NEOMETALS LTD — Investor Presentation 2020

Sep 23, 2020

BATTERY RECYCLING WITHOUT LIMITS

Tesla Battery Day

September 2020 ASX Code: NMT OTC/Nasdaq Intl: RDRUY

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DISCLAIMER

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, opinions, 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.

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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.

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Executive Summary

The need for LiB recycling

The Opportunity

The Neometals’ Solution

The Business Case

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Supporting Documents

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• Neometals (ASX:NMT) - project developer with strategic focus on minerals / materials critical to EV and ESS sectors

• Four core projects are under evaluation with strong partners

• Pivoting towards responsible materials recovery v. upstream mining

• JV to scale-up battery recycling technology preparing for global commercial roll-out

• Strong team, growing track record in delivering project outcomes

• Future-proofed balance sheet to fund projects to FID’s

• A$81.3M cash, ~A$6.3M in investments* and no debt

• NMT has returned A$55M in dividends in last five consecutive financial years

* As at 30 June 2020

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Neometals is committed to optimising finite resources with circular
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• All projects, particularly EU, focused on materials for decarbonisation and the clean energy revolution

• Further – to support domestic supply chain resilience and increasing the lifetime of ethical resources

• Genuine ESG conviction – core business to support resilience and adaptability

• Foundation ESG practices being formalised in inaugral Sustainability Report (GRI)

• Environmental focus matched with social and governance endeavours

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THE NEED FOR LIB RECYCLING

Hazardous Valuable

Carbon Footprint

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THE RATIONALE IS MANIFOLD

Regulation dictating disposal, transport, storage, reporting:

Fire Risk

These risks have led to concerns over the storage, transport, disposal, ethical supply and sustainability of these batteries.

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Pollution (GHG)

As a result, many countries have imposed recycling regulations in order to help reduce these risks.

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Landfill

EU Battery Directive – ‘producers’ must recycle or acquit the same amount.

Material Shortages

EOL vehicle directive – more than 85% to be reused and recycled.

Circular Economy

Mandatory recycling in California - no landfill dumping.

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REDUCING THE LEVEL OF HAZARDOUS MATERIAL

Discarded LiB >15MT from 2020-30

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o Expired LiBs are growing in volume.

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o Small % of LiBs are currently being recycled.

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o Combustible and hazardous content at risk of being dumped into landfill. o Incumbent recycling technology sees most of the valuable ingredients burnt and released into the atmosphere.

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SPENT LIBS ARE ECONOMICALLY VALUABLE

OUR STUDIES INDICATE ROBUST ECONOMICS IRRESPECTIVE OF FEEDSTOCK

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In-situ Value of various LiB’s (per tonne cells) (@Spot)
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S
Scoping Study
Opex 2019
~US$1600/t cells
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STRATEGICALLY VALUABLE

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“Recycling plays pivotal
role in securing battery
supply chains…the region
that leads battery
technology and secures
the supply chain will have
outsized geo-economic
and development
influence.”
Science Magazine Oct 2019
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NEED TO REDUCE INITIAL EV CARBON FOOTPRINT

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THE LIB RAW MATERIALS ARE THE CAUSE

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HYDROMETALLURGICAL RECYCLING HAS THE LOWEST CARBON FOOTPRINT

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THE OPPORTUNITY

Market Low Tailwind Carbon

Government Support

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TAILWINDS – ECONOMICS DRIVING DEMAND, DE-CARBONISATION DRIVING EV/LIB SUPPLY

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o EV’s will be cheaper than ICE cars – compelling economics via battery cost reductions, stimulus and penalties. Sales going up.

• Climate concern driving global support:

• Paris Agreement

• EU Green deal (1 trillion Euro of investment between 20212027)

• EU zero net emissions of GHG by 2050

• Phasing out ICE vehicles nation by nation

• Enormous industry investments and partnerships along value chain

• Domestic sourcing and strategic security

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• Adoption is immutable

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EV DEMAND GROWTH DRIVERS

The decline in battery production costs means the mass market will begin to drive demand.

Electric Vehicle Sales Driven by Economics

Source: BloombergNEF

Source: ARK Innovation – Big ideas 2020

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GOVERNMENT SUPPORT FOR EV

EU carrot and stick forcing the issue!

