MINERAL COMMODITIES LTD — Investor Presentation 2019

Oct 6, 2019

MINERAL

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SKALAND ACQUISTION

Caution Statements

This document has been prepared by Mineral Commodities Ltd (MRC or the Company) and comprises written materials / slides for a presentation concerning MRC. This is not a prospectus, disclosure document or offering document. This document is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase or subscribe for, any securities, nor does it constitute investment advice, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

Certain statements in this presentation are forward looking statements. You can identify these statements by the fact that they use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, “may”, “assume” and words of similar import. These forward looking statements speak only as at the date of this presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward looking statements. No representation, warranty or assurance (express or implied) is given or made by MRC that the forward looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, each of MRC, its related companies and the respective officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any director in direct loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from.

Subject to any continuing obligation under applicable laws or any relevant listing rules of the ASX, MRC disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any statement is based.

Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of MRC since the date of this presentation. The information, if any, in this presentation which relates to Exploration Results, Mineral Resources or Ore Reserves for Tormin is based on information compiled by Dr Joseph A.P. Drake-Brockman, who is a Member of the AusIMM and is an independent consultant to the Company. Dr DrakeBrockman is an employee of Drake-Brockman Geoinfo Pty Limited and has over 36 years’ of exploration and mining experience in a variety of mineral deposits and styles. Dr Drake-Brockman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012). The information from Dr Drake-Brockmanwas prepared under the JORC Code (2012). Dr Drake-Brockmanconsents to inclusion in the presentation of the matters based on this information in the form and context in which it appears.

The information, if any, in this presentation which relates to Mineral Resources for Munglinup is based on information compiled by Mr Adriaan du Toit who is a member of the AusIMM and an independent consultant to Gold Terrace Pty Ltd. Mr du Toit is the Director and Principal Geologist of AEMCO Pty Ltd and has over 27 years’ of exploration and mining experience in a variety of mineral deposits and styles. Mr du Toit has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined by the JORC Code (2012). The information from Mr du Toit was prepared under the JORC Code (2012). Mr du Toit consents to inclusion in the presentation of the matters based on this information in the form and context in which it appears. The information, if any, in this presentation which relates to the Ore Reserve for Munglinup is based on information compiled by Mr Daniel Hastings, who is a Member of the AusIMM. Mr Hastings is an employee of Hastings Bell Pty Ltd and a consultant to the Company. Mr Hastings has sufficient experience relevant to the type of deposit under consideration to qualify as a Competent Person as defined by the JORC Code (2012). Mr Hastings consents to the inclusion in the presentation of the matters based on the reviewed information in the form and context in which it appears.

The information, if any, in this presentation that relates to metallurgy, the process plant and infrastructure design for Munglinup is based on information compiled and reviewed by Mr David Pass, who is a Member of the AusIMM. Mr Pass is an employee of Battery Limits Pty Ltd. Mr Pass has sufficient experience relevant to process plant and infrastructure design thereof to qualify as a Competent Person as defined by the JORC Code (2012). Mr Pass consents to the inclusion in the presentation of the matters based on the reviewed information in the form and context in which it appears.

The information, if any, in this presentation which relates to Exploration Results, Mineral Resources or Ore Reserves for Xolobeni is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (“AIG”), a Corporate Member of the Australasian Institute of Mining & Metallurgy (“AusIMM”) and independent consultant to the Company. Mr Maynard is the Director and Principal Geologist of Al Maynard & Associates Pty Ltd and has over 38 years’ of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves (“JORC Code (2004)”). This information was prepared and first disclosed under the JORC Code (2004). It has not been updated since to comply with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code (2012)”) on the basis that the information has not materially changed since it was last reported. Mr Maynard consents to inclusion in the presentation of the matters based on this information in the form and context in which it appears.

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MINERAL COMMODITIES GLOBAL OVERVIEW

Skaland

Flake Graphite Production – 10ktpa Flake Graphite grading ~ 28% Carbon

Tormin

“ With the acquisition of SkalandMRC will operate two production facilities, at Tormin and Skaland, while advancing development at Munglinup and progressing ongoing downstream graphite studies from Perth“

Mineral Sands Production - 2.4Mtpa Processing facility producing :Garnet , Ilmenite, Zircon and Rutile concentrates.

