SPARC TECHNOLOGIES LIMITED — Investor Presentation 2021

Mar 21, 2021

ASX: SPN

Transformational Technology for Global Industries

Disclaimer

The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions.

This presentation is for informational purposes only and does not constitute an offer to sell, or solicitation to purchase, any securities. Such Offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirements. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. In providing this presentation Sparc Technologies Limited ACN 009 092 068 (“SPN”) has not considered the financial position or needs of the recipient. Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial and legal advisors.

This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of SPN. These forward-looking statements are based on estimates, projections and assumptions made by SPN about circumstances and events that have not yet taken place. Although SPN believes the forward-looking statements to be reasonable, they are not certain. Forwardlooking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond SPN’s control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results). SPN makes no representation or warranty as to the accuracy of any forward-looking statements in this presentation and undue reliance should not be placed upon such statements. Forward-looking statements may be identified by words such as “aim”, “anticipate”, “assume”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “should”, “will”, or “would” or the negative of such terms or other similar expressions that are predictions of or otherwise indicate future events or trends. The forward-looking statements included in this presentation speak only as of the date of this presentation. SPN does not intend to update the forward-looking statements in this presentation in the future. Certain statistical and other information included in this presentation is sourced from publicly available third-party sources and has not been independently verified.

This presentation is not a disclosure document for the purposes of Chapter 6D of the Corporations Act 2001 (Cth) and does not purport to include the information required of such a disclosure document. It has not been lodged with or approved by any regulatory authority, such as the Australian Securities and Investments Commission or the Australian Securities Exchange.

The information in this presentation does not constitute personal investment advice. This presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in the Company. Specifically, this presentation does not purport to contain all the information that investors and their professional advisers would reasonably require to make an informed assessment of the Company’s assets and liabilities, financial position and performance, profits, losses and prospects. In preparing this presentation, the Company, did not take into account the investment objectives, financial situation and particular needs of any particular investor.

Investment Highlights

Sparc is pioneering new graphene technologies to disrupt and transform industry and science for a cleaner, greener and healthier world

1

2

3 4

World leading team and - partners cornerstoned by the University of Adelaide in collaboration with 5 leading universities in the ARC Graphene Hub

Profound opportunity to reshape multi billion dollar global markets underpinned by exclusive IP harnessing graphene as a new super material

Developing ground breaking technologies across our two core divisions in Environment - & Sustainability and Bio Medical & Health

Unique leverage to graphene’s potential: well funded with commercialisation underway

* Cautionary Note: Access to markets is subject to the Company being able to successfully develop and commercialise the graphene technologies. Sparc does not have any distribution or offtake agreements in place at this stage. As with any entity seeking to enter into a global marketplace, any product developed by Sparc will have applications that are constrained by market segment, relevant regulations, industrial application and geographical barriers.

3

Sparc Technologies - Snapshot

Corporate overview	Corporate overview
ASX Code	SPN
Market cap (at $0.28 per share)	$20m
Shares on issue	71.4m
Cash (as at 31 Dec 2020)	$4.9m
Debt (as at 31 Dec 2020)	$0.0m
EV	$16.5m
Major shareholders	% held
Adelaide University	5.5%
Hoperidge Enterprises	5.1%
Director’s and Management	17.0%
Top 20 Shareholders	43.1%

SPARC TECHNOLOGIES BOARD

Stephen Hunt Tom Spurling Daniel Eddington Executive Chairman Non-Exec Director Non-Exec Director

EXECUTIVE MANAGEMENT TEAM

Mike Bartels Peter Wilson Andrew Smith Ben Yerbury Don Darkin CEO General Manager, Technical Manager – Technical Lead – Strategic Advisor - Engineering Coatings & Composites Bio-Medical & Health Commercialisation

As at 19 March 2021

Graphene: A New Generation Supermaterial

Focusing on adding functionality to selected grades of graphene in order to deliver targeted market solutions

Source: Graphene-info.com, Australian Graphene Industry Association

Restoring the natural environment and removal of toxic substances Reducing global carbon footprints and emissions Working to enhance the energy revolution

More efficient, longer lasting, more durable and sustainable products

Improving human health outcomes Early detection of disease and prevention of disease progression Non toxic and long lasting sterilisation via graphene’s - - anti bacterial, anti viral and - anti microbial functional applications

Initial Target Markets

==> picture [80 x 81] intentionally omitted <==

Environment & Sustainability – Business Units

==> picture [43 x 43] intentionally omitted <==

Coatings

• Our graphene products have been demonstrated under strict IOS standards to significantly enhance corrosion resistance in coatings

