ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Investor Presentation 2015

Sep 23, 2015

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Corporate(Presentation(

Thursday( 24( September( 2015: ! Environmental! Clean! Technologies! Limited! (ECT! or! Company)! (ASX:ESI)!is!pleased!to!provide!its!latest!corporate!information!brochure.!

This!brochure!is!intended!to!act!as!a!basis!for!future!presentations!and!marketing!collateral,!with! content!subsequently!tailored!to!each!particular!audience,!such!as!brokers!or!potential!customers! and!amended!over!time!to!reflect!material!developments!and!progress.!

Managing!Director,!Ashley!Moore!commented,!“This!brochure!is!designed!to!act!as!a!standZalone,! highZlevel!snapshot!of!our!company.!Its!content!is!detailed!enough!to!satisfy!the!initial!enquiries!of!a! broad! range! of! audiences! as! we! step! forward! through! the! commercialisation! process,! engaging! parties!on!progressively!deeper!levels.”!!!!

For(further(information,(contact:

Ashley'Moore'–'Managing'Director info@ectltd.com.au''

Suite!502,!Level!P5,!9!Yarra!Street,!Melbourne!Vic,!3000!Australia!!|!Phone!+613!9939!4595!|!www.ectltd.com.au!|!ABN!28!009!120!405! Listed!on!the!Australian!Stock!Exchange!(ASX:ESI)

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Corporate Presentation September 2015

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“Upgrading low value resources, improving environmental outcomes”

Disclaimer

Environmental Clean Technologies Limited (“ECT” or “the Company” ) has taken all reasonable care in compiling and producing the information contained in this presentation. The Company will not be responsible for any loss or damage arising from the use of the information contained in this presentation. The information provided should not be used as a substitute for seeking independent professional advice in making an investment decision involving Environmental Clean Technologies Limited. Environmental Clean Technologies Limited makes no representation or warranty, express or implied, as to the accuracy, reliability, or completeness of the information provided. Environmental Clean Technologies Limited and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information, or matters, express or implied arising out of, contained in or derived from, or any omissions from this presentation.

This presentation contains "forward looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ECT, industry results or general economic conditions, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. In particular, certain forward looking statements contained in this material reflect the current expectations of management of the Company regarding among other things: (i) our future growth, results of operations, performance and business prospects and opportunities; (ii) expectations regarding the size of the market and installed capacity of our Coldry and Matmor plants; (iii) expectations regarding market prices and costs; and (iv) expectations regarding market trends in relation to certain relevant commodities, including benchmark thermal coal and metallurgical coal prices and foreign currency exchange rates.

Forward looking statements are only predictions and are not guarantees of performance. Wherever possible, words such as "may," "would," "could," "will," "anticipate," "believe," "plan," "expect," "intend," "estimate," "aim," "endeavour" and similar expressions have been used to identify these forward looking statements. These statements reflect the Corporation's current expectations regarding future events and operating performance, and speak only as of the date of this material. Forward looking statements involve significant known and unknown risks, uncertainties, assumptions and other factors that could cause our actual results, performance or achievements to be materially different from any future trends, results, performance or achievements that may be expressed or implied by the forward looking statements, including, without limitation, changes in commodity prices and costs of materials, changes in interest and currency exchange rates, inaccurate geological and coal quality assumptions (including with respect to size, physical and chemical characteristics, and recoverability of reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, delays in the receipt of government and other required approvals, and environmental matters), political risk and social unrest, and changes in general economic conditions or conditions in the financial markets or the world coal industry.

The materiality of these risks and uncertainties may increase correspondingly as a forward looking statement speaks to expectations further in time. Although the forward looking statements contained in this material are based upon what the Company believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this material and are expressly qualified in their entirety by this cautionary statement. We do not intend, and do not assume any obligation, to update or revise these forward looking statements, unless otherwise required by law. Prospective purchasers are cautioned not to place undue reliance on forward looking statements. This presentation is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein.

2

Table of Contents

page page page 4 13 26 Section 1 Section 2 Section 3 Corporate Information Coldry Technology Matmor Technology

page page 39 44 Section 4 Section 5 Projects Value Proposition

3

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Corporate Information

Corporate( (Overview

Company( (Highlights Company( Projects Board((&(Management Corporate( Milestones Strategic( Partners

Section 1

Corporate Overview Issued Capital (as at 23 Sept 2015) ASX Code ESI Shares (pre-issue) 2,547 M Options ESIOA 1,258 M Options ESIOB 896 M Market Capitalisation ~$43M Share Price 1.7¢ 2015 Trading Range 0.6¢ - 2.8¢ Shareholders (as at 15 Sept 2015) Total shareholders 3,853 Top 20 30% Top 50 42% Top 100 51% Cash and Debt Cash (as at 30 June 2015) $940k Short Term Debt $1.74 M Long Term Debt Nil Share price chart (A¢ per share) 0 0.5 1 1.5 2 2.5 3	Issued Capital (as at 23 Sept 2015)
	ASX Code	ESI
	Shares (pre-issue)	2,547 M
	Options ESIOA	1,258 M
	Options ESIOB	896 M
	Market Capitalisation	~$43M
	Share Price	1.7¢
	2015 Trading Range	0.6¢ - 2.8¢

