QUANTUM GRAPHITE LIMITED — Investor Presentation 2022

Apr 27, 2022

QUANTUM GRAPHITE

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EV Li-ion
Long
Batteries
Duration
Battery
Storage
Thermal
Management
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Thermal
Management
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www.quantumgraphite.com

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About Quantum Graphite Limited
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Board of Directors

Bruno Ruggiero, Chairman

Sal Catalano, Managing Director

Bob Osmetti

David Trimboli

Key Technical Personnel/Partners

Mine Engineer, Dr. Karen Lloyd (Jorvik Resources)

Metallurgical, Steven Chadwick (Spectrum Metallurgical Consultants)

Mineral Process Engineers (Lycopodium Minerals)

Thermal Process Engineers (ProTherm Systems)

High Temperature Research Partner (TU Freiburg, INEMET)

Capital Structure

Shares on Issue (on a fully diluted basis) approx. 321 million.

Top 50 Shareholders >75%.

Board represents approximately >40% shareholding.

Project

Uley 2 fully permitted - Program for Environmental Protection and Remediation, PEPR 2014/110

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Tenement Tenement Type Interest
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	ML5561	MiningLicence	100%
	ML5562	MiningLicence	100%
	RL66	Retention Licence	100%
	RL67	Retention Licence	100%
	EL6224	Exploration Licence	100%

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ULEY 2, PHASE 1 AT A GLANCE.

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At a glance… large resource province
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ML 5561
ML 5562
RL 66
RL 67
ULEY
560000 565000
ML 5561
ML 5562
RL 66
ULEY RL 67
EL 6224
HOMESTEAD
SALT LAKE
KACEY
LEGEND
EM Target
Primary EM Target
Secondary EM Target
Exploration Lease
FISHERY Retention Lease
Mining Lease
Conservation and National Parks
Lincoln (CP)
N Lincoln (NP)
Sleaford Mere (CP)
0 1,250 2,500 5,000 Railway line
Meters GDA94; MGA53 Road
560000 565000
6150000 6150000
6145000 6145000
6140000 6140000
6135000 6135000
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At a glance… immediate expansion options
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Excluding the other mineralised envelopes (within EL 6224) the - Uley 2 Project is a multi generation project.

Priority 1 Short Term Ore Reserve extension

• Uley 2 South 50m

• Infill drilling at Uley 3 (area bordered by blue dotted line)

Priority 2 Medium Term Resource extension

• Uley 3 South

• Extension drilling to 50m-by-50m intervals

Priority 3 Long Term Resource extension

• Uley 2 West geophysical anomaly target

• Uley 2 South beyond Priority 1 along strike of the geophysical anomaly.

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Uley 2 Ore Reserve and near-mine extension target priorities

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At a glance… Uley 2 Phase 1, low cost, high spec producer
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Uley 2 Mining Study and Feasibility delivers strong financial metrics

Total undiscounted cash flow A$310.5million* Crusher feed 500,000 tonnes per annum Graphitic carbon grade 11.89% Graphitic carbon recovery 84% Concentrate purity >97% graphitic carbon Capital expenditure A$79.98 million Processing cost (PCAF) A$55.3 per tonne Mining cost (MCAF) A$2.5/t milled at surface plus 5c for every 4m Production 55,000 tonnes per annum Product Cost (Av LOM) US$368 dmt Product Price (Ex-works) US$919 dmt

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*Includes JORC 2012 Reserves and Resources

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At a glance… Uley 2 Phase 1, processing and production
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Comprehensive met results
ROM ore crushing
confirm historical high quality
production mix
• Medium to Extra-Large Flake -
75% of overall production of gC.
Closed circuit single
• Very clean geochemistry, no stage SAG grinding Manufacture of
Thermal Storage
deleterious elements, remaining Media
impurities are quartz and alumina.
Rougher Specialised
flotation followed by Product
Size Approx. Graphitic four stages of cleaner flotationPolishing process applied to each flotation stage Manufacture QUANTUM SUNLANDS PARTNERSHIP
Fraction Weight C Purity concentrate
(Mesh) Dist. (%) (%)
Proprietary
Tails thickening and Heat Purification
+50 10.5 97.8 discharge Final concentrate Process
thickening, filtering
and drying
-50+100 35.8 97.3
-100+200 28.7 97.2
Dry concentrate
-200 25.0 90.7 screening
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THE GRAPHITE MARKET – CRYSTAL BALL GAZING

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Benchmark Mineral Intelligence… today, seems about right
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• Overall production of natural flake must double to meet rapid transition to EV.

