LATROBE MAGNESIUM LIMITED — Capital/Financing Update 2021

Nov 11, 2021

==> picture [595 x 47] intentionally omitted <==

LATROBE MAGNESIUM COMPLETES OVERSUBSCRIBED $11.5M PLACEMENT

Funds allows fast-tracking the construction of its initial 1,000tpa magnesium plant in Latrobe Valley

==> picture [6 x 6] intentionally omitted <==

Highlights:

• LMG accepts $11.5M with large interest from professional, sophisticated and overseas institutional investors.

• LMG’s capital cost estimate has been reduced by $6M from $45M to $39M, further increasing initial EBITDA returns.

• As an ESG-credentialled clean metals producer & the only ASX listed company with exposure to magnesium, LMG is extremely well positioned to become a low-cost CO2 producer and supplier of magnesium.

• Funds raised will be sufficient to construct its initial 1,000tpa magnesium plant in the Latrobe Valley moving to 10,000tpa in 2023.

12 November 2021, Sydney Australia: Latrobe Magnesium Limited (ASX: LMG) made this announcement early this morning. With this supplementary announcement LMG would like to correct a date on page 2 of the earlier announcement where it stated:

“Construction on site will start in January 2021” the date should be changed to “January 2022.”

==> picture [127 x 40] intentionally omitted <==

David Paterson

About Latrobe Magnesium

Latrobe Magnesium is developing a magnesium production plant in Victoria's Latrobe Valley using its worldfirst patented extraction process. LMG intends to extract and sell magnesium metal and cementitious material from industrial fly ash, which is currently a waste stream from the Yallourn brown coal power generation.

LMG has completed a feasibility study validating its combined hydromet / thermal reduction process that extracts the metal. Construction is estimated to start on site on its initial 1,000 tonne per annum magnesium plant in first quarter of 2022 with production commencing up to 12 months later in fourth quarter of 2022. The plant will then be expanded to 10,000 tonne per annum magnesium shortly thereafter. Further plant capacity expansion will be considered once the 10,000tpa is operating successfully. The plant will be in the heart of Victoria’s coal power generation precinct, providing immediate access to feedstock, infrastructure and labour.

LMG plans to sell the refined magnesium under long-term contracts to Australian, USA and Japanese customers. Currently, Australia imports 100% of the 8,000 tonnes annually consumed.

Magnesium has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of car parts, laptop computers, mobile phones and power tools.

The LMG project is at the forefront of environmental benefit – by recycling power plant waste, avoiding landfill and is a low CO2 emitter. LMG adopts the principles of an industrial ecology system.

==> picture [50 x 19] intentionally omitted <==

Suite 307, 20 Barrack St, Sydney NSW 2000 | Postal Address: GPO Box 4729, Sydney NSW 2001 | (02) 8097 0250 | lmg@latrobemagnesium.com | Latrobe Magnesium Limited | ABN 52 009 173 611 | www.latrobemagnesium.com