ELEMENT 25 LIMITED — Investor Presentation 2019

Jun 5, 2019

Element 25 Limited Investor Update

Building a globally significant, low cost, high purity manganese project to supply high growth markets. AMEC Convention - June 2019

==> picture [186 x 51] intentionally omitted <==

Disclaimer

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.

==> picture [92 x 28] intentionally omitted <==

2

AMEC Convention – June 2019

Corporate Overview

Financial Information

Financial Information
ASX Ticker	E25
Shares on Issue	89M
Share Price	$0.19
Market Capitalisation	$16.9M
Cash & Investments ( at 31 March	2018) ~$8.5M
Debt	Nil
Enterprise Value	~$8.5M
Board and Management
Seamus Cornelius	Chairman
Justin Brown	Executive Director
John Ribbons	Non Executive Director
Ian Huitson	Study Manager
Sias Jordaan	MarketingManager

Share Price Performance

==> picture [401 x 222] intentionally omitted <==

Major Shareholders Top 20 Shareholders 67% Board and Management 8.2% JP Morgan Nominees Australia 11.4% Duketon Mining Ltd 6.5%

==> picture [92 x 28] intentionally omitted <==

3

AMEC Convention – June 2019

The High Purity Manganese Market

==> picture [115 x 97] intentionally omitted <==

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

HPMSM
----- End of picture text -----

What is High Purity (Class 1) Manganese?

• Electrolytic Manganese Metal (“EMM”) • Used in series 200 SS and specialty alloys • ESTABLISHED DEMAND •

• • Largest market, ~1.8Mt or ~US$4B annually, steady growth • E25 Primary product STEADY GROWTH • Chinese producers: lack of domestic ore = African ore = high costs

• • Well understood • • EASY OFFTAKE Easy to market, simple offtake, predictable pricing, US$2K-$3K/t

• • Bankable • Forms the E25 base case to underpin debt finance • MOST BANKABLE • E25 expects to be the lowest cost producer globally

• Battery Grade Manganese Sulphate • Used in fertilisers and new energy NMC and LNMO batteries • NEW DEMAND •

• • Small market, ~0.1Mt or ~US$0.2B/a, BUT (very?) fast growth • E25 Secondary product HIGHEST GROWTH • Currently produced by dissolving EMM

• • New, fast growing market • • DIFFICULT OFFTAKE Challenging to market for now, small parcels BUT highest price,

• • Huge blue sky upside potential US$3.5-4K/t • BANKABLE?

• • Will increase exposure over time • Market growth potentially 10 fold to 2030 • E25 expects to be the lowest cost producer globally

• Electrolytic Manganese Dioxide • Used in traditional dry cell and older LMO batteries • ESTABLISHED DEMAND • Intermediate market, ~0.4Mt or US$1B annually, steady growth • STEADY GROWTH

• • More difficult to market, long qualifying periods, risky, no price • DIFFICULT OFFTAKE

• advantage • NOT BANKABLE

==> picture [92 x 28] intentionally omitted <==

5

Reference: Metal Bulletin Commissioned Manganese Market Report April 2018

High Purity Manganese Market Forecast = Strong Growth

Reference: Metal Bulletin Commissioned Manganese Market Report April 2018

==> picture [92 x 28] intentionally omitted <==

6

AMEC Convention – June 2019

Competitor’s Costs are Rising

Chinese Producers are struggling to control costs…

• Ageing infrastructure.

• Expensive African ore; local ores are depleted.

• Labour intensive processes.

• Difficulties sourcing labour and rising costs.

• Increasing power costs

• Complex logistics.

• Waste disposal and other environmental problems rife.

==> picture [198 x 264] intentionally omitted <==

==> picture [198 x 264] intentionally omitted <==

==> picture [92 x 28] intentionally omitted <==

8

AMEC Convention – June 2019

Chinese manganese mines are depleted…

==> picture [459 x 285] intentionally omitted <==

• Local production is dropping YoY.

• Grades are declining YoY.

• Imports rising each year.

• Demand continues to grow.

• Ore costs are now the biggest cost driver for Chinese high purity manganese producers.

==> picture [422 x 133] intentionally omitted <==

• Has a negative impact on Chinese production costs.

==> picture [92 x 28] intentionally omitted <==

9

AMEC Convention – June 2019

Costs Are Going Up in China

And… quality domestic ore supplies are largely exhausted…

==> picture [297 x 347] intentionally omitted <==

==> picture [434 x 346] intentionally omitted <==

==> picture [92 x 28] intentionally omitted <==

10

Reference: https://www.crugroup.com/knowledge-and-insights/spotlights/2018/manganese-metal-price-hikes-a-storm-in-a-teacup/

World Class Manganese Resource

The Butcherbird Manganese Project

• Huge resource, currently >260 Mt of manganese ore in Measured, Indicated and Inferred JORC resources*.

