ALTECH BATTERIES LTD — Investor Presentation 2018

May 6, 2018

Altech Chemicals Limited ASX: ATC FSE:A3Y

Company Presentation Iggy Tan Managing Director

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World leading producer of high purity alumina (HPA)

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Our Vision
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4,500 tonnes pa

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• Sapphire gemstone

• Natural form of high purity alumina (HPA) Al2O3

• Formed by mother nature like diamonds

• Colour from impurities

• Nearly as hard as diamond (Mohs 9)

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Sapphire
Gemstone
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• O

• Purified alumina (Al2 3)

• 99.99% (4N) purity or greater

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

• • Bayer Process uses sodium hydroxide (NaOH)

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What is HPA?
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• Sodium impurity is problem for electronics industry

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Smelter Grade High Purity High Purity High Purity High price Alumina Alumina Alumina Alumina SGA 99.5% HPA 99.9% (3N) HPA 99.99% (4N) HPA 99.999% (5N) for purity US$400 per t US$6,000 per t US$27,000 per t US$50,000 per t

Our Target Business

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LED’s & LITHIUM BATTERIES

Sapphire Furnace (2,000[o] C)

Sapphire Crystal Boule

Sapphire Wafer LEDs

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Nano Powder

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LITHIUM ION BATTERIES

Separator Coatings

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Sapphire Applications

Sapphire Cores

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LEDs

Sapphire Wafer / Substrate

Light Emitting Diodes LED

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LED’s: 1/6[th] of the energy

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Light Emitting Diode

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LED Expansions

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Xiamen Changelight Purchases AIXTRON MOGVD Technology to Expands ROY LED Production

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Sapphire Applications

Sapphire Cores

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Un-scatchable Applications

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Sapphire Glass
Smartphone and Lenses
Glass
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Sapphire Glass

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HTC U Ultra (128Gb) o February 2017 o Sapphire crystal display

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iPhone o Sapphire crystal lens o Finger print recognition

Smartphone sapphire screen

Sapphire Glass Scratch Test

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Global High Purity Alumina Forecast 2015 -2024

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Source: Persistence Market Research
“High Purity Alumina Market – Global Industry Analysis and Forecast 2016-2024” 86,831
75,637
65,036
55,350
46,748
39,786
34,328
29,669
25,315
21,309
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
HPA Comsumtion tpa
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Demand
for HPA
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• 13 times ATC’s proposed 4,500 tpa HPA plant required to meet growth

• Global LED demand increase to 4.1 B units by 2024 (2015: 864 million)

Source: Navigant Research “LED Lighting: Global Outlook”

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HPA Coated
Battery
Separators
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• Low shrinkage, increased life cycle and increased safety

• • Enhanced short prevention and excellent structural integrity at high temperatures

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HPA Coated Separator Demand Forecast

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• 1.6 kg HPA for average EV car (40 KWh)

• 6.4 kg HPA for EV Bus (160 kWh)

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GLOBAL SEPARATOR HIGH PURITY ALUMINA DEMAND 99.99% HPA Used in Lithium Battery Separators Source: Altech Chemicals & Deutsche Bank Markets Research Industry Lithium 101 - 9 May 2016

15,102

13,848

11,589

Number of ATC HPA Plants required

9,431

7,554

5,810 3,985

Key Assumptions: HPA Coating 5g /m2 or 40 g/kWh Penetration rate of 6% pa from 2015

2,713

283 919

1,629

2015 2016

2017 2018 2019 2020 2021 2022 2023 2024 2025

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• HPA producers – Chemical companies China (3), Japan (2), South Africa (1) France (1)

Others (15), 3,570

Huantou, 800 Dailian Rall, 600

Nippon Light Metal, 1,100

Baikowski (France) 1,200

Sumitomo Chemicals (Japan) 3,020 Sasol (South Africa) 1,800 Hebei Pengda (China) 3,000

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Current HPA
Producers
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Xuancheng Jing Rui (China) 1,200

Zibo Xinfumeng (China) 2,500

Source: Technavio Research

Altech’s Differentiation

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Current HPA Producers
Alumina Alumina Aluminium
Refinery Smelter Dissolution
Bauxite Smelter Grade Alumina Aluminium Metal 99.99% (4N)
99.5% ~US$3,000 per tonne HPA
ALTECH HPA PLANT
One Single Process Step
Kaolin
99.99% (4N)
(aluminous clay) HPA
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• Very low iron (Fe) due to weathering

• 12.7Mt JORC Mineral Resources^ (250 yrs)

• Measured Resources 1.5Mt @ 30% Al2O3

• Indicated Resources 3.3Mt @ 30% Al2O3

• Inferred Resources 7.9Mt @ 29.1% Al2O3

• Deposit in Western Australia

%	Bauxite Darling Range*	Altech **Kaolin ***
Al2O3	34.5	30.5
SiO2	21.5	56.3
**Fe2O3 **	21.2	0.7
**TiO2 **	2.00	0.7
K2O	0.24	0.1
**NaO **	0.005	0.1

