TALGA GROUP LTD — Investor Presentation 2021

Jul 13, 2021

ASX Release 14 July 2021 ASX:TLG

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Talga Presentation at Rho Motion’s EV Battery Technology Seminar

Battery anode company Talga Group Ltd (“ Talga ” or “ the Company ”)( ASX:TLG ) is pleased to provide a copy of the presentation delivered by the Company’s Managing Director, Mark Thompson, during Rho Motion’s EV Battery Technology Seminar on 13th July 2021 at 4pm AWST (9am London).

The presentation is available on the Company’s website via the link below:

http://www.talgagroup.com/irm/content/presentations.aspx?RID=301

Authorised for release by:

Dean Scarparolo Company Secretary Talga Group Ltd T: +61 (0) 8 9481 6667

For further information please contact:

Mark Thompson Managing Director Talga Group Ltd T: +61 (0) 8 9481 6667

Nikki Löf

Group Communications Manager Talga Group Ltd T: +61 (0) 8 9481 6667

About Talga

Talga Group Ltd (ASX:TLG) is building a European battery anode and graphene additives supply chain, to offer advanced materials critical to its customers’ innovation and the shift towards a more sustainable world. Vertical integration, including ownership of several high-grade Swedish graphite projects, provides security of supply and creates long-lasting value for stakeholders.

Company website: www.talgagroup.com

Talga Group Ltd ABN 32 138 405 419 ASX: TLG Germany: TGX USA: TLGRF 1st Floor, 2 Richardson St, West Perth 6005 Australia E: info@talgagroup.com T: +61 8 9481 6667 F: +61 8 9322 1935 W: www.talgagroup.com

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EV BATTERY ANODE TECHNOLOGY Rho Motion Seminar

Mark Thompson, MD Talga Group Ltd (ASX:TLG)

© TALGA GROUP LTD, JULY 2021

Cautionary Statement and Disclaimer

Talga Group Ltd ACN 138 405 419 (the Company) is the issuer of this presentation.

Niska Scoping Study

The Niska Scoping Study is a preliminary technical and economic study of the potential viability of developing the Nunasvaara North, Niska South and Niska North graphite deposits by constructing an integrated mining and refining operation to produce Talga’s anode products for Li-ion batteries. It is based on low level technical and economic assessments that are not sufficient to support the estimation of ore reserves or to provide assurance of an economic development case. Further evaluation work and appropriate studies are required before the Company will be in a position to estimate any ore reserves or to provide any assurance of an economic development case or certainty that the conclusions of the Scoping Study will be realised. The Scoping Study is based on the material assumptions outlined in the announcement of 7 December 2020. These include assumptions about the availability of funding. While Talga considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved. To achieve the range of outcomes indicated in the Scoping Study, funding in the order of US$1,000 million plus contingencies may be required. Investors should note that there is no certainty that the Company will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of the Company’s existing shares. It is also possible that the Company could pursue other ‘value realisation’ strategies such as a sale, partial sale or joint venture of the project. If it does, this could materially reduce the Company’s proportionate ownership of the deposits covered by the Niska Scoping Study. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

The Company first reported the Niska Scoping Study production targets and forecast financial information referred to in this presentation in accordance with Listing Rules 5.16 and 5.17 in its announcement titled "Niska Scoping Study Outlines Pathway to Globally Significant Battery Anode Production" dated 7 December 2020. The Company confirms that all material assumptions underpinning those production targets and forecast financial information derived from those production targets continue to apply and have not materially changed.

Forward-looking statements

This presentation contains forward-looking statements. Those forward-looking statements reflect views held only as at the date of this presentation. Any such statement is subject to inherent risks and uncertainties. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement, and such deviations are both normal and to be expected. Recipients must make their own assessment about the likelihood of a matter, about which a forward-looking statement is made, occurring. The Company makes no representation about the likelihood of a matter, about which a forward-looking statement is made, occurring. The Company and its directors, employees, agents, advisers and consultants: give no representation or warranty to a recipient of this presentation as to the accuracy or completeness of the statements contained in this presentation or in relation to any other matter; and to the fullest extent permitted by law, disclaim responsibility for and have no liability to a recipient of this presentation for any error or omission in or for any statement in this presentation.

