AUSTRALIAN VANADIUM LIMITED — AGM Information 2019

Nov 21, 2019

Australian Vanadium Limited

Annual General Meeting November 2019 | ASX: AVL

Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Disclaimer

The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.

Competent Person References

Competent Person Statement – Mineral Resource Estimation The information in this presentation that relates to Mineral Resources is based on and fairly represents information compiled by Mr Lauritz Barnes, (Consultant with Trepanier Pty Ltd) and Mr Brian Davis (Consultant with Geologica Pty Ltd). Mr Davis is a shareholder of Australian Vanadium Limited. Mr Barnes and Mr Davis are members of the Australasian Institute of Mining and Metallurgy and Mr Davis is a member of the Australian Institute of Geoscientists and both have sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Specifically, Mr Barnes is the Competent Person for the estimation and Mr Davis is the Competent Person for the database, geological model and site visits. Mr Barnes and Mr Davis consent to the inclusion in this presentation of the matters based on their information in the form and context in which they appear.

Competent Person Statement – Ore Reserves The scientific and technical information in this presentation that relates to Ore Reserve estimates for the Project is based on information compiled by Mr Roselt Croeser, an independent consultant to AVL. Mr Croeser is a member of the Australasian Institute of Mining and Metallurgy. Mr Croeser has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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. Mr Croeser consents to the inclusion in the presentation of the matters related to the ore reserve estimate in the form and context in which it appears.

Competent Person Statement – Metallurgical Results The information in this presentation that relates to Metallurgical Results is based on information compiled by independent consulting metallurgist, Brian McNab (CP. B.Sc Extractive Metallurgy). Mr McNab is a member of the Australasian Institute of Mining and Metallurgy. Mr McNab is employed by Wood Mining and Metals. Mr McNab has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is undertaken, 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’. Mr McNab consents to the inclusion in the presentation of the matters based on the information made available to him, in the form and context in which it appears.

The information is extracted from the announcement entitled “Gabanintha PreFeasibility Study and Maiden Ore Reserve” released to ASX on 19 December 2018 and is available on the Company website at www.australianvanadium.com.au.

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 or 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 has not been materially modified from the original market announcement.

Forward Looking Statements

This presentation may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to Resource risk, metal price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries and states in which we sell our product to, and government regulation and judicial outcomes. For more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary About The Project Vanadium Markets The Path Forward

Project Overview

One of the highest-grade vanadium projects currently being developed in the world

Major Project Status awarded September 2019.

Successful $6.6m capital raising completed, funded to completion of DFS.

Processing plant relocation study underway – potentially reduced capex & gas price.

Definitive Pilot Study nearing completion on 30 tonne sample to confirm process design.

High-grade Resource of 96.7Mt at 1% vanadium pentoxide (V2O5); Reserve of 18Mt at 1.05% V2O5.

Completed PFS with strong fundamentals through all price cycles .

Initial mine life of 17+ years , 65.9Mt at 0.97% of Inferred Resources for extension.

PFS opex of US$4.15/lb V2O5 potential to be lowest cost quartile producer .

High-purity (99.4%) V2O5 flake and powder product – for steel, chemical & battery.

Aim to produce 22.5Mlbs - (10,100t) V2O5 per annum 6.8% of current production.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Corporate Snapshot

Key Statistics	(20/11/19)
Ordinary	2.55b
Shares on
Issue
Share Price	A$0.010
Average Daily	5,158,816
Traded Volume
Market Cap	A$28m
(Undiluted)
Cash	~A$7.1
Shareholders	6,776
Enterprise	A$20.9
Value

AVL’s Top Shareholders
JP Morgan Nominees Australian Pty Ltd	2.95%
HSBC Custody Nominees (Australia) Ltd	2.48%
Southland Snipe Superannuation Fund	2.40%
Citicorp Nominees Pty Ltd	2.30%

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Experienced Team

Vincent Algar – Managing Director

Geologist with over 25 years’ experience in the mining industry spanning underground and open cut mining operations, greenfields exploration, project development and mining services. Significant experience in the management of publicly listed companies.

Daniel Harris – Technical Director

Over 40 years of global vanadium experience including processing and operation. Recent roles include interim CEO and Managing Director at Atlas Iron; Chief Executive & Operating Officer at Atlantic; Vice President & Head of Vanadium Assets at Evraz Group; and Managing Director at Vametco Alloys.

