AUSTRALIAN VANADIUM LIMITED — Investor Presentation 2021

Feb 24, 2021

Corporate Presentation

February 2021

ASX: AVL

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

in which it appears.

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 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.

The information is extracted from the announcement entitled “Total Vanadium Resource at The Australian Vanadium Project Rises to 208 Million Tonnes” released to the ASX on 4[th] March 2020 and “Technical and Financial PFS Update” released to the ASX on 22[nd] December 2020 which are available on the Company’s website at 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

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.

Competent Person Statement – Ore Reserves The technical information in this presentation that relates to the Ore Reserve estimate for the Project is based on information compiled by Mr Ross Cheyne, an independent consultant to AVL. Mr Cheyne is a Fellow of the Australasian Institute of Mining and Metallurgy. He is an employee and Director of Orelogy Mine Consulting Pty Ltd. Mr Cheyne 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 Cheyne consents to the inclusion in the announcement of the matters related to the Ore Reserve estimate in the form and context

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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Corporate Overview

Australian Vanadium Limited (ASX: AVL) is an emerging vanadium producer developing The Australian Vanadium Project at Gabanintha in Western Australia

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• ‣ Strong technical and commercial team with global vanadium experience

• ‣ High quality deposit

• ‣ Building ability to deliver through all vanadium price cycles

• ‣ Undertaking BFS

• ‣ Federal Government Major Project Status

• ‣ Western Australian Government Lead Agency Status

• ‣ Vanadium is recognised as a critical steel and alloy mineral and a battery mineral by Australian and international governments

• ‣ Vanadium usage in modern re-enforcement steel a major positive impact on CO2 emission reduction

• ‣ 100% owned subsidiary VSUN Energy promotes vanadium redox flow batteries for renewable energy storage, a vanadium supply growth market

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Corporate Overview

KEY STATISTICS (24/02/21)	KEY STATISTICS (24/02/21)
Ordinary Shares on Issue	2.93b
Share Price	A$0.022
Average Daily Traded Volume	15,415,050
Market Cap (Undiluted)	A$62m
Cash	~A$7m
Shareholders	8,270

SHAREHOLDER SPLIT

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Remaining
Top 200,
Holders, 55.34%
44.66%
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			MAJOR SHAREHOLDERS
	1		JP Morgan Nominees Australia Pty Ltd
	2 3		HSBC Custody Nominees (Australia) Ltd Citicorp Nominees Pty Ltd
	4		Southland Snipe SF
	5		Mr and Mrs Hoeksema

Top 200

Remaining Holders

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The Australian Vanadium Project Overview

High quality vanadium titanium magnetite (VTM) deposit

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• TOTAL RESOURCE MASSIVE HIGH-GRADE ZONE 208 Mt @ 0.74% V2O5 87.9 Mt @ 1.06% V2O5 32.1 Mt Reserve @ 1.05% V2O5 Proved 9.8Mt | Probable 22.4 Mt

  • V2O5 PRODUCTION 24.3 Mlbs per annum (6,175 MTV) (2019 global production 102,025 MTV)

• INITIAL MINE LIFE 25 years

• ►Production of 900,000 tpa of FeTi Coproduct

Strong financial outcomes

• ‣ Pre-Tax NPV8 of A$909M ‣ Capex US$399 (±25%) includes ‣ Project IRR of 17.5% provisions for estimated indirect ‣ C1 Opex US$3.66/lb V2O5 costs, EPCM costs, owner costs ‣ C3 Opex US$5.04/lb V2O5 and capital growth of US$72M

►Payback 6.6yrs (AUD:USD 0.72, USD8.67/lb V2O5)

Feasibility study status

• ‣ Detailed Pre-Feasibility study update completed based on two site layout

• ‣ Feasibility studies proceeding direct to bankable level to ensure financing success

• ‣ Pilot studies on Crushing Milling and Beneficiation completed to DFS level

• ‣ Vanadium Processing Circuit design to be finalised in BFS by July 2021

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The Australian Vanadium Project Overview

Unique points of difference

• ‣ Experienced vanadium team

• ‣ Unique mineral resource and metallurgical characteristics

• ‣ Proven processing path with industry leading vanadium recovery using grate kiln

• ‣ Focus on innovation - CRC-P grant for vanadium research; processing plant location near to port; market development of Fe-Ti coproduct

Government support

• ‣ Federal Major Project Status and State Lead Agency, strong global focus on battery and critical mineral projects

• ‣ Appointed as a member of the Western Australian Battery Industry Taskforce

Vanadium markets

• ‣ Vanadium a critical metal in re-enforcing steel production ‣ Proven capability to produce high-purity V2O5 suitable for vanadium redox flow batteries (VRFBs) and production of electrolyte

• ‣ Dedicated subsidiary VSUN Energy focused on growing the Australian energy storage market

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Corporate Overview Experienced Team

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Non-Executive Director

Over 10 years of experience chairing public and private companies post extensive executive career in resources, energy, infrastructure and investment banking.

Currently Non-Executive Chair of Paladin Energy (ASX: PDN), Caspin Resources (ASX:CPN), Canyon Resources (ASX:CAY) and privately owned Pacific Energy and Onsite Rental Group.

