REEs

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New enlarged
target area
ABx
ELA
15km
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❑ True ionic adsorption clay IAC REE deposits * **

• ❖ Rich in critical permanent magnet REEs

• ❖ Highest proportion of important REEs Dy & Tb

• ❖ Can be developed quickly at low cost

• ❖ Located in easily accessible pine plantations

• ❑ Shallow 5m from surface, 6 to 8m thick REE zone

• ❑ Testing by ANSTO confirmed IAC REE type **

• ❑ Deep Leads & Rubble Mound have joined

• ❑ Extension to Wind Break REE next step

• ❑ Resources exceeded 20M tonnes in 12 months**

• Only ionic adsorption clay REE deposits (IAC REE) achieve high extraction rates at low cost, delivering extraction rates of 50% to 75% of REE using benign, low-cost processing. ABx has discovered the only true IAC REE deposit in Australia, in Tasmania.

• ** See ASX announcements dated 8 May 2023 (resource update) & 31 May 2022 (ANSTO tests confirm high ionic extraction rates)

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ABx rare earth resources exceed 20Mt*

*** See ASX release 8 May 2023**

ABx rare eart	ABx rare eart	ABx rare eart	ABx rare eart	ABx rare eart	resourc	resourc	resourc	s exceed 20	s exceed 20	s exceed 20	s exceed 20	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023	t * See ASX release 8 May 2023
								Permanent Magnet REOs
Resource Category	Million Tonnes	From (m)	To (m)	Thick- ness (m)	TREO ppm	TREO- CeO2 ppm	Perm Mag ppm	Nd2O3 ppm	Pr6O11 ppm	Tb4O7 ppm	Dy2O3 ppm	CeO2 ppm	Er2O3 ppm	Eu2O3 ppm	Gd2O3 ppm	Ho2O3 ppm	La2O3 ppm	Lu2O3 ppm	Sm2O3 ppm	Tm2O3 ppm	Yb2O3 ppm	Y2O3 ppm
Inferred	17	5	12	6.7	746	565	192	128	32	4.4	27	181	15	7.8	29	5.4	111	2.0	29	2.2	13	159
Indicated	4	4	17	12.5	880	677	216	142	35	5.5	33	203	19	9.3	35	6.6	128	2.3	33	2.5	15	210
Total	21	5	13	7.7	770	585	196	130	33	4.6	28	185	16	8.1	30	5.6	114	2.1	29	2.2	14	168

Parameters Cut-off grade = 250ppm TREO-CeO2 Minimum thickness = 2 metres Maximum extrapolation = 80 metres Density = 1.9 tonnes/cubic metre TREO = total rare earth elements as oxides. TREO-CeO2 = TREO minus cerium oxide

From less than 20% of 36 km[2] target area at Deep Leads-Rubble Mound High extraction rates 30% to 83% in ANSTO desorption tests

GOOD MIX OF REE

• ❖ High content of permanent magnet REEs (Nd, Pr, Tb & Dy)

• ❖ Very high proportions of Dy & Tb (4.6% of Total Rare Earths)

• ❖ Non-radioactive: Free of Uranium & Thorium. : . Easily traded

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Deep Leads–Rubble Mound (1[st] project)

REE prospect is significantly enlarged to NE

• Current REE drilling target is 6.5km x 7km = 36km[2]

• ABx has a lease application to cover gap to Wind Break

• NE holes high grade REE include 11m @ 4,400ppm TREO*

• New drilling target to Wind Break exceeds 100km[2]

Thicker mineralisation identified

• Thick REE zones discovered up to 30m thick

• Economic assessment of thickened zones begun

• Overburden depth averages 5m

• REE horizon averages 7.7m thickness

• = shallow orebody, easily developed

• See Qualifying statements & Appendix JORC information

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11m @ 1,700ppm TREO
Hole RM302 4,444 max TREO
Results
pending
High grades
2km
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Deep Leads–Rubble Mound business concepts(for minimum exploration targets)

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• Mine Concentrate Rehabilitate Improve Sell bulk REE

• concentrates to downstream

• • • • • Dredge & pump Simple, lowWater treated Contour land processors

• cost leachate

• • • • Hydraulic mine & Clays dewatered Infrastructure •

• slurry Clay only? Australia or • • Reinstated to Better drainage

• • • overseas Dig & truck? Tank leach usable land • Pasture,

• • • • In-situ leaching Vat leach Replanting plantations, may be possible? • offsets, forests? Heap leach?

