QEM LIMITED — Investor Presentation 2021

Jan 31, 2021

ASX ANNOUNCEMENT ASX ANNOUNCEMENT

1 February 2021

QEM Investor Presentation Recording Available

QEM Limited (ASX: QEM) ("QEM" or "Company") is pleased to make available to shareholders a recording of Managing Director Gavin Loyden giving the latest investor presentation (enclosed).

The full presentation including slides, video and audio is available at: https://www.qldem.com.au/investor-centre/#Investor-Presentation

QEM Managing Director Gavin Loyden said that he was very pleased to present to the market on the significant dual commodity potential at QEM, and the critical opportunity presented by supply of strategic minerals such as vanadium. "We are making good progress at Julia Creek, and the recent industry trends for supply and demand of Vanadium are very promising for our project," Mr Loyden said.

• ENDS -

This announcement was authorised for release on the ASX by the Managing Director of QEM Limited.

For further information, please contact: Gavin Loyden

Managing Director P: +61 7 3303 0161 E: gavin@qldem.com.au Shane Murphy Investor Relations P: +61 420 945 291 E: shane.murphy@fticonsulting.com

ABOUT QEM

QEM Limited (ASX: QEM) is a publicly listed company which is focussed on the exploration and development of its flagship Julia Creek Project, covering 250km² in the Julia Creek area of North Western Queensland.

The Julia Creek vanadium / oil shale project is a unique world class resource with the potential to deliver innovative energy solutions, through the production of energy fuels and vanadium pentoxide. QEM strives to become a leading producer of liquid fuels and in response to a global vanadium deficit, also aims to become a global supplier of high-quality vanadium pentoxide, to both the nascent energy storage sector and the Australian steel industry.

This globally significant JORC (2012) Mineral Resource of 2,760 Mt @ 0.30% V2O5 is one of the single largest ASX listed vanadium resources and represents a significant opportunity for development.

The tenements form part of the vast Toolebuc Formation, which is recognised as one of the largest deposits of vanadium and oil shale in the world and located less than 16km east of the township of Julia Creek. In close proximity to all major infrastructure and services, the project is intersected by the main infrastructure corridor of the Flinders Highway and Great Northern Railway, connecting Mt Isa to Townsville.

QEM Limited Level 11, 216 St Georges Terrace Perth WA 6000 Australia

John Foley Chairman Gavin Loyden Managing Director Daniel Harris Non-Executive Director David Fitch Non-Executive Director

www.qldem.com.au info@qldem.com.au +61(0) 8 9481 0389

QEM Limited Dual Commodity Opportunity

ASX: QEM

INVESTOR PRESENTATION January 2021

Disclaimer

Dual Commodity Champion

Vanadium QEM aims to become a leading supplier of high-quality vanadium pentoxide

Right Project, Right Time

Julia Creek in North Queensland allows production of both Vanadium (a Critical Mineral) and high-quality transportation fuels

Oil & Transport Fuels

QEM aims to provide innovative and environmentally friendly solutions that are important to our energy future.

Globally significant JORC (2012) Indicated +Inferred Resource 2,760 Mt @ 0.30% V2O5

QEM Limited (ASX:QEM) is developing the Julia Creek Vanadium and Oil Shale Project

Targeting Dual commodities of transport fuels and vanadium pentoxide

QEM Overview

Vanadium defined as Critical Mineral by Australian and US Governments

Transport fuels to support COVID economy

Australian resilience in post

Team that delivers

The Team

John Foley Gavin Loyden Daniel Harris David Fitch

CorporateOverview

Major Shareholders
Directors	49.48%

Julia Creek Project

Key Facts

• Shallow oil-bearing shale, mineralised with vanadium
• Tier-1 Mining Location
• Close to all infrastructure and services
• Critical Minerals designation

Significant Resource

• Total JORC Inferred resource 2,760 Mt
• JORC Indicated area of 220Mt
• Average content V2O5 @ 0.30%
• Oil component- 783MM Barrels in 3C Category

Method

• QEM intends to pursue development of a standard open cut method.
• Low strip ratio
• Extraction methods being investigated are safe, sustainable and environmentally friendly.
• Above ground processing envisioned at Julia Creek.
• Test work to date shows 200% yield achievable for oil extraction
• 90% extraction rate for V2O5 through leaching.
• Potential for cement by-product.