5

Corporate Overview

◉ ASX Listed since 2006

• Technology R&D & Commercialisation

• Energy & Resource Focus

• Emerging market focus, global application

• Unique technologies:

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Environmental
E [3] Improvement
Economic
Improvement
Energy & Resource
flexibility and security
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• ⦿ Low rank coal upgrading – Coldry

• ⦿ Primary Iron production – Matmor

• E[3] – Drivers for ECT technology adoption:

• ⦿ Energy & Resource flexibility & security underpins improved economic outcomes

⦿ Economic improvement to low value resources underpins improved environmental outcomes

• ⦿ Environmental Improvement is a product of higher GDP per capita, which is the product of affordable energy and resources driving economic development.

6

Company Highlights

H O 2

Unique low rank coal drying technology - Coldry

• ⦿ IP owned 100% by ECT and protected in all major markets

• ⦿ World’s most efficient pre-drying process for high moisture content coals

• ⦿ Enables low-rank coal use in downstream conversion process for high value products

Innovative resource upgrading technologies

Minerals processing technologies focused on transforming low-value resource streams into higher grade, valuable products delivering positive economic,

energy, resource and environmental security outcomes.

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26 +3,2
Fe
iron
55.85
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• ⦿ Outstanding environmental credentials including a zero net CO2 footprint from the process

• ⦿ Construction-ready designs for first commercial scale plant ready to go

Primary iron processing technology – Matmor

• ⦿ Intellectual property owned 100% by ECT, patented in Australia and protected in all major markets via Coldry patents as the required, integrated front-end raw material preparation process for Matmor

• ⦿ Reduces feedstock costs by ~40-70% through use of low cost, abundant raw materials

• ⦿ Reduces energy costs by up to 50% through innovative thermo-chemical pathway

7

Company Projects

Targeted Commercialisation Activities

India represents the ideal convergence of macro economic drivers, supportive government policy settings and frugal innovation, making it the focus of our development activities.

Australia has an advanced lignite demonstration program underway, with Coldry as the enabling drying solution for one of the program proponents.

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Indian integrated Coldry and Matmor project

⦿ Large Government of India owned partners, National Minerals Development Corporation and Neyveli Lignite Corporation, for an integrated Coldry & Matmor plant.

• ⦿ Stage 1 commenced July 2015 with construction to follow

• ⦿ Aiming to prove at a large scale, a multi product plant to service a broad spectrum of energy and steel industry needs

Australian Coldry PCI project

⦿ Techno economic feasibility study to start Q3 2015 for a >200,000 tonne per annum plant to produce high grade PCI coal from lignite

• ⦿ Coldry is the leading front-end drying solution, enabling high value-add outcomes

8

Board & Management

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Chairman – Glenn Fozard

Glenn has a strong commercial background and extensive experience in finance and capital markets at both board and executive level. With a deep understanding of tailored financial solutions for SMEs in the Cleantech and Agricultural sectors, he supports the company with valuable guidance in the technology development, risk management and capital raising areas. Glenn is the founder of Greenard Willing and Chairman of Platinum Road, both specialist financial advisory firms. Glenn has held an advisory position with the company for over five years and has contributed significantly towards the capital raising for the company during that time.

Managing Director – Ashley Moore

Ashley is a Chartered Professional Engineer, with extensive experience in all facets of manufacturing, plant operations, supply chain management, sales and marketing and major project delivery from 30 years in industry. Ashley joined the company in October 2009 as Business Manager, Coldry. Ashley was appointed to the role of Chief Operating Officer of the company in August 2011, and then to Managing Director in 2013.

Non-executive Director - David Smith

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David has a strong legal and commercial background, having practiced commercial law for over 24 years including nearly 17 years as a partner in national firms. He is currently a partner in the intellectual property and technology group at Gadens Lawyers. He has assisted many companies with protecting their intellectual property, IP commercialisation agreements, collaborative research agreements and international negotiations. This year David was recognised as a 'Best Lawyer - Intellectual Property' for the second year running. He is currently Vice President of Bicycle Network where he also chairs the Audit and Risk Committee.

Non-executive Director – Barry Richards

Barry has a strong industry and commercial background of over 30 years including his role as Managing Director of Mecrus Pty Ltd since its formation over 16 years ago, contract and business development roles with Siemens / Silcar, and operations and maintenance management experience with the State Electricity Commission of Victoria (SECV). He provides extensive experience in business management, major project development and delivery, coal plant operations and maintenance and has a broad understanding of technology and process development.