Todd Richardson – Chief Operating Officer

Over 20 years’ experience in the vanadium sector and an expert in vanadium process design, commissioning and operations. Extensive background in operations, management and technical services both in the USA and Australia, in all phases of plant operation.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Recent ASX Updates	Recent ASX Updates
Recent	Announcements (2019)
29.10	Geraldton Processing Plant Option Agreement
25.10	Resource Drilling Program Completed
17.10	VRFB Sale to Meredith Dairy
24.09	Research & Development Refund
23.09	Successful SPP and Placement $6.6m
9.09	Iron Calcine By-Product
6.09	Major Project Status Granted
4.09	VRFB Sale to Priest Bros. Orchard
30.08	Metso Selected for Pilot Roast Work
9.08	Pilot Study Update
18.07	New Pilot Drilling Results Support DFS
25.06	Key Project Water Supply Opportunity with Westgold
28.05	Benchscale Testwork Results (99.4% V2O5)
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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Major Project Status

Major Project Status Awarded

• The Australian Vanadium Project was awarded Major Project Status by the Australian Federal Government in September 2019.

• The award enables AVL to access streamlined assistance with Government approvals.

Recognition of Significance

The award is formal recognition of the Project’s national significance due to:

• Economic growth of the Australian vanadium market (steel, energy storage).

• Economic growth for the Mid-West region through direct and indirect jobs.

• Vanadium being on the critical minerals list for Australia and the US.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Resource Extension

Drilling to Extend Project Life

• Focus on increasing project life and scheduling options during mining phase

• Target is conversion of Resources to Reserves in 55.3Mt of high-grade zone.

• Completed Phase 1 program of 13 RC holes for 1,224 metres in October 2019

• Mineral Resource update to follow receipt of assays.

Upcoming Drilling

• Further drill programs in advanced planning stage, targeting southern blocks to convert current Inferred Resources to Indicated Resources.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Land Option Agreement

Processing Plant Location

• AVL has identified a potential location east of Geraldton, as a possible site for its vanadium processing plant.

Benefits of Geraldton Location

• Proximity to gas pipeline infrastructure & associated low domestic gas prices.

• Available local workforce.

• Existing road, rail, water and gas infrastructure.

• Reduced capex at Project minesite.

• Increased potential to sell valuable iron ore by product via Port of Geraldton.

• Strong government support.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Testwork Nearing Completion

Pilot Scale Testing is Crucial

Testwork at scale is a key differentiator of successful projects, allowing potential problems to be identified and remedied before commitment to full-scale construction.

• AVL is following a bankable due-diligence level approach to project de-risking and delivery.

• 30 tonne pilot project is nearing completion.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Social Responsibility

The Meekatharra Community

• AVL sponsors the Stephen Michael Foundation.

• Engaging kids with school;

• Improving lives through sport.

• Subsidiary VSUN Energy sponsors The Meeka Howler.

Carbon Footprint Analysis

• Project analysis of emissions across the supply chain.

• • Offset and emission reduction plan; cost assessment with immediate and future abatement schemes.

• Understanding lifecycle emissions in the steel industry in conjunction with Vanitec.

Reducing Emissions

• Potential strategies to reduce emissions.

• Solar plus VRFBs; non-traditional fuel for haulage.

• Process improvements (e.g. pelletising) can significantly reduce gas and particulate emissions.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary About The Project

Vanadium Markets

The Path Forward

VSUN Energy A Renewable Energy Company

About VSUN Energy

• VSUN Energy is a renewable energy company focused on vanadium redox flow batteries (VRFBs) for energy storage.

• VSUN Energy is AVL’s fully owned subsidiary, launched in 2016 to grow the VRFB market in Australia.

• Its first VRFB installation was at a native tree nursery in Busselton, Western Australia.

Recent Contracts – Victoria Agribusiness

• 90kW/320kWh VRFB for a dairy farm in Meredith, Victoria.

• 20kW/80kWh VRFB plus solar energy storage system for an orchard in Pakenham, Victoria.

• Each system will provide a minimum of four hours of stored renewable energy, allowing the clients to increase onsite renewable generation and consumption.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Project Finance Milestones

Successful SPP and Placement

• On September 23, 2019 AVL announced that it had raised $6.6 million from a successful SPP and placement to advance The Australian Vanadium Project.

