QUANTUM GRAPHITE LIMITED — Investor Presentation 2023

Jun 20, 2023

Sunlands Power

QUANTUM GRAPHITE

Background

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In May 2022, QGL announced its innovative offtake agreement with MRI Trading AG for 100% of
Uley 2 production for 5 years. This agreement contains a framework for collaboration between the
parties to ensure that QGL maximises its economic yield per tonne of production sold to MRI.
The elements of this framework are:
•
the advanced processing and refining of Uley
2 flake graphite for the key market segments
considered strategically important to the
parties; and
• the provision of ongoing technical support to
MRI and its global customer base
This presentation summarises QGL’s
commercialisation strategy and the important
target markets for its production, i.e.,
• supplying high purity graphite for the
manufacture of anode material for
Li-ion batteries
• supplying leading manufacturers with
coarse flake for thermal management and
engineered products
• supplying its joint venture partner with high
purity graphite for the manufacture of thermal
energy storage media and the construction of
TES Graphite Cells
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Agenda

01

Why the Fuss? Natural Flake vs Synthetic Uley 2 Flake... Perfectly Pure

02

03

QUANTUM GRAPHITE

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Graphite - Why the Fuss?
Average critical minerals
content in Li-ion Batteries.
GRAPHITE
ALUMINUM
NICKEL
COPPER
STEEL
MANGANESE
COBALT
LITHIUM
IRON
GRAPHITE
LITHIUM
DYSPROSIUM
NEODYMIUM
COBALT
+1100%
+940% +940%
+200%
+660% +780%
+260%
+180%
+320% +520%
+270%
+240%
+160%
+260%
+240%
+210%
+120%
+210%
+170%
+170%
And Demand Outlook?
2040
2035
2030
2025
2020
52KG
28.1%
35KG
18.9%
29KG
15.7%
20KG
10.8%
20KG
10.8%
10KG
5.4%
8KG
4.3%
6KG
3.2%
5KG
2.7%
Andote
Cathoide
Current Collectors
Cell Casing
CELL PART
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www.quantumgraphite.com

www.sunlandsco.com

Page 1

QUANTUM GRAPHITE

And watch this! Natural Flake CSPG v Synthetic

• Consensus demand forecast for natural fake is doubling every 5 years but the key relationship to watch is relative share of anode market of each of natural flake and synthetic

• Anode raw material synthetic to market share

• natural flake CSPG[*] currently set at 2:1

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

• From 2025 onwards, natural fake CSPG dominates anode raw material

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

*Coated spheroidal purified natural flake graphite

Page 2

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QUANTUM GRAPHITE

Uley 2 Flake... Perfectly Pure

	Thermal Treatment Temperature	Thermal Treatment Temperature
Uley Flake Sample	No thermal treatment 2,200°C	3,000°C Impurity Removal Efciency*
		80% 85% 90% 95%
+195	95.3% 97.7%	99.5% 99.6% 99.7% 99.8%

*Predicted Graphite Purity after Thermal Treatment at 3,000°C

• Uley 2 flake’s clean geochemistry makes it an ideal feed stock for anode production

• It responds beautifully to thermal purification utilising Sunlands Energy Company’s technology

• First Phase of thermal treatment at 2,200°C eliminated 95% of all impurities and achieved purity across all Uley 2 flake products of 97.7% (see market announcement of 23 March 2023)

• Next and Final Phase of thermal treatment at 3,000°C completed and results due for market release in the next 7 days

• Based on First Phase of thermal treatment, projected purity is estimated to achieve at least 99.8%

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Agenda

01

02

Growth forecasts for Refactory, Expandables, Foils Uley 2 Flake Proven Performance

03

QUANTUM GRAPHITE

Industrial Use... higher growth for refractory, expandables, foils, etc.

• 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.

• Does not include thermal storage media

Expandable Graphite Demand Forecast

Expandable graphite demand forecast, 2015-2040

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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
tonnes
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Flame retardent Other Applications

Source: Benchmark Mineral Intelligence

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Page 5

QUANTUM GRAPHITE

Uley 2 Coarse Flake Proven Performance

• Uley flake product mix ideally suited to industrial applications, coarse flake represents more than 78% of Uley flake production

• Coarse Uley flake has an extensive history in thermal management products and engineered products

• Proven performance of Uley flake underpinned by clean geochemistry and excellent thermal properties

Thermal Management Products

Geothermal, Refractories, Crucibles, Hot Metal Toppings, Foundry, HMF- Dispersions

Engineered Products

Pencils, Lubricants, Friction, Powder Metallurgy, Drilling Fluids, Graphite Foils

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QUANTUM GRAPHITE

Uley 2 Coarse Flake Proven Performance

• Uley coarse flake has been prequalified with a number of major companies in both the thermal management and engineered products market segments

Prequalifications

• RHI Magnesita – Europe

• Krosaki AMR – Spain

• Orient Refractories – India

• Kelsen – Spain

• Nippon Crucible – Japan

• Zircar Crucible – India

• RASA – Japan

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Page 7

Agenda

01

02

The Biggest Game of All The Sunlands Energy Co. Technology LDES Economics LDES Delivery Platform

