CADOUX LIMITED — Capital/Financing Update 2019

Dec 3, 2019

ASX RELEASE (ASX: FYI)

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4 December 2019

FYI RECIEVES KWINANA SITE APPROVAL AND ADVANCES HPA PRODUCTION STRATEGY

Key points

• FYI secures premium location in highly sought-after Kwinana Industrial Area

• FYI granted approval of the Kwinana site through department of Jobs, Tourism, Science and Innovation and the Western Australian Land Authority

• Provides FYI with a secure and world class processing and refining site

• FYI can become an integrated proponent within the KIA and can contribute to, and leverage off, the areas’ world leading technologies and services providers

FYI Resources (”FYI” or the “Company”) are pleased to announce that they have been approved for, and have accepted, a prime industrial site in the Kwinana Industrial Area (KIA) as the location for its high purity alumina (HPA) refining facility where it intends to refine kaolin feedstock from its 100% owned Cadoux project into sought after HPA.

The KIA is part of the greater Western Trade Coast, Western Australia's premier industrial area. This strategic zone is widely recognised as a manufacturing, engineering, chemical and resource processing and refining hub with a leading number of industrial synergies amongst the many participating industries operating in the area.

The Kwinana Industrial Area is a key contributor to the WA economy and one of the most interconnected industrial precincts in the world. Numerous well-known companies are based there and are responsible for generating over $16Bn in economic activity and the direct and indirect employment of around 30,000 workers. *

In locating its HPA refinery in the KIA, FYI can benefit from the existing infrastructure, cheaper input costs, transport links and accessibility and available skilled workforce.

There has been a great deal of recent interest in the emerging energy and battery metals and materials industries. Tianqi Lithium Australia is soon to begin commissioning of their first stage lithium hydroxide chemical processing plant in the KIA, which will be the first in Australia and the largest of its kind in the world. Covalent Lithium (a joint venture between Wesfarmers Limited and SQM of Chile) is also planning to build a lithium hydroxide refinery in the KIA. This signals to the world that Western Australia's “Battery Valley”, located specifically in Kwinana, is up and running. There are numerous associated 'Battery value chain' entrant companies associated with lithium, cobalt, graphite, nickel, manganese etc currently making locational enquiries.

KIA selection and approval criteria

In order to be offered a site within the KIA, FYI had to demonstrate a number of key attributes including contributing to sustainable development; social advancement, technology breakthroughs or innovations, environmental protection that go beyond regulation; and the potential for a sustainable future.

* Kwinana Industries Council – “Kwinana as a catalyst for economic development” report

108 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

Tel: +61 8 6313 3920 Email: info@fyiresources.com.au

ASX RELEASE (ASX: FYI)

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4 December 2019

A selection of the integrated proponent companies located at the KIA, include:

• Tianqi Lithium

• BHP

• Wesfarmers (Covalent Lithium, Lynas Corporation & CSBP)

• Coogee Chemicals

• Bayer Corp

• BASF

• BP (Australia)

• Alcoa (Australia)

FYI Resources Managing Director, Mr Roland Hill, commented on the KIA site approval by saying “The KIA is a world class industrial hub and FYI are both delighted and proud to be selected to be a proponent within the zone and participating in the exciting Battery Valley. Having our HPA refinery located in this zone is a real asset to the company and is integral to our fully integrated production strategy. The benefit of being located in the KIA brings many tangible and intangible benefits to our business model such as essential services, utilities and suppliers at our doorstep, permitting and cost benefits, proximity to Perth and the advantages of a centralised distribution and export hub.

We are looking forward to progressing our development plans to include our major infrastructure being located in such a favourable jurisdiction and location”.

Schematic location diagram of FYI’s HPA refinery site in Kwinana Industrial Area

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108 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

Tel: +61 8 6313 3920 Email: info@fyiresources.com.au

ASX RELEASE (ASX: FYI)

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4 December 2019

Aerial photograph and outline of KIA

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108 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

Tel: +61 8 6313 3920 Email: info@fyiresources.com.au

ASX RELEASE (ASX: FYI)

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4 December 2019

Authorised for release by Roland Hill, Managing Director.

For more information please contact:

Roland Hill Simon Hinsley Managing Director Investor & Media Relations Tel: +61 414 666 178 Tel: 0401 809 653 roland.hill@fyiresources.com.au simon@nwrcommunications.com.au

About FYI Resources Limited

FYI’s is positioning itself to be a significant producer of high purity alumina (HPA) in the rapidly developing light emitting diode (LED) and phosphor applications and the electric vehicle and static power storage markets as well as other associated high-tech product markets.

The foundation of FYI’s HPA strategy is the superior quality aluminous clay (kaolin) deposit at Cadoux and positive response that the feedstock has to the Company’s innovative and integrated processing flowsheet utilising uncomplicated moderate temperature and atmospheric pressure technologies. The strategy’s quality attributes combine resulting in world class HPA project potential.

FYI is progressing positively with its Definitive Feasibility Studies (DFS) supporting a planned production of 4N and 5N HPA following the successful pilot plant trial achieving the targeted production grade of 99.99% Al2O3.

108 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

Tel: +61 8 6313 3920 Email: info@fyiresources.com.au