Green Minerals — Investor Presentation 2021

Jul 23, 2021

2nd QUARTER 2021

Forward-looking statements

Green Minerals

• All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements and are prediction of, or indicate, future events and future trends which do not relate to historical matters. No person should rely on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond the company's control and may cause its actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by the forward-looking statements and from past results, performance or achievements. These forward-looking statements are made as of the date of this presentation and are not intended to give any assurance as to future results. None of the company, its employees and representatives assumes any obligation to update these statements.

AGENDA

Q2 2021 UPDATE

FINANCIAL

COMPANY PRESENTATION

THEME:EXPLORATION

Ståle Rodahl Executive Chairman

Maxime Lesage Chief Engineer

Erik Von Krogh CFO

Q2 2021 UPDATE – PROGRESSING ON PLAN

Green Minerals

HIGHLIGHTS FOR THE QUARTER

• •Granted development support from Forskningrådet for three separate projects related to development of the company's exploration and production methodology. The total support amounts to NOK 16.5 million.
• •Agreement involving the Project ULTRA signed with National Oceanography Centre and University of Southampton.
• •Hired Ståle Monstad as Chief Geoscientist & Head of Exploration

ASPIRATIONAL TARGET UPGRADE

•Introducing USD 800M/yr gross revenue target allowing for 0.25% Cobolt content vs USD 550M for Copper only

Q2 FINANCIALS - Profit and loss statement

Interim statement of income
All figures in NOK 000's (except EPS)	Q2 2021 (Unaudited)	Q1 2021 (Unaudited)	YTD 2021 (Unaudited)	2020 (Audited)
Revenues	-	-	-	-
Personnel expenses	-174	-345	-519	-114
Other expenses	-1877	-1307	-3184	-487
EBITDA*	-2051	-1652	-3703	-601
Depreciation and amortization	-	-	-	-
Operating profit (loss) / EBIT	-2051	-1652	-3703	-601
Net financials	- 7	1	- 5	-
Profit / (loss) before income tax	-2058	-1651	-3708	-601
Income tax	-	-	-	-
Profit/loss	-2058	-1651	-3708	-601
Earnings per share
Basic	-0,16	-0,13	-0,29	-0,05
Deluted	-0,16	-0,13	-0,29	-0,05

*Operating profit before depreciation, impairment gains (losses) on property, plant and equipment

Q2 FINANCIALS – Balance sheet

Consolidated interim statement of financial positiion

All figures in NOK 000's (except EPS)	30 june 2021 (Unaudited)	31 march 2021 (Unaudited)	31 December 2020 (Audited)
ASSETS
Non current assets
Research & development	537	-	-
Current assets
Other current assets	485	-	-
Cash and cash equivalents	23708	27791	29068
	24193	27791	29068
Total assets	24730	27791	29068
EQUITY
Capital and reserves attributable to
equity holders of the company
Paid in capital	28702	28702	29601
Retained earnings	-4309	-2252	-601
	24393	26450	29000
EQ ratio	99 %	95 %	100 %
LIABILITIES
Current liabilities
Trade payables	337 337	1341 1341	68 68
Total liabilities	337	1341	68
Total equity and liabilities	24730	27791	29068

Our mission

Deliver minerals for the Green Shift in a responsible and sustainable manner

Our vision: Creating the marine minerals value chain

Massive global demand for new metals sources

• Massive need for new source of metals as the world electrifies and digital technology becomes available to more consumers
• Demand of base metals for production of EV batteries could increase 11x by 2050 (World Bank)
• \$240bn CAPEX investment needed for the next 5 years only in base metals and gold (Wood Mackenzie)
• Will take decades to build the primary stock of metals that will make recycling of EV metals possible and being able to fulfil all the demand

