ELEMENT 25 LIMITED — Investor Presentation 2022

Oct 18, 2022

Element 25 Limited Investor Update Building a world-class Zero Carbon Manganese business October 2022 – Investor Update

ASX:E25

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Disclaimer
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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 multiple 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 Summary
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Financial Information
ASX Ticker	E25
Shares on Issue	154M
Share Price	$1.04
Debt	Nil

Introduction

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

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Reference: www.asx.com.au

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Experienced Owners Team – Knowledge Stays In-House

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BOARD OF DIRECTORS
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Extensive in-house experience and expertise supported by carefully selected external consultants

Seamus Cornelius John Ribbons Justin Brown Chairman Non-Executive Director Managing Director Lawyer CPA Geologist

PROJECT DEVELOPMENT TEAM

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Michael Jordon Doug Flanagan Chief Financial Officer COO (HPMSM) CPA Engineer

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Ian Huitson Study Manager Mining Engineer

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Sias Jordaan Marketing Manager Accountant

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Neil Graham Development Manager Chemical Engineer

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Our Strategic Vision…
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Stage 1

365Kt per annum In production, optimising process

Stage 2 1 Mt per annum Engineering optimisation in progress, startup 2023

Stage 3 High Purity Mn FS study scheduled for completion 2022

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

1 year plan 3 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.

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Not all manganese is created equal

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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Great infrastructure endowment, fully permitted 100% E25
owned, long
term 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 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: Project Delivery Complete – Engineering Optimisation Progressing
Process Water
Storage
Tails Storage
ROM Stocks
Main Access
Road
Ore Stockpiles
Feedstock for
HPMSM
conversion
Processing
Plant
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New Energy Vehicle (NEV) Demand Growing Strongly

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58% by 2040 54 million percentage of new vehicles EV passenger sales that will be EV or hybrid by 2040 from 2033 17.6M by 2040 decline emissions barrels of oil displaced from road transport by EVs each day

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

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

Reference: Morgan Stanley Research

Market Response is Dramatic

The EV transition is no longer a concept, it is well underway and accelerating.

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Mn
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Reference: CIC energiGUNE

If not manganese, then what?

Global mined cobalt output (Kt) • Manganese is the cheapest, most abundant of the NMC cathode materials ( N i, M n, C ). • Nickel and cobalt have supply and ethical . • constraints, manganese does not[1] Drop-off in supply 54 million 58% by 2040 post 2025. • • Ethical issues around Manganese is part of the solution for percentage of new vehicles EV passenger sales production. that will be EV or hybrid by 2040 battery material supply constraints. • Battery makers have manganese rich cathode designs in their roadmaps post • Production capacity “flatlining”. 2025. • Insufficient to meet projected demand. “"We would like to get out of cobalt Mn from 2033 17.6M by 2040 altogether and have a zero-cobalt situation." Doug Parks, GM Executive VP decline emissions barrels of oil displaced from road transport by EVs each day The Verge, December 2021

Class 1 Nickel Supply and Demand Outlook

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

Reference: Wood Mckenzie

If not manganese, then what?

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• VW, Tesla and Stellantis have announced cathodes.

• moves to high manganese

• High manganese means better energy density and lower cost.

• Transition will require large volumes of high purity manganese sulphate (HPMSM). High-manganese cathodes are considered one of the strongest candidates for the next generation of lithium-ion batteries because of their cost advantage, cobalt-free nature, and strong electrochemical performance,” Roskill 2021.

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Manganese: 17% of Material 2% of Cost (NMC 622)

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Mn
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Reference: Volkswagen, Stellantis, Tesla, CPM Group, Bloomberg Reference: Morgan Stanley Research

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Our Goal – Zero Carbon High Purity Manganese…

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Multi-stage
growth
potential
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Stage 1
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First production of manganese concentrate to sell to manganese alloy manufacturers

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Stage 2
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Expansion of the concentrate production to produce manganese feedstock to convert to MnSO4

Stage 3

Establishing a conversion facility to convert the concentrate to battery grade HPMSM with renewable energy

Low cost, efficient HPMSM process – significant improvements…

Problems with Current Technologies

• Large volumes of waste residues

• • Toxic Reagents

• Inefficient

• Higher Cost

• Outdated processing technology

The Element 25 Process makes significant changes & improvements…

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Reagents/Cost Carbon Emissions Waste Residue
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Element 25 Process

• 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.

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99.9%
MnSO
4
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Feasibility Study
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• Modular, multi-stage growth strategy.

• Volumes tailored to demand growth.

• Development strategy flexibility.

