ABX GROUP LIMITED — Capital/Financing Update 2020

Aug 19, 2020

ASX ANNOUNCEMENT 20 August 2020

==> picture [85 x 62] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED

ASX: ABX

33,400 tonne Bauxite shipment despatched from Bell Bay Port, Tasmania

Australian Bauxite Limited (ASX: ABX) has completed the shipment of its most recent sale of 33,405 tonnes of cement grade bauxite from its Bald Hill bauxite mine near Campbell Town northern Tasmania. Ship loading at Bell Bay port commenced at 1100 hrs 17[th] August and completed at 2100 hrs 19[th] August. The ship departed at 2300 hrs last night. Port operations were completed on schedule.

ABx acknowledges the professionalism and teamwork of QUBE Ports stevedore services, Monson Shipping agents, Briar Maritime ship surveys and TasPorts that made it happen.

ABx has remained focussed during the COVID-19 pandemic and secured sales contracts for fertilisergrade bauxite and cement-grade bauxite that totalled more than $2.5 million.

Mine production by Hazell Bros contractors and transporting to Bell Bay port by Dave Wagner & Son Pty Ltd was completed within budget before the recent cold spell in Tasmania and benefited from low fuel prices. The customer was also able to take advantage of shipping opportunities. The coordinated strategy has worked well for all concerned. ABx has long-standing relationships with experienced contractors that meet the strict specification targets and community expectations.

==> picture [397 x 214] intentionally omitted <==

==> picture [398 x 219] intentionally omitted <==

==> picture [61 x 122] intentionally omitted <==

----- Start of picture text -----

Figure 1
Ship loading at
Bell Bay port,
northern
Tasmania.
SIx articulated
ore trucks
bring the
bauxite for
loading using
ships gear.
----- End of picture text -----

Figure 2 Ship loading at Bell Bay port, Tasmania. Three of the five ships holds are loaded simultaneously which helps to homogenise the entire cargo.

AUSTRALIAN BAUXITE LIMITED www.australianbauxite.com.au e: corporate@australianbauxite.com.au

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

ABN 14 139 494 885 ASX : ABX

Page 2

==> picture [86 x 63] intentionally omitted <==

ASX: ABX

==> picture [397 x 197] intentionally omitted <==

==> picture [397 x 224] intentionally omitted <==

==> picture [398 x 235] intentionally omitted <==

Figure 3 Truck loading from northern end of bauxite stockpile at Bell Bay port. Bauxite is loaded from alternate stockpile faces to ensure cargo consistency for the cement customer.

Figure 4

Truck loading from southern end of bauxite stockpile at Bell Bay port early morning 19 August

Figure 5

Truck loading from the main stockpile of bauxite Bell Bay port. Most of this stockpile had been loaded the previous day

Page 3

==> picture [86 x 63] intentionally omitted <==

ASX: ABX

==> picture [398 x 196] intentionally omitted <==

==> picture [398 x 292] intentionally omitted <==

Figure 6 The bauxite stockpile was assembled in July, in a way that creates a uniform product specification when delivered to the customer in August

Locations Figure 7 Locations of ABx bauxite mines, projects and transport infrastructure in Tasmania

For further information please contact:

Ian Levy, CEO and Managing Director Australian Bauxite Limited Mobile: +61 407 189 122

This release has been approved for release by the Board of ABx.

Page 4

ASX: ABX

==> picture [86 x 63] intentionally omitted <==

About Australian Bauxite Limited

ASX Code ABX Web: www.australianbauxite.com.au

Australian Bauxite Limited (ABx) has its first bauxite mine in Tasmania & controls the Eastern Australian Bauxite Province. ABx’s 11 bauxite tenements in Queensland, New South Wales & Tasmania totalling 662 km[2] are all 100% owned, unencumbered & free of third-party royalties. ABx’s bauxite is gibbsite trihydrate (THA) bauxite that can be processed into alumina at low temperature.

ABx has committed a large proportion of its expenditure into Research and Development to find ways to capitalise on the main strengths of its bauxite type which is very clean, free of all deleterious elements and partitioned into layers, nodules, particles and grains of different qualities that can be separated into different product streams using physical, chemical and geophysical methods.

ABx has declared large Mineral Resources in northern NSW, southern NSW, Binjour in central QLD & in northern Tasmania. ABx’s first mine commenced at Bald Hill near Campbell Town, Tasmania in December 2014 – the first new Australian bauxite mine for more than 35 years.

ABx aspires to identify large bauxite resources in the Eastern Australian Bauxite Province and has created significant bauxite development projects in 3 states, Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.

About ALCORE Limited:

Australian Bauxite Limited (ABx)’s 90%-owned technology subsidiary ALCORE Limited was created to fund and manage the Alcore Project involving the construction of an Alcore Production Plant to produce Aluminium Fluoride (AlF3) and valuable co-products using patent pending new Australian technology. Alcore intends to convert low grade bauxite worth $50 per tonne into a suite of valuable products worth more than $800 per tonne. Alcore’s testwork commenced on 1 July 2019 at Alcore’s high-technology Research Centre in Berkeley Vale, Central Coast NSW and is currently focussed on producing AlF3 test samples for pre-qualified aluminium smelter customers. It’s processes can also produce Corethane, which is pure hydrocarbon powder to provide thermal and electrical power with low CO2 emissions when used as a gas-substitute or as a diesel substitute for fuel security purposes and is ideally suited for use as a sulphur-free bunker fuel. Corethane is also useable as a chemical reductant instead of imported coke and coals.

AlF3 is a vital ingredient in aluminium smelters and is currently 100% imported. Alcore will be the first Australian producer of this strategically important mineral product and will provide security of supply to the large aluminium smelting industry in Australia. Alcore will make AlF3 from smelter waste materials and thereby maximise the recycling by Australian aluminium smelters.

Directors of ABx Officers Paul Lennon Chairman Leon Hawker Chief Operating Officer Ian Levy CEO & MD Jacob Rebek Chief Geologist Ken Boundy Director Paul Glover Marketing, Exploration & Relationships Henry Kinstlinger Company Secretary Nathan Towns Operations Manager Dr Mark Cooksey General Manager Alcore Limited