LI-S ENERGY LIMITED — AGM Information 2021

Nov 23, 2021

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ASX ANNOUNCEMENT

FOR IMMEDIATE RELEASE TO THE MARKET

Li-S Energy Limited – ASX Code: LIS

Wednesday 24 November 2021

Chairman’s Statement and CEO Presentation

Li-S Energy Limited (ASX: LIS) (“LIS” or “the Company”) is pleased to provide the following which will be presented at the Company’s Annual General Meeting today:

• Chairman’s Statement

• CEO Presentation

This announcement has been authorised by the Board.

For further information contact:

Dr. Lee Finniear Chief Executive Officer On 07 3054 4555

Li-S ENERGY LIMITED

ABN: 12 634 839 857

Level 27, 10 Eagle St, Brisbane QLD 4000 Website: www.lis.energy Tel: +61 7 3054 4555 Email: info@lis.energy

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Li-S Energy AGM 2021 Chairman’s Statement

AGM 24 Nov 2021

Ladies and gentlemen, on behalf of the Board and the entire Li-S Energy team, I would like to welcome you to the 2021 Annual General Meeting of Li-S Energy shareholders.

My name is Ben Spincer, Li-S Energy’s Chair, and I am delighted to be hosting my first Annual General Meeting with Li-S Energy.

First, I would like to acknowledge the Traditional Owners of the various lands from where we’re joining the webcast today, and I pay my respects to their Elders past, present and emerging.

It would have been great to be with you all in person today but with COVID-19 border restrictions still in place, I have remained in Melbourne for today’s meeting, with the balance of the Board and management in Brisbane and Sydney. We look forward to engaging with you via this virtual platform today, and I would also like to extend a warm welcome to those of you who are joining us.

I would like to start by introducing the LiS Energy team who are online today. I am joined by my fellow Directors, Ms Hedy Cray, Mr Robin Levison and Mr Tony McDonald. They are joined by the CEO, Dr Lee Finniear who you will hear from shortly, the CFO Mr Ken Hostland, the General Counsel Mr Will Shiel and Company Secretary, Mr Andrew Cooke.

I must also thank the efforts and contribution from the two Directors who retired from the LiS Energy Board in 2021 – Mr Glenn Molloy and Dr Greg Pullen.

Li-S Energy was established in 2019 as a venture between the PPK Group and Deakin University to validate and commercialise novel battery technology using boron nitride nanotubes as a nanoinsulator in lithium-sulphur batteries.

In a little over two years, the company has validated the science behind its Lithium Sulphur battery technology, developed a new product, Li-Nanomesh that we believe will improve the durability of any battery with a metal anode, and successfully completed an IPO on the Australian Stock Exchange, raising $54m through the IPO and a pre-IPO raise. Coupled with a $3.25m raise at the start of the 2021 financial year, the company is immensely grateful for the ongoing support from its shareholders and is in a strong position financially to invest in its growth.

Turning briefly to the outlook. Affordable, high-performance lithium sulphur batteries have the potential to drive adoption in an electrifying global economy, creating EVs that drive further, drones that fly longer and mobile devices that last for days instead of hours. Li-S Energy has an enviable opportunity to contribute to the development and production of such batteries to supply a multitude of industries and uses.

Following from the efforts of 2021, the Li-S Energy research and development program is designed to provide a path to deliver Li-S Energy Batteries, materials and intellectual property to market. It has the following four primary goals in 2022 and beyond:

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24 November 2021

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1. Further optimise Li-S Energy technology, both the performance of our Lithium Sulphur batteries and the broader opportunities afforded by Li-Nanomesh

2. Produce Li-S Energy Batteries in pouch, cylinder and flexible battery formats to address the needs of partners and prospective customers

3. Build a pilot scale production capability, manufacture batteries and prove their benefits in commercial products with commercial partners

4. Develop intellectual property on how lithium-ion battery manufacturing plants can be adapted to produce Li-S Energy Batteries

Commercially, the clearest demonstration of Li-S Energy Battery benefits will be to show its performance in real products. We have often stated our intention to collaborate with product original equipment manufacturers in key markets, retrofit their products with Li-S Energy Batteries, and have the OEM complete a comparative field test. It is incredibly exciting that in recent months we have attracted so much interest from partners, exemplified by this week’s announcement of the collaboration with Janus Electric and opportunities that it presents to us, which Lee will talk about shortly.