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Source: ARK Innovation – Big ideas 2020

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CLIMATE CHANGE & NET ZERO GHG EMISSIONS

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EV DEMAND FORECAST

Global EV Sales and Penetration Rate Forecast, 2020-35

Source: rho motion

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INCREASE LIB’S 5X = SUPPLY RISK X 5

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World Lithium ion battery Mega factory impact on raw materials mega- factory capacity 2020- Raw Materials demand vs Global 2028 Lithium Ion cell/mega-factory capacity Source: Benchmark Minerals Intelligence The data in this chart does not constitute a forecast, and assumes 100% utilisation rates

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NEED TO REDUCE RELIANCE ON EXTERNAL SUPPLY

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NEED DOMESTIC RECYCLING

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European Lithium Ion Battery Recycling Feed

Source: Benchmark Minerals Intelligence (Battery Cell Capacity) and Neometals Management (Utilisation rate 75%, Scrap Rate 10% and Cell Weight 45g/Wh)

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WITH SIZE AND SCALE

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Major European EV Battery Recycling Facility Capacities

Primobius Stage 2 Plant 200,000t (Lag End Of Life Cells)

Primobius Stage 1 Plant 20,000t (Leed Production Scrap)

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Source: Benchmark Minerals Intelligence
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OUR UNIQUE SOLUTION

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Safe Eco-friendly Pure
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OUR COMPETITIVE ADVANTAGE (USP)

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o Our exclusive eco friendly flowsheet enables a true closed loop that decarbonises footprint of cell and vehicle makers

• Safe destruction without needing to discharge cells.

o A flexible approach means that shredding and refining don’t have to be co-located.

o Hub and spoke model reduces transport complications with hazardous waste.

o High purity chemical products suitable for use in cathode (China national spec for Ni and Co sulphates met)

o >85% mass recovery

o Model is not reliant on payment for disposal of spent cells.

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RECYCLING TECHNOLOGY

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NEOMETALS HIGH-LEVEL FLOWSHEET
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JOINT VENTURE WITH SMS GROUP

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• Incorporation of European JV Co (Primobius) to commercialise NMT R&D

• Our joint venture will construct a showcase demonstration plant in Germany and complete feasibility study

• Evaluating both 20ktpa and 200ktpa plants

• SMS will build, operate and arrange debt financing on behalf of JV

• NMT to contribute piloted technology

• Global commercial roll out capitalising on the SMS global footprint (14,500 employees at 95 sites)

*for 50:50 debt:equity on a best endeavours basis

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Our Joint Venture is an outcome of Neometals’ extensive due diligence on our substantive R&D program

It is a validation of our:

1. Business model

2. Technical viability, and

3. Size of opportunity

Primobius provides a clear and credible path to commercialization and cashflow

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EUROPEAN SHOWCASE OF HUB & SPOKE MODEL

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o Feed preparation & refining of vehicle & cell maker scrap at SMS facility in Germany

• Provide battery grade chemicals for evaluation by potential off-takers

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DEMONSTRATION PLANT (DP)

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SMS and NMT to design, SMS to build and operate on permitted site in Germany

MOUs are typical prelude to potential offtake arrangements

DP to process batches of spent cells from OEM’s and deliver cathode intermediates as part of staged evaluation leading to offtake arrangements

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Output from DP to be allocated to selected customers in battery supply chain for qualification

Fully-integrated version of pilot flowsheet, commercial scale comminution circuit (~20,000tpa feed) contributed to JV by NMT

Opportunities to secure EU green incentives and funding

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Continuous demo at 1,000 scale sufficient to test hydrometallurgical stage 2

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OUR INDICATIVE TIMELINE

Indicative Project Timeline – LiB Recycling

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Commenced

Commenced Complete Complete Complete Procurement phase Construction of Demonstration Class 3 ECS for demonstration demonstration plant Plant Trial Capex & Opex plant

Complete Commence Feasibility study and Commercial scale FID* integrated operations

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JUNQ20 DEC 20 MAR 21 SEPQ21 MARQ22 ~12 months

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Running Feedstock, Offtake, Product Evaluation in parallel
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(*) Subject to NMT and JV Board Approval

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INVESTORS

Business Case

Value Growth Proposition

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AIM IS TO BE RECYCLER OF CHOICE FOR CARMAKERS AND CELL MAKERS

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Megafactory (35GWh p.a)