03

Sunlands Power

Thermal Energy Storage - Biggest Game of all

• In 2020 IRENA estimated the market to grow 20x within the decade

• Following Glasgow (COP 26) and Sharm El-Sheikh (COP 27) this estimated growth has increased significantly

• ’

• • Sunlands Power s independent Australian electricity market study (see announcement of 10 March 2022) concluded that:

QGL’s focus is the biggest game of all - the generational transformation of our grid network and the critical need for thermal LDES technologies

250

200

Based case scenario - >210 GW of storage by 2050

150 100

50

• Australia alone will require in excess of

10 GW of storage

• Each GW of average requires 100,000 tonnes of natural fake graphite

0 12-hour Pumped-Hydro Storage

4-hour Battery Storage 6-hour Battery Storage 8-hour Battery Storage 10-hour Battery Storage 2-hour Battery Storage

Source: NREL, USA

• ’

• ― Australia s storage needs have the potential to consume all of QGL’s Uley 2 deposit

Together with our joint venture partner, our LDES solution delivers >12 hours of daily storage for days at a time without charge.

A scalable energy storage system that can store energy predominantly from renewable sources for more than 12 hours and up to days at a time delivering dispatchable, inertia restoring energy to grid networks as required especially when renewables generation is not available. LDES is the critical solution underpinning the decarbonisation of grid networks.

Thermal energy storage (TES) is a type of energy storage that stores heat typically from the conversion of renewables electricity generation.

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Sunlands Energy Co. LDES Technology - Utilising Natural Flake to Deliver the Ultimate Decarbonisation[++] Solution

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+ The Time Shifting Game

At periods of low demand (ie. off peak periods) and surplus generation (ie. excess solar PV) TES Graphite Cell facilities can be charged cheaply. Surplus renewable generation is often delivered to the grid at zero or negative prices and represents a massive pool of cheap power to charge TES Graphite cells.

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Cheap Expensive
Solar Energy Peak Energy
Cheap off Demand
Peak Energy
Curve
24:00 6:00 12:00 18:00 23:00
Time
Curve
n
eratio
n
e
G
loar
S
Power (kW)
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+Without Inertia The World Falls Apart

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50
DEMAND SUPPLY
49 51
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High levels of asynchronous generation = loss of inertia and frequency volatility = unstable grid networks. Sunlands TES Graphite Cell facilities deliver dispatchable generation that restores inertia and balance to the system.

A scalable energy storage system that can store energy predominantly from renewable sources for more than 12 hours and up to days at a time delivering dispatchable, inertia restoring energy to grid networks as required especially when renewables generation is not available. LDES is the critical solution underpinning the decarbonisation of grid networks.

Thermal energy storage (TES) is a type of energy storage that stores heat typically from the conversion of renewables electricity generation.

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Sunlands Power... economics

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Superior
Operational
Economics and Sustainable Performance
Superior Operational Control
Simplicity of the Thermal Cycle
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• Sunlands Power is the exclusive manufacturer of the natural flake thermal storage media and TES Graphite Cells

• This is big business – comparison of sheer tonnage requirements relative to EV

EV Anode 1.2kg per kWh Thermal Media 5.0 kg per kWh

• QGL - Sunlands Power transfer price assumptions based on sale of natural flake at the basket price of US$919 and sale of manufactured thermal storage media at a price of US$3,500 to US$4,000

Superior Economics Operational and Sustainable Control Performance

• Charging and • Capable of driving discharging super critical can occur and ultra-super simultaneously critical turbines

• ’

• • QGLs estimated EBIT margin on every tonne sold to Sunlands Power (i.e., inclusive of minimum net contribution from its share of the JV) is estimated at US$1,650

Simplicity of the Thermal Cycle

• No phase change of media and HTF operating at 670° to 2000° Celsius.

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A scalable energy storage system that can store energy predominantly from renewable sources for more than 12 hours and up to days at a time delivering dispatchable, inertia restoring energy to grid networks as required especially when renewables generation is not available. LDES is the critical solution underpinning the decarbonisation of grid networks.

Thermal energy storage (TES) is a type of energy storage that stores heat typically from the conversion of renewables electricity generation.

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Page 11

Sunlands Power

Sunlands Power - Delivering a Global LDES Platform

Integrated Operational Platform

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Sunlands Power
Controls the manufacture of TES
Quantum Graphite Limited Media and construction of Sunlands Energy Co.
Natural Flake Miner and Processor TES Graphite Cell facilities Technology developer and
TES Infrastructure Operator
50% 50% (Deployment and Integration)
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The critical raw material processing and supply of flake graphite, the manufacturing of TES Media and the construction of TES Graphite Cell facilities complete the LDES global delivery platform.

A scalable energy storage system that can store energy predominantly from renewable sources for more than 12 hours and up to days at a time delivering dispatchable, inertia restoring energy to grid networks as required especially when renewables generation is not available. LDES is the critical solution underpinning the decarbonisation of grid networks.

Thermal energy storage (TES) is a type of energy storage that stores heat typically from the conversion of renewables electricity generation.

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www.quantumgraphite.com

www.sunlandsco.com

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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.
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Sunlands Power
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QUANTUM GRAPHITE