ALTECH BATTERIES LTD — Investor Presentation 2015

Apr 1, 2015

Altech Chemicals Limited (ASX:ATC)

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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Our Vision
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• Sapphire & Ruby - natural form of high purity alumina (HPA)

• Formed by mother nature like diamonds

• • Colour from impurities

• Extremely hard – no. 9 on Mohs scale

• Third hardest mineral behind diamond

• • Scratch-resistant artificial sapphire glass made from HPA

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Sapphire
Gemstone
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• O

• Purified alumina (Al2 3)

• • Greater than 99.99% (4N) purity

• Maximum allowable impurities of 100ppm

• Smelter Grade Alumina (SGA) ~ 99.5% (5,000 ppm impurities mainly sodium)

• Bayer Process uses sodium hydroxide (NaOH)

• • Sodium impurity is problem for electronics industry

• • Alumina has been used for decades

• • Corrosion, abrasion, heat, electrical resistance

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What is HPA?
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SGA – Smelter Grade Alumina

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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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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

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High Price
for Purity
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Our Target Business

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Welcome to the world of HPA
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 Uses of HPA
99.99% 4N
Smartphone Others Phosphor
sapphire glass is 7% 16%
a new market
Semiconductors
22%
LED
55%
Source: Technavio Research “2014-2018 Global High-purity Alumina Market”
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Technavio Research

• Global HPA demand 19,040tpa in 2014

• Expected to increase to 48,230tpa by 2018

• Growing at a CAGR of 28%

QY Research

• Global HPA demand 24,550tpa in 2014

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Demand
for HPA
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• 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
50.0 48.2
39.9
40.0
32.4
30.0
25.3
19.0
20.0
14.1
10.0
0.0
2013 2014 2015 2016 2017 2018
Volume ktpa
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Demand
for HPA
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Source: Technavio Research “2014-2018 Global High-purity Alumina Market”

• Rapid growth rates • Estimated supply deficit

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• Apple moving to chic wearable vs geeky tech

• Glass is all Sapphire

• Wearable tech items 45.7m, up 133%

• By 2019, 126m units (ave growth 45%)

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• Apple Watch will raise the profile of wearables

• • Profile of sapphire glass will be raised globally

• • Long term benefit and exposure for Altech

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• Estimate 30g[1] of HPA in an iPhone sapphire glass screen

• 500 million smartphones sold per year

• If sapphire glass technology was implemented o It would require about 15,000tpa of HPA

• o That’s four of our proposed 4,000tpa plant

• There will be a HPA supply deficit

• • Altech is in the right space!

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HPA
Demand from
Smartphones
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1 Altech Estimates

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• High end Vertu TI with sapphire crystal screen

• Rest will follow

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Sapphire Crystal
Screen
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More Sapphire
Display
Factories
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“company (Apple) continues to cautiously evaluate the adoption of the scratch-resistant screens to ensure that there are sufficient supplies” Focus Taiwan News Channel

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

• Region for the world’s manufacturing

• Altech’s HPA plant (Malaysia) well-positioned to service APEC region

• Transport, customer service, technical credibility

Americas 14%

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HPA
Geographic
Demand
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Europe, Middle East, Africa 16%

Asia Pacific 70%

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• Six largest HPA producers • 3 Chinese, 1 Japanese, 1 Sth African, 1 French

Others (15), 3,570 Huantou, 800 Dailian Rall, 600 Nippon Light Metal, 1,100 Baikowski, 1,200 Xuancheng Jing Rui, 1,200

Sumitomo Chemical , 3,020 Sasol, 1,800

Hebei Pengda, 3,000

Zibo Xinfumeng, 2,500

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Current HPA
Producers
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Technavio Research

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ALTECH’S DIFFERENTIATION

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Current HPA Producers
Alumina Alumina Aluminium
Refinery Smelter Dissolution
Bauxite Smelter Grade Alumina 99.8% Aluminium Metal 99.99% HPA
Or other high purity Al compounds
ALTECH HPA PLANT
One Single Process Step
Aluminous Clay 99.99% HPA
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Aluminous Clay
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• Processed by mother nature