9

Board & Management continued

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Operations Manager & Company Secretary - Adam Giles

Adam has over 20 years business and management experience across both private and public sectors. His long-term involvement with the development of the Coldry and Matmor technologies and as a founding shareholder of the Company provides valuable background, helping inform strategic direction. Key responsibility areas include Operations, Investor and Media Relations and Corporate Governance.

Coldry Development Manager – Warrick Boyle

Warrick is a Manufacturing and Chemical Engineer with 20 years experience across diverse manufacturing roles in medical, chemical, industrial, pharmaceutical and consumer goods. Warrick’s core responsibility is the fundamental process development of the Coldry technology and product, management of strategic engineering and research stakeholders and pilot plant operations and maintenance.

Matmor Research Manager – Keith Henley-Smith

Keith is a chemical engineer, metallurgist and inventor, having developed and patented a fully austenitic stainless steel, called PAK-450. Keith also holds the honour of being the only Australian invited by the Culham Centre for Fusion Energy (CCFE) in Oxford UK to consult on the development of the world’s largest Tokamak fusion device in Cadarache, France, the Joint European Torus (JET) Project, Mr Henley-Smith’s PAK-450, with its inert magnetic properties, has been identified as a potential key material in the development of the fusion reactor. Mr Henley-Smith leads the fundamental research and development efforts for Matmor and views it as one of the single greatest innovations in primary iron making since the introduction of coke based methods over 200 years ago.

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Corporate Milestones

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2006 2007 2013 2015
ASX Listing Matmor Test Plant Coldry Pilot Coldry
Semi-continuous plant Ver. 3 Commercial-
Production Detailed scale
commercial- demonstration
scale design (proposed)
2007
Coldry Pilot plant 2009 2015
Ver. 1 Coldry Pilot 2014 Matmor test
Continuous plant Ver. 2 Matmor plant upgrade
Production Water recovery acquisition commenced
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Strategic
Partners
Matmor
Design
Partner
(tba)
Advisory
Engineering
Project
Development
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Coldry

Section 2

Value( Proposition The(Coldry( Process Thermal(Coal(Market Value( (Transformation Technology( Introduction Market( Opportunity The(Low(Rank(Coal(Challenge Competing( Technology The(Drying( Challenge Coldry( Business( Model

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Matmor Iron & Steel Market
• Natural Gas Market
Conversion
• Liquid Fuels
Processes
• Chars, PCI & Oils
High
High Value Efficiency
Electricity Market
Applications Power
Generation
Coldry Thermal
Thermal Coal Market
Product Applications
Start Fuel
Coldry
or Blend
Process
Fuel
Low rank
Low rank Coal Fired
Electricity Market
coal Power
station
High value
Medium value
Low value
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Coldry Value Proposition

• Opens new markets

• Establishes new revenue streams

• Diversifies energy and resource options

• Upward revaluation of stranded or low value low rank coal assets

• Enhanced efficiencies

• Mitigate CO2 emissions

Cost effective low rank coal drying is the ‘gateway’ enabler.

Traditional utilisation pathway is ‘low value’.

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Moving up the value chain
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Coldry Value Proposition: Spotlight on the thermal coal market

• Incremental income from sales of upgraded product enabled by low marginal upgrade cost

• Competition – Seaborne Thermal coal trade

• To gain competitive space, you must be able to displace others on the supply curve

• With current pricing, less than half of supply generates profitable sales for traditional suppliers (horizontal dashed line). Via Coldry (blue line), ample margin is available even at lower pricing levels.

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160 $US 2012/tonne Thermal coal cost curve (2013) $US 2012/tonne 160
140 This ‘gap’ between market price 140
120 120
and cost of production is the
100 100
opportunity for low rank coal
asset owners
80 80
60 Current market price 60
40 40
20 20
Coldry marginal cost per tonne
0 0
0 100 200 300 400 500 600 700
Seaborne trade thermal coal (Mt)
Cash costs $US/tonne – energy adjusted
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Energy Transition Advisors stated: “… Current spot prices to be below the “cash costs” of

production for nearly one-half of total capacity and to be below the “breakeven coal price” (which includes capital costs and economic returns) for two-thirds of total capacity. Over half of China’s coal producers have cash costs in excess of domestic Chinese spot prices….”

