NEOMETALS LTD — Capital/Financing Update 2020

Jun 30, 2020

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30 June 2020
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LITHIUM-ION BATTERY RECYCLING JOINTVENTUREUPDATE

Project developer Neometals Ltd ( ASX: NMT ) ( “Neometals” or “the Company” ) confirms an extension to the exclusivity period to allow finalisation of definitive legal agreements for the incorporation of the proposed lithium-ion battery (“ LIB ”) recycling joint venture (“ JV ”) with German company, SMS Group GmbH (“ SMS ”).

Pursuant to a binding memorandum of understanding (“ MoU ”), Neometals granted SMS an exclusive due diligence period to evaluate and negotiate incorporation of a 50:50 JV to commercialise the Neometals technology (for full details refer to ASX announcement entitled “MOU for Lithium Battery Recycling JV with SMS Group” released on 17 October 2019 ). The JV formation decision date of 30 June 2020 has now been extended by one month, with JV shareholder agreement execution scheduled on or before Friday 31[st] July 2020.

SMS successfully completed an extensive due diligence of the Company’s Pilot Plant results (for full details refer to ASX announcement entitled “Battery Recycling Pilot Plant – Successful Completion” released on 2 April 2020) and the parties are finalising the definitive transaction documents for the formation of the JV.

Neometals has accepted the Comminution section equipment section of the Demonstration Plant from manufacturers in the US. The equipment has been certified it as EU compliant and is in the process of being shipped to Germany. The Comminution section of the proposed Demonstration Plant has the largest processing capacity of any LiB recycling plant in Europe, the hydrometallurgical (refining) section of the plant will have a smaller capacity to demonstrate the process to potential feedstock suppliers, before being scaled to commercial operations in due course.

ENDS

Authorised on behalf of Neometals by Christopher Reed, Managing Director

For further information, please contact:

Chris Reed Managing Director Neometals Ltd T: +61 8 9322 1182 E: info@neometals.com.au

Jeremy Mcmanus

General Manager - Commercial and IR Neometals Ltd T: +61 8 9322 1182 E: jmcmanus@neometals.com.au

ACN 099 116 361 Locked Bag 8 Level 1, 1292 Hay Street West Perth WA 6872 West Perth WA 6005

T: +61 8 9322 1182 F: +61 8 9321 0556

info@neometals.com.au

5 May 2020 - JOINTLY FUNDED FEASIBILITY STUDY FOR LITHIUM REFINERY

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About Neometals Ltd

Neometals innovatively develops opportunities in minerals and advanced materials essential for a sustainable future. With a focus on the energy storage megatrend, the strategy focuses on de-risking and developing long-life projects with strong partners and vertically integrating to increase margins and return value to shareholders.

Neometals has four core projects with large partners that span the battery value chain:

Recycling and Resource Recovery:

• Lithium-ion Battery Recycling – commercialising a proprietary process for spent and scrap lithium batteries. with potential partner SMS Group, working towards a development decision in 2021; and

• Vanadium Recovery – evaluating a 50:50 joint venture to recover vanadium from processing by-products (“Slag”) from leading Scandinavian steel maker SSAB. Underpinned by a 10-year Slag supply agreement, a decision to develop sustainable European production of high-purity vanadium pentoxide is targeted for early 2023.

• Downstream Advanced Materials:

• Lithium Refinery Project – evaluating the development of India’s first lithium refinery to supply the battery cathode industry with partner Manikaran Power, underpinned by a binding life-of-mine annual offtake option for 57,000 tonnes per annum of Mt Marion 6% spodumene concentrate, working towards a development decision in 2022.

• Upstream Industrial Minerals:

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

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neometals.com.au