WA KAOLIN LIMITED — Capital/Financing Update 2021

May 6, 2021

7 May 2021

ASX Announcement

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Stage 1 Work Progression

WA Kaolin Ltd (“ WA Kaolin ”, the “ Company ” or “ WAK ”) (ASX: WAK) is pleased to provide shareholders with an update on the ongoing Stage 1 work program currently being carried out at the Company’s wholly owned Wickepin Kaolin Project in Western Australia. Stage 1 is designed to develop a kaolin processing plant with a production capacity of >200,000 tpa[1 ] kaolin by calendar-year end 2021.

Building Works

Building works onsite at Wickepin continue in earnest with 100% of the building structural steel and roofing completed to date. AUSPAN, one of Australia’s leading steel frame construction companies which was contracted to carry out the design and construction, continues to deliver first quality work on target, with 75% of the flooring and 50% of the wall cladding already completed.

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Figure 1. Stage 1 Building Works continue at Wickepin

Equipment

The Engineering Design works on the fixed plant at Wickepin are nearing completion. Whilst some tenders remain open, including the product collection system, key equipment items including silos, bagging station and conveyors have been selected, with some already purchased and ready for installation. The Company anticipates commissioning the fixed plant from the end of July 2021.

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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

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Figure 2. Aerial view of Wickepin Plant currently under construction

Site Management, Safety and Staff

Following key personnel appointments made earlier this month, WAK is pleased to report that both the Site Construction Manager and the Wickepin Plant Office Administrator are now on-site reporting to Executive Director, Mr Alf Baker. To date, the Wickepin Stage 1 Work Program has experienced an impeccable site management and safety record, with no incidents reported.

WA Kaolin has continued to build its team on the ground with the employment of staff in ongoing roles of maintenance and operations.

Utilities

Process engineering of the electrical components of the Stage 1 plant works is complete and the Company has selected and ordered the electrical motor control centre (MCC) supplier. Following the near completion (90%) of the small power design, the Company is in the process of reviewing contractor tenders. The thermal power generation plant has been ordered with the renewable energy package anticipated to be implemented around mid-2022. This decision allows for the operating data from the thermal plant to be used to help design the optimum solar and battery storage system to complete the hybrid energy generation package.

Work Program Moving Forward

As detailed in the below Table 1, the Stage 1 Work Program will continue over the coming months until July, with commissioning of the Plant scheduled for Q3 2021. WAK remains on target to proceed to production at Wickepin by calendar-year end 2021.

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www.wakaolin.com.au
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Table 1. Stage 1 Work Program

Commenting on the announcement, CEO Andrew Sorensen said , “The Stage 1 Work Program at Wickepin continues to advance both on target and within budget. We continue to build the WAK team on the ground and are pleased to report that all the components of the work program which have been contracted externally continue to deliver great results.

“It’s an exciting stage for a company like WA Kaolin. As the build continues, we can see the Company’s future taking shape in front of us as the work program proceeds and the plant nears completion later this year ahead of our targeted production by year end.”

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www.wakaolin.com.au
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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 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 tonnes1,2 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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