October 2014

Source: Australian Treasury publication 2014 – Long term commodity pricing projections

15

Coldry technology introduction

Low-rank coal drying

• Enhanced efficiency

• Greater energy security

• High value applications

• Low emissions

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Process Features	Benefits
Low temperature, low pressure	Lower opex cost per tonne
Simple, patented mechanical design	Lower capital intensity, robust, reliable, lower operating & maintenance cost
Unique ‘Densification’ & waste heat utilisation approach	Enables low temperature, low pressure removal of moisture resulting in net energy uplift, low opex and zero CO2
Modular	Scalable, cost effective

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Product Features	Benefits
Low moisture, high energy value	Higher price, broader market applications
Stable	Won’t permanently reabsorb moisture, low spontaneous combusting risk, storable, transportable
Retained volatile matter	Ideal for coal conversion technologies, yielding more gas and oil than black coal
Variable product output (pictured left)	Fit for purpose product format tailors hardness to customer needs: • ‘Gateway’ is ECT’s ‘fast dry’ product, producing a cheaper but more friable product, ideal as a cost-effective front end feedstock for conversion processes.
	• ‘Domestic’ grade is the ‘standard’ Coldry product, robust enough to withstand handling and transport in local markets with minimal fines generation. • ‘Export’ grade is designed to withstand the rigors of multiple bulk handing points over long distances with minimal fines generation.

Coldry technology introduction

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• ‘Domestic’ grade is the ‘standard’ Coldry product, robust enough to withstand handling and transport in local markets with minimal fines generation.

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‘Gateway’ to withstand handling and transport in local markets with minimal
fines generation.
• ‘Export’ grade is designed to withstand the rigors of multiple bulk
handing points over long distances with minimal fines generation.
Coldry Product 'Toughness' Indicators
160
Domestic Export
140
120
100
Domestic
80
60
‘Gateway’
Export 40
0.9 1 1.1 1.2 1.3 1.4 1.5
Relative Density
Compressive Strength (kg)
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The low rank coal challenge

• High moisture content

• ⦿ Low energy content

• ⦿ Not suitable for use in black coal applications or further upgrading

• ⦿ CO2 intensive power generation

• Significant risk of spontaneous combustion compared to bituminous coal

• ⦿ Limits storage volume and duration

To enable low rank coal use in higher value

• ⦿ Increased transport cost

• Inefficient transportation cost due to carting mostly water

applications, it needs to

Moisture Content Range

be dried.

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70
60
The challenge 50
is to get the
40
moisture down
from here… 30
20
… to there… 10
0
Low rank Black Coal
coal
Percentage
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Energy Content Range
6000
5000
4000
3000
2000
1000
0
Low rank Black Coal
coal
Net Calorific Value
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The Drying Challenge

Drying is easy.

Drying efficiently and cost-effectively is the challenge.

Coldry meets the challenge.

Achieving a net energy uplift and zero CO2 emissions at the lowest possible marginal cost, is the goal.

“It is difficult to dry low rank coal with high efficiency. For hard coals, the majority of the moisture is present on the surface of coal particles. Energy required to remove free moisture is simply the latent heat of evaporation (~2.27MJ/kg). In contrast a considerable portion of the moisture is held by hydrogen bonds in the capillary pores or interstices of low rank coal particles. Hydrogen bonding increases the strength of moisture holding and more energy is needed to remove a certain amount of moisture from low rank coal. Another severe problem with drying low rank coal is the ease of reabsorption of moisture. To achieve deep drying of low rank coal, the number of hydrogen bonds has to be reduced by destroying them either using thermal or mechanical methods, which is the key to any effective drying process.”

Dr Nigel S Dong, IEA Clean Coal Centre

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Low
Rank
Internal
Coal
Pores
Surface
pores
Surface
Structurally
Water
Trapped
Water
Low rank coal particle
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Coldry Process

“One distinct advantage of Coldry is the relative low heat requirements in the drying process, allowing for the opportunity to make use of waste heat from an industrial facility or power plant.”

Dr Victor Der

Former Assistant Secretary for Fossil Energy, US Dept. of Energy General Manager, North America, Global CCS Institute

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Waste Heat
Mine
1 2 3 4 5 6 7
Screening & Shear & Extrude Conditioning Continuous Water Coldry
feed control attrition Packed Pad recovery Pellets
Drying (optional)
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Coldry Value Transformation

“Given India’s large demandsupply mismatch of thermal coal, the Coldry technology offers an efficient and costeffective solution to utilize the 43 BT (est.) lignite reserves of India efficiently to bolster the energy security of the country while mitigating any adverse impact on the climate.”

YES Bank Ltd, India

The marginal upgrading cost supports substantial value add through allowing low-rank coal to service higher value coal markets, with significant margin.

