NEOMETALS LTD — AGM Information 2019

Nov 19, 2019

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CHAIRMAN’S ADDRESS: 2019 ANNUAL GENERAL MEETING

Good afternoon, ladies and gentlemen. My name is Steven Cole and I am the Chair of Neometals Ltd.

It gives me great pleasure to address you at this 2019 annual general meeting and for the board to account for its work and performance over the last year.

FY 2018/2019 proved to be a milestone year for Neometals with significant achievements on multiple fronts. Broadly, the year under review saw the Company refine its integrated project development focus with a move away from upstream lithium mining in favour of expediting the development of its mineral and advanced material growth projects.

The strategic sale of the Company’s remaining equity holding in the Mt Marion lithium mine with retention of annual offtake rights at market pricing proved to be prescient. The spodumene market has come under significant short to medium-term supply side pressure and a corresponding commodity price correction has validated the decision to sell. Importantly, the transaction generated a significant financial capital reserve for Neometals and the valuable life of mine offtake option underwrites Neometals’ continuing participation in lithium battery materials downstream processing opportunities which are projected to emerge in the medium term. It also marked the culmination of years spent strategically creating an ecosystem building inherent value for future realisation with exposure to downstream opportunities developed and retained.

Neometals has a clear strategy and a unique approach that looks to combine the following elements:

1. Identifying and securing diversified project development opportunities connected to the electric vehicle battery and stationary energy storage sectors;

2. Applying its ecosystem of expertise to build and realise inherent value in project and opportunity commercialisation through co-venturing with strong industry relevant partners to fast-track development and returns, minimise Neometals’ capital outlay and mitigate financial and operating risks;

3. Shortening the timeline to project development, commercialisation and cashflow realisation leading to the acceleration of returns to shareholders; and

4. Using returns from past project success to finance growth projects and to fund innovation to enable downstream processing of upstream mineral and advanced material feedstocks.

Neometals’ project development approach allowed the Company to deliver total realised returns to date from its Mt Marion project participation of almost $AUD200m off an initial $AUD3m investment. The Company’s business model and aim is to replicate this success.

Key business highlights that support the Company’s current position include:

Security

• A strong balance sheet (~$AUD107m cash and term deposits plus $AUD9.4m in net receivables and listed securities as at 30 September 2019) courtesy of internally generated returns. The Company has not raised dilutive equity capital since 2013;

info@neometals.com.au neometals.com.au

Locked Bag 8 T: +61 8 9322 1182 West Perth WA 6872 F: +61 8 9321 0556

ACN 099 116 361 Level 3, 1292 Hay Street West Perth WA 6005

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• A history of de-risking opportunity development with strong operating and offtake partners;

• A history of disciplined capital allocation, value realisation and shareholder returns with $6 million in share buy backs and $39 million in total dividends being paid to shareholders progressively over the last 4 years; and

• A strong diversified board and disciplined management team.

Opportunity

• The financial means to pursue development of its growth projects;

• Diversified and mature portfolio of minerals and advanced materials required for a sustainable future;

• Risk-mitigating business model that supports innovation towards the head of the trend - so as to deliver enhanced margins;

• Clear growth strategy with an approach validated by prudent timing and value realisation;

• The assurance of its track record to leverage stronger financial outcomes from future project transactions;

• Three advanced core project priorities together with mineral exploration, processing and longer-term technology-based projects;

• All projects sharing common DNA with their connection to the globally relevant electric vehicle battery and stationary energy storage thematic; and

• A market discrepancy where share market capitalisation is less than cash backing and value crystallisation opportunities exist on multiple fronts as already mature projects continue to advance.

Over the year, your Company’s Board and management have worked hard to fulfil Neometals stated corporate purpose, “to innovatively develop opportunities in minerals and advanced materials essential for a sustainable future” .

Strong disciplined governance and focus on dynamic corporate strategy underpins the Neometals commitment to delivering value to our shareholders, partners and community. Neometals’ innovative business approach offers a combination of security, returns and growth opportunities in a diversified project pipeline.

Your Board is confident of the Company’s future, and together with the management team, we are committed to realising the Company’s success which we look forward to sharing with our loyal and supportive shareholder base.

Steven Cole CHAIRMAN

ENDS

About Neometals Ltd

Neometals innovatively develops opportunities in minerals and advanced materials essential for a sustainable future. The strategy focuses on de-risking and developing long life projects with strong partners and integrating down the value chain to increase margins and return value to shareholders.

Neometals has three core projects:

• Lithium-ion Battery Recycling – a proprietary process for recovering cobalt and other valuable materials from spent and scrap lithium batteries. Pilot plant testing currently underway with plans established to conduct demonstration scale trials with potential JV partner SMS Group;

• Lithium Refinery Project – Progressing plans for a lithium refinery development to supply lithium hydroxide to the battery cathode industry, underpinned by a binding lifeof-mine annual offtake option for 57,000 tonnes per annum of Mt Marion 6% spodumene concentrate; and

• Barrambie Titanium and Vanadium Project - one of the world's highest-grade hard-rock titanium-vanadium deposits, working towards a development decision in mid2021.

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