• Doubling of natural flake graphite every 5 years will exert significant pressure on prices at short end of price curve (eg. lithium post Jan 2021).

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Flake Long Term Demand Forecast
9,000 8,700
2025 2030 2035
2.4M tonnes 4.3M tonnes 8.7M tonnes 7,773
7,500
6,854
6,035
6,000
5,355
4,822
4,500 4,249
3,660
3,157
3,000 2,717
2,366
2,037
[1][,][736]
1,500 671 727 788 845 930 1,085 [1,253] [1][,][467]
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Li-ion battery anode demand - natural flake Carburisation Lubricants
Refractory and foundry Friction products Carbon brushes
Expanded graphite Graphite shapes Other uses
‘000 tonnes
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Source: Benchmark Mineral Inteligence

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Credit Suisse… a little more bullish
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• Structural deficit at least from 2025 but likely earlier.

• High probability that deficit may exceed forecasts given unreliability of historical forecasting.

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Demand outstrips supply in both a high and low case
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2022 2023 2024 2025 2026 2027 2028 2029 2030
Probable additional tonnes High probably additional tonnes
Operational supply CS - Low Case CS - High Case
Source: Credit Suisse - Super Materials Demand Model; CS commodities
Demand and supply of battery-anode graphite
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Critical metrics… these are the numbers to watch
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• Anode raw material synthetic to natural flake market share currently set at 2:1.

• Over the next 12-18 months natural flake will increase from 1/3 anode market share to more than 50%.

• From 2025 onwards, natural flake dominates anode raw material.

• Dominance of natural flake coincides with structural market deficit resulting in significant price pressures.

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Natural vs synthetic graphite demand - high case
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2022 2026 2030 2034 2038 2042 2046 2050
Synthetic Natural
Graphite demand (ktonnes)
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Source: Credit Suisse - Super Materials Demand Model

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Short term… this is what we’re facing
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• 10% deficit this year largely covered by inventories, manageable impact on price.

• Significant higher prices will emerge well before forecast 2025 deficit of 32%

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deficit for graphite used in Li-ion batteries

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10%
5%
4%
5%
3%
1% [1%] 1%
0%
-1%
-5%
-4%
-10%
-10% -10%
-15%
-17%
-20%
-25%
-30%
-32%
-35%
Aluminium Boron Copper Battery Anode Lithium Nickel
Graphite
2022 2025
Source: Credit Suisse - Super Materials Demand Model; CS commodities
Surplus/Deficit (ktonnes)
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CSPG, Anode production ex China… unlikely without partnerships
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• China is overwhelmingly the dominant producer.

• Current anode production estimated at 700,000 tonnes of which China represents approximately 610,000 tonnes.

• New capacity under construction will

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Other growth segments… expandables, foils, etc.
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• Non EV long term growth of natural flake demand driven by higher end thermal management applications.

• Growth in expandables forecast at approximately 6% compared with approximately 3% for traditional refractory products.

• Specialised natural flake powders is the target market for QGL’s extra large flake production.