• Further work underway to test drag reduction in global shipping fleet, diesel fuel savings, carbon emission reduction and non toxic anti-fouling applications

• US$44 billion addressable market by 2025 and early engagements with key industry players underway

• Key applications in defence, aerospace and industry being explored

==> picture [50 x 50] intentionally omitted <==

• Evaluation of the antibacterial properties of graphene based additives in coating systems with recent results showing significant improvement

Environmental Remediation

• Our graphene products have been demonstrated under strict testing standards to substantially improve PFAS and other chemical removal from waterways and soils

• US defence alone has contaminated PFAS sites exceeding US$2 billion in remediation costs

• Widespread contamination of sites continues to affect public health across the globe

==> picture [53 x 54] intentionally omitted <==

Metals Recovery

• Utilising specialised graphene filters to separate specific metals from mine tailings to increase sustainability in environmentally conscious manner

==> picture [84 x 85] intentionally omitted <==

Bio-Medical & Health – Business Units

==> picture [50 x 49] intentionally omitted <==

Biomedical Sensors

• Development of non-invasive biomedical sensors to detect specific markers of disease in breath

• Potential for profound global applications in the early detection and management of a wide range of disease

• Possible human and animal applications

==> picture [39 x 39] intentionally omitted <==

Broader biotechnology applications and devices

• Work underway to consider utilisation of Graphene’s unique properties for further biotechnologies

• Hospital, surgical, in-patient out-patient and community applications currently under consideration

• Initial focus on precious metals - exploration for carbon neutral energy metals recovery underway

• +US$1 trillion in unrecovered metals currently in mine tailings

Coating Industries

==> picture [66 x 66] intentionally omitted <==

Environment & Sustainability

Sparc TECHNOLOGIES graphene enhanced coatings have the potential to enhance billion dollar markets

Graphene and Coatings[1]

==> picture [9 x 11] intentionally omitted <==

• Graphene as a performance additive in marine, aerospace and industrial applications of coatings Graphene’s unique features provide added benefit to coatings;

==> picture [9 x 11] intentionally omitted <==

• Unique anti-corrosion qualities

• Improved drag efficiency

==> picture [107 x 92] intentionally omitted <==

==> picture [219 x 233] intentionally omitted <==

• Anti-microbial benefits

• Superior hydrophobic qualities

• Chemical repulsion

• Exceptional UV protection

• Fire-resistance  Improved electrical and thermal conductivity

• SPN has exclusive access to patented technology to enable targeting of the above markets globally

==> picture [9 x 11] intentionally omitted <==

==> picture [60 x 60] intentionally omitted <==

Andrew Smith Technical Manager - Coatings

Andrew is a development chemist specialising in Heavy Duty Coatings, specifically, the development and testing of anti-corrosive coatings. Andrew has held senior regional technical management roles for AkzoNobel (world leader in coatings with brands including International, Chartek, Sikkens, Awlgrip, Devoe), in Australia, Asia and the Americas.

These roles involved responsibility for product development, testing and integrity, as well as Technical Support functions. Andrew most recently has been involved in implementing major restructuring initiatives for AkzoNobel, including rationalisation of manufacturing capability in the South Asia region.

==> picture [66 x 66] intentionally omitted <==

Coating Industries - SPARC Product Performance

Environment & Sustainability

SPARC Graphene enhanced coating performs with a 73% improvement[*] on industry standard coatings

==> picture [7 x 8] intentionally omitted <==

==> picture [7 x 8] intentionally omitted <==

SPARC Graphene enhanced coating showed complete destruction of the E-Coli bacteria when compared to the same coating type containing no graphene.

SPARC enhanced coating has demonstrated the potential to improve the performance of a low cost commodity product with the addition of a Graphene based additive.

SPARC enhanced coatings have potential applications in areas for the control of bacterial growth on surfaces such as; hospitals, public areas, food preparation facilities, drinking water systems, antifouling for shipping and coating for wastewater systems.