Julia Creek Project Location

Uses of Vanadium

Renewable Energy Storage

Number of Cycles Low Self-discharge Low Environmental Footprint Highly Expandable Generates Low Levels of Heat Charges & Discharges Simultaneously Can Release Energy Instantaneously Suitable for Connection to Power Grid Small Footprint

CAN BE COMPLETELY RECYCLED

100,000+ (20-30 yrs)3000-10,000 (5-7 yrs)$\pmb{\mathsf{X}}$$\pmb{\mathsf{X}}$X$\pmb{\mathsf{x}}$$\pmb{\mathsf{X}}$I$\boldsymbol{\mathsf{X}}$X	VANADIUMRedox	LITHIUM
		X(Without Inverters)
	yes	no

Vanadium Redox Flow Battery

Vanadium Market

Vanadium Market Set for growth

• Global market produces ~ 102,000 MTV per year
• ~9000t of high purity V2O5 for specialist applications such as VRFB's in 2020.
• Tightly-balanced market with producers sold out until early February 2021.
• Strong growth expected post COVID-19 as recovery accelerates.
• China's post COVID-19 stimulus spending, resulted in China being a net importer of vanadium for the first time since 2004.
• China market tightened due to increased steel production. 1.0Bt steel in 2020.
• V2O5 price for 98% flake US$7.10/lb; Europe US$5.90/lb as of 20/01/2021
• Long term average price for commodity grade V2O5 is $8.86/lb USD (inflated to 2017 $USD)
• ~9.89 tonnes of V2O5 required per MWh of energy storage.
• Only 3 primary producers in the world today, outside of China (~59%) and Russia (~17%). 2 in South Africa (~8%) and 1 in Brazil (~8%)

Fuel Resilience

• Australia is an island nation that depends heavily on imported fuel.
• Our current stockpile is critically low.
• 30 days of petrol for automobiles • 20 days of diesel
• 20 days of aviation fuel. (Australian Petroleum Statistics 2020)
• Australia's obligation as a member of the International Energy Agency (IEA) to hold at least 90 days of supply. Not held since 2012.
• Greatly diminished refining capacity 4 remain. All on "life support"
• Dependency on fuel imports for transport has grown from around 60% in 2000 to over 93% today.
• COVID-19 has further exposed Australia's lack of resilience in this area.
• Government scrambling for solutions. Reserves in Texas = 3 Days supply. 8000kms away.
• QEM considers this an opportunity. Advances in processing technologies of oil shale have been rapidly developing over the last few years and although the use of oil shale for energy goes back for generations, these advancements have now made processing oil from shale commercially viable, profitable and environmentally sound.

Contact

Gavin Loyden

Managing Director gavin@qldem.com.au +61 7 5646 9553 www.qldem.com.au

Shane Murphy

Investor Relations shane.murphy@fticonsulting.com +61 420 945 291 www.qldem.com.au

Appendix – A Julia Creek Resource

Julia Creek Resource Overview

				Total
ResourceClass	Strat.Unit	Mass(Mt)	AverageThickness(m)	InsituDensity(gm/cc)	V2O5(wt%)	Cu(ppm)	M(pp
Indicated	CQLA	73	3.16	2.27	0.25	155	13
	CQLB	67	2.97	2.24	0.28	182	1(
	OSU	40	1.94	2.08	0.33	223	15
	OSL	38	1.87	2.11	0.32	199	14
Inferred	CQLA	687	2.57	2.28	0.23	154	13
	CQLB	874	3.33	2.15	0.38	220	22
	OSU	504	2.01	2.11	0.30	232	14
	OSL	481	1.98	2.13	0.29	212	13
Total		2,760		2.18	0.30	201	10

Table 1: Summary of JORC Mineral Resource Estimate

Note:

1. The estimate uses a minimum cut-off of 0.2% V2O5 for the oil shale units, and minimum cut-off of 0.15% V2O5 for the Coquina units.

2. The total resource tonnage reported is rounded to reflect the relative uncertainty in the estimate categories and component horizons may not sum correctly.

Table 2: Summary of SPE-PRMS Oil Resource

Total
Strat.Unit	Mass (Mt)	Average Thickness(m)	Oil Yield(L/tonne)	MMBarrels(insitu-PIIP)	MMBarrels 3C
CQL	1,701	5.93	44	446	401
OSU	544	2.01	72	231	208
OSL	518	1.97	63	193	174
TOTAL	2,760		53	870	783

Note:

1. The total resource tonnage reported is rounded to reflect the relative uncertainty in the estimate and component horizons may not sum correctly.

