ABX GROUP LIMITED — Investor Presentation 2021

Jun 23, 2021

AUSTRALIAN BAUXITE LIMITED

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AlF3 for aluminium smelters, recycling & lithium-ion batteries

ASX: ABX

ASX ANNOUNCEMENT

24 June 2021

Alcore CEO Presents at Gold Coast Investment Showcase

In accordance with the requirements of Listing Rule 3.1, Australian Bauxite Limited (ASX: ABX) (ABx) provides the following update for its 87%-owned subsidiary ALCORE Limited (Alcore).

We submit the attached material being presented at the Gold Coast Investment Showcase being held at the Surfers Paradise Marriott Resort, 158 Ferny Ave, Surfers Paradise QLD on 24 June 2021.

Mr Mark Cooksey, CEO of Alcore, is making the presentation at 2.50 pm on Thursday 24 June 2021.

Shareholders and the public are welcome to attend our exhibition and presentation.

Due to Covid-19 travel restrictions you may view the presentation by clicking here.

This announcement has been approved for release by the Board of Australian Bauxite Limited.

For further information please contact:

Ian Levy CEO and MD Australian Bauxite Limited Telephone: +612 9251 7177 Mobile: +61 407 189 122

Mark Cooksey, CEO ALCORE Limited Mobile: +61 447 201 536

Note: AlF3 is a strategically important mineral because it is an essential ingredient for aluminium smelting. It is also being investigated for advanced lithium-ion batteries. Australasian aluminium smelters rely entirely on imported AlF3. Australia is the only large producer of aluminium metal in the world that does not have its own AlF3 production facility.

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 forward-looking statements will be achieved.

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

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

ABN 14 139 494 885 ASX : ABX

AlF3 for Al-smelters & lithium-ion batteries

Reducing import reliance for aluminium smelting

Gold Coast Investment Showcase

Dr Mark Cooksey CEO 24 June 2021

Disclaimer

This presentation has been prepared by ALCORE Limited ACN 626 023 078 (“Alcore” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation.

This presentation contains forecasts and forward looking information. Such forecasts and information are not a guarantee of future performance, involving unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. Alcore has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Alcore makes no representation and can give no assurance, guarantee or warranty, express or other implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.

You should not act or refrain from acting in reliance on this presentation material. This overview of Alcore does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to make an informed assessment of the company’s prospects. You should also conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision.

Prices for aluminium fluoride (AlF3) were sourced from Asian Metals, China Customs and verified by comparison with prices from Bloomberg. The price actually achieved will depend upon market conditions at the time of sale.

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Australian aluminium industry

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$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Bauxite Alumina Aluminium
Australian Production 2019/20 ($million)
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• Global aluminium production is 60 million tonnes per year

• Australia produces 1.6 million tonnes at four smelters ($4 billion)

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Aluminium fluoride (AlF3)

• Essential for aluminium smelting

• 1.2 million tonnes produced globally per year worth US$1.5 billion

• 50% produced in China for Chinese smelters; none in Australia

• Australia/NZ import 100% of requirements, mostly from China

• High value

• US$1,000-1,800 per tonne

• Traditionally produced from high-cost aluminium hydroxide and fluorspar

• Achievable specifications

• Product purity risk is low

• Mature Market

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• Dozens of customers globally

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Australia/NZ AlF3 imports from China

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• Australia/NZ typically largest importer of AlF3 from China, but minimal imports from China in 2021

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Aluminium Smelter Wastes

• Fluorine is lost as ‘tapped bath’ waste

• Market for tapped bath has moved into oversupply

• China indicating ban on imports of tapped bath

• ‘Dross’ is another significant waste; many smelters have stockpiles of dross

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Aluminium smelter
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Inside a
smelter
potline
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Aluminium Fluoride (AlF3) An essential chemical for aluminium smelting

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Aluminium fluoride Alcore will use aluminium smelter wastes to produce aluminium fluoride in Australia

Wastes

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Commercialisation plan

• First Alcore plant planned for Bell Bay industrial area northern Tasmania, near existing hydro-powered aluminium smelter

• Initial capacity 10,000 t/y aluminium fluoride:

• To initially supply ~35% of Australasian demand

• Will expand to 30,000-60,000 t/y, subject to customers, low-cost feedstock sources and/or additional locations

• Initial production can use aluminium hydroxide feedstock for good returns and lower risk

• Bauxite and dross show promise as lower-cost feedstocks to substantially increase profitability

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AlF3 Prices and Costs

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$2,000
$1,800
$1,600
$1,400
$1,200
Median
$1,000
$800
$600 Estimated initial Alcore operating cost range
$400
$200
$0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
AlF3 price (US$/t)
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Source: China Customs

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Process Economics

• Current AlF3 production costs are US$1,000/t to US$1,700/t

• Raw materials typically 75% of production cost, mainly fluorspar and aluminium hydroxide

• Alcore is low-cost because of its lower-cost raw materials

$2,000 $1,500 Alcore’s costs $1,000

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Chinese production
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$500

800

200

0

400 600 Cumulative production (kt)

1,000

Source: Roskill

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Technical Status

• Alcore laboratory commenced operations 1 July 2019

• Only laboratory in Australia suitable for operation with concentrated fluorine acids

• Critical prerequisites have been confirmed in laboratory

• Recovered fluorine from tapped bath

• Produced aluminium fluoride from aluminium hydroxide

• Produced AlF3 from dross & bauxite

• Commencing engineering validation, including pilot plant

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Alcore Reducing import reliance for aluminium smelting

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Aluminium fluoride Alcore will use cheaper raw materials in a proprietary process to produce commercial grade AlF3 at low cost in Australia

Wastes

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Alcore Beyond AlF3 for aluminium smelting

• Co-products, e.g. industrial chemicals

• Aluminium fluoride for lithium-ion batteries

• Range of fluorochemicals

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Thank you

Dr Mark Cooksey CEO +61 447 201 536 mcooksey@alcore.net.au Level 5, 52 Phillip Street Sydney NSW 2000

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