Performance Test Results Scribe Corrosion Creep[^]

==> picture [408 x 179] intentionally omitted <==

----- Start of picture text -----

2.5
2
73%
1.5
1
0.5
0
Control Sparc Graphene Sparc Graphene Sparc Graphene Sparc Graphene Sparc Graphene
(No Graphene) Additive 1 Additive 2 Additive 3 Additive 4 Additive 5
Three Coat Scribe Creep
Scribe Corrosion Creep (mm)
----- End of picture text -----

Test results showing anti-corrosion performance of coatings with a Sparc Graphene additive . Lower values demonstrate better performance

Performance Test Results ISO22196 Testing

==> picture [408 x 219] intentionally omitted <==

----- Start of picture text -----

10,000,000
1,000,000
100,000
10,000
1,000
100
10
1
S0045 S0046 S0047 S0048 Control
Graphene 1 Graphene 2 Graphene 3 No Graphene (Blank Panel)
2(Cells/mm)
Number of Viable Bacteria
----- End of picture text -----

Testwork included multiple coatings containing proprieatery graphene formulations. Coating with Graphene 3 formulation, Sample S0047, demonstrated the most significant improvement to the destruction of E-Coli.

• See ASX Announcement 14 January 2021

Water Purification and Soil Remediation

==> picture [208 x 66] intentionally omitted <==

----- Start of picture text -----

Environment & Sustainability
----- End of picture text -----

Pollution Remediation

Progress

==> picture [9 x 11] intentionally omitted <==

• The potential applications of graphene in pollution remediation are adsorption, membrane separation, catalysis and environmental analysis

==> picture [9 x 11] intentionally omitted <==

• SPN has demonstrated its graphene remedy is substantially more effective than the industry standard and is undergoing active development to prove the commercial application for:

==> picture [9 x 10] intentionally omitted <==

• The adsorption efficiency of graphene adsorbents largely depends on its surface area, porous structure, oxygen-containing groups and other functional groups, adsorption conditions, and also the properties of adsorbates[1]

==> picture [9 x 11] intentionally omitted <==

• SPN has identified potential applications of water purification and soil remediation

==> picture [9 x 11] intentionally omitted <==

• Australia alone has an estimated 160,000 contaminated sites with as many as 75,000 different contaminants[2]

Global Patent Pending

• PCT/AU2016/05041– Water Purification and Soil Remediation water purification, oil removal from water, soil remediation

==> picture [9 x 10] intentionally omitted <==

• Containment of PFAS using graphene

==> picture [9 x 11] intentionally omitted <==

• Destruction of PFAS using graphene, which is potentially transformational

==> picture [355 x 205] intentionally omitted <==

Absorption rates of various forms of PFAS with Sparc graphene product versus Granulated Activated Carbon

Metals in Tailings

Estimated US$1 trillion worth of precious metals sitting in mine tailings[1]

==> picture [66 x 66] intentionally omitted <==

Environment & Sustainability

Graphene and Soil Remediation

Market Size

==> picture [9 x 11] intentionally omitted <==

Sparc graphene based adsorbent testing demonstrates significant outperformance of commercially available adsorbents for gold (Au) and silver (Ag)

==> picture [9 x 11] intentionally omitted <==

Estimates that there is approximately US$1T worth of precious metals already extracted from the ground, sitting at old mining sites globally[1]

==> picture [9 x 10] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

Best Sparc results highlight 96.98% and 97.82% adsorption of gold and silver from solution into graphene based adsorbents

Further test work underway including plans to include trials from gold and silver tailings from mine sites

==> picture [381 x 213] intentionally omitted <==

Opportunity to work with local mining industry

Initial Focus on Precious and Base Metals

Exploring potential for recovery of

green energy metals

Bio-Medical Sensors

==> picture [66 x 66] intentionally omitted <==

Bio-Medical & Health

’ Sparc TECHNOLOGIES recently established bio-medical division aims to improve health outcomes and disease identification and management

Biomedical Sensors

Ben Yerbury Technical Lead – Bio-Medical

==> picture [59 x 59] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

Focus of the project will be on research and development of graphene-based sensing devices

Initial work by Sparc, in collaboration with University of Adelaide, will include development/fabrication of lab-scale sensing devices

Mr Yerbury has over 20-years’ experience in the global medical device industry with Fortune 500 organisations including ResMed, Baxter Healthcare, Boston Scientific and Zimmer Biomet. His experience spans a broad range of clinical specialties and technologies across the respiratory and cardiovascular fields to orthopaedics and general surgery, to infusion therapy and nephrology. Mr Yerbury brings a wealth of experience across Australia and New Zealand, Asia Pacific and European markets and their respective reimbursement models and regulatory environments, which will be invaluable to Sparc’s commercialisation and development strategies. Mr Yerbury has direct and wide expertise in launching new, disruptive, technologies and business models to accelerate business growth and build competitive advantages in the medical device industry

