NEOMETALS LTD — Capital/Financing Update 2020

Apr 30, 2020

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1 May 2020
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LITHIUM‐ION BATTERY RECYCLING JOINT VENTURE UPDATE

Project developer Neometals Ltd ( ASX: NMT ) ( “Neometals” or “the Company” ) confirms an extension to the decision date for formation of its 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 has granted SMS an exclusive due diligence period to evaluate the results of its Canadian LIB recycling pilot trial (“ Pilot ”), after which point the parties propose to form a 50:50 incorporated 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 April 2020 has now been extended by two months i.e. JV shareholder agreement execution scheduled on or before 30 June 2020.

With Pilot trials successfully completed (for full details refer to ASX announcement entitled “Battery Recycling Pilot Plant – Successful Completion” released on 2 April 2020), Neometals and SMS are working collaboratively to finalise formal JV legal agreements and SMS due diligence on Pilot outcomes. The extension allows SMS more time to review the extensive body of data associated with the final Pilot report submitted by Neometals and the associated Metsim mass/energy balance. Despite JV formation steps progressing well, this small delay is unavoidable given the business hampering impacts of Covid 19 in Europe.

ENDS

Authorised on behalf of Neometals by Christopher Reed, Managing Director

For further information, please contact:

Chris Reed	Jeremy Mcmanus
Managing Director	General Manager ‐ Commercial and IR
Neometals Ltd	Neometals Ltd
T: +61 8 9322 1182	T: +61 8 9322 1182
E: info@neometals.com.au	E: jmcmanus@neometals.com.au

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 integrating down the value chain to increase margins and return value to shareholders.

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

Upstream Industrial Minerals:
 Barrambie Titanium and Vanadium Project ‐ one of the world's highest‐grade hard‐rock titanium‐vanadium deposits, working towards a development decision in mid‐2021 with potential 50:50
JV partner IMUMR.
Downstream Advanced Materials:

• Lithium Refinery Project – evaluating the development of India’s first lithium refinery to supply the battery cathode industry with potential 50:50 JV 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.

• Recycling and Resource Recovery:  Lithium‐ion Battery Recycling – a proprietary process for recovering cobalt and other valuable materials from spent and scrap lithium batteries. Pilot plant testing completed with plans well advanced to conduct demonstration scale trials with potential 50:50 JV partner SMS Group, working towards a development decision in mid‐2021; and

• Vanadium Recovery – a 27‐month option to evaluate establishing 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.

Locked Bag 8 West Perth WA 6872

ACN 099 116 361 Level 1, 1292 Hay Street West Perth WA 6005

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

info@neometals.com.au