QUANTUM GRAPHITE LIMITED — Investor Presentation 2022

Jun 26, 2022

QUANTUM GRAPHITE

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expensive peak energy
free solar energy
24:00 6:00 12:001 8:00 23:00
Time
Investor Briefing: Solving The Puzzle of an Emissions Free Grid
Our Long Duration Thermal Energy Storage Solution
Power (kW)
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www.quantumgraphite.com

Solving the Puzzle The Quantum Sunlands Partnership is the exclusive manufacturer of the flake graphite storage media critical to Sunlands Co.’s long duration energy storage (LDES)

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The Political and Media Fog... crisis, transition, winners and losers
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OPINION ENERGY

Why it’s hard to join the dots in Australia’s energy puzzle

Jennifer Hewett

Jun 20, 2022

Anthony Albanese and the Energy Security Board are determined to get the states’ agreement on a capacity mechanism to provide backup power. But that requires allowing Victoria to exclude coal and gas from any payment.

Germany’s decision to pass emergency laws to reopen mothballed coal mines is “bitter but essential”, according to its economic minister, Robert Habeck.

That Habeck is a member of the Green Party in coalition with the Social Democrats demonstrates the political contortions in a global energy transformation suddenly desperately short of fossil fuels.

Even Australia’s recent energy woes are only a mild

version of the trauma threatening to cripple the German economy as Vladimir Putin further reduces supplies of Russian gas to a needy Europe. The price of Angela Merkel’s deadline for shutting Germany’s nuclear power

and coal generation to rely on Russian gas and renewables is now stark.

The Albanese government is determined to avoid imposing such direct costs on Australian consumers and businesses despite supporting a much faster shift to more renewable energy as part of its 2030 emissions reduction target.

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That balancing act is more difficult at a time of soaring global prices for coal and gas, and with no relief likely this year.

But as the past few weeks have proven, the practicalities of Australia’s national energy transition and timetable are more complicated than suggested by the embrace of renewables. Energy security has become a much more important focus of public debate.

• The problem is not the shortage of fossil fuels but an increasingly unstable grid short of dispatchable baseload generation

• This problem is not new, grid operators have been aware of the instability caused by increasing intermittent generation without storage for more than a decade

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The puzzle of an emissions free grid… summing up the challenges
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• Current renewables generation numbers

• 20% of NEM load

• 35% of generation capacity

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BUT
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• 2.4 million solar PV systems delivering 10.7GW

• Coal fired generators provide >40% of the NEM’s base load and substantially all its inertia.

BUT

• Most of these facilities are scheduled to close within the next 7-15 years and solutions to replace the loss of inertia and dispatchability remain illusive.

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The Solution... long duration energy storage and the magic of time shifting
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• Practically this is how the Sunlands Co. long duration energy storage (LDES) works

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expensive peak energy
free solar energy
cheap off peak energy
24:00 6:00 12:00 18:00 23:00
Time
Power (kW)
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Sunlands Co.’s Technology... unique capabilities, ticks all boxes
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• Our LDES delivers dispatchable generation, maintains grid stability and enables the acceleration of renewables penetration within the grid

• Sunlands Co.’s LDES technology uniquely positions it as a leading technology:

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• The key to the technology is the flake storage media to be manufactured by the Quantum Sunlands Partnership

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Charge
Discharge
0h 3h 6h 9h 12h 15h 18h 21h 24h
Imported energy from grid Self consumed energy from solar
Surplus energy exported to grid Energy shift using battery storage
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Our Solution... LDES + grid integration = grid transformation
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1 2 3 Charging Mode: Standby Mode: Discharge Mode: Collect and Ready to Generate Generation of Convert Energy Electrical Energy Electrical Energy Electrical energy from Fully charged TES cells Heat energy is drawn wind, solar and fossil fuel store heat at ultra-high from the TES cells and generation is drawn by temperatures and delivered to thermal Sunlands Co. TES cells immediately available to power plants to generate to heat the cells QSP deliver heat on call to a dispatchable storage media. conventional thermal power electricity to the grid plant, i.e., steam turbine network for distribution generator. to customers.

