PERPETUAL RESOURCES LIMITED — AGM Information 2021

Nov 28, 2021

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• Beharra. The Midwest’s leading high grade silica sand project.

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ASX: PEC
Annual General Meeting Presentation
29 November 2021
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Disclaimer

This presentation contains summary information about Perpetual Resources Ltd (Perpetual) and is current as of 26th November 2021. The information in this presentation is of a general nature and does not purport to be complete nor does it contain all of the information a prospective investor may require. This presentation is not investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. The information contained in this presentation has been prepared without taking into account the objectives, financial situation or needs of individuals. Investors should obtain their own advice before making any investment decision.

Perpetual has prepared this document based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in this presentation. This presentation contains certain “forward-looking statements”. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “should”, “could”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.

Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This presentation contains statements that are subject to risk factors associated with Perpetual and the mining exploration industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially. Perpetual disclaim any intent or obligation to publicly update any forward-looking statements or information generally, whether as a result of new information, future events or results or otherwise.

To the maximum extent permitted by law, Perpetual, their related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the presentation or its contents or otherwise arising in connection with it.

The entity confirms in the subsequent public report that all the material assumptions underpinning the production target, or the forecast financial information derived from a production target, in the initial public report referred to in rule 5.16 or rule 5.17 (as the case may be) continue to apply and have not materially changed.

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Competent Persons Statement

The information in this report that relates to the March 2020 Exploration information for the Beharra Project is based on information compiled and fairly represented by Mr Colin Ross Hastings, who is a Member of the Australasian Institute of Mining and Metallurgy and consultant to Perpetual Resources Limited. Mr Hastings is also a shareholder of Perpetual Resources Limited. Mr Hastings has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hastings consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The information in this report that relates to the Exploration information for the Beharra Project from September 2020 onwards is based on information compiled and fairly represented by Mr John Doepel, who is a Member of the Australasian Institute of Mining and Metallurgy and consultant to Perpetual Resources Limited. Mr Doepel has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Doepel consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist by Snowden Mining Consultants Pty Ltd, who was engaged by Perpetual Resources Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Dr Andrew Scogings, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy, a Member of the Australian Institute of Geoscientists and is a Registered Professional Geologist in Industrial Minerals. Andrew Scogings is employed as an associate Executive Consultant Geologist by Snowden Mining Consultants Pty Ltd. Dr Scogings has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Scogings consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to the Beharra Ore Reserve is based on information reviewed or work undertaken by Mr Frank Blanchfield (FAusIMM). Mr Blanchfield is an employee of Snowden and has relied on Perpetual for marketing, environmental, permitting, and financial modelling and any costs not relating to mining and metallurgy. The mine design and mining costs and economic viability of the project were assessed and completed by Snowden under his direction. Mr Blanchfield has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the preparation of mining studies to qualify as a Competent Person as defined by the JORC Code 2012. Mr Blanchfield consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The scientific and technical information in this report that relates to process metallurgy is based on information reviewed and work completed by Arno Kruger (MAusIMM), who is a metallurgical consultant and employee of IHC Robbins. The metallurgical factors including process flowsheet design and costs and assumptions for the bulk aircore sample that relate to Mineral Resources have been reviewed and accepted by Mr Kruger. Mr Kruger has sufficient experience that is relevant to the type of processing under consideration and to the activity being undertaken to qualify as a Competent Person as defined by the JORC Code 2012. Mr Kruger consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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3

Project Portfolio

Four discrete Project Hubs – all located proximal to established infrastructure.

Beharra[1] – the focus

• Pre-feasibility study completed with compelling economics

• Post tax NPV (ungeared): $231m

• • Post tax IRR (ungeared): 55%

• • Initial Capex: $39m

• Mining License application granted

• White sand only optimisation efforts showing strong potential

• • DSO Scoping study underway

• • Strong interest from potential customers

• Exploration • Reconaissance activity underway across all exploration areas

• • Aircore drilling planned across all exploration areas in coming quarters

• 1 Note: For further information and full detail on all assumptions, please refer to ASX announcement titled, “Maiden Ore Reserve and Outstanding Beharra PFS Result Update” dated 17th March 2021.

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4
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Perpetual’s Target Markets are the
astest
Biggest and F Growing in Asia
68mt
70
52.5
45mt
Million
PEC
metric
focus
tonnes
35
31mt
15mt
17.5
9mt
6mt
2% CAGR 3% CAGR 5% CAGR 5% CAGR 3% CAGR 5% CAGR
Other Abrasives Filtration Hydraulic Fracturing Foundry Total Asia Glass Industry
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Source: IMARC Group, Report Title: “Asia Pacific Silica Sand Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026”, Report Date: February 2021 1. Bar height represents size of market in Asia Pacific region

2. CAGR represents the period of 2020-2026

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Beharra: High Grade Silica Sands

LOCATION Approximately 100km south of Geraldton, comprising a north- south striking exploration licence covering an area of about 49 km[2]