Concentrate project achieves ~50% of the revenue for ~25% of the costs Fastest, lowest-cost start-up

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Deep Leads – Rubble Mound Land-Use Setting

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Open land on recently harvested hardwood plantations and farmland Supportive landholders Forico-Mitsui plantations

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Good access on highway and all-weather logging roads

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Appendix: All assay results for hole RM302 highlighted on slide 5

Hole RM302 assays	Hole RM302 assays	Hole RM302 assays	Hole RM302 assays	Hole RM302 assays	Hole RM302 assays			Permanent Magnet REOs	Permanent Magnet REOs	Permanent Magnet REOs	Permanent Magnet REOs
From (m)	To (m)	Thick ness (m)	- TREO ppm	TREO- CeO2 ppm	Perm Mag ppm		Dy+TB	Nd2O3 ppm	Pr6O11 ppm	Tb4O7 ppm	Dy2O3 ppm	CeO2 ppm	Er2O3 ppm	Eu2O3 ppm	Gd2O 3ppm	Ho2O3 ppm	La2O3 ppm	Lu2O3 ppm	Sm2O 3ppm	Tm2O 3ppm	Yb2O3 ppm	Y2O3 ppm
							TREO %
2	3	1	724	300	104		2.4%	70	17	2.3	15	424	9	3.6	13	3.0	60	1.4	16	1.3	9	78
3	4	1	1,648	628	245		2.1%	167	43	4.7	31	1,020	18	9.0	28	5.7	128	2.4	38	2.6	19	133
4	5	1	2,932	1,660	773		2.5%	545	155	11.0	63	1,271	30	24.5	67	10.8	378	4.1	118	4.6	33	218
5	6	1	1,222	805	334		3.4%	230	63	5.5	36	416	19	11.4	33	6.3	176	2.9	54	3.0	21	144
6 7 1			1,723 1,422 460				5.7%	286 76 12.9 85				301	47	19.0	69	16.5	232	5.9	72	7.0	46	448
7 8 1 8 9 1			4,444 4,014 902 3,269 2,893 742				6.3% 5.7%	496 124 36.2 246 442 112 24.7 162				430	153	41.3	197	53.0	452	17.7	146	20.3	121	1,911
												376	98	30.6	140	34.7	446	11.7	113	13.6	82	1,182
9 10 1			1,408 1,219 320				5.3%	195 50 10.0 65				189	39	13.3	57	13.8	212	4.7	47	5.4	33	474
10	11	1	640	540	150		4.9%	95	24	4.2	27	100	15	5.7	26	5.7	107	2.1	23	2.3	14	189
11	12	1	421	348	95		4.9%	59	15	2.6	18	73	11	3.6	16	3.7	61	1.4	15	1.5	10	131
12	13	1	453	375	103		4.8%	65	16	2.9	19	77	12	3.8	18	4.1	68	1.5	16	1.6	10	137
2	13	11	**1,717 **	1,291	385		4.7%	241	63	10.6	70	425	41	15.1	60	14.3	211	5.1	60	5.7	36	459

Hole location

Hole ID RM302	Northing	Easting	Latitude	Longitude	Elevation GPS
	5412740	481722	-41.4367	146.7812	230

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Appendix: Summary of exploration results information in accordance with LR 5.8.1

LR 5.8.1
Geology and geological interpretation	Clay layers overlying Jurassic age dolerite basement and an area with Tertiary age alkali basalt, Jurassic age tholeiitic dolerite and Tertiary age bauxite- laterite are the main geological units. Paleochannels host thicker clay zones which host the rare earth element mineralisation.
Sampling and sub-sampling techniques	Sampling was at 1 metre intervals. Subsampling for assaying is by quartering the clay samples twice and each time, mixing diagonally opposite quarters. Assay results from resampling corresponded satisfactorily.
Drilling techniques	RC aircore and push-tube coring used.
Sample analytical method	Assay samples are analysed by standard NATA-approved induction coupled plasma analytical methods for rare earth elements at ALS labs in Brisbane (method ME-MS81) and at LabWest in Perth (method MMA04). Interlab comparisons proved satisfactory.

