CARBONXT GROUP LIMITED — Investor Presentation 2021

Sep 29, 2021

ASX RELEASE

30 September 2021

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Carbonxt Group Investor Presentation

Carbonxt Group Limited (ASX: CG1) is pleased to release the attached Investor Presentation for a non-deal virtual roadshow the Company is conducting.

This announcement has been authorised for release to ASX by the Board of Directors of Carbonxt Group Limited.

ENDS

Enquiries

Warren Murphy Managing Director +61 413 841 216 w.murphy@carbonxt.com

Ben Jarvis, Six Degrees Investor Relations: +61 413 150 448

About Carbonxt

Carbonxt (ASX:CG1) is a cleantech company that develops, and markets specialised Activated Carbon products, focused on the capture of contaminants in industrial processes that emit substantial amounts of harmful pollutants. The Company produces and manufactures Powdered Activated Carbon and Activated Carbon pellets for use in industrial air purification, wastewater treatment and other liquid and gas phase markets.

Carbonxt Group Limited. Level 12, 225 George Street, Sydney NSW 2000

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CLEANTECH COMPANY REDUCING EMISSIONS AND POLLUTANTS

Investor Presentation Q3 / Q4 2021 ASX: CG1

Company snapshot

• A high-growth cleantech company that develops and manufactures patented emissions-reducing activated carbon products ‘(AC’) to eliminate toxic pollutants from industrial gas and wastewater streams

• The ONLY US manufacturer of industrial AC Pellets – gives CG1 as significant market opportunity

• Operates in large addressable markets; products in high demand by major industrial verticals such a coal-fired power stations, cement plants and other industrial processes

• Large and sticky customer base, 3-5 year contracts with high retention

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SUMMARY BOARD OF DIRECTORS
Share Price ($) [1] $0.25
Name Position Shares (m)
Shares on Issue (m) 169.39
Market Cap. ($m) [1] $42.35 Matthew Driscoll Chairman 1.58
Cash ($m) (30 June 21) [2] $2.64
Debt ($m) (30 June 21) $4.85 Warren Murphy MD 1.08
Enterprise Value ($m) [1] $44.56
David Mazyck Director 0.43
Options/Warrants (m) 34.83
TOTAL 1.82%
1. As at 21 September, 2021
2. Includes $1.05m new capital in July 2021
PRICE AND VOLUME CHART SHARE REGISTER
0.25 2.0
1.8 Pie Funds Management 8.09%
0.20 1.6
1.4
L A Andrews Investments 4.35%
0.15 1.2
1.0
0.10 0.8 Sufian Ahmad (Sixty-Two
3.62%
0.6 Capital)
0.05 0.4
0.2 Washington H Soul Pattinson 3.54%
0.00 0.0
Price ($)
Volum e (m )
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Volume

Price

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ASX listed cleantech peer comparison

Carbonxt Group Ltd (CG1)

DE Mem Ltd (DEM) Zeotech Ltd (ZEO)

Fluence Corporation Ltd (FLC)

Hazer Group Ltd (HZR) Scidev Ltd (SDV)

Sunrise Energy Metals Ltd (SRL)

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• One of only seven of the ASX listed cleantech peers who are currently revenue generating

• Active in water and air purification markets; as well as phosphate and nitrogen removal markets. Addressable markets > USD 10 b

• World leading research in carbon materials

• Trading at less than 2x revenue

FYI Resources Ltd (FYI) Alpha HPA Ltd (A4N) EcoGraf Ltd (EGR) Calix Ltd (CXL) $- $100.0 $200.0 $300.0 $400.0 $500.0

Market Capitalisation (m)

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Revenue generating Cleantech company

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FY20 revenue of ~$16m. FY21 revenue of ~$12.3m– impacted by contract delays and COVID-19, now resolved. Trading at < ~2x current revenue. Pre-Covid, grew revenue from ~$4M to ~$18M with quarterly revenue now tracking up favorably in FY22 to pre-COVID levels

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Three US manufacturing facilities with capacity to produce ~20,000 tonnes of powdered and pelletized product

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Completion of an additional 5,000 ton per annum pellet facility in Kentucky expected in 2HFY22 100% funded by the counterparty and will improve gross margins and eliminate working capital requirements for industrial pellets

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Significant expansion in FY22 due to increased plant utilisation, reduced reliance on third-party suppliers, and increased in-house manufacturing capacity

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Continuing transition from customer acquisition to also now establishing our Cleantech in new sectors – becoming a recognised, profitable, and high growth player in US industry delivering real solutions for decarbonization

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Broad industry applications with large addressable markets

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• Opportunities for AC Pellet use is increasing across a broad range of industrial applications (addressable market – greater than US $200m)

• Pellets for the Granular Activated Carbon (GAC Market) for instance, lowers the pressure drop for users thereby reducing energy consumption and lowering carbon emissions. GAC is a US $250m+ market

• Development of new solutions continues to expand our addressable market into industries not previously serviced by Carbonxt; strong and immediate growth opportunities

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Strong macro tail winds driving cleantech

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Unprecedented amounts in low carbon cleantech assets last year – a record $501.3Bn to decarbonization in 2020 up 9% YoY

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Carbonxt’s success in addressing major environmental concerns of airborne emissions and water contamination was recently featured on US National TV (CNBC) series ‘Advancements’ with Ted Danson on the 11th September 2021 – http://advancementstv.com/segments/

Biden Administration embracing steep cuts to carbon emissions and increasing the purview and budget of the Environmental Protection Agency; Proposed US 2022 budget calls for increased spending on climate mitigation with US$2 bn allocated to clean energy projects