Funding

Maintaining a strong financial position allows AVL to progress with planned work to advance The Australian Vanadium Project through to construction and production, including:

• Completing pilot studies and DFS.

• Expanding the Mineral Reserve via low-cost infill drilling of existing Inferred Resources to extend Project life.

Key Partnerships

Project implementation is dependent on AVL developing key funding and offtake relationships by:

• Leveraging AVL’s very strong global vanadium relationship network.

• Identifying and contracting with offtake and potential development partners.

• Parties conducting satisfactory technical duediligence.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Project Summary

Completed

Exploration success – large high quality VTM resource ✓

Resource and Reserves for initial 17 year mine, significant potential for extension ✓

Completed PFS showing strong fundamentals through all price cycles ✓

Heritage agreements ✓

Pilot study sample (30t) ✓

MOU with first Chinese party regarding finance, offtake of vanadium oxides to China ✓

MOU with Westgold for life-of-mine water requirements ✓

Ongoing Priorities

Large scale pilot testing and DFS

Environmental impact studies and heritage review

Mining agreement and mining licence approval

Native title

Financing (partnerships, MOUs) Offtake agreements

NAIF key infrastructure funding application

Capex/opex optimisation of base case through option study reviews

Convert Resources to Reserves to increase Project life

Planned

DFS completion

Key funding partner selection and financial close

Detailed design engineering completion

Order long lead time equipment

EPC/EPCM contract execution

Construction, startup, commissioning and ramp up

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Contact Us

P +61 (08) 9321 5594 E info@australianvanadium.com.au www.australianvanadium.com.au Level 1, 85 Havelock Street West Perth, Western Australia 6005

Australian Vanadium Limited | ASX: AVL

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www.australianvanadium.com.au

Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets

The Path Forward

Project Location

• WA ranked 2[nd] best mining investment location globally.

• Located in active mining region – close to road, rail, port, natural gas.

• 11.5km of known mineralisation under 100% AVL control.

• 18Mt at 1.04% V2O5 in Reserve, 55.3Mt at 0.97% V2O5 Inferred Resource available to extend life.

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Australian Vanadium Limited | ASX: AVL

Corporate Summary

About The Project

Vanadium Markets The Path Forward

Resource Table & Ore Reserve

Material	JORC Resource Class Million Tonnes V2O5 % Fe % TiO2 % SiO2 % Al2O3 % LOI %
High Grade	Measured 10.2 1.11 42.7 12.6 10.2 8.0 3.9
	Indicated 12.1 1.05 43.8 11.9 10.6 7.6 3.5
	Inferred 74.5 0.97 42.1 11.2 11.6 7.6 3.4
	Subtotal – High Grade 96.7 1.00 42.4 11.4 11.3 7.7 3.5
Low Grade	Indicated 28.6 0.5 24.6 6.9 27.5 17.9 8.6
	Inferred 53.9 0.49 25.3 6.7 27.5 16.4 7.3
	Subtotal – Low Grade 82.5 0.49 25.1 6.8 27.5 16.9 7.7
Transported	Inferred 4.4 0.65 28.2 7.2 24.7 16.7 8.5
	Subtotal – Transported 4.4 0.65 28.2 7.2 24.7 16.7 8.5
Total	Measured 10.2 1.11 42.7 12.6 10.2 8.0 3.9
	Indicated 40.7 0.66 30.3 8.3 22.5 14.8 7.1
	Inferred 132.7 0.77 34.8 9.2 18.5 11.5 5.1
	Total 183.6 0.76 34.3 9.2 18.9 12.1 5.5

	Reserve Classification	t	V2O5 %	Co ppm	Ni ppm	Cu ppm	S %	SiO2 %	Fe2O3 %	V2O5 Produced t
	Proved	9,820,000	1.07	172	571	230	0.06	9.47	58.7	65,000
	Probable	8.420,000	1.01	175	628	212	0.08	10.07	59.5	56,000
	Total	18,240,000	1.04	173	597	222	0.07	9.75	59.1	121,000

Note : Mineral Resource estimate by domain and resource classification using a nominal 0.4% V2O5 wireframed cut-off for low grade and nominal 0.7% V2O5 wireframed cut-off for high grade (total numbers may not add up due to rounding).

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