WA KAOLIN LIMITED — Capital/Financing Update 2021

Sep 5, 2021

6 September 2021

ASX Announcement

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WA Kaolin Signs Bagging Solution Contract with Haver & Boecker Australia

Highlights

• WA Kaolin signs contract with Haver & Boecker to supply a kaolin bagging solution

• Haver & Boecker are world leaders in the supply of valve bag filling equipment

• Order includes Haver M-Series 4W, a valve bag filling machine, the Haver valve bag placer for 4 spouts and a flat belt conveyor

• Haver is due to deliver in 9 months and will play a role in training WA Kaolin personnel in the use of the machinery

• Contract represents another step forward in the development of WA Kaolin’s Wickepin Project

WA Kaolin Ltd (“ WA Kaolin ” or the “ Company ”) (ASX:WAK) is pleased to announce it has signed a contract with Haver & Boecker Australia (“ Haver & Boecker ”) for the supply of equipment that will form the basis of a bagging solution for the Company’s kaolin powder product.

WA Kaolin holds the Wickepin Kaolin Project, 220km south-east of Perth, which has a 644.5 million tonne Mineral Resource, which includes an Ore Reserve Estimate of 30.5 million tonnes of kaolinised granite. The Wickepin Project produces kaolin products for tier one customers and the Company aims to expand its production to 400,000tpa in a two-stage strategy.

Haver & Boecker Australia is a Western Australian based developer and manufacturer of high-performance processing and packing technology and a subsidiary of the Germany-based Haver & Boecker, a world leader in the supply of valve bag filling equipment. Haver & Boecker is the supplier of choice for many of Australia’s largest companies for their high-volume powder packing equipment.

Following the successful completion of kaolin packing trials at Haver & Boecker’s technical centre, WAK has signed a contract for the supply of valve bag filling machine with auto bag placement. The equipment is designed to fill 700 valve bags per hour, each bag will be filled to 20kg, meaning WAK will have the capacity to pack more than half of the first stage design production capacity into 20kg bags.

WA Kaolin’s order will see Haver supply a kaolin bagging solution including the Haver M-Series 4W, a valve bag filling machine, the Haver valve bag placer for four spouts and a flat belt conveyor.

Haver is due to deliver in 9 months and will train WA Kaolin personnel in use of the machinery.

WAK CEO Andrew Sorensen said, “The signing of this contract represents another exciting step forward in the development of our Wickepin Project, which is expected to deliver 200,000 tonnes of kaolin per annum from the first quarter of 2022. The acquisition of high-quality bagging equipment from a world leading company such as Haver & Boecker will ensure that we have the appropriate facilities in place as we are moving towards production. As the market for kaolin packed into 20kgs is very strong in Australia and the Asia Pacific, it was imperative we chose the right group to supply our valve bag filling machine requirements. When the bagging machine comes online at Wickepin, WAK will be able to service the market for kaolin that is packed in the smaller 20kg bags, which attract a higher market price than kaolin packed in bulk bags.”

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WA KAOLIN LIMITED +61 8 9439 6300 ABN: 56 083 187 017
asorensen@wakaolin.com.au
Lot 3 Ward Road, East Rockingham, www.wakaolin.com.au
Western Australia 6168
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ASX Announcement 6 September 2021

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Haver & Boecker Australia General Manager Clelio Tonelli said , “We are delighted WA Kaolin have recognised Haver & Boecker Australia as the best solution provider for its new bagging line to be installed at WA Kaolin’s production facility currently under development in Wickepin.

The resulting contract is a testament to the excellent work performed by our specialist operatives. Furthermore, the collaboration between both companies ensures the final solution will not only meet WA Kaolin’s immediate production requirements but has the capacity to cater for demands associated with long-term continuous growth.

Our solution will deliver a significant increase in efficiency when it comes to producing a high-quality bagged product from not only an economic standpoint but occupational health and safety considerations as well.

We are committed to working with WA Kaolin to ensure the absolute success of their new production facility and look forward to this project being an exemplar to the industry.”

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Figure 1 . Haver & Boecker New HAVER M-Series 4W + B-APP 4 for Kaolin Clay

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www.wakaolin.com.au
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ASX Announcement 6 September 2021

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Project Background

The Company acquired the Wickepin Project in 1999 from Rio Tinto which, through exploration, had discovered and drilled out a Mineral Resource and commissioned engineering and feasibility studies. The acquisition included the tenements covered by the Wickepin Project and all associated engineering and feasibility studies.

Since then, WA Kaolin co-founders and owners have invested over $42 million to develop and progress the Wickepin Project. Through extensive R&D of product and processes, the Company has spent significant time and funds in optimising its proprietary dry processing method for kaolin (“K99 Process”) to build and extend on its success as a kaolin producer and exporter to global markets.

As part of the process, the Company has undertaken trial mining and processing to ensure proof of concept and to produce product for, amongst other things, establishing customer confidence and price discovery.

The project comprises a mining lease, a general-purpose lease, a miscellaneous licence and retention licences. It is one of the largest known remaining kaolin resources in the world, and contains:

• A Probable Ore Reserve of 30.5 million tonnes and a Mineral Resource (reported in 2019) of 109.1 million tonnes in the mining lease which is part of and included in;

• An Inferred Mineral Resource (reported in 2017) of 644.5 million tonnes of high-grade premium kaolinised granite across all tenements.

WA Kaolin developed a dry processing method, the K99 Process, at its plant in Kwinana, which together with the high-grade Wickepin kaolin resource, produces an ultra-bright, high-quality kaolin product at a low cost, in comparison to other methods which rely on chemical bleaching and multiple wet mechanical and magnetic separation methods.

This announcement was authorised for market release by the Board of WA Kaolin Limited.

For further information, please contact:

Andrew Sorensen Victoria Humphries CEO Investor Relations asorensen@wakaolin.com.au +61 (0) 431 151 676 victoria@nwrcommunications.com.au

ABOUT WA KAOLIN

WA Kaolin’s Wickepin Kaolin Project, 220km south-east of Perth, contains a Mineral Resource (JORC 2012) of 644.5 million tonnes[1,2] of high-grade premium kaolinised granite. This world-class resource at Wickepin is one of the largest known remaining premium primary resources of kaolin globally. It is characterised by its purity, quality and brightness, producing kaolin products that typically attract higher prices from a growing collection of top tier customers.

With more than $42 million invested in the project to date, WA Kaolin has developed a proprietary dry processing method, known as K99, to turn raw material into market suitable feedstock for global customers, and constructed a small-scale commercial processing plant on 3ha of portside industrial land at Kwinana, WA.

The Company is focused on increasing production from Wickepin to 400,000 tonnes per annum by 2023 with further modular increases to capacity to be implemented in tune with market demand and funding capability.

1 The Mineral Resource estimate is inclusive of Ore Reserves and the 2019 Mineral Resource estimate.

2 CSA Global Mineral Resource Estimate R280.2017

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www.wakaolin.com.au
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