World’s largest 217 companies reported their financial impact from climate related risks at US$1 trillion – it is cheaper to manage these physical and transitional risks up front

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Global breakdown of greenhouse gas emissions

iShares Global Clean Energy ETF share price

Our Activated Carbon products

Proprietary Activated Carbon Pellet technology (“ACP”)

• The only North American manufacturer of industrial ACP products, in a fast growing and largely underpenetrated market

• Entered US market in FY18 – $9m+ revenue in first full year and in FY20 despite largest customer being affected by COVID-19

• Enquiries continue to increase as awareness of our Pellet capabilities grows - >10 customers with 8 added in the last 12 months

• Existing Manufacturing facility in Arden Hills (Minnesota) and new facility to be built in Kentucky with operations commencing 2QFY22

• 12,000t p.a. total capacity depending on product produced; (avg. price A$4,000/ton);

Proprietary Powdered Activated Carbon (“PAC”)

• Mercury capturing PAC that doesn’t contain bromine and does not corrode capital equipment

• Long sales lead time and competitive market – lead time expected to shorten as Company moves into scale and profitability

• Carbonxt manufacturing facility in Black Birch (Georgia, USA) currently at ~50% utilisation

• 10,000t p.a. capacity (avg. price A$1,668/t); Gross margin expected to increase with scale to ~30% from ~24% today

Products are underpinned by unrivalled Advanced Carbon IP

• Team consists of four PhD’s and graduates and postgraduates in environmental engineering, chemistry, and mechanical engineering

• Extensive IP portfolio: seven current United States patents granted (11 pending), two in Australia, and four in Canada

• Significant internal R&D capability with a track record of multiple first-of-a-kind developments and commercialization

• Most recent success being named #10 on University of Florida’s top 100 companies that include at least one alumni

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Activated Carbon Pellet (ACP)
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Powdered Activated Carbon (PAC)
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HydRestor: A new market opportunity capitalizing on our IP

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• Carbonxt’s HydRestor is a high quality pelletized activated carbon sorbent:

• Developed specifically for removal of phosphorus in various water-phase applications

• Leveraged existing patent-pending formulation to develop a range of novel sorbents

• Competitive advantage of sorbents: compact vessel design that is scalable, better aesthetics and easier to use

• Three pilot opportunities are currently underway using HydRestor™proprietary technology:

• Continuing with water treatment facilities and secondary treatment stations

• Full-scale system online since early summer using pelletized HydRestor

• Progressing though second phase requirements of Herox Prize

• Red Tide and Blue Green Algae events are caused by algal blooms releasing toxins into the air and water:

• Naturally occurring off coasts all over the world

• Devastate aquatic life, tourism, and resident's sensitive to airborne irritants

• The existing research above has focused on prevention by reducing the nutrient concentrations in the discharge water and stormwater systems

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AC Pellet technology to combat Florida red tide events

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• An $18-million state funded initiative combines forces between Mote Marine Laboratory, Florida Fish and Wildlife Conservation Commission and industry partners like Carbonxt:

• Supported by government grants to fund development of an AC Pellet mitigation technology to arrest the spread of red tide algal blooms

• Red tide events in Florida devastate effect on tourism, fisheries, aquatic life and air quality

• Vision: Apply pellets formulated to simultaneously kill K. brevis and remove its toxins without causing long-term harm to the ecosystem:

• Carbonxt Novel algaecide/activated carbon composites are capable of killing up to 100% of the algae within 2 hours in lab tests

• Comparative test indicates considerably better performance from recently developed Carbonxt formulas than commercially available algaecide for killing red tide algae

• Future Work: Two more phases - determine which delivery mechanism works best in larger

scale aquariums then a full-scale test in an estuary to demonstrate effectiveness:

• If proven to be effective for large-scale ocean applications, technology could revolutionize algae control worldwide

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Recent successes and near-term value drivers

• Full-scale nutrient pellet study underway

• Expect sales into the GAC market for pellets

• Three PAC tests ongoing

• Production of higher valued added carbons at Arden Hills

• Expected granting of construction permit for Kentucky plant

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  - Expansion into new technologies in the carbon emissions reduction sector (newly developed IP)

• US$2m contract to supply an additional 1,000 tons of Activated Carbon Pellets

• US$1m order received to supply 500 tons of Activated Carbon Pellets to existing power station customer in Wisconsin

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• New Kentucky Pellet facility expected to commence construction

• Industrial (CTC) pellet sales to recommence

• Expect overseas pellet sales to commence

• First commercial nutrient pellet sales

• $4m raised for further development of Activated Carbon Pellets and for Working Capital.

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Highly experienced technical team

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David Mazyck, PhD

The team is led by a world-leading expert on activated carbon.

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Sebastian Sayavedra

Experience in laboratory testing, interpreting results, presenting technical topics, and solving application issues

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Charles Stout Logistics lead and manufacturing support

Regina Rodriguez, PhD Designing and implementation of new business operations and technologies

Dan Ominski

Supervising laboratory and safety procedures

Jack Drwiega, MS PE Experience across water purification system technologies, specialzing in capital and engineering project execution

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Beau Kostedt, PhD PE

Developing engineered materials and systems for separations and contaminant control for water and air systems

Dennis Baranik, MBA

Strategic and operational leadership in start-up, early revenue and Fortune 100 companies

Andrew Bockman

Chemistry, research and development, laboratory technician

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CONTACT Warren Murphy Managing Director +61 (0) 413 841 216 w.murphy@carbonxt.com www.carbonxt.com