NEOMETALS LTD — Capital/Financing Update 2023

Mar 16, 2023

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ASX Announcement
17 March 2023
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Vanadium Recovery Project Advances to Formal Finance Appraisal with European Investment Bank

Highlights

• Notice published by European Investment Bank (EIB) confirms that the Vanadium Recovery Project is under appraisal for debt funding; and

• If successful, the EIB could cornerstone and provide a significant proportion of the project development funding on attractive terms.

Emerging sustainable battery materials producer, Neometals Ltd (ASX: NMT & AIM: NMT) (“ Neometals ” or “ the Company ”), is pleased to announce material progress in the finance process that is being run for its joint venture company, Recycling Industries Scandinavia AB (“ RISAB ”) ( see Neometals ASX announcement dated 2[nd] March 2023 titled “Neometals Now Controlling Shareholder in Vanadium Recovery Project SPV”). Specifically, RISAB’s ongoing debt financing dialogue with the EIB has successfully passed the proposal for funding consideration stage and has now entered into a formal appraisal stage of diligence by the EIB. RISAB is engaged in discussions with several debt providers and will make a final decision on the debt funding package and participating lenders in due course.

Neometals is a 50% shareholder in RISAB which is evaluating the feasibility of constructing a facility to process and recover high-grade V2O5 from vanadium-bearing steel making by-product generated by SSAB EMEA AB and SSAB Europe Oy (collectively “ SSAB ”) in Scandinavia. (“ Vanadium Recovery Project “or “ VRP1 ”). A Final Investment Decision for VRP1 is on schedule for June 2023, subject to successful project financing.

The EIB is the lending arm of European Union and one of the largest providers of climate finance through its focus on climate action and environmental sustainability. Every year, the EIB provides direct loans for a wide range of projects.

The EIB proposal assessment noted that the VRP1 would be processing steelmaking by-product that is currently stockpiled, while the recycling nature of the project avoided upstream mining costs or associated operating risks. Importantly, The European Commission has identified vanadium as a "Critical Raw Material (CRM)” and the EIB notice published on the subject says “The project supports a circular economy solution that will reduce the usage of primary resources for vanadium manufacturing.”

VRP1 has passed a key stage of finance appraisal with the EIB. Remaining in this appraisal stage is the lenders technical assessment (LTA) which has been prepared by independent third-party experts. EIB satisfaction with the LTA represents the last piece of diligence before a binding term-sheet can be offered for debt financing.

ASX: NMT | LSE: NMT neometals.com.au

Neometals Ltd ACN 099 116 631 info@neometals.com.au

T +61 8 9322 1182 F +61 8 9321 0556 Level 1, 1292 Hay Street, West Perth WA 6005 Locked Bag 8, West Perth WA 6872

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ASX Announcement : 17 March 2023

Vanadium Recovery Project Advances to Formal Finance Appraisal with European Investment Bank

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Neometals Managing Director Chris Reed said:

“We first submitted our proposal to the EIB in October 2022, its acceptance validates our circular economy ambition to produce critical raw materials in Europe. Typically, cornerstone funding from the EIB for environmentally sustainable opportunities in the battery supply chain is on very attractive terms. There is keen interest from a number of debt providers for the funding of the Vanadium Recovery Project. We watch with interest the imminent release of the EU Critical Raw Materials Act today in Europe, particularly the expected financial support for strategic projects that produce critical raw materials, like vanadium, where the EU is 100% dependent on imports.”

Figure 1 below shows the EIB loan ‘project cycle’.

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Current status

Figure 1 : EIB loan ‘Project Cycle’

Authorised on behalf of Neometals by Christopher Reed, Managing Director.

ENDS

For further information, please contact:

Chris Reed

Managing Director T +61 8 9322 1182 E info@neometals.com.au

Jeremy Mcmanus General Manager, Commercial and IR T +61 8 9322 1182 E jmcmanus@neometals.com.au

ASX: NMT | LSE: NMT neometals.com.au

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ASX Announcement : 17 March 2023

Vanadium Recovery Project Advances to Formal Finance Appraisal with European Investment Bank

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and technologyco paniesCritical Metals and eo etals.
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inancingprocess.
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ocation
Averageannual revenue
Capitalcost
Operatingcost
Constructionti eline
Slag secured years (stoc piled plus irst right
to purchase additional volu es ro SSAB s uture production)
hroughput up to
Annual production
or urtherin or ation,re erto AS releasedated th March anadiu RecoveryProject eliversStrong easibilityResultsth March anadiu RecoveryProject eliversStrong easibilityResults March anadiu RecoveryProject eliversStrong easibilityResults
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About Neometals Ltd

Neometals is an emerging, sustainable battery materials producer. The Company has developed a suite of green battery materials processing technologies that reduce reliance on traditional mining and processing and support circular economic principles.

Neometals’ three core battery materials businesses, listed below, are commercialising these proprietary, low-cost, lowcarbon process technologies:

• Lithium- “ ” % – to produce nickel, cobalt and lithium from production scrap and end-of-life LIBs in an incorporated JV with leading global plant builder SMS group. The Primobius JV is operating a co ercial disposal service at its tpd Shredding ‘Spo e’ in Germany and is the recycling technology partner to Mercedes Benz. Pri obius’ irst 5 tpd operation, in partnership with Stelco in Canada is expected to reach investment decision in Q3 2023;

• Vanadium Recovery (50% equity) – to produce high-purity vanadium pentoxide via processing of steelmaking by-product (“Slag”). Targeting a 300,000tpa operation in Pori, Finland, underpinned by a 10-year Slag supply agreement with leading Scandinavian steelmaker SSAB. Finnish project investment decision with JV partner, Critical Metals, expected June 2023. MOU with H2Green Steel for up to 4Mt of Slag underpins a potential second operation in Boden, Sweden; and

• Lithium Chemicals (earning 35% equity) – to produce battery quality lithium hydroxide from brine and/or hard-rock feedstocks using patented ELi® electrolysis process owned by RAM (70% NMT, 30% Mineral Resources Ltd). Co-funding pilot plant and evaluation studies on a 25,000tpa operation in Estarreja with Portugal’s largest che ical producer, Bondalti Chemicals S.A.

ASX: NMT | LSE: NMT neometals.com.au

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