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1.84 tonnes raw coal 1 tonne Coldry
Moisture
~53%
Moisture <15%
Dry Matter Dry Matter
~47% >85%
Processing cost and Margin $US
80
70
60
50
40
30
20
10
0
Raw Lignite Feed systems Shear & Extrude Conditioning Packed Bed Drying Finance & Deprecn. Indicative Margin Sales Price
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*/Indian/lignite/via/‘gateway’/product/used/as/an/example

Market Opportunity

Coldry enables

enhanced utilisation

of low-rank coal

resources by

allowing them to service higher-rank

coal applications

*Energy; electricity, steam and conversion to gas and liquid fuels

**Including cement manufacture, fertiliser Source: World Energy Energy Council

World Recoverable Coal Reserves & consumption

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Content Carbon / Energy Content
of Coal Moisture content
% of 55% Low rank coal 45% High rank coal
World Reserves 23% Lignite 32% Sub-bituminous Bituminous
% of 14% 13% Sub-
73% Bituminous
Consumption Lignite bituminous
Coal use (Bn tonnes per year) Electricity generation (GW)
0.2 100
1.2
6.5
1100
Energy Steel Other High rank Low rank
0.1 Bn tonnes market penetration = 250 Modules of
capacity similar to India project
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22

Market

Opportunity Global Application

Major low rank coal reserves

• Australia

• China

• Indonesia

• India & Pakistan

• Turkey

• Thailand

• Germany

• Czech / Serbia / Poland …

• North America

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!
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Fast/Fact/– Capacity/represents/significantly/more/than/500/years/of/ consumption/ at/current/rates,/i.e./ample/space/for/growth/if/ achieved/with/improved/sustainability.

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Coldry Competitors

Coldry is the world’s first low temperature, low pressure drying method capable of producing a black coal equivalent product via a low cost, zero CO2 process.

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◉ This graph is a proxy for 150 Low-rank coal
drying
processes
process energy
efficiency. Coldry
◉ High temperature and
100
pressure requires Steam Tube
Drying
energy input.
Upgraded
◉ Energy needs to be
Brown Coal
50
generated, either from
Brown Coal
gas or coal, adding cost
Briquette
to a process.
Hydrothermal
◉ ECT have ‘cracked the
Dewatering
0
code’ of efficient low
0 100 200 300 400
rank coal drying. Temperature (°C)
Higher OPEX Cost
24
Press. (Mpa)
Higher3OPEX3Cost
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Coldry Business Model

Key Partners	Key Activities	Value Propositions	Value Propositions	Customer Relationships	Customer Segments
• Thermax • ARUP • JC Steele • YES Bank • Mecrus • Platinum Road • Greenard Willing India • Norton Rose • RSM Bird Cameron • GHD • Monash University	• Fundamental R&D • IP development & protection • Platform Development • Engineering • Business Development	• Cost effective low rank coal drying • Open new markets • Establish new revenue streams • Diversify energy and resource options • Revalue assets • Enhance efficiency • Mitigate CO2emissions		Direct relationships with: • Mine and power station owners • Plant & Equipment Vendors • Regulatory authorities	Process integration • Mine & power station owners • Conversion process owners Product consumption • Power stations • Conversion processes • Matmor
	Key Resources			Channels
	• Researchers • Engineers • Business development • Sales Support • OM&S support			• Direct • Indirect via route-to- market • Indirect via partner vendors
Cost Structure			Revenue Streams
• Patents • Salaries • Plant & equipment • Business development • Business admin & support			• License fees – plant sales • Royalty fees – plant capacity deployed • Maintenance and servicing fees

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Matmor

“The worlds first low rank coal based primary iron making solution.”

Section 3

Value( Proposition Inputs Technology( Commercialisation( Introduction Pathway Opportunity Technology( Introduction Steel( Intensity Technical( Comparisons Process( Overview Business( Model

Matmor Value Proposition

• Lower cost raw materials

• Lower capital cost plant

• Lower emissions

• Higher value products

• Resource diversity & security

• Waste remediation solution

• Coldry provides essential feed preparation step

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27

Matmor technology introduction

Process Features	Benefits
Uses low-rank coal and alternative iron ore materials.	• Low rank coal replaces coking coal • Wide range of iron oxide sources • Ability to use lower grades of iron ore • Lower raw material cost • Diversified supply chain • Decoupling from coking coal and high grade iron ore improves energy and resource security • Waste remediation solution improves environmental outcomes • Economic advantages: Import replacement, monetise waste streams and add value to lower grade coal and iron oxide resources
Lower operating temperature, <1,000ºC	• Lower capital cost plant • Higher quality metal product • Increased energy efficiency
Uses Coldry as the feed preparation process	• Low cost, zero CO2drying and pelletising • Eliminates coking ovens and sinter plants

ECT/Matmor/Test/Plant/ Melbourne,/Australia

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Product Features Benefits
•
High Fe yield Metallic yield of 95%+ means maximum value
extracted
•
Fe content of the finished product is 95%-99%,
delivering a high quality iron with minimal impurities
High Fe content • Low impurities
• Lower downstream processing cost
Flexible output: • Flexible applications
• DRI pellet • Integrate seamlessly with existing steelmaking
• Hot Liquid metal operations
• Solid Iron • Feed Induction or Electric Arc furnaces
• Export
DRI pellet
Ore Metal
>95%
Recovery
45-65 wt.%
Hot liquid Fe Matmor
>95% pure
metal
Fe
Solid iron
29
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Matmor technology introduction

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The ‘alternative raw material’ opportunity

There exists a vast, distributed ‘above ground ore body’ in the form of iron ore mine fines and slimes, and industrial wastes such as millscale and nickel refinery tailings.

