Element 25 Limited Investor Update – Commissioning for Growth

Building a world-class Zero Carbon Manganese™business

July 2021– Port Hedland Chamber of Commerce and Industry Breakfast

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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	149M
Share Price	$2.10(7 July 2021)
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. • First sale contract signed[3] • Excellent infrastructure: highway and gas pipeline • Transport of first shipment to port[4] .

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 - 2 -

Not all manganese is created equal

E25 Manganese

Serving the Old…

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 New…

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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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, Ramp Up Underway

20-year Mining Lease granted
All Stakeholder Agreements finalised

Maiden product shipment June 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 material for MnSO4 conversion

Stage 1

Stage 2 Expanded Mn concentrate for MnSO4 PFS study near complete, fully funded Startup 2024/25

Low impurity Mn concentrate Operating and ramping up First shipment June 2021

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Stage 1: Project Delivery Complete – Ramp Up Underway

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Process Water
Storage
Tails Storage
ROM Stocks
Main Access
Road
Ore Stockpiles
Processing
Plant
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Low capex Stage 1 provides a springboard for rapid growth

Low capex.
Rapid startup.
Establish cashflow.

• Fund High Purity Manganese ( HPM ) from strengthened balance sheet.

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Only 10 months from
Stage 1 PFS
to commissioning
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Mn [25] Mn [25] Mn [25]
341,000 t/a $583 million 387%
annual Production over NPV5 pre-tax IRR pre-tax
40 year mine life
Mn [25] Mn [25] Mn [25]
$20.3 million 0 months March 2021
capital cost including payback period commissioning
working capital no debt and ramp up commenced
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2Reference: Element 25 Limited ASX releases dated 3 December 2020.

Stage 2 expansion turbocharging cashflows to fund HPM

Incremental capital required.
Financing discussions advanced.
Flowsheet process proven.
Rapid deployment.
Fund High Purity Manganese from strengthened balance sheet.

Establishing a globally significant, low carbon manganese business in record time, with minimal dilution

Mn[25] 1,023,000 t/a Annual Production over 40-year mine life

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Mn [25]
$20.3 million
Incremental capital cost
including working capital
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Mn [25]
$1.138 billion
NPV5 pre-tax
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Mn [25]
6 months
Payback period
Semeru Energy U$5M debt
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Mn [25]
359%
IRR pre-tax
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Mn [25]
February 2022
Commissioning
scheduled
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2Reference: Element 25 Limited ASX releases dated 3 December 2020.

Complete – First Shipment in Port Hedland

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E25 Manganese Ore
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“Old world” manganese demand continues to grow

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High silica Butcherbird concentrates
are ideally suited to the fastest
Driven by growing market segment,
global silicomanganese.
A steadily &
economic
consistently
growth
growing
market
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New Energy Vehicle (NEV) Demand Growing MUCH Faster

Li-ion battery market development for electric vehicles

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

54 million EV passenger sales by 2040

from 2033 decline emissions from road transport

17.6M by 2040 barrels of oil displaced by EVs each day

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

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Mn
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Reference: https://www.nature.com/articles/s43246-020-00095-x
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Reference: Wood Mckenzie

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

If not manganese, then what?

Global mined cobalt output (Kt)

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

54 million EV passenger sales by 2040

from 2033 decline emissions from road transport

17.6M by 2040 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 ( Mn ) is the fourth most utilised metal globally.
It 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. Mn
Battery makers have manganese 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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If not manganese, then what?

High manganese cathodes planned for most vehicles

• VW moving to a high manganese cathode for most of its vehicles.

High manganese means better energy density and lower cost.
Requires large volumes of high purity manganese sulphate.

“Our transformation will be fast, it will be unprecedented…”

VW Group CEO Herbert Diess

Element 25 is targeting this market for its long term growth strategy. Mn
• Discussions underway in relation to potential offtake partners in this segment.

Reference: Volkswagen

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