ELEMENT 25 LIMITED — Investor Presentation 2020

Nov 3, 2020

Element 25 Limited AGM Investor Update

Building a globally significant, low cost, high purity manganese project turbocharged by early cashflow from a low capex concentrate export opportunity. Investor Presentation – November 2020

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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.

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Corporate Overview

Financial Information

FinancialInformation
ASX Ticker	E25
Shares on Issue	128.7M
Share Price	$0.83
Market Capitalisation	$107M
Cash (post completion of tranche 21)	~$16M
Listed Investments	~$4.1M
Debt	Nil
Enterprise Value	~$87M
Important Shareholders
JP Morgan Nominees Australia	9.33%
Aradia Ventures Pty Ltd	4.35%
Duketon Mining Limited	3.72%
OM Holdings Limited (via subsidiary)	0.97%

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Share Price Performance
Project Financed
Capital Raising
Mining Lease Granted
PFS Announced
MoU Signed with OMH
Equipment Ordered
Top 20 Shareholders 52%
Board and Management 10.22%
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1Reference: Element 25 Limited ASX release dated 12 October 2020.

Experienced Owner’s Team

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Seamus Cornelius John Ribbons Chairman Non-Executive Director Lawyer CPA

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Justin Brown Managing Director Geologist

Ian Huitson Study Manager (ex. Consolidated Minerals) Mining Engineer

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Sias Jordaan Marketing Manager (ex. BHP) Accountant

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Neil Graham Plant Design Lead (ex. ICI, Huntsman) Process Engineer

• Experienced team supported by industry leading consultants. • Covers a broad spectrum of disciplines.

• >100 years combined experience in mining and processing industries.

• Outcomes focused, all with “skin in the game”.

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World Class Manganese Resource

What is Manganese?

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Manganese Ore
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• Manganese ( Mn ) is the fourth most used metal on earth in terms of tonnage, behind iron, aluminum and copper.

• It has many uses including steel, portable batteries, and aluminium cans.

• Manganese is an essential component of the steel-making process.

• Manganese is a versatile element, a common component in several alloys including zinc and magnesium alloys.

• The main non-metallurgical application of manganese is in the batteries industry.

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• There is no substitute for manganese in many cases.

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• *Reference: The International Manganese Institute www.manganese.org

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The Butcherbird Manganese Project

• Large resource, currently >260 Mt of manganese ore in Measured, Indicated and Inferred JORC resources[1] .

• Maiden Proved and Probable Reserve of 50.6M tonnes at 10.3% Mn for 5.22t of .

• contained manganese[2]

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

• 100% owned by Element 25 Limited.

• Located in WA, ranked as the #1 mining investment jurisdiction globally[3] .

• Very simple geology, low strip ratio and free dig (no blasting) mining.

• .

• Measured and Indicated resources underpin the 42-year PFS

• Simple beneficiation process.

• Pre-Feasibility Study highlights outstanding economics.

• 1Reference: Element 25 Limited ASX release dated 17 April 2019.

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• 2Reference: Company ASX Release dated 19 May 2020.

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3Reference: Fraser Institute Annual Survey of Mining Companies, 2019

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World Class Resource, Great Infrastructure Endowment
Goldfields Gas
large resource, Pipeline
excellent
infrastructure,
simple geology
Measured and
Simple, low Indicated Resources
cost Mn units are the focus of the 42
year PFS base case
for all Gt Northern
Highway
processing
options
HEDLAND
550km PORT
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Very Simple Geology

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• Flat lying stratiform ore body, very simple geology. • Ore zone starts at surface and is laterally continuous. • No selective mining required. • Low strip ratio of 0.3:1 based on PFS pit optimisations. • Mining is above the water table for the first ~30 years. • Free dig with localised ripping.

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A Staged Development Strategy

Simple, Low Cost Beneficiation

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Ejected
Waste
Screening Ore sorting
Low cost, free dig
and wet rejects shale
mining of ore
scrubbing waste to produce
from surface.
removes clays. Mn concentrate.
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Simple Process, Low Capital, Low Operating Cost

• Simple mechanical beneficiation yields a 30-35% medium grade Mn concentrate.

• Very low levels of deleterious elements.

• Concentrate suitable for smelting for manganese alloys or future hydrometallurgical feed for producing Electrolytic Manganese Metal ( EMM ).

• Unique characteristics may make this product suitable for premium markets.

Mn	Fe	P	SiO2	Al	LOI	Recovery
33.1%	8.2%	0.08%	21.78%	2.97%	10.2%	82%

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Reference: Element 25 Limited ASX releases dated 23 March 2020.

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Concentrate Export PFS Delivers Robust Economics

Financial Highlights[2]

• Low capital cost A$14.5M.

• • NPV : Nominal A$441M 8

• (A$283M Real)

• IRR: Nominal 255% (223% Real)

• Strong cashflows.

