ALTECH BATTERIES LTD — Investor Presentation 2014

Oct 6, 2014

Company Presentation Iggy Tan Managing Director

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To be a world leading producer of high purity alumina (HPA)

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• Sapphire - natural form of high purity alumina (HPA)

• Formed by mother nature like diamonds

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Sapphire
gemstone
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• Extremely hard – no. 9 on Mohs scale (third hardest mineral behind diamond)

• Scratch-resistant artificial sapphire glass made from HPA

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• O

• Purified alumina or aluminum oxide (Al2 3)

• • Greater than 99.99% (4N) purity

• • Lots of work to upgrade SGA (99.5%)  4N 99.99% HPA

• • Maximum allowable impurities of 100ppm

• • 4N category - 99.99% pure (impurity 100ppm) - most sales volume

• • 5N category - 99.999% pure (impurity 10ppm)

• • HPA properties: heat resistance, electrical isolation, abrasion resistance, corrosion resistance, extreme hardness

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What is HPA?
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SGA – Smelter Grade Alumina

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High price
for purity
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Smelter Grade High Purity High Purity High Purity Alumina Alumina Alumina Alumina SGA 99.5% HPA 99.9% (3N) HPA 99.99% (4N) HPA 99.999% (5N) $0.4 per Kg $1 -10 per Kg $10-50 per Kg $50-150 per Kg

Our Target Business

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• HPA is placed in an autoclave

• Heated to >2,000[o] C melting point under intense pressure

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Artificial
sapphire
process
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• Forms single crystal sapphire (boule)

• • Allowed to cool slowly – 22 day cycle

• Diamond cutting equipment to cut sapphire shapes

• Heat & scratch resistant

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Welcome to the world of HPA

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Sodium Lamps
Hybrid Cars
Display Screens
Abrasives
Ultrafiltration
Ceramic
Electronic Substrates
Tools
Special
Semiconductors
Ceramics
HP Refractory
Polishing Cosmetics
Medical
Abrasives
Separation
Headlights
Membranes
LED Lighting
Optical Lenses
Industrial
Military Aerospace
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High Purity
Alumina
Applications
Phosphor
Semi Other
LEDs Based
conductors Applications
Applications
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Smartphone Others Phosphor sapphire glass is 7% 16% a new market Semiconductors 22% LED 55%

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Uses of HPA
99.99% 4N
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Technavio Research

• Global HPA demand 19,040tpa in 2014 • Expected to increase to 48,230tpa by 2018

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Demand
for HPA
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• Growing at a CAGR of 28%

QY Research

• Global HPA demand 24,550tpa in 2014

• • Expected to grow to 36,000tpa in 2017

• • Growing at a CAGR of 16%

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HPA Demand & Growth Forecast

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60.0 40%
35%
50.0 35% 48.2
33% 30%
39.9
40.0 28%
25%
32.4
23% Demand
30.0 20%
25.3 21%
19.0 15%
20.0 for HPA
14.1
10%
10.0
5%
0.0 0%
2013 2014 2015 2016 2017 2018
Volume ktpa Growth Rate %
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• Rapid growth rates • Estimated supply deficit

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HPA in the news

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• Estimate 30g of HPA in an iPhone sapphire glass screen

• Approx. 300 million iPhones sold from 2013-2014

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HPA
demand:
smartphones
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• 200 million iPhones estimated to sell in 2015

• 500 million smartphones sold per year

• If Apple implement sapphire glass technology o It would require about 6,000tpa of HPA

• o That’s two of our 3,000tpa plants

• There will be a HPA supply deficit

• AMMG is in the right space!

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• 70% of HPA demand is in Asia Pacific region (APEC)

• Region for the world’s manufacturing

• AMMG’s HPA plant (Australia) well-positioned to service in APEC region

• Transport, customer service, technical credibility Americas

Americas 14%

Europe, Middle East, Africa 16%

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HPA
geographic
demand
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Asia Pacific 70%

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1 Alumina Alumina HPA Plant
Refinery Smelter
Bauxite Smelter Grade Alumina Aluminium Metal 99.99% HPA
>90%
Alumina
2 HPA Plant
Refinery
Bauxite 99.99% HPA
Aluminium Hydroxide
3 AMMG HPA PLANT
Aluminous Clay 99.99% HPA
AMMG
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Current HPA production

