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NEOMETALS LTD Investor Presentation 2019

Jun 11, 2019

65430_rns_2019-06-11_fe688928-2892-4592-8cad-e31bb0f17dd4.pdf

Investor Presentation

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12 June 2019
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Investor Presentation – AMEC Conference

Neometals Ltd ( ASX: NMT ) ( “Neometals” or “the Company” ) refers to the Investor Presentation – AMEC Conference released on ASX on 6 June 2019 (“ Investor Presentation ”). The Company inadvertently included an appendix in the Investor Presentation document containing information that was not referred to elsewhere in the Investor Presentation or discussed during the presentation, and should not have been included in the document. Neometals now re‐releases the Investor Presentation without that appendix.

ENDS

For further information, please contact:

Chris Reed Managing Director Neometals Ltd T: +61 8 9322 1182 E: [email protected]

Jeremy Mcmanus General Manager ‐ Commercial and IR Neometals Ltd T: +61 8 9322 1182 E: [email protected]

[email protected] neometals.com.au

ACN 099 116 361 Locked Bag 8 Level 3, 1292 Hay Street West Perth WA 6872 West Perth WA 6005

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

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All the right elements®
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AMEC Conference – June 2019
ASX Code: NMT OTC/Nasda Intl: RDRUY
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Disclaimer
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Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this document is of general background and does not purport to be complete. It should be read in conjunction with Neometals’ other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

Forward-looking information: This document contains ~~, o~~ pinions, projections, forecasts and other statements which are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from the estimated or anticipated events or results included in this document. Recipients of this document are cautioned that forward-looking statements are not guarantees of future performance.

Any opinions, projections, forecasts and other forward-looking statements contained in this document do not constitute any commitments, representations or warranties by Neometals and its associated entities, directors, agents and employees, including any undertaking to update any such information. Except as required by law, and only to the extent so required, directors, agents and employees of Neometals shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatever nature arising in any way out of, or in connection with, the information contained in this document.

Financial data: All figures in this document are in Australian dollars (AUD) unless stated otherwise.

Not financial product advice: This document is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire securities in Neometals. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making any investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction.

Investment risk: An investment in securities in Neometals is subject to investment and other known and unknown risks, some of which are beyond the control of Neometals. The Company does not guarantee any particular rate of return or the performance of Neometals. Investors should have regard to the risk factors outlined in this document.

Compliance Statement:

The information in this document that relates to “Lithium Battery Recycling – Scoping Study Results” and “Barrambie Vanadium DFS Results and Start of Titanium Pilot” has been extracted from ASX Release set out below. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Release set out below..

22/05/2019 Barrambie Vanadium DFS Results and Start of Titanium Pilot 04/06/2019 Lithium Battery Recycling – Scoping Study Results

The Company confirms that all the material assumptions underpinning the “Lithium Battery Recycling – Scoping Study Results ” released on 4 June 2019, and “Barrambie Vanadium DFS Results and Start of Titanium Pilot” released on 22 May 2019 continue to apply and have not materially changed.

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Executive Summary
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  • Innovative project developer listed on ASX (ticker NMT)

  • Acquired & developed Mt Marion into the world’s 2[nd] largest spodumene producer with MinRes (ASX:MIN) and Ganfeng (HK:1772)

  • Staged sell-down with final tranche settling Mar 2019 (A$104M) taking total project returns to ~A$200M on outlay of A$3M.

  • Retained Annual Offtake Option for 57kt of SC6 for Life-of-Mine

  • Returned A$45M to shareholders in last 4 consecutive financial years*

  • • Cash of +A$116M plus ~A$10M in investments vs. current market cap of A$125M

  • Strong balance sheet to develop the following core, wholly-owned projects:

  • Lithium-Ion Battery Recycling Project;

  • Lithium Refinery Project;

  • Barrambie Titanium and Vanadium Project (WA).

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  • Post partially franked 2 cent dividend payable 15 May 2019

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Lithium

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We have strong conviction in the long term
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lithium battery/EV/ESS thematic….
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and that the batteries wear out!
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Strong Long-Term Fundamentals
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Market is long now but supply deficit expected to emerge mid 20’s despite new capacity

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Our lithium ecosystem post-Mt Marion
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Recycling and Recovery Li Ion Battery Recycling Project Neometals 100%

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Neometals is developing a sustainable technology to economically recover the critical metals from spent lithium ion batteries.