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LDES... size of the market is big and getting bigger
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• In 2020 IRENA estimated LDES market growth at 20x current installed capacity within the decade

• Following Glasgow (COP 26) this estimated growth has increased significantly

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Figure 3: Installed TES capacity projections according to IRENA’s Paris Agreement-aligned
Transforming Energy Scenario
900
QGL Sunlands Co.
800
JV Potential Market
700
600
>600 GWh
500
Current Installed Capacity
400
<30 GWh
300
200
100
0
2019 2030
Power Heating Space cooling
Note: Heating projections are not in the scope of this analysis due to a lack of data on aquifers and small-scale
distributed TES (e.g. residential water tanks). Nonetheless, growth in the installed capacity of these technologies is
expected given their versatile use from short to seasonal scale.
GWh
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Copyright © IRENA 2020. IRENA Innovation Outlook Thermal Energy Storage 2020
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Quantum Sunlands Partnership… economics
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Superior Economics
Operational and Sustainable
Control Performance
• Charging and • Capable of driving
discharging super critical
can occur and ultra-super
simultaneously critical turbines
Simplicity of the
Thermal Cycle
• No phase change of
media and HTF operating
at 670° to 2000° Celsius.
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• QSP is the exclusive manufacturer of the natural flake thermal storage media required by Sunlands Co.’s energy storage cells

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• QGL - QSP transfer price assumptions based on sale of natural flake at the basket price of US$919 and sale of manufactured media at a price of US$3,500 to US$4,000 which represents the range of market pricing for similar media

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Technology Development... completed, ready for the next phase
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2018 2021
Filing of International Notice of Publication of
Patent Applications Application USA Patents
and Trademarks Office
2016 - 2017 2018 2019 - 2020 2021 February 2022
2016 - 2017 2019 - 2020 February 2022
Development of Completion by Grant of Letters
technology ProTherm Systems of Patent Republic of
Techno-Economic South Africa
Feasibility and
Commercialisation
Report
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Technology Commercialisation... pilot plant is the final step
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August 2022
Commencement of
construction of Pilot
Thermal Energy
Storage Cell
July 2022 August 2022 Oct - Dec 2022 2023
July 2022 October to 2023
TU Bergakademie December 2022 Commercialisation
Freiburg (INEMET) Operation of Pilot
Uley 2 flake media
test work
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11

QUESTIONS…

QUANTUM GRAPHITE

Disclaimer

This presentation includes certain statements that may be deemed forward-looking statements. All statements ln these presentation materials (other than statements of historical facts) which address future production, reserve potential, exploration activities and events or developments that the Company expects, are forward-looking statements. Such forward-looking statements may include, without limitation: (i) estimates of future graphite prices, supply, demand and/or production; (ii) estimates of future cash costs; (iii) estimates of future capital expenditures; (iv) estimates regarding timing of future development, construction, production or closure activities; (v) statements regarding future exploration results; (vi) statements regarding cost structure, project economics, or competitive position, and; (vii) statements comparing the Company’s properties to other mines, projects or metals.

Although the Company believes that such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance, that the Company expressly disclaims any responsibility for revising or expanding the forward looking statements to reflect actual results or developments, and that actual results or developments may differ materially from those projected, in the forward looking statements.

This presentation does not constitute a recommendation regarding the securities of the Company, and should not be construed as legal or financial advice. It has been prepared for information purposes only and contains general summary information and does not take into account the circumstances of any Individual investor. Prospective investors in the Company are encouraged to obtain separate and independent advice with regard to any investment in the Company. By accepting the presentation materials, the recipient agrees to keep permanently confidential the information contained herein.

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

Photographs, maps, charts, diagrams and schematic drawings appearing in this presentation are owned by and have been prepared by or commissioned by the Company, unless otherwise stated. Maps and diagrams used in the presentation are illustrative only and may not be drawn to scale. Unless otherwise stated, all data contained in charts, graphs and tables is based on information available at the date of this presentation. By accepting this presentation, the Recipient agrees to be bound by the foregoing statements.