Xolobeni

• Mineral Sands development JORC Compliant Resource 346MT @ 5% THM

Perth

Corporate Head Quarters

Munglinup

Graphite Development - Mineral Resource of 3.6Mt at 15.3% TGC (10% cut-off) with mineralisation open in all directions

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SKALAND GRAPHITE

Largest flake graphite producer in Europe and the highest grade flake graphite mine in the world

Presently the world’s highest grade operating flake graphite mine with mill feed grade averaging around 28%C

Skaland is the largest flake graphite producer in Europe and fourth largest producer globally outside of China

• Current production ~ 10ktpa of graphite concentrate accounts for ~2% of global annual natural flake graphite production

• Ore grades of 25%-33% C delivered to the plant

• Fully Permitted operations allows for expansion to 16kpta production

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• Low-cost hydro power allows for expansion of operations and downstream processing

• The original Pre-Feasibility Study of the Trælen deposit estimated geological resources of 1.25Mt at 22%C

• Plant currently operated at 60% capacity, increase to 85% utilisation rate increases production to 1516kpta

• Opportunity to improve current flowsheet to produce high grade, high value product. Initial laboratory testwork resulted in upgrading to 96%-99% TGC with additional attritioning and flotation.

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MINERAL COMMODITIES LTD

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Converting High Grade to High Value

Hi ~~gh Grade~~ Mine Operations

Tormin - South Africa, one of the highest grade mineral sands operations in the world

Skaland – Norway, the highest-grade flake graphite operations in the world

Munglinup - Australia, developing the highest-grade graphite project in Australia

Diversification - Geographic diversification of battery minerals projects in Tier 1 jurisdictions, ex China, ex Africa production with focus on downstream markets into Europe, Japan and Korea.

Fully Funded from existing cashflow

• Munglinup feasibility study

• Downstream feasibility studies

• Acquisition and optimisation of Skaland Graphite

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SKALAND RATIONALE

Largest flake graphite producer in Europe and the highest grade flake graphite mine in the world

• Acquire instant access to graphite market - attain the knowledge, operational experience and qualification to operate successfully in a traditionally opaque market

• Secure a strategic raw material asset in a jurisdiction with the fastest EV adoption rate in the world, driven by

• Opportunity committed carbon reduction policy. • Address European Battery Alliance priority actions – ‘Secure access to sustainably produced battery raw materials at reasonable cost’

• Acquire the only graphite producer in Europe and the highest grade flake graphite mine in the world

• Optimise operations, improve quality and size distribution of concentrate, increase production, revenue and margin.

• •

• Action Complete downstream studies with consistent, high quality, concentrate supply from steady state operations to qualify active anode precursor material.

• Leverage of low cost, low carbon, green energy to create a battery material for sustainable battery cell manufacture

• Move from ‘just another prospect’ to strategic, ex China, ex Africa European focused graphite market participant.

• • Synergistic value of acquisition creates immediate market profile, provides leverage to develop, market and unlock

• Outcome value of Munglinup

• Become the largest producer of sustainably sourced active anode precursor material outside of China at a time European and Nordic countries are mandating the shift to decarbonized transportation

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WHY NORWAY

Battery electric and plug-in hybrid vehicles together hold a 50 % market share in Norway.

• Norway is leading the way for a transition to low emissions in transport.

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• Norway is a world leader in sustainable energy, with 97% of electricity coming from renewable sources and a renewable sector that employs more than 50,000 people.

• Norway's low-cost renewable energy sources provide industry with a competitive advantage, enabling business to produce zero emissions goods and services.

• One of the ‘a cell manufacturing industry, with the smallest environmental footprint possible. This will provide a key competitive and commercial edge against competitors.’ – European Battery Alliance, Priority Actions

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7 Credit: www.freyrbattery.com

SKALAND NORWAY

• Skaland Graphite AS’ mine and processing facility located on the island of Senja in northern Norway

• Ideally positioned to supply European markets. Processing facility and shipping are quay-side at Skaland, shipping every 3 weeks from ice-free harbour

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SKALAND TRANSACTION

April 2019 entered into a Share Purchase Agreement (“SPA”) with Leonhard Nilsen & Sønner – Eiendom AS (“LNS”) to purchase Skaland Graphite AS which operates the Trælen Graphite Mine and Skaland Processing Facility.

