LATROBE MAGNESIUM LIMITED — Capital/Financing Update 2021

Aug 30, 2021

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LATROBE VALLEY PROJECT UPDATE

AUGUST 2021

PROJECT UPDATE

Highlights

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• EPCM officially awarded to Mincore, allowing for further detailed engineering of the demonstration plant to begin.

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• Capital cost estimate for the demonstration plant completed and scope of early works defined.

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Site surveying and underground service location completed.

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• Value Engineering Summary and trade-off study reports completed and demonstrated additional value to the project.

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• Budget defined for administration building refurbishment and contracts tendered for fencing and gate repair.

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Project team relocated to new dedicated project office.

Mincore have provided LMG with an update to the early works and process engineering being done for the Latrobe Valley Demonstration Plant project. Mincore’s focus since signing the EPCM agreement has been providing testwork support on LMG’s hydromet process, undertaking the process engineering and pursuing trade-off studies to improve and refine the process. Mincore has completed the trade-off studies as well as the value engineering study, both of which demonstrated additional value for the project.

Site surveying has been completed with underground services located. Mincore have completed the tendering evaluation for the gate and fence repair and have budget priced the refurbishment of the existing administration building. A local contractor has commenced work on the fencing and gate repair and the scope of work for the electrical restorations works on site have been completed. Mincore will look to issue the tendering package for this work in the coming weeks.

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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

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Mincore have been supporting LMG alongside CSIRO as we test new technologies to improve the existing processes, build prototypes and complete plant trial runs varying operating parameters and conditions.

The focus of the project team in the coming weeks will be to progress early works, defining the administration building refurbishment scope and preparing a recommendation for the electrical services restoration once tendered. Alongside this, Mincore will continue to progress value engineering opportunities not already covered in the trade-off studies and deliver process deliverables including Design Criteria and Process Flow Diagrams. Mincore will seek to finalise the Metsim model in the coming weeks.

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David Paterson Chief Executive Officer

31 August 2021

About Latrobe Magnesium

Latrobe Magnesium is developing a magnesium production plant in Victoria's Latrobe Valley using its world-first patented extraction process. LMG intends to extract and sell magnesium metal and cementitious material from Yallourn ash, which is currently a waste stream from 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 for its initial 3,000 tonne per annum magnesium plant at the end of June with production commencing 18 months later. The plant will then be expanded up to 40,000 tonne per annum of magnesium 12 months later. 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 USA and Japanese customers.

Magnesium has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of aluminium sheet in cars, 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.

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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