Current use of expensive high purity feedstock

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• Majors like Sumitomo, Sasol:

o Aluminum alkoxide from Al metal (1)

• Chinese producers:

• Choline – Dissolving Al foil in choline

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Current HPA
producers
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• Chinese producers:

• Aluminium Hydroxide (2) (from bauxitealumina process) with HCl

• All use relatively expensive feedstock

• • AMMG aluminous clay 5 times cheaper than Al metal (3)

Route	HPA Process Method	Feedstock Costs USD/tper 100% Al2O3
1	Aluminium Metal	$1,052 /t
2	Aluminum Hydroxide	$570 /t
3	AMMG Aluminous Clay	$220 /t

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• Processed and purified by mother nature

• Very low impurities due to weathering

• Iron levels are 0.7% vs 21% in bauxite

	Iron l	evels are 0.7% vs 21% in	evels are 0.7% vs 21% in	evels are 0.7% vs 21% in	bauxite
	Silica is non reactive – easily				removed	Low-impurity
		Bauxite	Canadian	AMMG		aluminous clay
		Darling Range	HPA Project	HPA Project		feedstock
	Al2O3 (%)	34.5	22.77	30.5
	SiO2 (%)	21.5	53.29	56.3
	Fe2O3 (%)	21.2	8.36	0.7
	TiO2 (%)	2.00	0.98	0.7
	Typical Mean	Analysis

• Silica is non reactive – easily removed

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• Private freehold land

• Landowner agreement in place

• • No native title

• • Low environmental impact

• • Previously mined for kaolin – trial pit

• • Low stripping ratio

• • 65Mt JORC Resource

• • Approx. 130kms from capital city Perth (Kwinana industrial area)

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Meckering
aluminous clay
deposit
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• HCl process employed is a conventional, proven and robust chemical process

• Can produce >99.99% HPA from aluminous clay

• • Simple recovery of acid and recycling

• HCl process was first developed in early 1980’s for SGA production

o Couldn’t compete with bauxite SGA costs

• Bauxite process can’t achieve >99.8% due to Na

• • Demand for HPA (99.99%) developed over last decade

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AMMG’s
HPA
process
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• Right place, right time!

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• Laboratory test work simulates process

• • Final product achieves 99.99% (4N) HPA

• • Integrated Plant Study (IPS)

• • Larger optimisation pilot plant test work

• • Process works and is robust

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so far
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• IPS opex around A$8.6/kg

• • IPS capex for 700tpa (now 3,000tpa)

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AMMG’s HPA Process

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• Target: to be a top 3 HPA producer in the world

• • Launched BFS for 3,000tpa HPA o BFS completion: end Q3 2015

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Bankable
Feasibility
Study (BFS)
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• In parallel, progress necessary approvals, funding, off- take agreements etc.

• Subject to funding:

• In position to order long lead capital items (plant equipment)

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• Then detailed design, site works, construction

• Continuous laboratory pilot plant work

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Highly experienced board:

• Fundraising

• Project building

• Industrial chemical processing

• Alcoa Alumina management

• Sherwin Alumina management

• High purity chemicals

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Luke Atkins Chairman

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Experienced
board
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Iggy Tan Managing Director

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Dan Tenardi Non Exec Director

Peter Bailey Non Exec Director

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Corporate Snapshot
ASX Code	AKA
Shares on Issue	107.7m
Share Price¹	A$0.077
Market Capitalisation(Undiluted)5	A$8.2m
Options on Issue6	21.5m

Major Shareholders	Major Shareholders	Major Shareholders
Lake McLeod Gypsum Pty Ltd		22.2%
Board & Management		14.0%
P Sharbanee		4.5%
Eagle River Holdings Pty Ltd		2.7%

	Cash Position	$
	Cash2+ R&D return		A$ 1.8m
	Debt2		A$ 0
	~~ASX Share Price Performance~~

•

1Closing price on 1 October 2014 2As at 1 October 2014 3As at 1 October 2014 5 Based on closing share price of shares in note 1.

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Right Place Right Time Right Feedstock Right Technology

Thank you

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Forward-looking Statements

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 our 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.

Competent Person Statement

Technical information in this report is based on information compiled by B.Sc. Geology, AMMG Chief Geologist and a member of the Australasian Institute of Geoscientists. Mr O’Mara has sufficient exploration experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC 2004”). Mr O’Mara consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.