Matmor enables a lower cost primary iron production pathway by leveraging two unique features:

1) 1 Decoupling iron making from coking coal

By utilising the rich organic chemistry within low rank coal, the Matmor process is able to deliver a high quality product without the need for high quality coking coal, resulting in decreased raw material cost and diversified supply options.

2) 2 Exploiting the ‘above ground ore body’

By harnessing the vast above ground ore body that exists as mine tailings, fines and slimes and from industrial wastes such as millscale and nickel refinery tailings, Matmor is able to leverage sunk mining and processing costs by providing a waste remediation solution that turns a contingent liability into a revenue stream.

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The ‘steel intensity’ challenge

India is positioned to substantially increase its steel demand, yet is heavily reliant on imports of coking coal and iron ore.

Matmor opens up new domestic raw material supply options in support of growth in emerging nations.

In countries with mature steel intensity curves, Matmor is an ideal waste remediation solution.

The most powerful forces driving steel demand are aligned. As economies develop and modernise, steel consumption per capita grows, reflecting a – wide range of growing applications basic infrastructure, water treatment – plants, food processing distribution centres, roads, bridges and, as the middle class emerges, durable goods such as appliances and cars.

Per capita GDP and steel consumption

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1200
World:
Per capita South Korea
GDP
1000
$16,100
Red line
represents the
800 average steel
intensity curve
600
China Japan
Germany
400
Brazil
USA
Australia
200
Russia World:
India 236 kg per capita
0
-
10,000 20,000 30,000 40,000 50,000 60,000
GDP (USD) per capita
Apparent steel consumption (kg per capita)
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Data: World Steel Association Bubble size represents population

31

Matmor

Process

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Inputs
Waste/
Low/rank/
Iron/Oxide Flux Energy
coal
(recovered)
Matmor/
Primary/ Composite/
Conditioning Drying Retort
Processing Pellets
Coldry Process = Matmor Feedstock Preparation plant DRI
Melt stage
Matmor employs a different chemical pathway,
! making it the world’s first and only low
temperature, low rank coal-based iron making
Iron/Billet/or/hot/liquid/
process.
metal/for/further/
processing/or/sale
Coldry
Process
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32

Inputs Creating higher value product opportunities

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• The Matmor process combines metal oxide bearing media, low rank coal and a flux via the Coldry process to produce a composite pellet

• Feedstock flexibility: Matmor can reduce the following metal oxides to metal: ⦿ Iron Ore:

  • Hematite: Fe2O3

  • Magnetite: Fe3O4 – without the need for sintering

• ⦿ Waste streams:

  • Mill scale

  • Blue Dust

• ⦿ Fe within Nickel ores (Limonite) and Nickel refinery tailings:

  • Also recovers Ni within the alloy

  • Has also recovered Cr content within these same materials

• ⦿ Positive test results on both Ilmenite (Ti source) & Mn ores with further development required

Periodic Table of the Elements

+2																							13
agnesium Mg			3 IIIB		4 IVB		5 VB		6 VIB	7 VIIB		8 VIIIB		9 VIIIB		10 VIIIB			11 IB		12 IIB	3p	Al aluminu
24.31																							26.98
+2		21	+3	22	+4,3,2	23	+5,2,3,4	24	+3,2,6	25	2,3,4,6,7	26	+3,2	27	+2,3	28	+2,3	29	+2,1	30	+2		31
Ca	3d		Sc		Ti		V		Cr		Mn		Fe		Co		Ni		Cu		Zn	4p	Ga
calcium		scandium		titanium		vanadium		chromium		manganese			iron		cobalt		nickel		copper		zinc		gallium
40.08			44.96		47.87		50.94		52.00		54.94		55.85		58.93		58.69		63.55		65.41		69.72
+2		39	+3	40	+4	41	+5,3	42	+6,3,5	43	+7,4,6	44	+4,3,6,8	45	+3,4,6	46	+2,4	47	+1	48	+2		49
Sr	4d		Y		Zr		Nb		Mo		Tc		Ru		Rh		Pd		Ag		Cd	5p	In
trontium			yttrium	zirconium		niobium		molybdenum		technetium		ruthenium		rhodium		palladium			silver	cadmium			indium
87.62			88.91		91.22		92.91		95.94		98		101.1		102.9		106.4		107.9		112.4		114.8
+2		71	+3	72	+4	73	+5	74	+6,4	75	+7,4,6	76	+4,6,8	77	+4,3,6	78	+4,2	79	+3,1	80	+2,1		81
B			L		Hf		T		W		R		O		I		Pt		A		H		Tl

