CADOUX LIMITED — Capital/Financing Update 2020

Dec 21, 2020

ASX RELEASE (ASX: FYI)

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22[nd] December 2020

SUCCESSFUL JOINT PILOT PLANT TRIAL CONCLUDES

Key points

• FYI and Alcoa have successfully completed their collaborative high purity alumina (HPA) pilot plant trial

• The trial achieved anticipated operating parameters

• The pilot plant trial results will be reviewed jointly

• Trial HPA will be sent to the US for independent analysis to confirm the target grade has

been achieved

• HPA samples will soon be made available to potential customers for application qualification

FYI Resources Ltd (ASX: FYI) (FYI or the Company) is pleased to announce that the scheduled HPA pilot plant trial in collaboration with Alcoa Australia Limited (Alcoa) concluded successfully achieving expected operational performances and further demonstrating the potential for commercial production of HPA via FYI’s innovative flowsheet design.

The pilot plant trial replicated FYI’s designed and engineered process flowsheet. The plant operated continuously for seven consecutive days on a 24 hours a day basis to demonstrate the “end to end” operational efficiency of FYI’s innovative HPA refining process.

The objective of the collaborative pilot plant operation was to demonstrate the complete metallurgical process using the best scale up practices to replicate commercial production as a condition precedent to the Memorandum of Understanding (MOU) with Alcoa.

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FYI and Alcoa joint continuous pilot plant operations

Unit 8- 9, 88 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

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

ASX RELEASE (ASX: FYI)

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22[nd] December 2020

The HPA produced during the trial operation was consistent with previous trials and appeared to be of excellent quality. The HPA will be checked for quality control and assurance jointly and then forwarded by FYI to targeted end-user and customer groups for on-going product qualification. FYI has been in advanced discussions with a number of Tier 1 industry groups across the Lithium-ion battery separator, Sapphire glass and other specialty markets regarding HPA marketing and off-take arrangements. The HPA market is growing at ~17% CAGR according to HPA commodity research group CRU.

Commenting on the successful pilot plant trial production, FYI Managing Director, Roland Hill, said: “We were, yet again, extremely pleased with the pilot plant’s operating performance. The project team excelled in delivering in what we consider, a very successful result. FYI’s planned systematic development of our innovative flowsheet continues to demonstrate the effectiveness and efficiency of our HPA process. The information and data generated from this trial will also lead into further refinements to our final design.

With the trial now successfully completed, we look forward to receiving the pilot plant trial results in the new year and progressing our project development including continuing the MOU discussions with Alcoa. We see a very active and exciting first half next year”.

Alcoa MOU Background

FYI has developed an innovative processing flowsheet design that has demonstrated the capability for the production of high purity, high quality HPA. Previous production trials have resulted in outstanding quality HPA which is currently being assessed by potential off-take parties.

FYI and Alcoa entered a MOU on 8 September 2020 for the potential joint development of FYI’s innovative, fully integrated, high quality HPA project.

Collaborative operation and demonstration of FYI’s pilot plant is one of several conditions precedent under the MOU.

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

Unit 8- 9, 88 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

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

ASX RELEASE (ASX: FYI)

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22[nd] December 2020

About FYI Resources Limited

HPA is increasingly becoming the primary sought-after input material for certain high-tech products principally for its unique properties, characteristics and chemical properties that address that applications high specification requirements such as LED’s and other sapphire glass products.

The longer-term driver for HPA, with forecasts of >17% CAGR, is the outlook for the burgeoning electric vehicle and static energy storage markets where the primary function is in the use as a separator material between the anode and cathode in batteries to increase power, functionality and safety of the battery cells.

FYI’s is positioning itself to be a significant producer of 4N and 5N HPA in the rapidly developing hightech product markets.

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

About Alcoa

Alcoa is a global industry leader in the production of bauxite, alumina and aluminium, a position enhanced by a portfolio of value-added cast and rolled products and select energy assets. Since developing the aluminium industry more than 130 years ago, Alcoa has built a legacy of breakthrough innovations and best practices that have led to efficiency, safety, sustainability and stronger communities wherever they operate.

Alcoa of Australia Limited (Alcoa) is owned 60 per cent by Alcoa Corporation and 40 per cent by Alumina Limited.

The Australian operations represent one of the world’s largest integrated bauxite mining, alumina refining and aluminium smelting systems and add value to Australia’s local, state and national economies at every stage.

Unit 8- 9, 88 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

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