Reliance on presentation

A recipient of this presentation must make their own assessment of the matters contained herein and rely on their own investigations and judgment in making an investment in the Company. This presentation does not purport to contain all of the information required to make an informed decision whether to invest 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.

Not a recommendation or financial advice

The information in this presentation is not a recommendation to subscribe for securities in the Company and does not constitute financial advice. Any person who intends to subscribe for securities must conduct their own investigations, assessment and analysis of the Company and its operations and prospects and must base their investment decision solely on those investigations and that assessment and analysis. Prospective investors should consult their own legal, accounting and financial advisers about an investment in the Company.

Photographs and images

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

The data is in – EV sales taking off EV sales have rapidly increased in spite of COVID-19 pandemic, showing change is underway

West European Battery Electric Passenger Cars 12-Month-Rolling New Registration Volumes

SOURCE: SCHMIDT AUTOMOTIVE RESEARCH - WESTERN EUROPE 18 MARKETS (FEB 2021).

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Battery Manufacturers Respond	Battery Manufacturers Respond	Battery Manufacturers Respond
Germany, 2024 16 GWh,later 24 GWh		Sweden, 2021 32 GWh,later 40 GWh
Norway, 2024 8 GWh,later 32 GWh		Norway, 2023 Rampupto 40 GWh
Germany, 2022 14 GWh,later 100 GWh		Slovakia, 2024 10 GWh
United Kingdom, 2010 2.5 GWh,later 14 GWh		Germany, 2021 1.5 GWh,later 6 GWh
United Kingdom, 2023 35 GWh		Germany, 2022 16 GWh
Germany, 2020 1 GWh,later 2.5 GWh Germany & France, 2023		Poland, 2018 15 GWh,later 65 GWh Hungary, 2020
8 & 16 GWh,later 64 GWh Germany, 2023 20 GWh,later 24 GWh Italy, 2021		10 GWh,later a second 30 GWh Hungary, 2018 10 GWh,later 15 GWh Europe, 202X
300 MWh,later 2.5/3 GWh Norway, 202X Capacityunknown United Kingdom, 2023		Capacityunknown Germany, 2021 Upto 100GWh Hungary, 202X
10 GWh,later 35 GWH France, 2023 16 GWh,later 50GWh		Capacityunknown Europe, 202X Upto 200 GWh
Europe, 2025 2 GWh		Italy, 2024 70 GWh
Germany, 2024 10 Gwh		Europe total capacity ~ 613 GWh

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SOURCE: CIC energiGUNE, APR 2021 AND PUBLIC SOURCES, JUL 2021.

Graphite Demand Driven by Anode

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Industry forecasts show strong demand for graphite as an anode product, dominating volumes for decades

While currently split 50:50, natural graphite anode is expected to increase market share due to its favourable environmental footprint as cost of synthetic feedstock increases and OEMs become increasingly focused on the environmental footprint of the supply chain

Silicon will largely be used as an additive to graphite-dominant anode blends

New technologies are expected to take time to commercialise and will see limited mainstream uptake until the mid-2020s, but more likely beyond 2030 (solid state)

SOURCE: ADAPTED FROM BENCHMARK MINERAL INTELLIGENCE, TALGA - MARKET EVALUATION FOR GRAPHITE, MAY 2021.

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Greener Batteries

Production of the greenest lithium-ion batteries would use anode made with:

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Responsibly extracted natural graphite - not oil or coal-based synthetic graphite

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100% sustainable electricity processing

- not fossil fuel-powered production

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Locally produced materials

• shortest and strongest supply chain

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VITTANGI GRAPHITE PROJECT ORE

Talga Group

Talga is a clean technology and materials company , building projects to produce innovative graphitic products for greener batteries and consumer materials

Full in-house technology capability with 100% controlled mine-to-product supply (vertically integrated)

Talnode® range of anode products developed and piloted since 2018

Under the Company’s initial major development, the Vittangi Anode Project , a DFS outlines 19,500tpa coated anode production in Sweden

Further developments in expansion options and other products across multiple battery components under way

SEE: ASX:TLG 7 DEC 2020 and 1 JUL 2021. NOTE: TALGA CONFIRMS ALL MATERIAL ASSUMPTIONS UNDERPINNING THE PRODUCTION TARGET AND CORRESPONDING FINANCIAL INFORMATION CONTINUE TO APPLY AND HAVE NOT MATERIALLY CHANGED AS PER LISTING RULE 5.19.2.

