ABX GROUP LIMITED — Capital/Financing Update 2020

Jun 15, 2020

16 June 2020

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AUSTRALIAN BAUXITE LIMITED

ASX ANNOUNCEMENT

ASX: ABX

Mine production in full swing at Bald Hill Bauxite Project, Tasmania

Australian Bauxite Limited (ASX: ABX) is pleased to advise that mining and screening operations are well advanced at its Bald Hill mine near Campbell Town northern Tasmania and trucking to port has commenced to assemble the next cargo of cement-grade bauxite to our customer’s specifications.

Figure 1 (below) & Figure 2 (right): Screening ore from previously mined stockpiles

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Figure 3 (right):
Mining and directly
feeding into an
in-pit screen
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ABx has remained focussed during the COVID-19 pandemic response which had threatened our business because our bauxite customers were suffering setbacks. We are now proud to advise that during April-May 2020, ABx was able to secure sales contracts for fertiliser-grade bauxite and cement-grade bauxite that totalled more than $2.5 million.

Mine, Transport & Handling Contracts

ABx has long-standing relationships with experienced contractors that are well known for meeting the strict specification targets and complying with community and landholder requirements.

The contract for mining, processing and blending at the mine site was awarded to Hazell Bros contractors. ABx has contracted Dave Wagner & Son Pty Ltd for transporting the product to the Bell Bay port.

Port Contracts

ABx concluded port agreements with TasPorts on Monday 15 June and has contracted with QUBE Ports at Bell Bay for the stevedoring services and stockpiling arrangements, in conjunction with TasPorts. Monson Shipping have provided Shipping Agents services and Briar Maritime have provided independent ship surveys to date.

Fertiliser Grade Bauxite Sales Increasing

Sales of fertiliser grade bauxite continue throughout the year and are growing steadily as agricultural demand for granulated superphosphate fertiliser increases. A just-in-time sale before Easter will be repeated in June. ABx applauds the recovery of the rural sector after drought and bushfires.

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

Level 2 131 Macquarie St Sydney NSW 2000 Australia P: +61 2 9251 7177 F: +61 2 9251 7500

ABN 14 139 494 885 ASX : ABX

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ASX: ABX

Impact Fertilisers and ABx worked together on developing this product which ABx believes has potential for other high-value markets. At Impact Fertilisers, ABx’s clean fertiliser-grade bauxite is chemically processed to produce an activated granule that efficiently adsorbs fertiliser chemicals whilst also remaining strong and dust-free.

The customer’s trucks will load and transport the fertiliser-grade bauxite product over coming weeks.

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Figure 4: Loading Fertiliser-Grade bauxite at ABx’s Bald Hill certified clean load-out facility.

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Locations Figure 5 Locations of ABx bauxite mines, projects and transport infrastructure in Tasmania

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Figure 6: Screening cement & fertilizer grade products

Figure 7: Cement-grade blended product

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ASX: ABX

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Figure 8: Sheep grazing on rehabilitated land two years after mining commenced at the Bald Hill bauxite mine, Tasmania

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it.

We only operate where welcomed.

For further information please contact:

Ian Levy, CEO and Managing Director Australian Bauxite Limited Mobile: +61 (0) 407 189 122

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

About Australian Bauxite Limited

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

Australian Bauxite Limited (ABx) has its first bauxite mine in Tasmania & holds the core of the Eastern Australian Bauxite Province. ABx’s 14 bauxite tenements in Queensland, New South Wales & Tasmania totalled 750 km[2] . All tenements are 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 Tasmania, confirming that ABx has discovered significant bauxite deposits.

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, which is a globally significant bauxite province. ABx has created significant bauxite developments 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) has incorporated ALCORE Limited as a wholly-owned subsidiary to fund and manage the Alcore Project, to lead to the construction of an Alcore Production Plant to produce Aluminium Fluoride (AlF3) and valuable co-products, using patent (pending) new technology. The Alcore Technology is designed to convert low grade bauxite worth $50 per tonne into a suite of valuable products worth more than $800 per tonne. Site construction works for Stage 1 of the Alcore project commenced on 1 July 2019 at Alcore’s high-technology Research Centre in Berkeley Vale, Central Coast NSW.

Alcore project is currently focussed on producing AlF3 test samples for pre-qualified aluminium smelter customers. It can also produce Corethane, which is pure hydrocarbon powder to provide thermal and electrical power with low CO2 emissions when used as a gassubstitute or as a diesel substitute for fuel security purposes and is ideally suited for use as a sulphur-free bunker fuel.

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