NEOMETALS LTD — Investor Presentation 2020

Aug 2, 2020

BATTERY RECYCLING WITHOUT LIMITS

Corporate Presentation, LiB Recycling

August 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.

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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2

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Executive Summary

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The need for LiB recycling

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The Opportunity

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The Neometals’ Solution

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The Business Case

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Supporting Documents

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

• Four core projects are under evaluation with strong partners

• Pivoting towards responsible materials recovery v. upstream mining projects

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

• Strong team with 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

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

* As at 30 June 2020 4

OUR STRATEGY FOR GROWTH

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

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Identify
and secure
opportunities
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Organically and through acquisition. E.g. battery recycling and Mt Edwards.

Build Validate and Return Value realise value value 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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PROJECTS

Lithium Refinery Project

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Lithium-Ion Battery
Recycling Project
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Sustainable
process aiming
to recover +90%
of lithium battery
contents.
Demo showcase stage, Feasibility Stage, MOU
50:50 JV. 50:50 JV.
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Barrambie Titanium and Vanadium Project

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Pilot-stage, 100% NMT,
MOU for 50:50
Operating JV.
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SSAB By-product Vanadium Recovery

50:50 JV evaluation, scoping-stage.

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THE NEED FOR LIB RECYCLING

Hazardous

Valuable

Carbon Footprint

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THE GROWING DEMAND FOR LI-ION BATTERIES

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Schematic of Lithium-ion Battery & Average Compostion of Components

• Over the last ten years, Li-ion Batteries (LiBs) have moved from obscurity to wide-spread popularity

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Positive terminal Composition
obscurity to wide-spread Cover Lithium-ion battery component (% by weight)
popularity Insulating Ring
Positive Cathode + anode + electrolyte 39.1% +- 1.1%
Tab Anode
o There has been growing (negative plate)
Plastic case 22.9% +- 0.7%
consumer appetite for energy-
dense consumer electronics, EV’s Case Steel case 10.5%+- 1.1
and more – all powered by LiBs
Copper foil 8.9% +- 0.3%
o However, LiB’s rise to public Aluminium foil 6.1%+- 0.6%
prominence has created end of Separator
life disposal complications along Polymer foil (cathode-anode 5.2% +- 0.4%
Electrolyte Cathode separator) + electrolyte
with the benefits (positive plate)
Non-aqueous solvent 4.7% +- 0.2%
Electrical contacts 2.0% +- 0.5%
Negative terminal
Source: Chris Hillseth Enterprises - 2014 Source: ASEAN Environment – Sept 2014
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RECYCLING IS NOT OPTIONAL

LiBs pose many risks including:

Fire Risk

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Pollution (GHG)

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Landfill

Material Shortages

Circular Economy

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

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

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

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

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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• Expired LiBs are growing in volume.

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o Small % of LiBs are currently being recycled.

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 VALUABLE

Expired LiBs are made up of valuable raw materials that can be recovered and re-used

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EV Battery Cathode Market Share Forecast

NMC 811 Value

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Source: Dartan Commodities; Argus
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Source: Vale and LME & Metalary.com pricing as at 18 [th]
June 2020
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RECYCLING IS THE KEY TO SECURING THE SUPPLY CHAIN

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World Lithium ion battery
mega- factory capacity 2020-
2028
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Mega factory impact on raw materials

Raw Materials demand vs Global Lithium Ion cell/mega-factory capacity

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Source: Benchmark Minerals Intelligence
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The data in this chart does not constitute a forecast, and assumes 100% utilisation rates

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RECYCLING IS THE KEY TO SECURING AN ETHICAL SUPPLY

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Science Magazine Oct 2019
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HYDRO-RECOVERY RECYCLING HAS THE LOWEST CARBON FOOTPRINT

Raw Material CO2 Savings – Traditional Mining vs Pyromet and Hydromet Battery Recycling

• Comparisons between ICE and EV emissions are complex.

• EV recharging with coal powered electrons doesn’t provide clear emissions advantage.