Stage 2: Feasibility

o Production Scrap o Warranty Returns o End-of-Life o (200,000t p.a)

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“Expect significant economies of scale as Primobius moves to Stage 2 operations and future raw material prices strengthen”

Stage 1: Feasibility

o Production Scrap o (20,000t p.a)

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VALUE PROPOSITION ~20KTPA STAGE 1 PLANT

Expect significant economies of scale for 200ktpa stage 2

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Recycling plant EV & Consumer
OPEX
feed rate battery feed
50TPD Products US<$7/lb
Inc. high purity Co, contained cobalt
18,236TPA
Ni, Cu, Li excluding co-products
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Capital costs Payback Pre tax NPV12
US $66m <2 years IRR 72%
(A$92M) (US$220M A$308M)
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*1 USD: 1.4 AUD at US$6.15/kg Cobalt Sulphate (~20% cobalt contained in CoSO4), US$5/kg Lithium Sulphate, US$3.30/kg Nickel Sulphate, US$2/kg Copper Sulphate Source: Please refer to ASX announcement 4 June 2019 titled “Battery Recycling – Scoping Study Results”

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SECURITY OPPORTUNITY
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Strong balance sheet MCAP discrepancy
with no debt (zero EV)
Able to fund development of Key projects
some projects without dilution co-funded
Strong Board and
Multiple catalysts
management, collectively
across portfolio
the largest shareholders
Consistent strategy -
History of cash returns
partnering to reduce risks
to shareholders
and realise returns
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Transitioning to best practice ESG - ‘sustainable investment’

SUPPORTING INFORMATION

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OUR STRATEGY FOR GROWTH

Neometals’ uses a different early-partnering model to maximise ROIC

Identify Build Validate and Return

and secure Value realise value value opportunities

Organically and through acquisition. E.g. battery recycling and Mt Edwards.

Risk-conscious exploration, Partner to reduce Opex and Dividends and cost/vertical integration, invested capital, develop at buy-backs processing focussed R&D scale, reduce risk and and evaluation studies. accelerate returns.

The common thread across this model is a consistent development strategy, focus on sustainability and the projects intersect across the EV and ESS value chain.

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Lithium-Ion Battery Recycling Project (Feasibility Stage, MOU for 50:50 Incorporated JV)

Vanadium Recovery Project (Pre-Feasibility Stage, option to form 50:50 Incorporated JV)

Lithium Refinery Project (Feasibility Stage, MOU for 50:50 Incorporated JV)

Barrambie Titanium and Vanadium Project (Pilot-stage, 100% NMT, MOU for 50:50 Operating JV);

Mt Edwards Nickel and Lithium Project

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CORPORATE DASHBOARD
ASX: NMT OTC:RDRUY
Shares on Issue [1] m 545.4
12 Month Share Price Performance
Share Price (17-Sep-20) A$ 0.175
Market capitalisation 0.30 7,000
A$m 95.4
(17-Sep-20)
Cash (30-Jun-20) [2] A$m 81.3 6,000
Debt A$m - 0.25
5,000
Investments
A$m 6.3
(30-June-20) [3]
4,000
0.20
Major Shareholders (14-Jul-2020)
3,000
David Reed
8.5%
(Non-Executive Director) 2,000
0.15
Westoz Funds Management 3.2%
1,000
Top 20 32.3%
0.10 0
No of Shareholders ~8,000 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20
Source: Neometals
Note 1: Excludes 10.26M performance rights.
Note 2: incl A$4.3M restricted term deposits
Note 2: Loan receivables and investments
Price $A
Volume (‘000s)
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CORPORATE DASHBOARD

OUR PEOPLE

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NE Board Members

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Steve Cole David Dr Natalia Doug Dr Jennifer Les Guthrie
Chair Reed Streltsova Ritchie Purdie
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Management Team

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Chris Reed Jason Carone Michael Tamlin Darren Townsend Irena Ivanova
Managing Director / Company Secretary / COO CDO GM - Engineering
CEO CFO
Paul Wallwork Jeremy Mcmanus Gavin Beer Matthew Read Andy Robb David Robinson Greg Hudson
GM – Marketing GM – Commercial GM – Lithium GM – Lithium GM – Battery GM – Metallurgy GM – Geology
and Product and Investor Processing Refinery Recycling and R&D
Development Relations
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