• Very low Iron (Fe) due to weathering

• Silica is non reactive – easily removed

	ca	s non rea	cve – e	sy rem	ove
		Bauxite	Canadian	Altech	Low - impurity
		Darling **Range ***	HPA Project	HPA Project	Aluminous C lay
	Al2O3 (%)	34.5	22.77	30.5	F eedstock
	SiO2 (%)	21.5	53.29	56.3
	Fe2O3 (%)	21.2	8.36	0.7
	TiO2 (%)	2.00	0.98	0.7
	K2O (%)	0.24	3.41	0.1
	NaO (%)	0.005	1.42	0.1
	pical Mean Analysis

Typical Mean Analysis

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• Altech owns 100% of deposit in W Aust • Landowner agreement in place

• No native title

• • Low environmental impact

• • Previously mined for kaolin – trial pit

• • Low stripping ratio

• • 65Mt JORC Resource

• • 130kms from Fremantle Port

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Meckering
Aluminous Clay
Deposit
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• Majors like Sumitomo, Sasol:

o Aluminum alkoxide from Al metal

• Chinese producers: o Choline – Dissolving Al foil in choline

• • All use relatively expensive feedstock

• • Altech aluminous clay 5 times cheaper than Al metal feedstock

USD er 100% Al O p 2 3

Feedstock USD p Aluminium Metal $1,052 /t Aluminous Clay $220 /t

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Current HPA
Feedstock
Costs
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• Use a standard HCl leach process

• Standard metal extraction

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Altech’s
HPA
Process
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• Developed in 1980’s by alumina industry

• • Couldn’t compete with bauxite SGA costs

• • Great at producing HPA (no sodium ions)

• • No demand of HPA in 1980s

• Conventional & off the shelf equipment

• • Simple recovery of acid (lower opex)

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New Demand + Established Process + Great Deposit + Experienced People  Shareholder Value

Experienced People High Purity Deposit

New Demand (Electronics)

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Altech
Business
Strategy
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• Started development work in early 2011

• • Many studies and testwork programs

• • No issues about producing 99.99% HPA

• • Supporting lab pilot plant test work

• • Hydromet process not complex

• • Integrated Plant Study (IPS) completed

• • IPS Opex estimate of A$8.6 /kg

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Development
Program
To Date
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Clean HCl

ALTECH HPA PROCESS

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WESTERN AUSTRALIA

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Campaign Mining
ROM
Screening Filter Press Beneficiated
Kaolin
To Fremantle
Dryer
Drum Scrubber > 0.5mm
Shipping
Calcined Clay
Feed Storage
Hydrochloric Acid
Cooler
Calciner HCl Gas
Polishing
Milling
Filter
600 C thickener
MALAYSIA Screening
Stage 1 Crystalisation
Acid Leach Vessels
Neutralised Limestone & Hydrated Filter
Lime
Silica Residue Filter
Sale to
Cement Plant HCl gas
Neutralising Generator
Filter Tank
Condenser
HCl HCl water HCl water
Gas Gas
High Purity Microniser 1100 C 400 C Filter Filter
Alumina
99.99%
Cooler Calciner Roaster
Stage 3 Polishing Stage 2
Crystalisation Filter Crystalisation
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• To be a top HPA producer in the world

• Launched BFS for 4,000tpa HPA

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Bankable
Feasibility
Study (BFS)
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• BFS completion: end Q3 2015

• In parallel, progress permitting, approvals, funding, off- take agreements etc.

