ALTECH BATTERIES LTD — Capital/Financing Update 2017

Apr 12, 2017

ASX ANNOUNCEMENT AND MEDIA RELEASE

13 April 2017

ALTECH COMPLETES SHARE PLACEMENT TO CORNERSTONE INVESTOR

Highlights

• A$2 million raised via share placement to existing cornerstone investor

• Placement priced at $0.14 per share, an 8% premium

• Existing Malaysian shareholder MAA Group Berhad

• Funds applied to detailed design and engineering

Altech Chemicals Limited (Altech/the Company) (ASX: ATC) is pleased to announce a $2 million share placement (the Placement) to existing cornerstone investor, MAA Group Berhad (MAAG).

The Placement shares will be issued at 14 cents per share, which represents an ~8% premium to the 12 April 2017 closing price of the Company’s shares as traded on the Australian Securities Exchange (ASX).

Funds raised from the Placement will be applied to the completion of detailed design and engineering of the Company’s proposed Malaysian high purity alumina (HPA) plant.

MAAG is a Malaysian publicly listed insurance, investment, credit and finance group and is an existing shareholder of Altech. Altech non-executive director, Tunku Yaacob Khyra is the executive chairman and majority shareholder of MAAG, consequently the placement shares to MAAG will be subject to the approval of Altech shareholders.

• Ends -

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Altech Chemicals Limited ASX:ATC ABN 45 125 301 206

Suite 8, 295 Rokeby Road, Subiaco, Western Australia 6008 Australia

Telephone: +61 8 6168 1555 Facsimile: +61 8 6168 1551 Website: www.altechchemicals.com

For more information, please contact:

Corporate Investor Relations (Europe) Iggy Tan Shane Volk Kai Hoffmann Managing Director Company Secretary Soar Financial Partners Altech Chemicals Limited Altech Chemicals Limited Tel: +49 69 175 548320 Tel: +61 8 6168 1555 Tel: +61 8 6168 1555 Email: hoffmann@soarfinancial.com Email: info@altechchemicals.com Email: info@altechchemicals.com Wir sprechen Deutsch.

About Altech Chemicals (ASX:ATC) (FRA:A3Y)

Altech Chemicals Limited (Altech/the Company) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina ( HPA ) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

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Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.

Current HPA producers use expensive and highly processed feedstock materials such as aluminium metal to produce HPA. Altech has completed a Bankable Feasibility Study (BFS) for the construction and operation of a 4,000tpa HPA plant at the Tanjung Langsat Industrial Complex, Johor, Malaysia. The plant will produce HPA directly from kaolin clay, which will be sourced from the Company’s 100%-owned kaolin deposit at Meckering, Western Australia. Altech’s production process will employ conventional “off-the-shelf” plant and equipment to extract HPA using a hydrochloric (HCl) acid-based process. Production costs are anticipated to be considerably lower than established HPA producers.

The Company is currently in the process of securing project financing with the aim of commencing project development in Q3, 2017.

Forward-looking Statements

The Company reports that the ECA application process is set for mid-2017 and there is no certainty that the export credit and debt finance will be approved. The Company makes no representations or warranties whatsoever as to the outcome of the ECA approval process. In addition, the Company to date has not been provided with any estimates of the capital costs of the project from EPC contractor, M+W Group. M+W Group is currently in the detailed design phase and has not reached sufficient firm quotations to provide any estimates. The Company expects a final EPC fixed price from M+W Group around mid-2017.

This announcement contains forward-looking statements which are identified by words such as ‘anticipates’, ‘forecasts’, ‘may’, ‘will’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, ‘plan’ or ‘intends’ and other similar words that involve risks and uncertainties. Indications of, and guidelines or outlook on, future earnings, distributions or financial position or performance and targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources are also forward-looking statements. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions and estimates regarding future events and actions that, while considered reasonable as at the date of this announcement and are expected to take place, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the directors and management. We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to various risk factors that could cause actual events or results to differ materially from the events or results estimated, expressed or anticipated in these statements.

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Altech Chemicals Limited ASX:ATC ABN 45 125 301 206

Suite 8, 295 Rokeby Road, Subiaco, Western Australia 6008 Australia

Telephone: +61 8 6168 1555 Facsimile: +61 8 6168 1551 Website: www.altechchemicals.com