Element 25 Limited Investor Update Building a world-class Zero Carbon Manganese business November 2021 AGM Presentation

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Introduction
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Disclaimer

Overview

This presentation contains only a brief overview of Element 25 Limited and its associated entities (“Element 25") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Element 25's projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification.

This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Element 25’s control, may cause the actual results, performance and achievements of Element 25 to differ materially from those expressed or implied in this presentation.

To the maximum extent permitted by law, Element 25 does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Element 25, and will not be responsible for any loss or damage arising from the use of the information.

The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Element 25 or its activities.

Developing the world class Butcherbird Manganese Project in Western Australia to produce high quality manganese concentrate and High Purity Manganese ( HPM ) products for traditional and new energy markets.

Financial Information ASX Ticker E25 Shares on Issue 153M Share Price $1.10 Debt Nil
• Australia’s largest onshore manganese deposit. • Simple low-cost mining and processing. • >260 Mt of manganese ore in JORC resources[1] . • No blasting or dewatering required. • Reserve containing 5.22 Mt of manganese[2] . • Long mine life – 42 years using only 20% of the • 100% owned by Element 25 Limited. global resource, potential to improve. • Located in WA, ranked #1 for mining investment[3] . • Outstanding economics[2] • Ethical, proven, sustainably regulated jurisdiction. • Excellent infrastructure: highway and gas pipeline

1Reference: Company ASX release 17 April 2019. 2Reference: Company ASX Release 3 December 2020. 3Reference: Fraser Institute Annual Survey of Mining Companies, 2019, 3Reference: Company ASX Release 26 May 2021, 4Reference: Company ASX Release 16 June 2021

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Our Strategic Vision…
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Stage 1 Stage 2 365Kt per annum 1 Mt per annum Commissioning and rampPFS study complete, up underway startup 2022

Stage 3 High Purity Mn PFS study anticipated for completion H1 2022

Stage 4 MnSO 4 Expansion Long term - multiple HPMSM modules globally

12 month plan 2 year plan 5 year plan

Cashflow

Low capital cost, rapid start up to establish E25 as a producer while minimising dilution.

Expansion

Improved resource utilisation, reduction in unit operating costs, increased operating cash.

The Prize

Position E25 as a globally dominant producer of high purity, sustainable manganese products.

Zero Carbon Manganese™

Best in class, zero carbon, ethically produced, scalable high purity manganese for global markets.

Not all manganese is created equal

E25 Manganese

Serving the Established…

Manganese ( Mn ) is the fourth most used metal on earth in terms of tonnage.
Used in steel, specialty alloys and aluminium products.
Traditionally the market has been dominated by the steel and alkaline battery industries.
There is no substitute for manganese in steel.
E25 manganese concentrate and EMM feed this market.

And the Emerging…

The electrification of the global vehicle fleet requires vast amounts of cathode materials.
Nickel and cobalt supplies cannot meet projected demand for new energy vehicle (NEV) growth.
Batteries are trending toward higher manganese content for safer, more cost-effective solutions.
E25 high purity manganese will feed these markets.
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Manganese prices - stable since commissioning

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Manganese Price (44%Mn cif Tianjin)
Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021
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$6.00
$5.50
$5.00
Mn Price USD/dmtu
$4.50
$4.00
$3.50
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Fundamentals have favoured higher ore prices;
COVID Disruptions
Shipping congestion
Supply shortages
Elevated alloy prices

• Fundamentals remain sound going forward but may be impacted by seasonal factors in China.

Supply side constraints likely to continue.
Future incremental demand increases likely.

Reference: Fastmarkets

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Great infrastructure endowment, fully permitted
Extensive Exploration Tenure
E52/2350
M52/1074
Granted Mining Lease
Measured & Indicated
Resources are the basis
Simple Logistics for the 42-year Base Case
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Very simple geology equals low-cost, low environmental impact manganese units

Classification	Tonnes (Mt)	Mn (%)	Contained Mn (Mt)
Resource	263	10.0	20.8
Reserve	50.6	10.3	5.22

RESOURCE GROWTH POTENTIAL • Enough resource base for multidecade long expansion pathway.
• Can produce concentrate, battery grade HPMSM and EMM without resource limitation.
ENVIRONMENTALLY BENIGN OPERATION • Ore from surface
• No explosives required
• No waste water • One reagent – water • Extremely low levels of contaminants
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Stage 1: Operational, ramping up to nameplate

20-year Mining Lease granted
All Stakeholder Agreements finalised

Maiden product shipment July 2021

Processing water confirmed and permitted
Fully funded with no debt
Operation is fully permitted
Stage 1 is operational
Stage 2 fully funded to provide expanded concentrate sales and provide feed for MnSO4 conversion

Stage 1 Low impurity Mn concentrate Operating and ramping up. Two shipments dispatched.

Stage 2 Expanded Mn concentrate PFS study complete, fully funded. Startup planned for 2022.

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Stage 1: Project Delivery Complete – Ramp Up Underway

Process Water Storage Tails Storage ROM Stocks Main Access Road Ore Stockpiles Processing Plant - 9 -

Concentrate Business– Cost/Revenue Drivers…

Key Revenue/Margin Drivers

Shipping – significant COVID related congestion has increased costs
E25 margins are directly impacted by increased shipping tariffs.