Expandable Graphite Demand Forecast

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Expandable graphite demand forecast, 2015-2040
200,000
150,000
+6%
100,000
50,000
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Flame retardent Other Applications
Source: Benchmark Mineral Intelligence
tonnes
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QGL EV market takeaways… tread carefully downstream,
choose partners wisely
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• Anode market (and natural flake) is moving to structural deficit within the next 30 months

• China remains the overwhelming producer of tier 1 and tier 2 quality anode material

• China’s development of additional capacity ensures it remains the dominant producer of anode

• Natural flake set to dominate anode raw material - emerging technologies ex China directed at alternatives to hydrofluoric acid treatment

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• Manufacture of CSPG (or anode!) by natural flake producers

• Development of downstream partnerships with alternative technology owners

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• Development of key supply relationships with OEMs

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THE GRAPHITE MARKET MEETS THE ELECTRICITY MARKET - QGL’S ELEPHANT IN THE ROOM

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If it quacks like a duck… the whacky world of negative prices
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• In February 2008, an

enterprising team of analysts at the US Department of Energy’s National Renewables Energy Laboratory (NREL) published a prophetic piece of research which foreshadowed the logical outcomes associated with adding increasing renewables generation to conventional grid networks.

• By 2013, California’s Independent System Operator (CAISO), graphically illustrated these outcomes in the form of the now famous “duck curve”.

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• From California to South Australia, the results are the same;

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And the loss of inertia… conjuring up inertia is tough
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• The result is the loss of inertia, i.e., grid stability/reliability evaporates. Our toolbox is very limited:

• Grid operators regularly curtail renewables (okay for large scale installations but rooftop solar presents challenges);

• Quickly ramp up conventional generation (supported by short duration Li-ion) to meet the rapid demand requirements, especially for the end of the working day and restore frequency control/stability

• And the “creation” of inertia utilising various technologies with renewables is a stretch.

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And there’s more… Australia’s Net Zero by 2050 Plan
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• Australia has embarked on a plan to decarbonise by 2050 (Net Zero Plan). If emissions reductions milestones are to be met, electricity generation will have to be extended beyond its current uses to cover most of the energy required in transport and industry.

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• The Net Zero Plan relies on solar and wind as the primary energy sources, together with high level of confidence in the successful development of emerging technologies.

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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

• ― 2.4 million solar PV systems delivering 10.7GW

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BUT
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• 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

• LDES delivers dispatchable generation, maintains grid stability and enables the acceleration of renewables penetration within the grid

• QGL joint venture partner Sunlands Co.’s LDES technology uniquely positions it as a leading technology:

• capable of driving utility scale steam turbines (eg. retrofitting of coal fired power stations)

• has an effective life measured in the decades

• can be charged and discharged simultaneously

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1600
IMPACT OF SUNLANDS TECHNOLOGY
1400
1200
1000
800
600
400
200
0
IMPACT OF SUNLANDS TECHNOLOGY
-200
12:00:00 AM 6:00:00 AM 12:00:00 PM 6:00:00 PM 12:00:00 AM
2019 2020 2021 2022 2023
https://aemo.com.au/energy-systems/electricity/national-electricity-market-nem/data-nem
SA Operational Demand (MW)
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Long Duration Energy Storage... size of the market

• IRENA estimates the market to grow 20x within the decade

• Following Glasgow (COP 26) ~~this e~~ stimate is likely to be 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
GWh
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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.

Copyright © IRENA 2020. IRENA Innovation Outlook Thermal Energy Storage 2020

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Quantum Sunlands Partnership… economics

• The Quantum Sunlands Partnership (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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Superior Economics
Operational and Sustainable
Control Performance
• Charging and • Capable of driving
discharging super critical
can occur and ultra-super
simultaneously critical turbines
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Simplicity of the
Thermal Cycle
• No phase change of
media and HTF operating
at 670° to 2000° Celsius.
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Where to from here…

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• Complete offtake negotiations and conclude binding agreements

• Complete financing of Uley 2 including funding options for near term mine expansion

• Upgrade feasibility to encompass Phase 2 production expansion

• Ongoing resource definition and increase in reserves

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• Complete TU Freiburg test work

• Construct thermal energy storage cell pilot

• Conclude negotiations with key industry partners including critical suppliers

• Undertake feasibility for the construction of media storage facility

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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.