  • Large potential supply with <5% batteries truly recycled globally (ex China)

  • 2017 Scoping Study showed potential for viable process to recover cobalt from phone/laptop (LCO) batteries at <US$5/lb Cobalt

  • Lab tests completed on recovery of multiple critical metals from LCO and NMC battery chemistries

  • Class 5 Scoping Study completed

  • Pilot Plant Operating at SGS Canada

  • Class 3 Engineering/Feasibility Study for 50tpd commercial plant to follow

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Scoping Study Metrics – LCO/NMC
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Value chain – who must recycle
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Pressure on companies to recycle:

  • regulatory commitment

  • stakeholder pressure to conduct themselves in sustainable fashion

  • are committed to life cycle management in home jurisdiction – extending it across global footprint

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Regulations are driving obligations
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  • EU regulation says the producer (i.e. vehicle manufacturer) must take back spent batteries. 100% collection, no land-filling

  • LIB target = >50% by weight

  • EV target = >85% by weight

  • US regulation says owner of battery has to pay for recycling. Landfill and incineration limitations so effect on recycling same as EU

  • Rest of world is following suit

  • Aggregators often need to transport to recyclers who can complete the process but

  • Transporting hazardous waste safely and insurance cover is the challenge

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Image sources -

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https://www.ainonline.com/aviation-news/aviation-international-news/2012-02-01/cargo-carriagelithium-batteries-suspected-some-accidents; http://budgetlightforum.com/node/33749

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Value Proposition - Commercialisation
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Indicative Project Timeline
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Comminution Leaching Purification

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Running Partner / Site Selection Processes in parallel with test work and engineering programs

(*) Subject to Board Approval

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Downstream processing Lithium Refinery Project

Neometals 100%

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Overview
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Progressing technical, commercial and approvals workstreams during downturn to be shovel ready when the market turns

  • Modern, conventional direct-conversion sulphate process to produce 10kt pa of battery-quality LiOH from spodumene concentrate - similar flowsheet proven by leading producers Ganfeng and GRM

  • Successful vendor process flowsheet testing completed by Veolia HPD:

  • run-of-mine Mt Marion sample produced 99.99% pure battery grade LiOH

  • Baseload feed Neometals’ offtake option from Mt Marion, looking to enhance capital intensity from additional feedstock sources

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Option over strategically located potential site
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Indicative Project Timeline
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  • () Subject to NMT Board Approval (*) Subject to market conditions and FID

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Ti/V

Vanadium and Titanium

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Barrambie VTM Project Ti/V
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One of the highest grade hard-rock Titanium assets and one of the largest Vanadium projects globally

  • 100% Owned

  • A$30M spent to date in exploration and evaluation programs, including 55km of drilling

  • Last month completed update to historic DFS on primary ferrovanadium operation using conventional salt roast-leach process

  • Materially completed pilot-scale test work to produce titanium slag using conventional electric-arc furnace process

  • Commenced pilot-scale beneficiation to produce samples for conventional hydrometallurgical process to produce high purity titanium and vanadium chemicals

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Tier 1 – High Grade VTM Deposit Ti/V
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See slide 30 for supporting information + Ti/V =

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Drivers for development of primary Ti
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  • Barrambie Eastern Band is worlds second highest grade deposit at 21% TiO 2

  • Barrambie Mineral Resource contains +25 million tonnes of TiO 2

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Significant supply deficit expected to emerge early 20’s

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Drivers for development of secondary V
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  • China legislating increased vanadium addition for strengthening re-bar steels

  • Increasing demand from energy storage and aerospace

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New primary
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needed now
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Evaluation Strategy
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Exploit the revenue/cost/quality/sustainability advantages from processing a concentrate containing 95% metal

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Take through to FEED in 2020

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Forward Work
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Company Highlights
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SECURITY

  • Strong balance sheet A$116M plus $10M investments, no debt

  • Strong board and management team, collectively the largest shareholders

  • History of de-risking development with strong operating and offtake partners

  • History of disciplined capital allocation, making money and sharing with

  • shareholders

OPPORTUNITY

  • Advanced portfolio of minerals and materials required for a sustainable future

  • Innovative value-enhancement and risk-mitigating business models

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Thank you

www.neometals.com.au

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SUPPORTING INFORMATION
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