33

Matmor Commercialisation Pathway

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Current stage
of
development
Bench Test Pilot Commercial
Demo Scale
Scale Scale Scale Scale
>200,000
~8,000 tpa ~80,000 tpa
tpa
capacity capacity
capacity
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Bench Test Unit

• 10kg output

• Batch Process

• Complete and in active

• service

Test Plant

• 1 tonne per day

• Semi-continuous process

• No pellet making integration

• Stage 1 complete

Pilot Plant

• 1 tonne per hour

• Full automation

• Integrated pelletisation

• Stage 2 due to commence H2 2015

34

Matmor Process vs. Blast Furnace

Matmor Process

• Lower Cost

• Simpler

• More flexible

• Less CO2

Blast Furnace

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

Low/rank/
coal
High/
Iron/ Coldry/ Matmor/ Further/
Quality
Oxide Process Process processing
Iron
Flux
• Lower'cost' inputs Environmental' Efficient High/quality/product:
• Utilise/domestic/ Improvement Lower/temperature/than/ • 95_97%/Fe/vs/90_95%/via/
raw/materials Eliminates: Blast/Furnace: Blast/Furnace
• Utilise/waste/ • Sinter/plant/ • Lower capex • Low/inclusions
grade/ore • Coke/ovens/ • Lower maintenance/ • Ideal/steel/making/
cost feedstock
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----- Start of picture text -----

• Utilise/waste/ • Sinter/plant/ • Lower capex • Low/inclusions
grade/ore • Coke/ovens/ • Lower maintenance/ • Ideal/steel/making/
cost feedstock
• Economic/at/smaller/ • Substitute/for/high_grade/
scale scrap/steel
Coking/ Coke/
Coal Ovens
Iron/ Sinter/ Blast/ Pig Further/
Oxide Plant Furnace Iron processing
Flux
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35

Benefits vs Blast Furnace

• Coking coal is replaced by low rank coal which can cost as little as $5 a tonne to mine

• Diversified raw material supply; in addition to high grade iron ore, access to the ‘above ground ore body’ or low grade (waste) iron oxide sources is enabled, increasing resource security

• Capital cost is estimated to be less than half that of a comparable traditional blast furnace due to smaller foot print and lower temperature materials of construction

• The need for traditional blast furnaces is eliminated

• Integrates with existing downstream steel making

• Emissions are significantly reduced, as no coking ovens or sinter plants are needed

• Produces a consistent, high quality iron product

Raw Material Input	Traditional Iron Making (65% Fe raw material)	Matmor (65% std Fe raw material)	Matmor (Iron Ore Fines as raw material)
Reductant	0.75 tonnes coke x 1.37 t/t x ~$120 (coking coal) = $125	2.0 tonnes x ~$20 (lignite) = $40	1.2 tonnes x ~$20 (lignite) = $25
Iron Ore	1.8 tonnes x $50 = $90	1.8 tonnes x $50 = $90	1.9 tonnes x $15 = $30
Flux (Limestone)	~$20	~$10	~$10
Total $/tonne hot metal	~$235	~$140	~$65
>70% improvement 40% improvement Currency: USD

36

Benefits vs other methods

• Lower Temperature

• Lower residence time,

• higher productivity

• Lower Cost

  • Residence time is a proxy for asset productivity

!

• Temperature is a proxy for asset capital intensity

• • Bubble size represents ‘Relative Raw Material Cost’

Iron Production

Relative Raw Material Cost vs. Time & Temperature

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20
18 Low temperature + low
16 Direct Reduced Iron residence time = lower cost
14
12 and higher productivity
10
8
Blast Furnace
6
4
Matmor
2
0
700 900 1100 1300 1500 1700
◦
Temperature ( C)
Primary
Iron
Making
Process
Blast Furnace DRI Matmor
Temperature
1300-1500 1000-1100 850-950
(degrees C)
Residence Time
6 12-18 3
(hours)
Residence Time (hours)
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37

Matmor Business Model

Key Partners	Key Activities	Value Propositions	Value Propositions	Customer Relationships	Customer Segments
• Matmor Design Partner (tba) • Thermax • ARUP • JC Steele • YES Bank • Mecrus • Platinum Road • Greenard Willing India • Notron Rose • RSM Bird Cameron • GHD • Monash University • University of Newcastle	• Fundamental R&D • IP development and protection • Platform Development • Engineering • Business Development	Matmor • Cost effective primary iron production • Waste remediation solution • Open new markets • Establish new revenue streams • Diversify energy and resource options • Revalue assets • Enhance efficiency • Mitigate CO2emissions		Direct relationships with: • Mine and power station owners • Plant & Equipment Vendors • Regulatory authorities	Process integration • Integrated steel plants • Stand alone plant Product consumption • Integrated steel plants • Electric Arc Furnace • Induction Furnace
	Key Resources			Channels
	• Researchers • Engineers • Business development • Sales Support • OM&S support			• Direct • Indirect via route-to- market • Indirect via partner vendors
Cost Structure			Revenue Streams
• Patents			• License fees – plant sales
• Salaries • Plant & equipment • Business development • Business admin & support			• Royalty fees – plant capacity deployed • Maintenance and servicing fees