Talga Operations

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100% controlled supply chain

• Talga Sweden Integrated graphite mine & anode production

Anode • Talga Germany Production Metallurgical process pilot facility & EU customer network Pilot Process & • Distribution Talga UK Battery anode product & technology centre in Cambridge • Product Talga Japan Commercial office & product development Technology Centre

• Talga Australia Corporate head office

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Talga’s Vittangi Project Sweden Vertically integrated mine-to-anode production

Detailed Feasibility Study completed for Talnode®-C shows robust economics including LOM EBITDA US$4,081 million on 19,500tpa coated anode starting 2024 with additional expansion options

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Vittangi Mining Operation

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Luleå Anode Refinery

*Artist schematic illustrations

SEE: ASX:TLG 7 DEC and 1 JUL 2021 NOTE: TALGA CONFIRMS ALL MATERIAL ASSUMPTIONS UNDERPINNING THE PRODUCTION TARGET AND CORRESPONDING FINANCIAL INFORMATION CONTINUE TO APPLY AND HAVE NOT MATERIALLY CHANGED AS PER LISTING RULE 5.19.2.

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For Talga it Pays to be Green The same factors that make Talga cost competitive also drive lower emissions

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900 CO2-emissions $9,000 Coated Anode Production Cost
800 $8,000
700 $7,000
600 $6,000
500 $5,000
400 $4,000
300 $3,000
200 $2,000
100 $1,000
0 $0
ASIA USA EU NORTH TALGA 1 ASIA 2 SYNTHETIC 3
SWEDEN
/kWh
2
US$/tonne
gm CO
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SOURCE: NODE POLE, BASED ON EUROSTAT AND EEA DATA. SEE: (1) ASX:TLG 1 JUL 2021. SOURCE: (2) BENCHMARK MINERAL INTELLIGENCE PRESENTATION: ’CHINA’ REFERS TO COATED NATURAL GRAPHITE ANODE PRODUCED IN CHINA, BASED ON BULK SALES AND MID-POINT AVERAGE COSTS AS OF H1 2018. (3) RECRUIT REPORT: ’SYNTETHIC’ REFERS TO COATED ANODE MADE FROM SYNTHETIC GRAPHITE SOURCE e.g. NEEDLE COKE.

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Talnode®-C

Talga’s flagship green graphite anode product

Talga has developed premium coated natural graphite anode product with high ionic diffusivity leading to:

• Low internal resistance

• Easier thermal management

• Fast charge

• High power

• Excellent low temperature performance

Talnode®-C is currently undergoing qualification processes with numerous battery manufacturers and auto OEMs towards commercial supply agreements

SEE: ASX:TLG 21 MAR, 26 MAR 2019, 17 JUL 2020 and 1 JUL 2021.

Talnode®-C properties Provides a range of class-leading attributes

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Low temperature performance for quicker start, better charging and greater range

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High power, faster acceleration for E-bikes, motorbikes, drones and power tools

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Reduced heat generation for cheaper thermal management and lower cost

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Fast Charge Performance for reduced charge time (capacity is retained)

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SEE: ASX:TLG 21 MAR, 26 MAR 2019, 17 JUL 2020 and 1 JUL 2021.

Talnode®-Si silicon anode

Talga design strategy for silicon composite anode

Silicon anode design strategy starting 2018 under UK Government funded Talga-led program with Johnson Matthey , the University of Cambridge and manufacturing research group, TWI

Targeted gains in energy density sought by customers battery roadmaps rather than theoretical maximums

Particle design enables a range of loadings in existing commercial anode blends without re-tooling, avoiding pre-lithiation and using existing commercial electrolytes

Particle design to enable high volume production process and off-theshelf equipment. Metallurgical silicon base used to lower costs and expand potential strategic sources

SEE: ASX:TLG 19 FEB 2019 and 14 OCT 2020.