To ensure EV lifetime emissions are low, countries can decarbonise electricity and car manufacturers can recycle carbon intensive batteries.

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Source: Duesenfield
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THE OPPORTUNITY

Market Low Tailwind Carbon

Government Support

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TAILWINDS - THE TREND TOWARDS DE-CARBONISATION IS DRIVING DEMAND FOR LIBS

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Demand and adoption of EV and ESS increases as the economics of de-carbonisation becomes more viable

• Paris Agreement target

• EU Green deal – One trillion Euro of investment between 20212027 to achieve no net emissions of GHG by 2050

• Trend towards phasing out ICE vehicles nation by nation

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This creates mountains of scrap / spent LiBs, impacting the value chain.

1. Increased 3. Increases in 4. Demand for 2. Greater

production cell production battery value chain LiBs demand

of EV’s capacity materials

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1. EV DEMAND GROWTH FORECAST

Global EV Sales and Penetration Rate Forecast, 2020-35

Source: rho motion

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1. 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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1. EV DEMAND GROWTH DRIVERS CONT’D Europe

Government support is the other main driver of growth

Source: techau.com.au/eu-may-exempt-electric-vehiclesfrom-vat-should-Australia-remove-the-gst-and-lct/

Source: elecrive.com/2020/06/04/Germany-doublesev-subsidies-no-more-diesal-support

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1. EUROPEAN EV SUPPLY GROWTH DRIVERS

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o Over the coming years, European manufacturers are going to struggle to reduce their CO2 emissions. If they fail, they run the risk of expensive fines.

o Companies such as VW are attempting to reach these emission standards by increasing their demand for EVs.

Selected OEM fleet average CO2 emissions, 2017-2019

Note: includes estimates, to date not all OEMs have reported 2019 data

Number of EV’s Launched by 2025

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Source: BloombergAEF
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2. LIB DEMAND GROWTH FORECAST

Demand of EV and ESS means higher demand for batteries

Lithium-Ion Total Demand (GWh)

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Source: Argus
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3. LIB SUPPLY SOURCES Global

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Megafactory Capacity Forecast by Region

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Source: Benchmark Mineral Intelligence
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MORE PRODUCTION = MORE SCRAP AND END OF LIFE LIB’S

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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WHO WILL PROCESS THEM?

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Major European EV Battery Recycling Facility Capacities

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Primobius Stage 2 Plant 200,000t (Lag End Of Life Cells)
Primobius Stage 1 Plant 20,000t (Leed Production Scrap)
Source: Benchmark Minerals Intelligence
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OUR UNIQUE SOLUTION

Safe Eco-friendly

Pure

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OUR UNIQUE SUSTAINABLE RECYCLING TECHNOLOGY

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Stage 1
Prismatic
Shredding
LCO/NMC
Battery feed
Pouch
Plastics
Black powder
Metal Foil
Cu, Al
Cylindrical
Cathode Materials
Ni, Co, Mn
Stage 2
Lithium
Refining
2 [nd] Life
Anode
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OUR PROCESS

Responsibly recovered materials to complement traditional mining.

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What we Business Feed Development Next
Why
have Model (resource) Stage Steps
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We have a LIB demand growth proprietary and creating challenge sustainable solution and opportunity, for recovery and incumbent recycling upgrading of model flawed. valuable metals from scrap and EOL LIBs.

Partner to secure feed, operate plants to recover materials, sale of chemical products back to supply chain – close the loop, share risk and returns.

Initially production 3yrs of development Construct continuous scrap and - bench, flowsheet, EU demo plant consumer scoping study and (design/procurement electronics pilot complete. stage), secure feed / transitioning to EOL product off-takers and from EV over time. JV in place to commence full commercialise feasibility study.