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Leslie Ingraham Executive Director

Has been in private business for over 30 years and has worked successfully as a consultant for private companies and public companies listed on the ASX. Core competencies are in corporate advisory, investor relations, capital raising, prospecting and exploration, building long lasting relationships with high end investors in Australia and overseas.

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Vincent Algar Managing Director

Geologist with over 25 years of 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.

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Chief Operating Officer

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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. Currently Director of US Vanadium LLC.

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VSUN Energy Manager

Over 25 years in a diverse range of industries spanning education, law and technology. Has led the development of VSUN Energy since 2016. Fosters a strong network in both vanadium and energy markets and has experience in marketing.

Vanadium Markets

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PRIMARY Steel

EMERGING

Accounts for 90% of current global vanadium consumption. Total Consumption in 2019, 102,000 MTV

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Vanadium electrolyte in vanadium redox flow batteries (VRFBs)

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ADDITIONAL

Ti and Chemical

4% of vanadium consumption each, with significant potential for growth (super alloys, 3D printing, etc)

Vanadium can also be used in the cathode of Li-ion batteries

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Global Tier 1 Mining Location in Western Australia

Post PFS study considering unique coastal vanadium processing of vanadium Access to globally competitive natural gas supply

Project Location

Current Key Objectives

Offtake Agreements

Complete secured offtake for 100% of vanadium products and FeTi coproducts

Feasibility Studies

Completion of engineering and BFS level costing

Finance

Maintain strong financial position

Qualification with financiers for Project equity and debt and/or Joint Venture partnerships

Social Licence to Operate Finalise Mining Licence approvals Increase regional community engagement

Continue to analyse economically viable ways to increase sustainability

Environmental Approval

Submission of environmental approval for mine and CMB site

Processing plant site approval application

Government Support

Maintain strong Federal and State Government recognition and support

Vanadium redox flow batteries VSUN Energy

A Renewable Energy Company

• VSUN Energy was launched by AVL to target the long duration energy storage market for the vanadium redox flow batteries (VRFBs).

• VSUN Energy supplies VRFBs for all market segments including utility, commercial and industrial, mining, standalone power systems and residential.

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Recent Sales and Revenue Opportunities

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

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

• 5kW/30kWh standalone power system for an off-grid residential client in regional Western Australia.

• VSUN Energy sells, installs and maintains VRFBs from a variety of manufacturers.

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• Developing a residential VRFB with potential for manufacture in Australia.

• Vanadium electrolyte manufacture in Australia with vanadium supplied by Australian Vanadium Ltd.

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Additional Information

The Australian Vanadium Project Resource Table

Material	JORC Resource Class Million Tonnes V2O5 % Fe % TiO2 % SiO2 % Al2O3 % LOI %
High Grade Low Grade Transported Total	Measured 10.1 1.14 43.9 13.0 9.2 7.5 3.9 Indicated 25.1 1.10 45.4 12.5 8.5 6.5 2.9 Inferred 52.7 1.04 44.6 11.9 9.4 6.9 3.3
	Subtotal – High Grade 87.9 1.06 44.7 12.2 9.2 6.8 3.2
	Indicated 44.5 0.51 25.0 6.8 27.4 17.0 7.9 Inferred 60.3 0.48 25.2 6.5 28.5 15.3 6.7
	Subtotal – Low Grade 104.8 0.49 25.1 6.6 28.0 16.1 7.2
	Inferred 15.6 0.65 28.4 7.7 24.9 15.4 7.9
	Subtotal – Transported 15.6 0.65 28.4 7.7 24.9 15.4 7.9
	Measured 10.1 1.14 43.9 13.0 9.2 7.5 3.7 Indicated 69.6 0.72 32.4 8.9 20.6 13.2 6.1 Inferred 128.5 0.73 33.5 8.8 20.2 11.9 5.4
	Total 208.2 0.74 33.6 9.0 19.8 12.1 5.6

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).

The Australian Vanadium Project Reserve Table

Ore Reserve

Ore Reserve	Million Tonnes	V2O5 %	Fe2O3 %	TiO2 %	SiO2 %	LOI %	V2O5 production kt	Ore Reserve	Million Tonnes
Proved	9.8	1.08	59.9	12.4	8.7	3.5	63.2	Waste	244.5
Probable	22.4	1.04	61.7	11.8	8.3	2.8	158.9	Total Material	276.7
Total Ore	32.1	1.05	61.2	12	8.4	3	222.1	Strip Ratio	7.6

Ore Reserves and Inferred Resources used in LOM Schedule

	Million	V2O5 %	Fe2O3 %	TiO2 %	SiO2 %	LOI %	V2O5 production kt
	Tonnes
Proved	9.8	1.08	59.9	12.4	8.7	3.5	63.2
Probable	22.4	1.04	61.7	11.8	8.3	2.8	158.9
Inferred Resources	7.5	1.05	68.8	13	8.6	3.2	50.3
Total Ore	39.6	1.05	62.6	12.2	8.4	3	272.4

Inventory	Million Tonnes
Waste	280.4
Total Material	320.1
Strip Ratio	7.1

Note: Tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.

The Australian Vanadium Project Resource Total Magnetic Intensity

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The Australian Vanadium Project Mining Layout

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Contact AVL

+61 (08) 9321 5594

info@australianvanadium.com.au

Level 1, 85 Havelock Street West Perth, Western Australia 6005

Australian Vanadium Limited | ASX: AVL

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australianvanadium.com.au

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