NEOMETALS LTD — Investor Presentation 2021

Sep 15, 2021

LOWER-COST, LOWER-CARBON, SUSTAINABLE NICKEL SULFATE

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Euroz Nickel Day Presentation

September 16, 2021 ASX Code: NMT OTC/Nasdaq Intl: RDRUY Frankfurt: R9R

Authorised for release by Christopher Reed, Managing Director of Neometals Ltd

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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**See NMT ASX release titled “Appendix 3A.5 – Notification of return of capital ” dated 18 August 2021

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*As at 30 June 2021

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Lithium-Ion Battery Recycling Project

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Barrambie Titanium
Vanadium Recovery and Vanadium Project
(Pilot-stage, 100% NMT,
LiB Recycling MOU for 50:50 Operating JV);
Titanium & Vanadium
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NEED TO DECARBONISE BATTERY (MATERIALS)

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NEED TO ADDRESS THE EMERGING ‘CARBON SHOCK’ OF EV’S

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NICKEL AND LITHIUM ARE THE LARGEST CONTRIBUTORS TO CO2 FOOTPRINT

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LITHIUM BRINE IS THE SOLUTION – WHAT IS NICKEL’S ?

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ECO-FRIENDLY LIB RECYCLING IS A KEY SUSTAINABLE SOLUTION

Raw Material CO 2 Savings – Traditional Mining vs Pyromet and Hydromet Battery Recycling

HYDROMETALLURGICAL RECYCLING HAS THE LOWEST (BLUEST) CARBON FOOTPRINT

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Source: Duesenfield
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NEW EU BATTERY REGULATIONS

• Legislation update to ensure more sustainable batteries

• Regulations focus on:

• Transparency;

• Ethical raw materials;

• CO2 cell footprint; and

• Recycling

• Staggered implementation:

• 100% collection target - industrial and EV

• CO2 footprint declaration from 2024

• Recycling efficiency to 65% from 2025 then 70% by 2030

• Carbon intensity labelling by 2026

• CO2 footprint threshold by 2027

• Recycled content declarations 2027

• Minimum recycled content from 2030

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MORE ENVIRONMENTALLY SUSTAINABLE NICKEL PROCESS

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OUR PROPRIETARY RECYCLING PROCESS

Successfully Piloted at SGS Canada in 2019/20

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• 85% Recycling Efficiency to date aiming to improve

• Ni+Co Sulphates (+80% Rev$) meet Chinese cathode specs

• Tailings is fertiliser feedstock

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POTENTIALLY LOWEST COST NICKEL SULFATE PRODUCER

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DEVELOPING EU’S LARGEST HYDROMET REFINERY FOR LIB CATHODE PRECURSORS

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Source: Benchmark Minerals Intelligence

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ROBUST ECONOMICS ON MAJOR EV BATTERY CHEMISTRIES

Recovered value of products of various cathode chemistries based on Pilot Plant Results

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Please refer to Slide 36 for full details of Operating Cost (Opex) breakdown

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POTENTIAL LOWEST COST NICKEL SULFATE PRODUCER

Nickel Sulfate Cost Curve 2025

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Source: Cost Curve – Australian Mines/CRU (2019), Primobius Cost/Production – Neometals Management (2021) based on ASX Announcement:- Lithium Battery Recycling – Outstanding Cost Estimates (7 May 2021)

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LI ION BATTERY RECYCLING PROJECT

50:50 JV with SMS group – ‘Primobius GmbH’

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AIMING TO BE RECYCLER OF CHOICE FOR CELLMAKERS AND CARMAKERS

- Commercial operations starting in Europe, ROW to follow.