Stage 1 to target production scrap then Stage 2 to accommodate end of life cells

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PRIMOBIUS IN THE VALUE CHAIN

Type Value Chain for Automotive LiBs

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Refined
Chemical Electrode Preparation
Products (product mixing + LiOH)
Production scrap
Mined Cell Production
Raw Materials Production scrap
Module Assembly
Recycling LiB
with BMS
Production scrap
Certified
Waste Collector
Pack Production
End-of-life returns
Production scrap
Car Dealer
Car Assembly
Warranty &
Reject batteries
End-of-life returns
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OUR COMPETITIVE ADVANTAGE (USP)

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• Our exclusive eco friendly flowsheet enables a true closed loop, low CO2 and reduced LCA GHG emissions.

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

• High purity chemical products suitable for use in cathode, displaces need to sell mixed metals to refiners.

• Safe destruction without needing to discharge cells.

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

• The system is not reliant on payment for collection of spent cells.

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OUR JOINT VENTURE WITH SMS GROUP

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Exclusivity with SMS to form 50:50* JV

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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

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• 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)

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

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PARTNERING WITH SMS GROUP

Leading supplier

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1 Global 5 2 footprint 4 3 Innovative Broad network of suppliers

Experienced scale up partner

1. Leading supplier of metallurgical equipment and services

Long lasting history of about 150 years as leading supplier of metallurgical equipment and plants

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2. Experienced scale up partner

SMS group has a continuous strategy to develop new business models enabling e.g. sustainable value chains and is an experienced scale up partner for new growth projects

3. Broad network of suppliers

SMS group has a broad network of suppliers around the world

4. Innovative

Continuous R&D work and innovation to be the leading partner. With latest innovations for e.g. environmental technologies, digitalization and technical service

5. Global footprint

SMS group has 95 sites around the world employing around 14,000 people

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EUROPEAN SHOWCASE OF HUB & SPOKE MODEL

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

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

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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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SMS MANUFACTURING CENTRE

Engineering and production under one roof

• SMS production shop covers a total of 40,000 m[2] and ranks among the most modern anywhere in the world

• Engineering and production under one roof to ensure efficient order processing

• Production of core metallurgical and rolling mill components ranging from sophisticated welded structures to mechanically manufactured parts

• DP trial in dedicated building with 1,000m[2 ] floor area for feed storage and all circuits

• SMS TECademy facility for customer training

• LernWERK as a blueprint for apprenticeships

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OUR INDICATIVE TIMELINE

Indicative Project Timeline – LiB Recycling

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Commenced Complete Complete Complete Complete Commence
Procurement phase Construction of Demonstration Class 3 ECS Feasibility study and Commercial scale
for demonstration demonstration plant Plant Trial Capex & Opex FID integrated operations
plant
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 Proposition

Growth

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BUSINESS CASE

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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:

Primobius provides a clear and credible path to commercialization and cashflow

1. Business model

2. Technical viability, and

3. Size of opportunity

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

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Megafactory (35GWh p.a)

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Stage 2: Feasibility

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Stage 1: Feasibility

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

o Production Scrap o Warranty Returns o End-of-Life

o (200,000t p.a)

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

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VALUE PROPOSITION

Scoping Study 20KTPA

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Recycling plant feed rate

50tpd 18,263tpa

EV & Consumer battery feed

Products Inc. high purity Co, Ni,Cu,Li

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Opex
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US <$7/lb* Contained cobalt excluding co-products

Capital Costs

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Payback
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Pre tax NPV12

US$66M* A$92M

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<2 years
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IRR 72% US$220M* A$308M

*! 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

Please refer to ASX announcement 4 June 2019 titled “Battery Recycling – Scoping Study Results” which is available at www.neometals.com.au

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the market announcements continue to apply and have not materially changed.

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Sound business case - industry validation and path to cashflow via Primobius.

JV partners with global footprint and R&D commercialization experience.

Strong value proposition - robust project economics.

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Enormous industry and macro tailwinds – EV/ESS megatrend driving growth.

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Recycling generates materials without mining risk (urban recovery).

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Strategic source of green / ethical non-mine cathode intermediate.

Alignment with global drive to reduce greenhouse emissions and contribute to circular / closed loop economies.

Neometals has the balance sheet to underwrite project participation.

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