COVID congestion related price spike starting to normalise

E25 receives a CIF price with shipping deducted, paid FOB.
Manganese price – currently firm at >USD$5/dmtu, macro conditions supportive.
stockpiles in China reducing.
E25 operates in AUD and sells in USD.
Forex
largely fixed, with variable per tonne costs, throughput sensitive.
Site costs

E25 Challenges

Debottlenecking the process plant (scalping screen/crusher)
Throughput
Grade
Improved geological control, optimize processing to reduce dilution.
Efficiencies
Higher product volumes for the same/lower equipment/labour.
Expansion - Economies of scale, reduced costs, larger shipments.

Macro-economic Factors

Manganese Price (no hedging) AUD:USD Exchange Rate (no hedging) Inflation pressures Labour market constraints COVID related shipping congestion and costs

Quarterly Cashflow Comments

Revenues reported for the sale of 53Kt product. Production volumes of approximately 73 Kt. Shipping costs peaked at $56/t. Current ship booked at a 45% reduced tariff. Throughput expected to reach nameplate Q1 2022.

Reference: Fatmarkets

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Our Goal– The Concentrate for Stages 1 & 2 is Feed for Stage 3…

Manganese Concentrate

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Battery Grade Manganese
Sulphate (MnSO4)
Test work is Benign Leach
Conditions
utilising run-
of-mine
product
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Stage 1
First production of manganese
concentrate to sell to steel alloy
manufacturers
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Stage 2
Expansion of the concentrate
production to produce manganese
feedstock to convert to HPMSM
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Stage 3
Serving the New Energy Vehicle
Markets by converting the
concentrate to HPMSM using
renewable energy
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New Energy Vehicle (NEV) Demand Growing MUCH Faster

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58% by 2040 percentage of new vehicles that will be EV or hybrid

54 million EV passenger sales by 2040

from 2033 decline emissions 17.6M by 2040 from road transport barrels of oil displaced by EVs each day

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Mn
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Mn
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“It is reasonably straight forward to do a cathode that is two-thirds nickel and one-third manganese…” Elon Musk, Tesla

12 - Reference: https://www.nature.com/articles/s43246-020-00095-x

Reference: https://about.newenergyfinance.com/electric-vehicle-outlook/

Reference: Morgan Stanley Research

If not manganese, then what?

Global mined cobalt output (Kt)

58% by 2040 percentage of new vehicles 54 million that will be EV or hybrid EV passenger sales by 2040

from 2033 decline emissions 17.6M by 2040 from road transport barrels of oil displaced by EVs each day

“In order to save battery costs, VW wants to use nickel and manganese for the cells in the volume segment and, if possible, do without the – more expensive – cobalt.…” The Driven , March 2021

• Manganese is the cheapest, most abundant of the NMC cathode materials ( N i, M n, C ).

Nickel and cobalt have supply constraints, manganese does not.

For cobalt, there are serious ethical concerns around production methods[1] .

Manganese is perfectly placed to provide the material needed to satisfy the worlds hunger to electrify.
• Battery makers have manganese Mn rich cathode designs in their roadmaps post 2025.
Drop-off in supply post 2025.
• Ethical issues around production.

Class 1 Nickel Supply and Demand Outlook

Production capacity “flatlining”.
• Insufficient to meet projected demand.

1https://www.visualcapitalist.com/ethical-supply-the-search-for-cobalt-beyond-the-congo/

Reference: Wood Mckenzie

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Low cost, efficient HPMSM process – significant improvements…

Current Manganese Concentrate Processing Technologies

Leach - sulphuric acid leach of African/Local carbonate ores or roast reduction.
Purification – toxic fluorine and/or sulphide reagents (toxic chemicals/waste)
Dissolution of high purity EMM into MnSO4 solution (high energy costs).
Slow kinetics, high embedded energy, not ESG compliant.
Geopolitical/jurisdictional issues come into play.

Problems with Current Technologies Large volumes of waste residues Toxic Reagents Inefficient Higher Cost Outdated processing technology

Element 25 Process

Leach – rapid, low temperature leach using readily available CO2 neutral reagent.
Purification – minimal non-fluorine, non-sulphide based process.
Low energy consumption and significantly reduced residue volumes.
Residue streams may be able to be repurposed, further minimizing residue volumes.
Jurisdictional advantages – Tier 1, ESG compliant location.

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Advantages of E25 Process
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More efficient (fast kinetics, reduced energy) Minimises reagent requirements Reduced carbon intensity Lower volumes of waste residues Non-toxic residues may be able to be repurposed.

These enhancements are also complementary to the production of EMM.
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If not manganese, then what?

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OEMs including VW, Tesla and Stellantis have cathodes.
announced moves to high manganese
High manganese means better energy density and lower cost.
Transition will require large volumes of high purity manganese sulphate (HPMSM).
Some analyst estimates predict a deficit of up to 1.3Mt per annum by 2030.
Element 25 is targeting this market for its decade Mn
long growth strategy.
• Discussions underway in relation to potential offtake partners in this segment.

Reference: Volkswagen, Stellantis, Tesla, CPM Group

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