FUNDED FROM EXISTING CASH RESERVES

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Total locked box consideration of NOK 79.49M (US$8.74M) with initial cash consideration at settlement of NOK41.4M (US$4.55M) and further NOK38M (US$4.18M) over five years.

ACQUISITION SUBJECT TO EXPANSION

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Subject to Conditions Precedent, including regulatory approvals that allow increase production to a minimum of 16,000 tonnes pa and assignment or transfer of material permits and contracts.

CLOSED 4[TH] OCTOBER 2019

All Conditions Precedent satisfied and SPA settled for total consideration of US$8.74M with initial cash consideration of US$4.55M paid from existing cash reserves for 90%* transfer of Skaland shares, which includes the assets and property of Skaland Graphite As, the Traelen Mine and its operations.

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• The remaining 10% interest is held by the facilitator of the transaction, BSG Mining LLC, an nonrelated party to the Company.

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SKALAND MINING

Ore grades of 25%-33% C delivered to the plant

• Mining is via retreat sub-level open stoping with 25m levels

• Comparatively low mining cost with potential for further optimisation.

• Host rock around the mine is granite – the intact rock has high strength

• Exposed graphite is disturbed from blasting – due to the soft rock mass no open joints observed within the graphite body

• Monthly average mining costs is low at US$52/t including development

• Coarser flake distribution appearing at depth

Average Ore Grades delivered to Plant (C – Carbon)	Average Ore Grades delivered to Plant (C – Carbon)	Production Tonnes
2015	30.5%	9,051
2016	33.0%	9,757
2017	29.7%	10,309
2018	28.5%	9,627

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SKALAND HISTORIC

Concentrate Grade and Flake Size Distribution – The opportunity to add value

Production and Sales

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14000
12000
10000
8000
6000
4000
2000
0
2012 2013 2014 2015 2016 2017 2018 YTD
Tonnes produced Tonnes Sold
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USD Revenue (M)/Basket Price

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$8 $1,200
$7
$1,000
$6
$800
$5
$4 $600
$3
$400
$2
$200
$1
$- $-
2012 2013 2014 2015 2016 2017 2018 YTD
Revenue US$ Basket Price
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Average Ore / Concentrate Grades

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35% 92.0%
30% 91.5%
91.0%
25%
90.5%
20%
90.0%
15%
89.5%
10%
89.0%
5% 88.5%
0% 88.0%
2015 2016 2017 2018 YTD
Ore Grades Concentrate Grade
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USD Revenue (M) / EBITDA/ EBITDA Margin

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$8 35%
$7 30%
$6
25%
$5
20%
$4
15%
$3
10%
$2
$1 5%
$- 0%
2012 2013 2014 2015 2016 2017 2018 YTD
11
Total Revenue USD EBITDA EBITDA Margin
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PROCESSING OPPORTUNITY

Concentrate Grade and Flake Size Distribution – The opportunity to add value

Current Concentrate Grade

Flake size distribution

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+ 150 microns 94-
98%C final
concentrate grade.
-150 microns are
sub 90%C, with
~84% C for -75
micron fraction.
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The low grades and high mass in the fine fractions currently limits basket price.

	PSD	%	+/- 150µm	% C
	+315	6.6%	36%	98.1%
	+250	6.9%		97.8%
	+180	14%		96.9%
	+150	8.7%		94.7%
	+100	17.6%	64%	91.5%
	+75	11.6%		87.5%
	-75	34.7%		86.1%

This is due to fine grinding required to liberate graphite prior to rougher flotation and avoid losses of coarse composites to tails as the plant does not use collector

Testwork on Skaland Fines Concentrate Sample

Testwork on Coarse Flake Recovery

• -150 micon Skaland concentrate @ 87% Cg production sample used

• ? Pilot-scale testwork underway using a 1t ROM ore sample

• Additional milling and polishing in pilot scale testwork resulted in upgrading to

98%-99% Cg

A very high grade feed for downstream value-adding

Pilot testwork finalisation and equipment sizing underway.