Path to Market

13

Roadmap

	Coatings Coatings test results Industry partner discussion Oil spill remediation Demonstration test work Industry partner discussion Metals recovery Demonstration model development Industry partner discussion Bio-Medical Sensor Project Industry Partner Discussions Mar21 Jun21 Sept21	Coatings Coatings test results Industry partner discussion Oil spill remediation Demonstration test work Industry partner discussion Metals recovery Demonstration model development Industry partner discussion Bio-Medical Sensor Project Industry Partner Discussions Mar21 Jun21 Sept21	Coatings Coatings test results Industry partner discussion Oil spill remediation Demonstration test work Industry partner discussion Metals recovery Demonstration model development Industry partner discussion Bio-Medical Sensor Project Industry Partner Discussions Mar21 Jun21 Sept21	Coatings Coatings test results Industry partner discussion Oil spill remediation Demonstration test work Industry partner discussion Metals recovery Demonstration model development Industry partner discussion Bio-Medical Sensor Project Industry Partner Discussions Mar21 Jun21 Sept21
	Coatings
	Coatings test results
	Industry partner discussion
	Oil spill remediation
	Demonstration test work
	Industry partner discussion
	Metals recovery
	Demonstration model development
	Industry partner discussion
	Bio-Medical
	Sensor Project
	Industry Partner Discussions

Broader Industry Comparisons

$470m $280m $272m ASX Listed $240m Overseas Listed $213m ARC Graphene Hub Constituent $200m $160m $160m $130m Average – A$129m[1] $114m $120m $105m $80m $66m $52m $40m $31m $16m $m NanoXplore Zen Graphene Archer Materials Hazer Group First Graphene Directa Plus PLC Versarien PLC Eden Innovations Haydale Applied Sparc GRA: TSXV Solutions AXE: ASX ASX: HZR FGR: ASX DCTA: AIM VRS: AIM EDE: ASX Graphene Graphene Technologies ZEN: TSXV Industries Materials HAYD: AIM AGM: AIM Manufacture Graphene Enhanced Quantum Hydrogen Functionalised GrapheneVerified US Graphene Surface Graphene Functionalised High-Volume Composites & Computing & Production Process Graphene with enhanced Graphene Producer Nanotubes for Functionalisation nanoplatelet Graphene with Graphene Graphite Mining Graphite Mining & Graphene Graphene Environmental Cement using Graphene dispersions for Proposed Graphene Powder Research Production Facility and Textile Products coatings, Production Facility composites and functional materials sector

Note: All Enterprise Values Sourced from Factset in AUD as at 19 March 2021 1. Average excludes Sparc & Nanoxplore

Collaboration with the University of Adelaide

==> picture [87 x 65] intentionally omitted <==

Sparc TECHNOLOGIES has a strategic relationship and exclusive licensing agreements with key collaborator and partner, the University of Adelaide (UA), which is a world leader in graphene

==> picture [9 x 11] intentionally omitted <==

UA ranked as principal member of the Graphene Hub. UA is a world class institution, ranked in the top 1% of Universities globally

==> picture [9 x 11] intentionally omitted <==

The UA team has generated 7 patent applications (4 at PCT stage and 3 IP Disclosures) and developed over 20 graphene based products

==> picture [9 x 11] intentionally omitted <==

SPN to contribute at least $1.5M over three years to UA and Graphene Hub or graphene research and development in order to retain and develop world leading applications

1

Exclusive Licensing Agreement with UA

2

Strategic Partnership with UA

==> picture [9 x 11] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

UA is a cornerstone shareholder of SPN

SPN is currently licensing 3 technologies under patent

application related to marine and protective coatings, water purification & soil remediation, and sound absorption Patents have 20-30 year lives

• Extremely favourable terms - No ongoing licence fees or royalties for SPN

==> picture [9 x 11] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

SPN has first right of offer on any future unencumbered

graphene technologies developed by UA

Other projects identified – research and development

underway

Project Agreement with UA

4

Project Agreements with the Graphene Hub

==> picture [9 x 11] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

• SPN to contribute towards research and development of coatings applications at UA

• SPN already committed $500K within one year for first project development

==> picture [9 x 11] intentionally omitted <==

==> picture [9 x 11] intentionally omitted <==

SPN contributing towards research and development on three projects in conjunction with the Graphene Hub

• Projects include water purification, metals recovery from tailings and soil remediation

3

Disrupting global industries with Graphene based transformational technology

17

==> picture [130 x 130] intentionally omitted <==

==> picture [131 x 130] intentionally omitted <==

==> picture [392 x 165] intentionally omitted <==

Stephen Hunt Mike Bartels Mark Flynn