SCALE The project lies within the northern part of the Perth Basin and contains a 13km strike length of high grade silica sand

RESERVE/RESOURCE

• Maiden Mineral Reserve Estimate of 48mt of 99.6% SiO O 2, 276ppm Fe2 3[1]

• • Mineral Resource Estimate of 139mt at 98.6% SiO 2[2]

• Beharra tenement <40% explored – significant upside remains

• 90% of resource identified as higher purity white sands

• Direct shipping potential exists

PROCESSING

• Detailed metallurgical test work conducted by Perpetual confirmed a simple gravity and magnetic separation flow sheet to produce a concentrate that resulted in upgrading the SiO2 to 99.6% and reduced Fe2O3 content to 276ppm (1,950ppm in situ)[3 ]

• • White sand only development scenario could significantly enhance economics - results pending

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PRODUCT

Extensive metallurgical testing has confirmed suitability for the major high growth glass markets in Asia, including the high growth PV solar cell glass cover industry

1 Please refer to ASX announcement titled, “Maiden Ore Reserve and Outstanding Beharra PFS Result Update” dated 17th March 2021. 2 Please refer to ASX announcement titled, “Upgraded Mineral Resource Estimate - Beharra”, dated 9th March 2021. 3 Please refer to ASX announcement titled, “Exceptional Metallurgical Test Results - Beharra”, dated 29th January 2021.

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Project Economics

Perpetual’s strategy is to operate with maximum flexibility, aiming to be able to respond to the expected positive changes in market demand. As a result, a flexible cost base is assumed, with potential to reduce opex over time through strategic reinvestment of cashflows into core plant and equipment and/or additional logistics infrastructure.

Beharra PFS Outcomes	Base case
Post-Tax NPV (ungeared)	$231m
Post-Tax IRR (ungeared)	55%
Production	1.5mt/yr
Initial Capex	$39m
Revenue (/tonne)#^	A$67 FOB
Opex (/tonne)^	A$43 FOB
Yr 2 EBITDA~	A$37m

#Refer to slide 14 for further information

^In nominal terms

~First year of full production

Capital Expenditure	Cost (A$)
Wet Processing Plant	$19.1m
On Site Infrastructure	$3.5M
Off-Site Infrastructure(Bore field, site access roads)	$9.3m
Indirect Costs(PCM Fees)	$2.3m
Other	$1.3m
Contingency	$3.5m
TOTAL	A$39m

Note: For further information please refer to ASX announcement titled, “Maiden Ore Reserve and Outstanding Beharra PFS Result Update”, dated 17th March 2021.

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Contingency Rehabilitation
$1.88 $0.58
Royalty
General & Admin
$2.30
$1.58
Processing
Opex
$3.31
A$/tonne
ore Product
processed
Haulage
& Port
Mining & Rejects
Charges
$7.33
$26.09
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What Makes Beharra Special

90% white sand

• White sand has less impurities, the key to achieving a high value product

• Higher impurities require more processing, which adds to capital and operating costs

• Yellow sand is only useful for lower value construction sand applications

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Beharra White Sand compared to Beharra Yellow Sand
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Simple geology

• Clearly defined horizons of white and yellow sand

• Selective mining expected to be straightforward

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12m Intersection of White Sand separated into 1m intervals from September 2020, Beharra Drill Program

Superior metallurgy*

• Lowest known impurity profile in the Midwest

• Potential for premium product pricing

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100%
>50% reduction
75%
50%
25%
0%
Fe₂O₃
Nearby Deposit Beharra Special AFS #46
Beharra Premium AFS #44 Beharra Special AFS #27
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*Source: PEC test results (see ASX Announcement dated 29th January 2021) and VRX Silica’s Arrowsmith North technical Sheet (see https://vrxsilica.com.au/assets/Arrowsmith-NF500.pdf)

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White Sand Potential

• White sand only processing seen as a potentially significant project optimisation scenario

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•
A single 300kg sample of white only sand was tested by IHC Robbins in
203
April 2021, showing significant reductions in the key impurity Fe
February 2021 PFS April 2021 White Sand Test
100% 280ppm 1800ppm
49% lower
57% lower
75% 210ppm 1350ppm
50% 140ppm 900ppm
25% 70ppm 450ppm
0% 0ppm 0ppm
SiO2 Fe2O3 Al2O3
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• Follow up testing saw completion at an 86-hole air-core program targeting 10 years of mine life

• Definitive white sand only bulk metallurgical test work due for completion in October 2021

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Beharra Development Timeline

	4Q21	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23
White Sand Met Work
Offtake Discussions
Environmental Studies
Statutory Environmental Approvals
DSO Scoping Study
PFS Update
Definitive Feasibility Study
Decision to Fund						★★★
Order Long Lead Items
Construction / Install
Commissioning & Ramp Up

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Julian Babarczy Executive Chairman Robert Benussi Managing Director robert.b@pecsilica.com +61 410 415 335

Perpetual Resources Ltd 223 Liverpool St, Darlinghurst NSW 2010 www.perpetualresourceslimited.com.au