• License fees – plant sales

• • Royalty fees – plant capacity deployed

• • Maintenance and servicing fees

• Patents

• • Salaries • Plant & equipment • Business development • Business admin & support

38

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Projects

India(FColdry India(FMatmor India(–Project( Pathway Capital( Requirement

Section 4

India: The place to be for Coldry

India is in a major growth phase:

• Energy demand increasing, outstripping domestic primary energy source growth

• With over 4.5 Bn tonnes of proved recoverable reserves in India, low rank coal is able to play a major supporting role via application of ECT technologies

• India will be the fastest growing major economy in 2016, with the IMF projecting GDP growth of 7.5 percent against China’s 6.8 and a global rate of 3.8 percent.

• India’s coal-based energy production is projected to double by 2030

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Coal Demand-Supply Gap Estimated Energy Mix Electricity Use
widens India 2030
14000
1000 USA
India’s coal demand has
900 outstripped supply since, 12000 South
2000, with accelerating Korea
800 divergence since 2009 Australia
10000
700
Japan
600 8000
Germany
500 Rusia
6000
400
300 4000
China India’s per person
200 electricity consumption is
Brazil
2000 lower than advanced
100 economies and many
Coal Renewable India emerging economies.
0 0
1990 1995 2000 2005 2010 Hydro Nuclear - 20,000 40,000 60,000
Production Consumption Gas GDP per person ($US 2014)
Million tonnes
Electricity use per person (kWh)
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40

India: The place to be for Matmor

India is in a major growth phase:

• Infrastructure development requiring substantial increases in iron & steel production

• Domestic coking coal reserves, effectively zero, heavily reliant on imports

• Low value resources (low rank coal & iron ore fines & slimes) able to play a major role in bridging this gap via application of ECT technologies

• World Steel Association projects India’s steel consumption growth rate to remain the highest in the world at 7.3% pa for 2016

• India is currently the words third largest producer of crude steel

• If India increase consumption to half of global average, this represents an increase of 85% or ~70Mt pa

• If ECT can capture 5% of the growth via Matmor, this represents 3.5M tpa or ~17 commercial size modules

Per capita GDP and steel consumption

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India’s steel consumption
1200 World:
needs to increase from
Per capita South Korea
64kg per capita to several
1000 GDP hundred kg to meet
$16,100
growth requirements
800
Japan
600
China
Germany
400
Brazil USA
Australia
200
World:
India Russia
236 kg per capita
0
-
10,000 20,000 30,000 40,000 50,000 60,000
GDP (USD) per capita
capita)
Apparent steel consumption (kg per
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Mt Long term evolution of
3,000 world steel demand
2,500
2,000
1,500
1,000
500
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1870 1890 1910 1930 1950 1970 1990 2010 2030 2050

*Ernst & Young

41

India Project

◉ Objective:

• ⦿ Development of an integrated Coldry demonstration + Matmor pilot facility in India

• ⦿ Launchpad for global commercial rollout

◉ Partners:

• ⦿ Neyveli Lignite Corporation is the custodian of India’s lignite resources, the lead partner on Coldry and the project host

• ⦿ The NMDC (National Mineral Development Corporation) is India’s largest Iron ore miner.

• ⦿ Both companies are PSUs (Public Sector Undertakings, i.e. Government entities)

◉ Location

• ⦿ Neyveli, Tamil Nadu

• ⦿ ~2.8GW power station

• ⦿ ~25m tpa mine output

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42

India Project Pathway

• Demonstrate as a platform for subsequent larger scale commercial roll out

• ‘Demonstration’ achieves:

• ⦿ Capital defined

• ⦿ O&M capability displayed

• ⦿ Product quality, value and use validated

• ⦿ Business model proven

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Complete Coldry
Module design
2013
�
Coldry Feasibility
Study �
�
Coldry EPC 2014
Operations
partner �
�
Financing
Integrated Plant 2015
2017
proposal
2016
Partnership
agreements
Matmor Pilot Plant
Construction Coldry
development preparation Construction
program
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43

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ECT Value Proposition

Summary

Section 5

Value Proposition for Low rank coal asset owners

Incremental sales from existing low rank coal assets into higher value markets:

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• Coldry - participate in thermal coal markets on a competitive marginal cost basis against thermal coal miners.

• ◉ Matmor participate in the iron and steel markets with a fundamental raw material and operational cost advantage against incumbent processes.

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45

46

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