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Talnode®-Si Talnode®-Si is a graphene silicon composite electrode additive with ~30-50%Wt silicon

Talga’s graphene additives and production technology enables silicon-loaded anodes to stabilize/not pulverise Graphene and graphite components of Talnode®-Si can be produced as byproduct from Talga’s Talnode®-C process Graphene works in various modes including protective coatings and nano-structures to control pulverization issues, retain kinetics and moderate SEI formation Customer testing and piloting underway and feasibility studies on UK production options completed and being further investigated

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SEE: ASX:TLG 19 FEB 2019, 5 AUG, 14 OCT and 4 NOV 2020.

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Next Generation Technology

Talnode®-E (solid state battery)

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Solid state batteries suffer a range of technical and commercial issues, particularly for larger applications (EVs)

Talga is developing a graphitic-metal composite for easier processability, safer handling, scalable industrial manufacturing and lower costs to make solid state work

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1
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Motor and Drivetrains

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Talga is developing graphitic materials to deliver the ultimate single unit e-axle solution designed specifically to meet Bentley Motors performance specifications via optimised electronics technology and materials

Talga’s graphene materials aim to deliver an aluminium-based solution aimed at replacing the copper windings currently used

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(1) SCHEMATIC OF ALL SOLID STATE BATTERY WITH CARBON NANOCOMPOSITE ANODE LAYER THAT DOES NOT REQUIRE EXCESS LITHIUM. LEE ET AL (SAMSUNG) HIGHENERGY LONG-CYCLING ALL-SOLID-STATE LITHIUM METAL BATTERIES ENABLED BY SILVER–CARBON COMPOSITE ANODES 9 MAR 2020. SEE: ASX:TLG 2 OCT 2019 and 13 MAY 2020.

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Talga partnerships for a greener future Working with respected battery customers and technology and development partners

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SEE: ASX:TLG 30 OCT 2015 and 5 FEB, 26 MAR, 4 SEP 2018 and 15 JAN, 2 OCT, 8 OCT, 24 OCT 2019 and 31 JAN, 20 MAR, 13 MAY, 27 MAY, 24 JUNE, 2 NOV, 24 NOV 2020 and 22 JUN, 28 JUN 2021.

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Corporate Overview

ASX:TLG PERFORMANCE (12 MONTHS)

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STOCKMARKET CODES/TICKERS

Primary listing in Australia on the ASX (TLG) with OTC trading in Germany (TGX) and US (TLGRF)

CAPITAL STRUCTURE

ASX Listing Code: TLG Market Capitalisation: $385.1M Listed Shares: 303.2M Unlisted Options: 13.4M[(1)] Cash as at 31 March 2021: $58.4M

MAJOR SHAREHOLDERS

Mark Thompson – M. Director 4.7% Kinetic Investment Partners 4.5% UBS AG 2.9% UBS Securities Australia 2.4% Yandal Investment Pty 1.6% TOP 20 SHAREHOLDERS 31.3% Total number of shareholders 10,576

NOTE: MARKET CAPITALISATION AS AT 12 JUL 2021, SHAREHOLDERS AS AT 28 APR 2021. (1) UNLISTED OPTIONS INCLUDE PERFORMANCE RIGHTS SUBJECT TO VESTING CONDITIONS.

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Building the Solution

DFS completed for mine-refinery in north Sweden to produce 19,500tpa coated anode (Talnode®-C) starting 2024 with refinery feedstock from Talga’s wholly owned Vittangi graphite project - permitting underway Additional 85,000tpa production scoped to expand to total >100,000tpa

LKAB and Mitsui have signed LOI for potential joint venture and development partnership

Feasibility studies completed on UK expansion opportunities for Talnode®-C and Talnode®-Si Updates on a range of commercial developments and product technologies towards greener battery production

SEE: ASX:TLG 1 JUL 2021, 28 JUN 2021, 4 NOV 2020 and 7 DEC 2020. NOTE: TALGA CONFIRMS ALL MATERIAL ASSUMPTIONS UNDERPINNING THE PRODUCTION TARGET AND CORRESPONDING FINANCIAL INFORMATION CONTINUE TO APPLY AND HAVE NOT MATERIALLY CHANGED AS PER LISTING RULE 5.19.2. PLEASE REFER TO THE CAUTIONARY STATEMENT IN RESPECT OF THE NISKA SCOPING STUDY.