• • Simple payback 6 months.

• • Long mine life.

• Mine plan utilises only 20% of the total resource.

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1FOB Port Hedland, years 1-5 of production.

Pre-Tax Operating Cashflow $A (Years 1-5)	$32.1M pa
NPV8Pre Tax AUD	Nominal $441M (Real $283M)
IRR Pre Tax	Nominal 255% (Real 223%)
Operating Cost (AISC) US$/dmtu1	$2.80
Simple Payback	6 months
Key Assumptions and Outcomes2
Mn Price USD/dmtu LOM FOB Port Hedland	$4.79 (years 1-5)
Exchange Rate USD:AUD	$0.70 ($0.65 for 2021 and 2022)
Mine Life	42 Years
Ore Mined (tonnes per annum)	1.2M
Annual Concentrate Production (33% Mn)	357Kt (Years 1-5)
Pre Production Capital Cost AUD	$14.5M Incl. Contingency

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2Reference: Element 25 Limited ASX releases dated 19 May 2020.

Competitive Operating Costs

Butcherbird Manganese Project Unit Operating Cost (U$/dmtu Sold)

• Low-cost mining.

• Simple processing.

• Excellent logistics infrastructure keeps costs low.

• Access to Port Hedland bulk handling facilities.

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Royalties, Mining ,
U$0.26/dmtu U$0.38/dmtu
Corporate,
U$0.20/dmtu
Processing,
U$0.67/dmtu
Logistics,
Site Admin,
U$1.14/dmtu
U$0.15/dmtu
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Reference: Element 25 Limited ASX releases dated 19 May 2020.

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A Resilient Project

Key Sensitivities

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Reference: Element 25 Limited ASX releases dated 19 May 2020. Note: Mn recovery variance is +/-5%

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Logistics Strategy

• Road haul to Port Hedland on the Great Northern Highway.

• Approximately 6-7 trucks per day.

• Bulk shipping via Utah Point facility.

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Utah
Point
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Photo courtesy of Pilbara Port Authority

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Detailed Engineering and Commissioning Planning Well Advanced

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ROM Pad
Crusher
Log
Washer
Rinsing Dry Stack
Screens & Waste
Product Ore
Sorters
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Ore sorters housed under dome shelter.

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Side on view of the log washer and ore sorters.

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Project Delivery on Time and Budget

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Fast track
project delivery
to maximise
shareholder
returns.
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• .

• Mining Lease granted

• finalised .

• All access agreements

• confirmed .

• Processing water source

• .

• Project financing secured[1]

• well advanced .

• Permitting applications

• Offtake terms agreed, definitive documents being drafted.

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Vibrating screens on the wharf in Durban.

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Logwasher construction complete. Shipping underway.

• Key equipment currently starting to ship.

• All critical path items on time and budget.

• Commissioning scheduled for Q1 calendar 2021

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1Reference: Final tranche subject to available post AGM capacity.

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Ore sorter construction nearing completion.

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Manganese Markets & Offtake Discussions

Manganese Demand Growing

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A steadily &
consistently
growing
market
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Manganese Concentrate Pricing

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Robust
“Manganese
forecast pricing
from Roskill, a Ore - Stronger
leading market for Longer”
analyst. Macquarie Commodities
Comment 13 May 2020
Conservative
pricing
assumptions
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Where to From Here?

A Growth Story…

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Downstream
Project Mn Conc. Strong
PFS Processing Diversification
Execution Export Cashflow
(EMM)
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Our Goal…

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• Produce clean, low cost, ethical manganese products for world markets.

• Become a globally significant 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.

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Thank you.

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

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

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Reserves and Resources

Maiden Ore Reserve[1]

Category	Category	Tonnes (Mt)	Tonnes (Mt)	Mn (%)	Mn (%)	Contained Mn (Mt)	Contained Mn (Mt)	Contained Mn (Mt)
Proved		14.4		11.5		1.65
Probable		36.2		9.8		3.56
Total		50.6		10.3		5.22
Global Mineral Resource2
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

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1Reference: Element 25 Limited ASX release dated 19 May 2020.

2Reference: Element 25 Limited ASX release dated 17 April 2019.

• 89% conversion of measured and indicated resources to reserve. • Maiden Reserve only exploits approximately 20% of global mineral resource. • Excellent potential for future expansion.

• More drilling has potential to add to global resource.

Competent Person’s Statement

The information in this presentation that relates to Exploration Results 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.

All references to Mineral Resources pertain to the ASX release dated 17 April 2019. The Company confirms that all material assumptions, underpinning the estimations continue to apply and have not materially changed.

All references to Mineral Reserves pertain to the ASX release dated 19 May 2020. 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.

This announcement is authorised for market release by Element 25 Limited’s Board of Directors.

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