ABX GROUP LIMITED — Capital/Financing Update 2021

May 23, 2021

Australian Bauxite Limited

ABx

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Rare earth elements
Exploration
discovery
Technology
Shipments Production
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L5 52 Phillip Street Sydney 2000 Australia Phone: +61 2 9251 7177

E: corporate@australianbauxite.com.au

Ian Levy CEO Mobile: +61 407 189 122

E: ilevy@australianbauxite.com.au

Cor orate Overview p

ASX code ABX

							.0 .5 .0 .5 oume m
Board of Directors & Management
Paul Lennon1	Chairman
Ian Levy	ManagingDirector & CEO
			Major Shareholders Shares % Justevian Pty Limited 5.9 m 4.1 Yarraandoo Pty Ltd 5.6 m 3.8 WSF Pty Ltd 5.2 m 3.5 Top 20 shareholders 59.5 m 39.8 Remainder 90.8 m 60.2
			Major Shareholders	Shares	%
Ken Boundy 2	Non-Executive Director
HenryKinstlinger	CompanySecretary		Justevian Pty Limited	5.9 m	4.1
Leon Hawker	Chief OperatingOfficer		Yarraandoo Pty Ltd	5.6 m	3.8
Paul Glover	Logistics & Exploration		WSF Pty Ltd	5.2 m	3.5
Dr Mark Cooksey 3	CEO Alcore Limited		Top 20 shareholders	59.5 m	39.8
1 Ex-Premier of Tasmania 2 Investor in Tasmania tourism industry. Holds senior public positions 3 Ex-Rio Tinto Alcan & Ex-CSIRO Minerals
			Remainder	90.8 m	60.2
			Resources = 137 million tonnes bauxite

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Forward Looking Statement

Whilst based on information from sources considered reliable, Australian Bauxite Limited ( ABx ), its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. To the maximum extent permitted by law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequently comes to its notice, which may affect any of the information contained in this document and presentation.

Competent Person Statement

Information herein relating to Exploration Results, Mineral Resources and Exploration Targets is based on information compiled by Ian Levy BSc, MSc, who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Levy is employed by ABx as Chief Executive Officer. Mr Levy has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the JORC Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears.

The information in this report relating to Mineral Resources was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Direct Shipping Ore

In this presentation all references to direct shipping ore (DSO) refers to the company’s exploration objective of defining DSO grade mineralisation. The potential quantity and grade of exploration targets is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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Capital Raising

• ABx plans to raise $3.25 million

• $3.25 million placement (Two tranches )

• 10c per share with 1:1 Attached options (ex 20c, 2 years) and Broker Options

• Excluded Offer, see term sheet for details

Use of funds

Alcore Limited: Australian technology to make Aluminium Fluoride “AlF3”

• ABx to invest $1.5m in its 87% owned subsidiary Alcore Limited

• Alcore to complete its Pilot Plant, design production plant

• Alcore must match Government assistance dollar-for-dollar in 2021-22

• Alcore will be Australia’s first producer of aluminium fluoride AlF3 which is an essential strategic ingredient in Aluminium Smelting. There are no substitutes.

• Australia is the only significant Aluminium producer without an AlF3 plant

• Chinese sales of AlF3 to Australia have been reduced to zero

ABx Rare Earth Elements Discovery (“REE”)

• $300,000 drilling campaign to confirm ABx’s large REE province, Tasmania

• Super Magnet REEs for electric vehicles, wind turbines, phones & military

• Water soluble REE can be mined cheaply, quickly, if proved to be eco-safe

• ABx’s environmental excellence and R&D will help ABx deliver this REE project

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Commodity Markets Are Favourable for AlF3

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Key market issues
Aluminium Fluoride AlF3 Chinese Export Prices & Tonnes Source: Chinese Customs
$2,000 20,000
In 2020, Australasian
$1,800 18,000 smelters imported
$1,600 16,000 26,352 tonnes AlF3 from
$1,400 AlF3 Price/t 14,000 China @ US$1,192/t
$1,200 12,000 In 2021, Chinese supply
$1,000 10,000 to Australasia has fallen
$800 8,000 to ZERO
$600 6,000
Tonnes From Australasia must
$400 4,000
China (right axis) become self-sufficient in
$200 2,000
AlF3 to avoid smelter
$0 0
closures
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
Tonnes per month
Export Price US$/tonne FOB China
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AlF
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• Alcore production costs A$800 to A$1,100/t AlF3 (US$600 – US$800)

• Long-term average price is ~US$1,200 or A$1,600/t AlF3

• A$500 to A$800/t operating margin. Capex $20 million for initial 10,000 tpa module

• Initial 10,000 tpa plant can achieve EBITDA $5m to $8m

• 60,000 tpa final plant can achieve EBITDA $50m pa

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Commodity Markets Favourable for ABx’s REE

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$160,000 Neodymium (Nd) Price US$/tonne
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
2016 2017 2018 2019 2020 2021
Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar
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Key market issues: Supermagnet elements

Only 4 REE are super-magnet elements, namely Neodymium (Nd), Praseodymium (Pr), Terbium (Tb) & Dysprosium (Dy) are the “SuperMagnet” REE which are essential for: electric vehicles, wind turbines, smart phones & military.

ABx is exploring for the most important REE, Neodymium Nd and ABx has found the source rock that is most enriched in Nd (see left).

China controls the REE markets.

ABx has found water-soluble type of REE that is recoverable by heap leach or by in-situ leaching.

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: ABx’s Strategy is

1. Explore for Neodymium

2. Water-soluble REE deposits for quick development at low capex and opex

3. In areas where leaching project will not interfere with alternative land use

4. Honour ABx’s paramount policy to leave

5. land better & only operate where welcome

ABx’s REE targets are in this hardwood

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Alcore strategically important. Government support

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Above: Alcore AlF3 sample produced from a combination of dross and aluminium hydroxide.

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Alcore’s technological strategy is to make AlF3 by recycling and refining waste products from aluminium smelters.

100% security of supply for Australasia.

Left: Alcore’s $2.5 million AlF3 research laboratory in NSW Central Coast industrial park is one of only 12 world-wide and first in southern hemisphere.

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Bauxite: New ABx mine in Tasmania 2021 Next project QLD

Total ABx Bauxite Resources 137 million tonnes

3[rd] Project QLD Binjour Bauxite ML Application Production 2022

Penrose Refractory Grade

NEW: Rare Earth Elements

1[st] Mine Tasmania 2[nd] Mine Tasmania for long-term supply

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Binjour Project, Queensland: Biggest/Best Deposit

37 million tonnes bauxite resource & new discoveries found Fully financed by marketing partner

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Simple Production

RETURNS TO GRAZING IN 3 YEARS

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Bauxite types ready for blending
Bald Hill Mine Tasmania
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Delivery to Bell Bay Port Stockpile Stockpile at Bell Bay Port
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Rehabilitated to high standard

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Bald Hill Mine Workings

Bald Hill mined out area 2 years later

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Good Landholder Relations

PARAMOUNT POLICY: ABx endorses best practices on agricultural land to leave land and environment better than we find it. We only operate where we are welcomed

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