TALGA GROUP LTD ASX Code: TLG

Head Office: 1st Floor, 2 Richardson Street, West Perth WA 6005, Australia

Phone: +61 8 9481 6667 Email: info@talgagroup.com Website: www.talgagroup.com

GLOBAL OPERATIONS

Talga Sweden: Vänortvägen 2, 981 32 Kiruna, Sweden

Talga Sweden: Storgatan 7, 972 38 Luleå, Sweden

Talga UK: The Bradfield Centre, 184 Cambridge Science Park, Cambridge CB4 0FQ, UK

Talga Germany: Prof.-Hermann-Klare-Str. 25, 07407 Rudolstadt, Germany

Talga Japan: Takatsuki, 569-1046, Osaka, Japan

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JORC Graphite Reserve & Resources	JORC Graphite Reserve & Resources	JORC Graphite Reserve & Resources
Ore Reserve3, 6	Tonnes	Graphite (% Cg)
Nunasvaara(JORC 2012)	2,260,140	24.1
Proven	0	0
Probable	2,260,140	24.1
Mineral Resources1, 2, 4, 5, 7, 8, 9	Tonnes	Graphite (% Cg)
Vittangi Nunasvaara(JORC 2012)	14,900,000	23.4
Indicated	10,400,000	25.6
Inferred	4,500,000	18.3
Vittangi Niska(JORC 2012)	4,600,000	25.8
Indicated	4,600,000	25.8
Jalkunen(JORC 2012)	31,500,000	14.9
Inferred	31,500,000	14.9
Raitajärvi(JORC 2004)	4,300,000	7.1
Indicated	3,400,000	7.3
Inferred	900,000	6.4
Total Mineral Resources	55,300,000	17.5

NOTE: 1 MINERAL RESOURCES ARE INCLUSIVE OF ORE RESERVES.

2 MINERAL RESOURCES ARE REPORTED AT VARIOUS CUT OFF GRADES: NUNASVAARA AND NISKA 10%Cg, JALKUNEN 5%Cg AND RAITAJÄRVI 5%Cg. 3 ORE RESERVE IS REPORTED AT A CUT OFF GRADE OF 12%Cg.

4 ERRORS MAY EXIST DUE TO ROUNDING.

SEE: ASX:TLG (5) 17 SEP 2020, (6) 1 JUL 2021, (7) 15 OCT 2019, (8) 27 AUG 2015 AND (9) 26 AUG 2013.

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Competent Person Statements

The Niska Mineral Resource estimate was first reported in the Company’s announcement dated 15 October 2019 titled ‘Talga boosts Swedish graphite project with maiden Niska resource’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed.

The Nunasvaara Mineral Resource estimate was first reported in the Company’s announcement dated 17 September 2020 titled ‘Talga Boosts European Natural Graphite Resources’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed.

The Nunasvaara Ore Reserve statement was reported in the Company’s announcement dated 1 July 2021 titled ‘Robust Vittangi Anode Project DFS’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Reserve estimate in the previous market announcement continue to apply and have not materially changed.

The Jalkunen Mineral Resource estimate was first reported in the Company’s announcement dated 27 August 2015 titled ‘Talga Trebles Total Graphite Resource to Global Scale’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed.

The Raitajärvi Mineral Resource estimate was first reported in the Company’s announcement dated 26 August 2013 titled ‘500% Increase to 307,300 Tonnes Contained Graphite in New Resource Upgrade for Talga’s Swedish Project’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed.

The Company first reported the production targets and forecast financial information referred to in this presentation in accordance with Listing Rules 5.16 and 5.17 in its announcement titled ‘Robust Vittangi Anode Project DFS' dated 1 July 2021. The Company confirms that all material assumptions underpinning those production targets and forecast financial information derived from those production targets continue to apply and have not materially changed.