• Supports supply chain diversity.

• Large, Australian resource underpins supply security

MnSO 4 50,000 t/a expanding over time via multiple expansion stages

Mn[25] Carbon Intensity Compared to leaching of carbonate ores

Mn[25] Waste Residue Co-products consumed in other processes

E25 is following a rapid growth strategy to become a globally significant HPMSM producer.

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Mn [25]
US$150 million
Scoping study capital cost
estimate [2] (subject to FS)
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Mn [25]
Cost Competitive
Operating costs below
competitor’s estimates [3]
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Mn[25] January 2025 commissioning scheduled

2Reference: Element 25 Limited ASX releases dated 18 January 2022.

3Reference: https://www.mn25.ca/chvaletice-project.

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Multiple Plant Potential

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EU
US
KR
Mn Concentrate Feedstock (33% Mn):
Up to 1M tonnes per annum
Feasibility Study Base Case: Malaysia. manganese concentrate production
planned at the Butcherbird Project in
Western Australia.
MY
• E25 manganese concentrate is a very AU
stable, easily transported feedstock.
Design One
•
Allows location optionality for the
processing facility.
•
Multiple potential sites being explored.
Build Many
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Inflation Reduction Act 2022 – What’s Changed?

Summary of Impacts on Battery Supply Chains

• Regulations effective from January 1, 2025

• Requirement for 40% of battery materials to be sourced from north American or allied countries from 2024

• .

• Increasing to 80% by 2026

• Allied countries include Australia, manganese is a qualifying critical mineral .

• E25 HPMSM can meet all the stated requirements of the new regulations.

• E25 resource size can supply conversion requirements for USA customers to for decades .

• meet their consumption needs

• Potential built in north America to ensure customers’ HPMSM requirements meet regulatory and strategic goals.

• After calendar year 2024, the incentives will not be available for EVs that contain critical minerals that were “extracted, processed, or recycled by a foreign entity of concern”.

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Mn
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Reference: CIC energiGUNE

Production Plant – Location Optionality

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Base Case - Malaysia
US
Advantages:
• Established industrial precinct
• Local reagent supply
• Lower construction cost
• Available skilled labour
pool
• Excellent logistics optionality
• Proximity to Asian markets
• Land application in approval
MY Location Study - Louisiana
Advantages:
• Established industrial province
• Local reagent supply
AU • Local gas supply
• Available skilled labour
pool
• Logistics optionality (river/rail/road)
• Rapid approvals process
• Site visit complete
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https://www.arcadis.com/en-au/knowledge-hub/perspectives/global/international-construction-costs
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https://www.arcadis.com/en-au/knowledge-hub/perspectives/global/international-construction-costs

Targeting Zero Carbon Manganese – ESG is integral to our thinking

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Sustainable extraction

Renewable energy

Low-carbon processing Fuel cell haulage

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Carbon offsets

Targeting Zero Carbon Manganese

Other potential pathways that Element 25 is investigating:

Renewable Energy Powered Processing

Sustainable Extraction

• Extensive wind and solar resource data set collected at site (>1 year)

• Energy modelling confirmed cost advantage with renewable solutions

• Green hydrogen powered mine fleet and bulk haulage

• Battery powered bulk haulage trucks to be made available in Australia late 2022[1]

• Green hydrogen reduction reagent potential (similar to “Green Steel”)

• Supply chain transparency and ESG accounting

• Collaboration with other ESG focused companies to pursue new solutions

New Energy Fuel

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1https://www.gizmodo.com.au/2022/02/hydrogen-truck-melbourne/

Partnering with Circulor for Supply Chain Transparency & ESG Accounting

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The First ESG Transparent Manganese Supply Chain

• Circulor’s platform will underpin real-time traceability of Element 25’s (E25) manganese products. The partnership plays a critical role in E25’s strategic pathway to Zero Carbon Manganese.

• Circulor’s platform will enable real-time, digital visibility of dynamic ESG metrics, including CO2 intensity and energy mix used, will be made available to downstream market participants, including offtake partners.

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TRACEABILITY EXAMPLE

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Our Strategic Vision…
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Stage 1

365Kt per annum In production, optimising process

Stage 2 1 Mt per annum Engineering optimisation in progress, startup 2023

Stage 3 High Purity Mn FS study scheduled for completion 2022

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

1 year plan 3 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.

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Thank you

For more information, please contact Element 25 Limited: +61 8 6375 2525 admin@e25.com.au www.element25.com.au

ASX:E25

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Reserves and Resources
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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

• 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.

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

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

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Competent Person’s Statement
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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.

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