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EU FORECAST TO BE 2[ND] LARGEST EV PRODUCTION HUB GLOBALLY IN 2030

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EU FORECAST TO BE 2[ND] LARGEST LIB PRODUCTION HUB GLOBALLY IN 2030

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AND GENERATE 2[ND] LARGEST VOLUME OF SCRAP AND END-OF-LIFE BATTERIES

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GERMANY FORECAST TO BE LARGEST LIB PRODUCTION HUB GLOBALLY IN EU

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EU NEEDS A LARGE, SCALABLE SOLUTION FROM A RELIABLE LOCAL

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OUR COMMERCIALISATION PARTNER
50:50 JV WITH SMS group GmbH
•
Incorporation of Primobius GmbH to
evaluate and commercialise recycling
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•
Constructing a showcase demonstration
plant in Germany, complete feasibility
study and FID consideration MarQ22
•
Evaluating both 20ktpa and 200ktpa
plants
•
SMS will build, operate and procure
debt financing on behalf of JV
•
Global commercial roll out capitalising
on the SMS global footprint / reputation
(140 years old, 14,500 employees at 95
sites)
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DEMONSTRATION PLANT

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Dedicated facility at SMS Manufacturing Headquarters Hilchenbach, Germany

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INDICATIVE TIMELINE FOR 50TPD PLANT

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 
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FLEXIBLE BUSINESS MODELS

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Principal

Partnership

License

• Primobius to responsibly process production scrap or EOL batteries for a fee. Customer option to purchase all products under offtake agreement

• •

• Primobius to build and License IP directly for operate recycling plant(s) royalty and potentially both share economic EPC recycling plant(s) returns – JV etc. Partner option to purchase all products under offtake agreement

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DEMONSTRATING SPEED TO MARKET

• Primobius decision to fast-track commercial operations in Germany (Q12022)

• Demo plant (“DP”) upgrade for commercial 10tpd ‘black mass’ commercial operation

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• Procurement and fabrication activities in progress and operating permit pending

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10tpd Shredder 50tpd Integrated 1 50tpd Integrated 2 50tpd Integrated 3
Shredding Shredding Shredding
Shredding
& Refining & Refining & Refining
Plant Type
PCAM =
Pre-Cursor
Black Cathode
PCAM PCAM PCAM
Mass Active
Product/s Materials
Procurement
& Demo Trial MoU MoU
Fabrication
Status
North
Hilchenbach Germany Japan
America
Location/s
z
Principal Principal JV JV
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Business Model
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Business Model
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PRIMOBIUS COMPETITIVE ADVANTAGE

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CHART TITLE
1
2
Safe process
according to
Flexible and robust
regulations
technology
7
Safe process
Industrial scale according to
for OEMs with regulations
plant 3
performance
guaranteed
Environmentally
friendly
6
Flexible 4
business
model Continuous
5
improvement
Ethical
sourced high
purity products
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Safe process according to regulations

• 1 High share of recycled materials to high purity chemicals within regulatory requirements

Flexible and robust technology

• 2 Multiple battery chemistries, formats and types can be processed without cell discharging

Environmentally friendly

• 3

• Better recovery, emissions and less transport than incumbents

Continuous improvement

• 4 Continuous optimization of existing processes with regards to product yield, quality and efficiency

Ethical sourced high purity products

• 5 High purity chemicals not intermediates for ethical re-supply to the cathode producer supply chains

Flexible business model

• 6 Service provision, shared economics in JV’s, licensing

Industrial scale

• 7

• Scalable plant from trusted brand with performance backstop

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USP = Unique selling proposition JV = Joint Venture

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CORPORATE

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0.90 12 Month Share Price Performance 16,000
0.80
14,000
0.70
12,000
0.60
10,000
0.50
8,000
0.40
6,000
0.30
4,000
0.20
0.10 2,000
0.00 0
Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
Source: Neometals
Price $A
Volume (‘000s)
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CORPORATE DASHBOARD

ASX: NMT OTC:RDRUY

Shares on Issue1	Shares on Issue1	m	548.4
Share Price	(15-Sep-21) A$		0.865
Market capitalisation (15-Sep-21)		A$m	474
Cash (30-Jun-21) 2		A$m	98.2
Debt		A$m	-
Investments (30-Jun-21) 3		A$m	12.4

Major Shareholders (7-Sep-21)
David Reed (Founder/Non-Executive Director)	6.9%
Clearstream/Deutsche Börse	2.9%
Top 20	35.4%
No of Shareholders	~9,900