• Subject to funding:

• In position to order long lead capital items

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• Then detailed design, site works, construction

• Continuous laboratory pilot plant work

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MECKERING OPERATION

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Hopper Feed
Feed Conveyor
ROM Stockpile
Product Storage
Oversize Load Out
Offices
Dryer
Filters Workshop
Screening
Raw Water
Generator
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ROM FEED HOPPER

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Feed Hopper
Discharge Chute
Feed Conveyor
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DRUM SCRUBBER & SCREENING

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Feed Chute
Drum Scrubber
Double Deck
Screen
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SCREENING & OVERSIZE REJECTS

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Oversize
Conveyor Double Deck
Screen
Undersize
Hopper
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OVERSIZE LOAD OUT

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Double Deck
Screen
Oversize
Conveyor
Overflow
Bunker
Oversize Dump
Truck
Undersize Hopper
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PRESSURE FILTERS

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Pressure Filter
Filter Feed
Tank
Filter Plates
Filter Cake
Filtrate
Discharge
Collection
Filter Cake
Conveyor
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KAOLIN SHIPPING

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• Tanjung Langsat Industrial Park, Johor Bahru (Malaysia)

• Al clay feedstock shipped from WA

• • Operating costs ~40% lower than Australia

• • Capital costs expected to be 50-60% lower

• Anticipates opex in the bottom quartile of global HPA producers

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HPA Preferred
Location
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• Letter of Intent (LOI) submitted for land

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ALTECH’s PREFERRED SITE LOCATION

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HPA LOCATION
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• Hydrochloric acid, sulphuric acid, power & natural gas

• • Cement plants to purchase silica residue

• Skilled labour, telecommunications

• • International container sea-port & Singapore

• • Investment incentives

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MALAYSIA HPA OPERATION
Cooler
Silica Feed Calciner
Neutralisation
Acid Leach
Beneficiated
Kaolin
Warehouse
Silica Removal
Purification
Jet Milling & Bagging
Roaster
Final
Product
Product Calciner
Product Cooler
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KAOLIN CALCINER

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Kaolin Feed
Water Treatment Plant
Bin
Kaolin Calciner 600 [o] C
Cooler
Kaolin Loading Screen
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ACID LEACH & NEUTRALISATION

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Calcined
Bin
Purification
Water Treatment
Acid Leach
Neutralisation
Silica Filtration Silica Filtration
Limestone
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HPA FINAL PROCESSING

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Crystallisation 1
Centrifuge Crystallisation 3
Crystallisation 2
Waste Filtration
Roaster 400 [o] C
Calciner 1100 [o] C
Microniser
Cooler
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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	ATC
Shares on Issue	111.5m
Share Price¹	A$0.08
Market Capitalisation(Undiluted)	A$8.9m
Options on Issue	21.5m

Major Shareholders	Major Shareholders	Major Shareholders
Board & Management		36%
Top Twenty Shareholders		25%

	Cash Position	$
	Cash		A$ 1.2m
	Debt 2		A$ 0
	~~ASX Share Price Performance~~

• 1Closing price on 17 November 2014 2As at 17 November 2014 3As at 17 November 2014.

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• IPS pilot plant opex around A$8.6 /kg

• Breakaway estimates competitors $14-$17 /kg

• HPA sells for around A$23 /kg

• Bottom quartile for operating costs

1. We own our feedstock

2. Large scale economy 4,000 tpa – one train

3. Main reactant HCl re-used

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Bottom
Quartile
for Op Costs
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4. Minimal impurity removal costs

5. Plant in low cost country (Malaysia)

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EV/EBITDA Multiple Valuation

• 7.5 x EV / EBITDA multiple, Price $20/kg, Opex $8/kg = $360m evaluation

DCF Valuation

• Disc @10%, Price $20kg, Opex $8/kg = $260m Evaluation

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Breakaway
Research
Evaluation
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Appointment of Experienced MD Strategy to Focus on HPA Clarity of Vision Divest Exploration Projects Name Change – Chemical Focus Launched Bankable Feasibility Study

Appoint team for BFS Focus on Meckering Deposit HPA Location – Malaysia Scale Capacity of 4,000 tpa

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Appointment of CFO/Co Sec Meckering Process Optimised HPA Process Reviewed and Optimised Malaysian Subsidiary Incorporated Partners Seatram for Transport Shipping Pilot Plant Quality better than Competitors Mining partner established

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Ticking
the Boxes
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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, Altech 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.