Li-S Energy is building a strong management team and, with the ongoing support from Deakin’s talented scientists and engineers, is well positioned to deliver on its objectives.

Finally, I want to say something on our Environmental, Social and Governance commitment, commonly called ESG. We have a great opportunity to lead and adopt best practice and embed ESG into our governance frameworks to build a more sustainable and resilient business, and future. We will continue to prioritise this commitment at the LiS Energy Board, for all our stakeholders.

I will now hand over to the CEO, Dr Lee Finniear to give you a company update and discuss some of the recent exciting developments at LiS Energy. Thank you.

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24 November 2021

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Li-S Energy

AGM CEO Presentation 24 November 2021

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Li-S Energy

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“Global Net Zero” is now a central issue in Governments and the public conscience – its driving change, its driving investment and its driving technology…

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Battery Demand Drivers

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The lithium-ion battery market is currently valued at US$35.3 Billion and expected to double to US$71 Billion by 2025. Significant
demand for lithium ion-batteries is driven by the global shift towards electric vehicles, with other industries also adding to this demand.
Electric Vehicles and E- Law Enforcement
Mobility & Defence
Aviation & Drone Consumer
Technology Electronics and
Internet of Things
(IoT)
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Li-S Energy

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• Founded by Deakin University & PPK Group in 2019

• IPO late September 2021 (8 Weeks Ago)

• GOAL :

• “To commercialise the first high energy density Lithium Sulphur Battery with cycle life equal or exceeding that of Lithium ion”.

• TARGET MARKETS :

• Electric vehicles (of all types), Drones, Aviation

• TARGET MARKET OBJECTIVES :

• EVs that can drive more than 1000Km between charges,

• Drones that fly for hours not minutes,

• Electric Aviation at a commercial scale, maximizing range and payload & minimizing battery weight

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Lithium-sulphur batteries have more than 5 times the theoretical energy capacity of Lithium-ion batteries. Beyond this they have a range of other potential advantages over today’s lithium-ion batteries:

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Higher Energy Density

Lithium-sulphur batteries have a theoretical gravimetric energy density of 2,567 Wh/Kg - in the order of 5x that of lithium-ion batteries.

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Lighter Weight

The lithium, sulphur and carbon used in lithium-sulphur batteries are substantially lighter than the heavy metal oxides used in lithium-ion batteries, facilitating a lighter battery for the same energy stored.

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Faster Charging Capacity

Lithium-sulphur batteries have a higher charge rate capacity and can be recharged faster due to their chemical design. The higher energy density also delivers more energy per charge/discharge cycle, leading to fewer charges being required

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Lower Cost per KWh

Sulphur is one of the most abundant elements on Earth and costs less than 1% the cost of lithium cobalt oxide. The low mass of lithium metal needed for a lithium-sulphur battery anode also keeps the material cost of the anode down.

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Enhanced Safety

According to the Faraday Institute, lithium-sulphur batteries offer significant safety benefits over other battery types due to their operating mechanism. While thermal runaway remains a possibility, research has shown that the magnitude of this failure is significantly lower than Lithium-ion cells.

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Cleaner & Greener

Unlike lithium-ion, lithium-sulphur batteries do not contain heavy metals. Most lithium metal is produced from mined ore and brine reservoirs. Sulphur is an industrial by-product that can be re-purposed for lithium-sulphur batteries

BUT historically Li-S cells have had a very low cycle life, preventing them from being used commercially.

Li-S Energy

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We have a solution to extend Lithium Sulphur cycle life using Boron Nitride Nanotubes and Li-nanomesh, plus an exclusive distribution agreement for BNNT for Li-S batteries

1. BNNT - Stabilising the Cathode

2. Li-Nanomesh – Stabilising the Anode

3. Obtaining a viable BNNT Supply

4. Locking in an Exclusive Global Distribution Agreement for BNNT

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Pure BNNT – SEM Image

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Li-S Energy Battery Cell Construction
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Sulphur cathode
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Polysulfides
BNNT
Separator
Li-nanomesh
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Lithium anode
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Li-S Energy

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Cell testing has been continuing to prove cycle life performance. These are the ongoing results of cycle testing on a lithium sulphur pouch cell with BNNT.