Julia Creek Oil Yield

Source: Measured Group The estimation methodology used is deterministic. The estimation is based on grids constructed for unit structure, thickness and oil grade parameters

Appendix – B

113 VRFB Installs Worldwide

20

COUNTRY	VRFBs	kW	kWh
Australia	7	945	4629.90
Barbuda	1	3000	12000.00
Botswana	1	112	560.00
Canada	3	2500	10000.00
China	17	15825	48005.00
Czech Rep.	3	47	209.90
Denmark	3	40	260.00
Germany	15	1530	86190.00
India	4	155	740.15
Indonesia	2	400	500.00
Italy	5	631	2610.00
Japan	5	2330	7481.00
Netherlands	1	10	80.00
Portugal	5	5	60.00
Singapore	1	250	2000.00
Slovenia	1	10	45.00
South Africa	2	745	2950.00
South Korea	5	1250	4900.00
Spain	4	220	800.00
Sweden	1	800	1800.00
Switzerland	2	210	460.00
UK	5	805	5180.00
USA	17	7418	33173.70
Austria	1	14	84.00
Kenya	1	140	84.00
Slovakia	2	107	640.00
UAE	1	10	40.00

Construction

• Vanadium plays an essential role as an alloy of steel to provide increased tensile strength, durability and weather resistance.
• Announced in February 2018, China revised steel rebar standards to limit the use of inferior strength steels in its ever-growing construction industry.
• Due to these revised standards, global demand for vanadium is set to increase, with this development expected to add between 10,000t to 15,000t of vanadium demand, and signs of an increase in demand is already evident in the market today.
• Global crude steel production reached 1,869.9 million tonnes (Mt) for the year 2019. 2020 saw a slight drop to 1.8 billion tonnes due to COVID-19

Source:https://www.worldsteel.org/media-centre/press-releases/2020/Global-crude-steel-output-increases-by-3.4--in-2019.html

Australian Steel Industry

• ~5.3Mt of steel are produced in Australia annually. Australian Bureau of Statistics 2017-18.
• ~100,000 people employed in the Australian steel industry
• Australia exports ~800,000 tonnes a year.
• Australian steel industry generates $29 billion in annual revenue and is an essential part of the Australian economy.
• The Government of India is aiming to scale up steel production in the country to 300 MT by 2025 from about 90 MT in 2015-16.

Aerospace & Automotive

Aerospace

• Increased aircraft are required to service larger addressable air-travel market
• Both Boeing & Airbus both forecast annual global air traffic growth between 2016 and 2035 of nearly 5%. A titanium alloy containing 4% vanadium and 6% aluminium (Ti6Al4V) has been used extensively for blades, discs and casings of the compressors in many designs of the aero-engine gas turbine
• The development of new titanium alloys continues with the Vanadium component ranging from 8, 10 to 15%, which results in even higher strengths and the potential to make important contributions to weight reduction. Source: http://www.nextsourcematerials.com/vanadium/about-vanadium/ Mining Journal June 2018

Automotive

• Today, 45% of vanadium goes into cars, and it is estimated that 85% will be used in manufacturing auto vehicles by 2025. This will reduce the weight of cars, thereby increasing their fuel efficiency and be able to meet fuel economy standards. (Source: Vanadium Corp)
• Vanadium is the most widely used microalloying element in high strength air-cooled forgings for critical automotive components
• Engine components such as crankshafts and connecting rods are highly stressed and must withstand many cycles. Vanadium micro-alloyed forging steels are widely used for these parts, as well as other applications in the chassis, drivetrain, suspension and valve springs. (source: Vanitec.org)

Fuel Resilience

• Australia is an island nation that depends heavily on imported fuel and our stockpile is critically low. The Government's Australian Petroleum Statistics published in April 2020 said this would amount to 30 days of petrol for automobiles, 20 days of diesel and 20 days of aviation fuel. (Courier Mail 5/07/2020)
• This is clearly in contravention of Australia's obligation as a member of the International Energy Agency (IEA) to hold at least 90 days of supply. Australia has not had 90 days supply since 2012.
• Australia is critically exposed to disruption in the supply of transport fuels and Australia's combined dependency on crude and fuel imports for transport has grown from around 60% in 2000 to over 93% today.
• COVID-19 has further exposed Australia's lack of resilience in this area.
• QEM considers this an opportunity. Advances in processing technologies of oil shale have been rapidly developing over the last few years and although the use of oil shale for energy goes back for generations, these advancements have now made processing oil from shale commercially viable and profitable.
• QEM is currently investigating a number of these environmentally friendly extraction technologies, with the aim of determining a potential method to produce liquid fuels from the Julia Creek resource.

Supportive Policy Environment

Development of Northern Australia and Resource Corridors Government Priority

Vanadium is a new energy mineral – strategic significance as a Critical Mineral

Federal Government Resource Corridors Julia Creek located in key corridor

Julia Creek

Greater Fuel Resilience Needed