• Excellent local infrastructure ( bitumen road and gas pipeline ).

• 100% owned by Element 25 Limited.

• Located in WA, a tier 1 mining jurisdiction.

• Very simple geology, no strip and free dig.

• Measured and Indicated resources are the focus of the PFS .

• Metallurgically process proven.

• Scoping Study completed, Pre Feasibility Study well advanced.

*Reference: Element 25 Limited ASX release dated 17 April 2018.

==> picture [92 x 28] intentionally omitted <==

12

AMEC Convention – June 2019

World Class Resource, Great Infrastructure Endowment

==> picture [653 x 461] intentionally omitted <==

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

Goldfields Gas
Pipeline
Measured and Indicated
Resources are the focus
of the PFS
Gt Northern MLA 52/1074
Highway
1050km PORT
FREMANTLE
HEDLAND
550km PORT
----- End of picture text -----

==> picture [92 x 28] intentionally omitted <==

13

Simple Geology

==> picture [827 x 321] intentionally omitted <==

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

•
Flat lying stratiform ore body, very
simple geology.
•
Ore zone starts at surface and is
laterally continuous.
Manganese orebody • No selective mining required.
•
Starts at surface
• Low strip ratio •
Low strip ratio of 0.2:1 based on
• Low cost mining
preliminary pit optimisations.
•
Ore zone is above the water table.
•
Free dig with localised ripping.
----- End of picture text -----

Note: All intersections are approximately true width

==> picture [92 x 28] intentionally omitted <==

14

AMEC Convention – June 2019

A Lower Cost, Cleaner Processing Pathway

Breakthrough Technology

• CSIRO co-developed process produces high purity manganese with less energy and lower emissions.

• Products include high purity manganese sulphate (“HPSM”) for NMC Li-Ion battery cathodes and Electrolytic Manganese Metal (“EMM”) for specialty steels.

• .

• These are high value products. Electrolytic Manganese Metal (EMM) is currently priced ~USD$2,700/t[1]

==> picture [224 x 224] intentionally omitted <==

==> picture [297 x 76] intentionally omitted <==

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

PRECIP.
LEACH PURIFY
OR EW
----- End of picture text -----

High purity manganese products, EMM and HPSM

• 1https://www.metalbulletin.com/My-price-book.html?price=34473

==> picture [92 x 28] intentionally omitted <==

16

AMEC Convention – June 2019

==> picture [960 x 540] intentionally omitted <==

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

Existing Producers use an Inefficient and Polluting Flowsheet
HIGH COST Mn ORE COMPLEX LOGISTICS
ENERGY INTENSIVE
HIGH EMISSIONS
Current producers:
•
energy intensive
RE-LEACH TO MAKE BATTERY GRADE SULPHATE
•
high emissions
•
rising costs
•
inefficient
17
AMEC Convention – June 2019
----- End of picture text -----

Element 25 Uses a Simpler, Lower Cost, Cleaner Process

==> picture [822 x 413] intentionally omitted <==

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

Element 25 Process:
•
cheaper local ore
•
cleaner, cheaper
leach process
•
renewable energy
simpler,
lower cost,
cleaner,
greener
----- End of picture text -----

18

AMEC Convention – June 2019

Energy Solution: Gas, Wind or Solar

Renewable Energy - Lower Emissions and Cost Effective

• Cost of renewables steadily Gas Generation declining. Cost (Est.) • Renewables are cheaper than fossil fuel sources. • Maximising renewables will maximise project economics. Renewable Cost Are Lower: A recent 25 year contract • Reduces carbon footprint. awarded in Saskatchewan was priced at <$42/MWh* • Decarbonises products for end users.

==> picture [92 x 28] intentionally omitted <==

Chart source: IRENA - Renewable Power Generation Costs in 2017 *https://www.saskpower.com

20

AMEC Convention – June 2019

Energy Optionality

==> picture [212 x 128] intentionally omitted <==

==> picture [213 x 120] intentionally omitted <==

==> picture [213 x 120] intentionally omitted <==

• EMM EW

• consumes

• ~6.5 MWh/t of

• Gas generation: electricity

• • Reciprocating gas engines/turbines

• • Cost effective base case power solution

• • 100% gas power assumed in the Scoping Study

• Wind turbines: • Competitive Levelised Cost Of Energy (“LCOE”)

