CADOUX LIMITED — Investor Presentation 2017

Jul 19, 2017

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20 July 2017

The Manager Australian Stock Exchange Limited (“ASX”) Company Announcements Office

Revised HPA Presentation

FYI Resources Limited (FYI or the Company) released a corporate presentation, “HPA Strategy Overview” on 18 July 2017. FYI retracts that release as it contains a reference to a target for production capacity that is not in compliance with the ASX listing rules.

A revised presentation follows.

Yours faithfully

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Phillip MacLeod Company Secretary

53 Canning Highway, VICTORIA PARK, WA 6100 Tel: +61 8 9361 3100 Fax: +61 8 9361 3154 Website: www.fyiresources.com.au ACN 061 289 218

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High Purity Alumina Strategy Overview

July 2017 I www.fyiresources.com.au I ASX:FYI

What is HPA

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• High purity alumina ( HPA ) is aluminum oxide (Al2O3) powder with a purity equal to or greater than 99.99%

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• HPA has uniform fine particle characteristics and is very low in impurities

• HPA’s properties include low-friction and high wearresistance, hardness, thermal and electrical insulating ability, non-corrosive and broad chemical compatibility

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• HPA is utilised extensively in applications such as:

• light emitting diodes ( LEDs )

• semiconductor wafers

• sapphire glass for smart phone, television screens and watch faces

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• high-strength ceramic tools

• space and aeronautics industries

• high tensile light weight fabrication applications

• artificial gemstones (sapphires)

• abrasives

• fire-retardant insulation for electrical circuitry

• battery technologies and energy storage

HPA is a versatile material allowing a multitude of uses in new age industries

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FYI’S HPA Strategy

• FYI’s objective is to become one of the worlds leading producers and suppliers of the high value >99.99% HPA Al2O3

• To address the growing global demand for next generation high performance materials requirements

• FYI propose to own and control our entire HPA production chain from high quality feedstock through to owner operated processing, thus allowing FYI to meet the increasing quality and assurance demanded by market

• To meet the market’s challenges through conventional chemistry but via a non-traditional IP processing route

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• Our IP HPA process route will provide the following advantages over current conventional Al2O3 production, including:

• substantially lower capex & opex = improved economics

• control of product quality

• greatly improved refining abilities

• lower pressure & temperature

• lower energy requirement

• less waste

FYI’s HPA strategy is to develop a quality integrated business to address the forecast long term HPA shortfall

• lower environmental impact

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Al purity pricing scale

HPA Market

• Historically a small market – no justification for innovation

• Consistent, low-growth demand previously; new applications have created demand and new market developments

• The current global 4N (99.99% Al) HPA market demand is ~26k tpa; this is expected to increase to ~48k tpa by 2025

• Anticipated CAGR for HPA market is ~10 -15%

• HPA is experiencing increasing demand due to its significance in today’s high-performance electronic devices

• Major industry drivers include:

• increasing environmental policies and awareness

• phasing out of old and inefficient technologies (eg incandescent lighting)

• o burgeoning sustainable & clean technology industries (eg EPV batteries)

• dramatic advances in technology and requirement for improved materials

• requirements for reliable and consistent availability of HPA

FYI’s HPA strategy is based upon positive market fundamentals

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Smelter Grade Alumina 99.5% Al US$400/t SGA

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Smelter Grade Aluminum 99.9% Al US$1600/t SA

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High Purity Alumina 99.9% Al US$6000/t HPA 99.99% Al US$23000/t HPA 99.999% Al US$35000/t HPA

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It All Starts With a Quality Resource

• Feedstock will be 100% sourced from the Cadoux Kaolin project (EL70/4673)

• –

• Cadoux geology is ideal shallow, flat lying, low strip, excellent quality, & easily accessible

• The project area boasts excellent infrastructure:

• 220kms from Perth

• Major arterial sealed roads

• Rail siding < 1km from site

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• Water, power and telephone services all on tenement boundary

• Cadoux contains over 50 years of high quality HPA feedstock

Current JORC Resource (2012)*

JORC (2012)	Tonnage	%-45 Microns	Average Al%	Average Fe%	Average Ti%
Inferred Resource	10,469,985	84.4	11.25	0.36	0.25
Total Resource	10, 469,985	84.4	11.25	0.36	0.25

The Cadoux project is ideal quality feedstock for HPA

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* See ASX Company announcement – 8[th] May 2017

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HPA processing

• The kaolin HPA processing route has many advantages over the traditional bauxite derived HPA

The simplified HPA processing flow-sheet will provide immense commercial advantages

• The traditional series of processing HPA is capex and opex intensive

• The FYI calcining / leaching process will simplify the flowsheet and reduce capex and opex in HPA production

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----- Start of picture text -----

Extrusion
Simplified HPA Processing and Refining Pathways
Traditional Route
Alumina Refinery Alumina Smelter Aluminium Dissolution
Bauxite Feedstock Smelter Grade Alumina Smelter Grade Alumina
(~30%Al) (~99.5% Al) (~99.9%Al) HPA
(>99.99%)
Rolling
FYI Proposed Route
FYI Single Stage HPA Processing
Kaolin Feedstock
HPA
(~30%Al)
(>99.99%)
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FYI HPA Development