Commentary >\$1trn in key metals capex needed by 2035

Cumulative capex: current commitments and AET-2 scenario requirements, USDbn

USD 1.7 trillion in capex needed to meet expected 2035 demand

NCS – the most attractive area in the world to kickstart the industry from

Commentary The Mohns & Kniprovich ridges

• Mineral exploration on the Norwegian continental shelf ("NCS") is attractive for several reasons:
  • − Size and richness of reserves
  • − One nation state, one regulatory authority
  • − 60 years of succesful O&G regulation
• Norway has the second largest reserves estimate in the world with the Mohns & Knipovich Ridges (1030 km) located on NCS
• SMS (Seafloor Massive Sulfides) and Crusts found in several locations in the Norwegian Sea

Mean Resource estimate for key Metals¹ in SMS deposits in

Findings from SMS samples	Findings from crust samples
	
Copper:	Lithium:
up to 14 % (vs	20-80x Pacific
~0.6 % for onshore mining)	Ocean
Zinc: up to 10 % 	Scandium: 4-7x Pacific  Ocean
Cobalt:	REE:
up to 1 % (vs ~0.2	Up to 2x Pacfic
	Ocean
% for onshore mining)	

Notes: 1) Other metals and REEs not included in estimate; 2) 2019 metal prices used by Ellefmo et al and 9,25 nok/usd, Quantifying the Unknown

Key events towards exploration license awards in 2024 and production in 2028

Supporting global sustainability

Partners and affiliations

Our strategy

Aspirational targets (II)

Commentary

• One Green Minerals full scale production system:
  • − Flow rate: min 5-8000 tonnes/day
  • − Utilisation: min 200+ days/year
  • − Annual ore production: min 1,5mt
• Gross revenues: >\$550M/yr on copper only
• Gross revenues >\$800M/yr if adding 0.25% cobolt
  • − Revenue/tonne ore: 10-20x higher than similar onshore
  • − Valuation onshore 2021e (EV/S): Boliden 1,5, Rio Tinto 2,6
• Environmental footprint:
• 90% lower than similar onshore

Key metrics - 30MT deposit example

Metric	Unit
Mineral resources	Million tons	30
Enrichment (CuEq)	%	5.3
Sum revenue	USDm	7,360
Sum Expex	USDm	40
Sum Capex	USDm	780
Sum Opex	USDm	2,250
Sum Abex	USDm	100
Unit cost (CuEq)	USD/kg	2.0
Lifting cost (CuEq)	USD/kg	1.4
Pre-tax NPV0	USDm	4,260
Pre-tax NPV10	USDm	746
Pre-tax IRR	%	29

Source: Rystad

Theme:

Exploration process

Mineral Prospectivity - Regional

Liu et al, 2021

• Provide the exploration team with a score map showing the areas with higher chances of hosting a permissive tract
• Constructed from a multi-layered map
• Score obtained by weighing factors such as water depth, slope gradients, crust thickness and other geophysics e.g. electromagnetic response
• Highest scores should be drilled first in the absence of other information

^- Strategy : limiting the area to be surveyed without limiting the chances to find mineralizations (permissive tracts)

Permissive tract exploration - Local

Juliani & Ellefmo, 2019

• Strategy : One prospect is "proven" within a permissive tract
• what are the chances for other "local" mineralisations and what's their resource potential?
• Statistical approach combined with general grade/tonnage model to infer the resources present in the permissive tract and establish camps
• Gate decision on expected resource to trigger extensive drilling for block modelling

Deposit exploration – block model

mainly inferred

Deposit exploration – block model

Tercan et al., 2011

• More data from extended drilling campaign
• Enable geostatistical methods for simulating block model
• Data driven resource assessment
• Provides the input necessary for the mining engineering department feasibility studies starting with scoping in order to compute early NPVs
• Resource classification moves from inferred to indicated and partially measured

Investment highlights

Green Minerals

Marine Minerals needed for the Green Shift

NOK 1000bn opportunity on NCS

GEM with capital-light partnership strategy across the entire value chain

4

1

2

3

Well-defined roadmap and triggers towards first licenses in 2023 and pilot production in 2026

5

A real option with very low downpayment against a >\$350m annual EBITDA opportunity, i.e inherent flexibility and highly attractive risk-reward