QPM ENERGY LIMITED — AGM Information 2021

Jul 12, 2021

EGM Presentation

Dr Stephen Grocott Managing Director & CEO

July 2021 ASX:QPM www.qpmetals.com.au

Re -energising Australia with critical battery metals production

Disclaimer

The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examination and consult their own legal, business and/or financial advisers.

This document has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile statement or offer information statement. This document is not subject to the disclosure requirements affecting disclosure documents under Chapter 6D of the Corporations Act 2001 (Cth). The information in this document may not be complete and may be changed, modified or amended at any time by the Company, and is not intended to, and does not, constitute representations and warranties of the Company.

Queensland Pacific Metals Ltd does not have a significant operating history on which to base an evaluation of its business and prospects. Therefore, the information contained in this document is inherently speculative. Further, securities of companies such as the Company generally involve a higher degree of risk and are more volatility than securities of more established companies. Accordingly, an investment in the Company must be considered as speculative.

The information contained in this document has been prepared in good faith, neither the Company, Queensland Pacific Metals Ltd, or any of their respective directors, officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this document. Accordingly, to the maximum extent permitted by law, none of the Company, Queensland Pacific Metals Ltd, their respective directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this document or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this document.

This document may contain statements that may be deemed "forward looking statements". Forward risks, uncertainties and other factors, many of which are outside the control of the Company can cause actual results to differ materially from such statements.

The Company makes no undertaking to update or revise such statements but has made every endeavour to ensure that they are fair and reasonable at the time of making this document. Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in any forward-looking statements made.

Company

Stephen Grocott Managing Director & CEO sgrocott@qpmetals.com.au

World Class Partners

Combined US$15m equity investment

• $0.1364 per share (16.8% premium to 1-month VWAP)
• LGES 7.5% shareholder
• POSCO 3.2% shareholder

Binding offtake agreement signed

• 7 year term + 3 year first right of refusal after term expires
• 7,000tpa nickel / 700tpa cobalt LGES
• 3,000tpa nickel / 300tpa cobalt POSCO
• Pricing linked to commodity prices at time of sale

Extensive due diligence undertaken

• Technical due diligence undertaken by RPM Global focusing on process, scalability, New Caledonia ore supply and approvals pathway

What does this mean for the TECH Project?

• World class, bankable offtake partners secured will assist in financing
• Baseload customers majority of nickel and cobalt production is now contracted
• Additional equity investment allows QPM to bring forward detailed engineering work in parallel with DFS
• Vote of confidence from two world class battery manufacturers

"This is the most meaningful investment in our supply chain for LG Energy Solution since the company spun out from LG Chem. We believe the TECH Project will deliver sustainable nickel and cobalt production that is in line with LGES' operating philosophy. And our proactive investments in the supply chain such as this will ultimately play a role in further satisfying our customers."

"We are delighted to co-invest with LG Energy Solution in Queensland Pacific Metals. We look forward to building our relationship with QPM and assess other business opportunities that may arise between QPM and POSCO."

Definitive Feasibility Study

• Hatch remains on schedule for target completion date of Feb 2022
• Overall DFS strategy is to use proven processes for each area of the plant with known equipment vendors, which will assist in de-risking ramp-up and operational availability
• Process flow diagrams (PFDs) are currently undergoing review
• QPM's strategy is to engage key vendors now and have them undertake detailed engineering, rather than waiting for post DFS. This maximises the opportunity for vendors to provide lump sum pricing, providing greater certainty over capex, and also allows QPM to better understand lead times to develop a critical path plan
  • Early vendor engagement is critical to maintain schedule
  • Target vendors have been identified and discussions have commenced
• Key equipment packages have been developed including
  • Control system hardware
  • Sulfate crystallisers
  • Acid recovery
  • Filter bank
• Completed Australian Industry Participation plan to maximise the involvement of Australian suppliers and contractors

Project Approvals

Commonwealth

• Department of Agriculture, Water and the Environment (DAWE)
  • Two pre-lodgement meetings have been held with positive outcomes indication from DAWE is that the approval will not require an EIS
  • Minor seasonal fieldwork to be completed, with nothing adverse expected
  • Formal lodgement of approval documents planned for August, with a decision expected in Q4 2021

State

• State Assessment and Referral Agency (SARA)
  • Pre-lodgement meeting scheduled for July
  • Assuming no key issues are raised, formal lodgement of approval documents will take place in August
  • State Government has been very supportive

Local

• Townsville City Council (TCC) Development Application
  • QPM is working closely with TCC to ensure that any specific requirements they have are addressed in the approval documents lodged with SARA
• Outside of Lansdown, QPM requires an approval to construct warehousing at the Port of Townsville this is a self-assessment undertaken by the Port of Townsville and is a code-assessed development approval. No issues are expected

Re-Energising Nickel Production

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Community Engagement

• Two community sessions, one at Woodstock and one in Townsville, were held in June
  • Woodstock meeting attended by landowners in the region
  • Meeting met objectives of QPM which was to provide a better understanding of the TECH Project
• Direct one-on-one engagement is being undertaken with neighbouring landowners to ensure impacts are minimised
• QPM Townsville office is being established

Corporate

• Owner's team largely complete seeking to hire a New Caledonia in-country manager and an Operations Manager to assist in DFS and plan for commissioning in 2023
• Finance and admin team has been finalised providing QPM with deep project finance and equity capital market experience
• Key in-country meetings were scheduled this month in Korea with LG Energy Solutions and POSCO postponed due to COVID-19

Funding

• RFP for Debt Advisor has been sent out seeking August appointment
• Engagement with potential debt financiers
• Ongoing engagement with equity market institutional investors

The QPM TECH Project

QPM - TECH Pathway for nickel and cobalt production PROJECT

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