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Li-S cell with BNNT
Still > 60% Still > 60% Still >60%
c
capacapacityityapacity
Specific capacity of Li-ion batteries
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Non-BNNT cell point of failure

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Li-S Energy

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Test results show that Li-nanomesh can prevent dendrite formation on Lithium Metal Anodes.

Dendrites Cause Batteries to Short Circuit

Stopping Dendrites (Lithium metal ”spikes”) forming on the lithium anode during cycling is critical to avoid catastrophic battery failure

Identical Cells tested wit ~~h and without Li-nanome~~ sh

We tested identical Lithium symmetric cells, but some with Linanomesh on the lithium, and some without to prove whether Li-nanomesh helps prevent dendrites

This graph shows excellent results for Linanomesh

This is a graph showing overpotential voltage against charge/discharge cycles for the test cells. A high voltage indicates dendrite formation and failure. The graph shows that without Li-nanomesh dendrites formed quickly leading to cell failure. With Li-nanomesh the overpotential voltage was very small and stable out to 1000 cycles – showing no indication of dendrite formation or short circuits

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Li-S Energy

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A key collaboration for Heavy Vehicle EVs with a clear path to larger orders

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• Australian company with innovative technology & business model

• Janus can retrofit existing diesel Prime Movers to full electric in less than a week.

• Innovative exchangeable battery system – 600KWh batteries exchanged in less than 3 minutes

• Technical Objective: to increase vehicle range and reduce battery pack weight using Li-S Energy cells (Lithium Sulphur or Lithium-Metal)

• Commercial Objective : Janus has forecast orders of 495,000 cells (totaling 247MWh) by end 2023 with progressive switch to Li-S Energy cells subject to project success, further commercial terms and volume supply capability

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Li-S Energy

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Development is progressing with outstanding results

• Lithium Sulphur Battery Material Optimisation

• Li-Nanomesh Testing & Optimisation

• Li-Metal Battery using Li-Nanomesh to maximise cycle life

• Multi-layer Lithium Sulphur and Lithium Metal cell construction

• Solid-State & Semi Solid-State Lithium Sulphur cell development

• Industry Collaboration Projects

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An Li-S Energy multi-layer lithium sulphur battery cell ready to start cycle testing

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Scaling our Laboratories and building our Pilot Facility New lab at Building Team with ManuFutures, Deakin world leading University Campus, scientists, engineers Geelong Vic and collaborations Engaging with pilot line equipment manufacturers in Securing pilot facility Europe, USA and Asia to scope and trial key equipment Li-S Energy

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Year 1 2021-2022

• Optimise:

• Li-S Pouch Cells

• Li-Metal Pouch Cells

• Multi-layer cells

• Commence Solid State R&D projects

• Start Pilot Plant implementation

• Build Product Manufacturer collaborations

Year 2 2022- 2023

• Complete Pilot Plant

• Continue Development Projects

• Work towards Janus supply

• Expand Product Manufacturer Collaborations

• Engage with Battery Manufacturers

• Li-Metal Battery IP

Year 3 + 2024 and Be ond y

• Advance Global business development

• IP Licensing and BNNT / Linanomesh supply agreements

• Ongoing development and optimisation of IP

• Consider options for home grown Australian manufacturing

• Li-S Battery IP

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Decision on pilot plant	2 – 4	Li-nanomesh	12 - 24
location	weeks	commercialisation	months
Secure Pilot Facility Building	2-3	Janus Electric product	2023 &
	months	supply	Beyond
Fit out & install pilot plant &	12-15	Sign additional commercial	Ongoing
labs	months	collaborations
Pilot Plant operational &	15-24	Bi-monthly shareholder	Early
producing trial cells	months	newsletter	2022

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Li-S Energy

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