Note 1: Excludes 12.99M performance rights. Note 2: incl A$4.2M restricted term deposits Note 3: Loan receivables and investments

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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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Michael Tamlin Darren Townsend Irena Ivanova
COO CDO GM - Engineering
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Chris Reed Jason Carone Managing Director / Company Secretary / CEO CFO

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Paul Wallwork Jeremy Mcmanus Gavin Beer GM – Marketing GM – Commercial GM – Lithium and Product and Investor Processing Development Relations

David Robinson Greg Hudson GM – Metallurgy GM – Geology and R&D

Matthew Read GM – Lithium Projects

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UNPARALLELED EXPOSURE TO THE NEW ENERGY (STORAGE) MEGATREND

2050 Annual Demand from Energy Technologies as Percentage of 2018 Production

o Exposure to key commodities as the World transitions to low carbon:

o Li, Co, Ni, V, Cg

o All the right elements[®]

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Source: World Bank Group
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SECURITY OPPORTUNITY
Strong balance sheet, Green critical materials
no debt – can fund for Europe – big
developments to near- exposure to new energy
term FIDs megatrend
Consistent strategy - Resource efficiency for
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circular economy
and realise returns
Strong Board and Secure, ethical
management – project
supply chain
execution experience
certainty
History of cash and
scrip returns to Multiple catalysts
shareholders across portfolio
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Transitioning to best practice ESG - ‘sustainable investment’

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SUPPORTING INFORMATION

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ENGINEERING COST STUDY ESTIMATES MAY 2021 - AACE CLASS 4 (±25%)

Based on Pilot Plant at SGS Canada in 2019/20

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CAPITAL US$M
Operating Costs
DIRECTS
US$ 1,560/t Feed
Infrastructure Civil 9
Land and Buildings 34
Front End 6
Hydromet 24
Utilities 12
Installation 11
S
Sub-Total Directs 96
INDIRECTS
Engineering, Project
Management and Owner's 45
Costs
Insurance, Freight, Taxes
9
and Interest
Sub-Total Indirects 54
CONTINGENCY (10%) 15
TOTAL 165
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Source: Neometals ASX Announcement:- Lithium Battery Recycling – Outstanding Cost Estimates (7 May 2021) Note: total numbers may not sum due to rounding

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PRIMOBIUS 3D FLYTHROUGH

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PRIMOBIUS – DEMONSTRATION PLANT

JULY 5, 2021

https://www.neometals.com.au/news-and-media/videos/

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MOU WITH STELCO INC (TSX: SLTC)
FOR NORTH AMERICA
•
Stelco is a leading North American steel
producer (market cap +C$3B)
•
Stelco plans to introduce scrap steel from
end-of-life vehicles into feed stocks for
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•
Proposed 50:50 incorporated JV
contemplates processing lithium batteries
arising from the vehicle/scrap steel
operations
•
Primobius will supply and construct a plant
for the JV with an initial capacity of 20ktpa
•
Stelco will arrange sufficient supply of
battery packs to the JV at no cost
•
Evaluating a potential hub and spoke
model, centralised hydromet circuit fed by
multiple shredding/beneficiation plants in
North America
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FORECAST BATTERY FEED VOLUMES, NTH AMERICA

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MOU WITH ITOCHU CORPORATION
OF JAPAN
•
Itochu is one of Japan’s largest trading
houses (market cap +US$50B
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•
Itochu strong footprint in the lithium-ion
battery supply chain
•
Itochu produces cathode and anode
materials, also its own stationary storage
battery systems (ESS)
•
Itochu will supply second demonstration
trial which will process solely ESS batteries
•
Evaluating hub and spoke model,
centralised hydromet circuit fed by multiple
shredding/beneficiation plants not only in
Japan but throughout Asia.
Itochu’s stationary energy storage brand
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JAPAN HAS LARGEST VOLUME OF SCRAP AND EOL BATTERIES IN APAC

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THANK YOU PLEASE VISIT NEOMETALS.COM.AU

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