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APPENDIX : JORC Code, 2012 Edition – Table 1 report

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APPENDIX : JORC Code, 2012 Edition – Table 1 report (continued)

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APPENDIX : JORC Code, 2012 Edition – Table 1 report (concluded)

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For JORC Code information relating to resource estimation, refer ASX Announcement 8 May 2023

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(ASX:ABX)

Aluminium fluoride recycled from industrial waste

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31 May 2023

Page 1

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Aluminium fluoride from aluminium smelter waste

Aluminium fluoride (AlF3): essential for aluminium smelting

• Traditionally produced from high-cost aluminium hydroxide and fluorspar

• 1.2 million tonnes produced globally per year worth US$1.5 billion (US$1,000-1,800 per tonne)

• 50% produced in China, mainly for Chinese smelters

• Achievable specification – product purity risk is low

• Australia imports 100% of requirements, mostly from China

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• Mature market – dozens of customers globally

‘Tapped bath’: an aluminium smelter waste

• Fluorine is lost from smelter in ‘tapped bath’

• Only attractive market is new smelter construction; none in Australia

• Global market for tapped bath has moved into oversupply

Aluminium fluoride

Tapped bath

• Tapped bath is a low-cost source of fluorine

Current imports/exports

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2

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Process to produce aluminium fluoride

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  - Exemplary illustration of circular economy

• ABx’s 83%-owned refining technology subsidiary

• Developing processes to produce aluminium fluoride using:

• Fluorine from tapped bath (an aluminium smelter waste)

• Aluminium from dross (an aluminium smelter waste) or bauxite

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3

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Process economics

• Based on long term aluminium fluoride prices and exchange rates, and estimated costs

• For 20,000 t/y aluminium fluoride

• Attractive margins under all scenarios

Aluminium source	Scenario	AlF3price (US$/t)	FX rate USD:AUD	AlF3price (A$/t)	Operating cost (A$/tAlF3)	Operating margin* (A$/tAlF3)	EBITDA* (A$m)
Aluminium hydroxide	Baseline	$1,220	0.75	$1,630	$1,250	$730	$15m
Dross	Baseline	$1,220	0.75	$1,630	$1,050	$930	$19m
Aluminium hydroxide	Optimistic	$1,400	0.70	$2,000	$930	$1,450	$29m
Dross	Optimistic	$1,400	0.70	$2,000	$770	$1,600	$32m

*Includes revenue from co-products

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4

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Technical progress

• Critical processing steps have been demonstrated in laboratory

• Initial operating conditions for the pilot plant reactor have been selected[1]

• Basic engineering design for pilot plant reactor completed, and detailed design being finalised

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AlF3 imports
from China to
Australasia fell
by more than
60% in 2021
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Bath lab reactor MkI for recovery of fluorine from aluminium smelter bath

Oleum lab reactor

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5

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Process scale-up

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• Rigorous scale-up to reduce technical risk

• First aluminium fluoride plant planned for Bell Bay, Tasmania, near existing hydro-powered aluminium smelter. Planned production 20,000 t/y

• High potential for plants in other major aluminium smelting regions

• Potential expansion into other markets, including fluorine chemicals

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aborator
h bath
2019-22
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ommer ial ommer ial
ilot ta e ta e
h bath h bath h bath
t AlF t AlF
m Tasmania Tasmania
m m
2022-24 2024-
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• $7.5m grant awarded[2] and $3.3m instalment received[3]

6

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Technical plan

		Technical lan
		p
Reactor		Purpose	Commissioning
	•	Confirm preferred reactor design
	•	Demonstrate that can achieve high
Bath lab reactor MkII	•	fluorine yield from bath Produce metal sulfate residue	August 2023
		suitable for further process
		development
	•	Demonstrate quality of hydrogen
Bath pilot plant reactor	•	fluoride produced at pilot scale Determine design and operating	Early 2024
		parameters for commercialplant
				Illustrative
				images

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7

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ABx Group Limited L5 52 Phillip Street Sydney 2000 Australia Phone: +61 2 9251 7177 E: corporate@abxgroup.com.au

Mark Cooksey Managing Director and CEO E: mcooksey@abxgroup.com.au

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Reference Information

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Page 9 9

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References

1ASX release 24 October 2022 2ASX release 29 April 2022 3ASX release 18 Jan 2023

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