• Target coarse flake recovery at the front of the circuit using new

• ? equipment. Results expected in approximately two weeks

The current flowsheet has capacity for quick wins, combining on-site optimization and outcomes from off-site testwork to produce high grade, high value products 12

KEY OPTIMISATION PHASES

Current flowsheet has capacity for upgrading to produce high purity, high value product. This will be the near-term focus whilst research and development is conducted on further value-adding elements

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CONCENTRATE VALUE ADD TO
EXISTING
1 6
CONCENTRATE
2
5
3
4
ONSITE SPHERONISATION
Evaluate potential for micronizing and
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EXPANDABLES

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UPGRADE CONCENTRATE
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Evaluate expansion characteristics of Skaland coarse concentrates (both standard grade and purified samples). Development of expandables strategy from Graphite Intercalated Compounts (GIC) to expanded graphite sheets and foils

Equipment installation to increase grade of fines, and percentage of Next coarse (+150 micron) concentrate 6-8 Months

INCREASE PRODUCTION

BATTERY ANODE MATERIAL (BAM)

Once new equipment is commissioned and quality of products improved target increased production to ~16ktpa

Electrochemical evaluation of batteries produced from micronized, spheronised and coated purified fines concentrate. Production samples for customer evaluation

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Ongoing
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Evaluate potential for micronizing and spheronising the high grade (~98%99%) fines concentrate into unpurified spherical graphite onsite – leveraging existing infrastructure, management and low-cost power. Potential fast-tracked approach to producing battery anode materials

PURIFICATION

Purification of high grade fines using non-HF chemical approach being developed within CRC-P and alternatives to produce BAM feed. Produce high value ‘low ash’ expandables feed and higher grade refractory coarse flakes.

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13
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EUROPEAN ACTION TO PHASE OUT POLLUTING VEHICLES

Country | Official Target

11 European countries have taken regulatory action to phase out Internal Combustion Engine vehicles and increase the number of Electric Vehicles, as illustrated below.

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2025
IN OCTOBER 2017, THE
EUROPEAN COMMISSION
2032 LAUNCHED THE 'EUROPEAN
BATTERY ALLIANCE' .
2019
2030 ONE OF THE MAIN AIMS UNDER
THE STRATEGIC ACTION PLAN
2040
WAS TO SUPPORT THE
SUSTAINABILITY OF EU
2030 2030 BATTERY CELL
MANUFACTURING INDUSTRY
WITH THE LOWEST
ENVIRONMENTAL FOOTPRINT
2020
2040 POSSIBLE, FOR EXAMPLE BY
USING RENEWABLE ENERGY IN
THE PRODUCTION PROCESS .
2017
2019
14
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Austria No new ICE vehicles sold after 2020

Britain No new ICE vehicles sold after 2040

Denmark 5,000 EVs on the road by 2019, tax incentive

France No new ICE vehicles sold after 2040

Germany No registration of ICE vehicles by 2030 Ireland No new ICE vehicles sold after 2030

Netherlands No new ICE vehicles sold after 2030, phase-out 2025

Norway Incentive program in place for EV sales; Official target: only sell EVs by 2025

Portugal Official target and incentive in place for EV sales

Scotland Official target: No new ICE vehicles sold after 2032

Official government program: the Movea 2017 Plan, an incentive package to promote sales of alternative energy vehicles

Spain

FOCUS FOR FUTURE SUCCESS

MRC Graphite strategy going forward

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MUNGLINUP
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• Finalise DFS (Oct 19)

• • Secure permitting (Apr 20)

• • Complete marketing (June 20) agreements, FID

• • Construction and (March 21) Commissioning SKALAND

• • Complete transaction (Oct 19)

• • Increase grade of fines (Q2 20)

• • Increase percentage of (Q2 20) coarse (+150 micron) concentrate

• • Increase nameplate (Q2/Q3 20) production

• • (Q3/Q4 20) Unpurified spheronised graphite

A DIVERSIFIED CARBON BUSINESS

MARKET ANALYSIS

Comprehensive market analysis to establish optimal product suite based on fundamental analysis of end users current and forecasted demand.

CONCENTRATE STUDY WORK

Purification, micronisation, expandable, spheroidisation and coating study work of concentrate material to identify most cost effective and profitable product suite to meet demands of end users.

CONSTRUCTION

Construction of downstream purification and micronisation plant

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