Low-impurity Kaolin Feedstock

• Typical Mean Analysis (upgraded)

^ JORC (2012) Mineral Resources and Reserve (refer ASX Announcement 11 October 2016); the Company is not aware of any new information or data that materially affects the information included in this announcement and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

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• Mining approval granted

• Works approval granted

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Meckering
Kaolin Deposit
in West Aust
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• Simple free dig mining

• Campaign mining, 2 months 3 years feed

• Then just sea container loading operation

• Fremantle to Johor easy shipping

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• Chemical-zoned industrial park (Tanjung Langsat)

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• lower operating costs

• HCl plant nearby

• Services, natural gas, electricity, water

• Access to 17[th] largest container port

• Malaysian government incentives

• Environmental approval completed

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HPA Plant to
be in Johor,
Malaysia
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Johor HPA Plant

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Admin
Site Entry
Maintenance
MCC
Kaolin
Beneficiation
Silica Residue
Acid Leach
Warehouse
Pelletising
HCL Recycling
Crystallisation
Roasting
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Altech’s HPA Process

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ROM
Sea Container To Fremantle Campaign Mining MECKERING
Shipping
Sea Container Meta Kaolin
Flash
JOHOR Dryer Hydrochloric Acid
Screening Filter Cooler
Calciner Milling HCl Gas
Polishing
Screening Filter Filter
700 C
Drum Scrubber > 0.3mm
Quartz Oversize
Acid Leach Stage 1 Crystalisation
Sales
Limestone & Lime
Neutralised
99.99% Cooler Jet Mill Spray Silica Residue Centrifuge
HPA Beads Battery Grade Option Dryer
Packaging 1600 C Sales Filter Neutralising Tank Crystals Al Cl3
Cooler
Tunnel Kiln Pelletiser Feed Tank
HCl Plant
HCl HCl Gas water HCl water
Alpha Al2O3 Gas
1250 C 700 C Centrifuge Centrifuge
Screen HX
Cooler Calciner Roaster Al Cl3 Al Cl3
Bead Mill Wash Stage 3 Polishing Stage 2
Crystalisation Filter Crystalisation
HCl Wash HCl Wash
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• Pre-tax NPV US$ 505 million 7.5

• Internal Rate of Return (IRR) 22%

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Final
Investment
Decision Study
(FIDS)
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• Payback (full rate) 3.9 years

• EBITDA US$ 76 million p.a.

• Capital cost US$ 298 million

• Production Costs - US$ 9.90/kg

• LT Sale Price - US$ 26.9/kg

• Gross Margin – 63%

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• Current HPA price in Japan - US$ 40.0/kg

• Pre-tax NPV US$ 1.1 billion 7.5

• Internal Rate of Return (IRR) 33%

• Payback (full rate) 2.2 years

• EBITDA US$ 133 million p.a.

• Production Costs - US$ 10.50/kg

• Sale Price - Gross Margin – 74%

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Current Case
Economics
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• Competitors US$14 - 17,000/t (Breakaway Research)

1. We own our feedstock

2. Main reactant HCl re-used

3. Plant in low cost country (Malaysia)

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Altech
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Bottom
Quartile
for Op Costs
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Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Forecast 2016-2024”

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• Off-take sales agreement with Mitsubishi

• First 10 years of HPA operations

• Secures sales for HPA plant production

• Exclusive global distributor

• Experienced with HPA

• Strategic priority: lithium-ion batteries

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Mitsubishi
10 year
off-take
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• SMS group German EPC contractor

• Lump sum turn key contract

• Completion and cost risk

• Throughout guarantee

• Process & quality guarantee

• Third largest user of ECA finance

• Committed US$ 15 mil equity contribution

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Lump Sum
Turn Key
Contract
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• Debt funding with KfW IPEX-Bank

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Debt
Funding
Successful
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• Total debt of US$ 190 million

• US$ 170 million export credit finance

• 50% of plant – German suppliers

• Low interest, long tenure

• Best debt in the world

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Three work streams

1) Subordinated mezzanine debt

• Target US$120m

2) Equity work stream

• Equity investment partners

• Lead - Petra Capital

• 3) Possible JV Partner

• Partial project sell down

• Maximises shareholder returns and minimises dilution

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Advancing
Final Stage
Funding
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Altech Chemicals Limited Market Capitalisation - end of month ($m) $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $-­‐

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Altech
Growth
Performance
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• 10 x steady market cap growth (3 years)

• Ave trade value $2k/day to $350k/day

• 350% increase in shareholders to 2,500

• $7 m cash end March 2018, no debt

• 426 m shares on issue

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Right Place Right Time Right Feedstock Right Technology

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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 Persons Statements – Meckering Kaolin Deposit

The information in this announcement that relates to Mineral Resources and Ore Reserves is extracted from the report entitled “Maiden Ore Reserve at Altech’s Meckering Kaolin Deposit” released on 11 October 2016; the report is available to view on the Company’s website www.altechchemicals.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.