• • Long mine life supports favourable PPA terms

• • Protection from gas price changes

• Solar photovoltaics: • Competitive LCOE

• • Offsets lower daytime wind speeds

• • Assists in smoothing the renewable power supply

Expected energy mix is 50% wind and solar plus 50% gas, halving emissions and reducing cost over gas only*

==> picture [92 x 28] intentionally omitted <==

21

AMEC Convention – June 2019

*Subject to PFS outcomes

Making Metals with Renewables - IDE

Upside Case ~90% Renewables Optimised Case ~50% Renewables

==> picture [97 x 97] intentionally omitted <==

==> picture [33 x 33] intentionally omitted <==

Base Case 100% Natural Gas

==> picture [33 x 31] intentionally omitted <==

INTERMITTENT DYNAMIC ELECTROWINNING

• Optimising electrowinning process to utilise dynamic energy supply. • Finding the limits on key variables such as voltage, current density, solution chemistry. • Designing management systems to use dynamic energy while maintaining quality. • Co-funded to $490K by the Australian Renewable Energy Agency (“ ARENA ”).

==> picture [92 x 28] intentionally omitted <==

22

*Subject to PFS outcomes

Next Steps for Element 25?

Our Journey…

==> picture [853 x 406] intentionally omitted <==

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

PROJECT
PFS DFS BUILD PRODUCE GROW
FINANCE
Flowsheet Development - COMPLETE
Resource Infill & Upgrade - COMPLETE
Environmental Surveys - COMPLETE
PFS Delivery
Native Title Agreements– COMPLETE Estimated Q3
2019
Power Solution – GONE TO TENDER
Metallurgical Scale Up – ADVANCED
Marketing & Offtake – COMMENCED
Permitting & Approvals – COMMENCED
24
AMEC Convention – June 2019
----- End of picture text -----

Our Journey…

==> picture [839 x 66] intentionally omitted <==

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

PROJECT
PFS DFS BUILD PRODUCE GROW
FINANCE
----- End of picture text -----

Our Goal…

• Produce the cleanest, greenest manganese products globally.

• Become a globally significant high purity manganese producer.

• Achieve best in class quality and cost profile.

• Operate ethically and sustainably in a Tier 1 jurisdiction.

• Generate strong sustainable investor returns over the long term.

==> picture [160 x 124] intentionally omitted <==

==> picture [92 x 28] intentionally omitted <==

25

AMEC Convention – June 2019

==> picture [92 x 28] intentionally omitted <==

26

AMEC Convention – June 2019

==> picture [92 x 28] intentionally omitted <==

27

AMEC Convention – June 2019

==> picture [366 x 488] intentionally omitted <==

==> picture [610 x 488] intentionally omitted <==

==> picture [92 x 28] intentionally omitted <==

28

AMEC Convention – June 2019

Thank you.

For more information, please contact Element 25 Limited: +61 8 6315 1400

admin@e25.com.au www.element25.com.au

==> picture [186 x 51] intentionally omitted <==

Appendices

==> picture [92 x 28] intentionally omitted <==

30

AMEC Convention – June 2019

Competent Person’s Statement

Note: The information in this presentation that relates to Exploration Results, Exploration Targets and Mineral Resources is based on information compiled by Mr Justin Brown who is a full-time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Justin Brown has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Justin Brown consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Please note with regard to exploration targets, the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

All references to Mineral Resources pertain to the ASX release dated 16 April 2019. The Company confirms that all material assumptions, underpinning the estimations continue to apply and have not materially changed.

For further information on Element 25 Limited and its Projects please visit its website at www.element25.com.au which contains copies of all continuous disclosure documents to ASX, Competent Persons’ Statements and Corporate Governance Statement and Policies.

DISCLAIMER

The views expressed herein are not necessarily the views of the Australian Government, and the Australian Government does not accept responsibility for any information or advice contained herein.

==> picture [92 x 28] intentionally omitted <==

31

AMEC Convention – June 2019

World Class Manganese Resource

Category	Tonnes (Mt)	Mn (%)	Si (%)	Fe (%)	Al (%)
Measured	16	11.6	20.6	11.7	5.7
Indicated	41	10.0	20.9	11.0	5.8
Inferred	206	9.8	20.8	11.4	5.9
Total	263	10.0	20.8	11.4	5.9

• Significant potential remains to increase the resource with further drilling.

• Scale of development not resource constrained.

==> picture [170 x 160] intentionally omitted <==

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

Resource is
not closed off
and can be
extended.
----- End of picture text -----

Reference: Element 25 Limited ASX release dated 16 April 2019.

==> picture [92 x 28] intentionally omitted <==

32

AMEC Convention – June 2019