• FYI is developing its HPA project to meet future market demand

• The development schedule is designed to support an integrated plant study and commercial production of 99.99% HPA

• Our test work will result in the optimising of the processing chemistry and simplification of process engineering and plant design

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• Second stage studies are yet to be completed, however considerations for final development include:

• development justification (economics and value return)

• access and pricing of inputs

• scale of throughput in relation to capex:opex optimisation

• allowance for changes in market conditions & demand

FYI’s HPA strategy is to address the forecast shortfall with a quality development

• control of management and processing

• project risk management & mitigation

• project life cycle

• project base lines: scope, schedules costs, revenues

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HPA Development Timeline

• FYI has an intensive development schedule

• Targeting key project development objectives

• The first 6 months of KPI’s are detailed

• Initial key objective results/outcomes look very encouraging

FYI has a well defined development schedule leading to project delivery

• All first phase KPI’s lead to an accelerated pre-feasibility study

FYI ‘s first six months development time line includes:

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Completed Outstanding

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Preliminary Project Metrics

• Current schedule of works is progressing to a Pre-Feasibility study. This study will determine preliminary project metrics

• However, internal economic assessment has determined the following:

• capex range – targeting lowest industry quartile

  • includes: mining, beneficiation and processing

• sales range forecast – market

• cost range expectation – targeting lowest quartile

• accelerated project payback anticipated

• above average rate of return calculated long term

• HPA market to continue to grow

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• major production reactants and reagents are recycled

• power requirement low in comparison to traditional HPA production

• transport cost is minimal in comparison to product value

FYI’s HPA strategy offers considerable strong long term investment returns

• Low infrastructure spend expected (major items already established – ie road, rail, water, power etc)

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FYI Capabilities

• FYI :

• includes first class management and technical team

• is accredited with multiple discoveries and project developments

• possesses a team with extensive operational experience

• o has high calibre technical expertise geological, metallurgical, hydrological, engineering

• has assembled an accredited marketing team

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Technology
Process
People
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• maintains a focused strategy and management

• has supportive long term shareholders that support the strategy

FYI has the technical and operational capabilities to successfully develop the HPA strategy

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Summary

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• FYI’s goal is to be a major HPA industry participant

• Industry supply and demand metrics are positive (short and long term)

• New and evolving technologies continue to drive HPA demand

• Preliminary evaluation studies suggest above average returns

• FYI management have appropriate skill set and capabilities to commercialise HPA

• Top tier kaolin asset is the foundation of the strategy

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• High volume production facility with latest technology

• Ensuring 100% control of production to market

• FYI is :

• Progressing to feasibility studies

• Targeting to be first quintile low cost producer

• Capitalising on growth and demand in new and developing high tech industries

FYI is extremely well positioned to successfully develop a world class HPA business

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Investor Notice

DISCLAIMER

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in that jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in that jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipients’ investment objectives, financial circumstances or particular needs, and the opinions and recommendations in this presentation are not intended to represent recommendations to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include, among others, the risk of adverse or unanticipated market, financial or political developments.

Certain statements contained in this presentation, including information as to the future financial or operating performance of FYI Resources Ltd (‘FYI’ or ‘the Company’) and its projects, are forward-looking statements. Such forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by FYI, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies, involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements, and may include, among other things, statements regarding targets, estimates and assumptions in respect of commodity prices, operating costs and results, capital expenditures, ore reserves and mineral resources and anticipated grades and recovery rates and are, or may be, based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.

FYI disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and other, similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: competition; mineral prices; ability to meet additional funding requirements; exploration, development and operating risks; uninsurable risks; uncertainties inherent in ore reserve and resource estimates; factors associated with foreign operations and related regulatory risks; environmental regulation and liability; currency risks; effects of inflation on results of operations; factors relating to title to properties; native title and Aboriginal heritage issues; dependence on key personnel, and share-price volatility. They also include unanticipated and unusual events, many of which it is beyond the Company’s ability to control or predict.

Photographs in this presentation do not necessarily depict assets of the Company.

COMPETENT PERSON’S STATEMENT – CADOUX KAOL IN DEPOSIT

The information in this report that relates to the Cadoux Mineral Resource is based upon information from the Company's announcement dated 8 May 2017 and is available to view on the Company's website at www.fyiresources.coma.au. The information that relates to Mineral Resources is based on information compiled by Mr Andrew Kohler, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy. Mr Kohler is an employee of Strategic Resource Management, and consultant to the Company. Mr Kohler has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity that he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Mineral Resource estimate comply with recommendations in the Australian Code for Reporting of Mineral Resources and Ore Reserves (2012) by the Joint Ore Reserves Committee (JORC). Mr Kohler consents to the inclusion of the report in the form and context in which it appears. 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 that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

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Contact Details

For further details please contact:

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Roland Hill Managing Director FYI Resources info@fyiresources.com.au +61 8 9361 3100 www.fyiresources.com.au 53 Canning Highway Victoria Park WA 6100

ASX: FYI

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