Lifezone Metals - Delivering Clean Battery Metals Through Innovation

• Lifezone Metals is a hybrid mining and technology company focused on bringing new sources of clean, green battery metals to market through the Kabanga nickel project and its proprietary hydrometallurgy technology.
• Lifezone has partnered with major mining companies BHP and Glencore to commercialize its technology. BHP invested $100M for a stake in the Kabanga project with an option to increase to 60%.
• The definitive feasibility study (DFS) for Kabanga is nearing completion and will be a major catalyst, triggering BHP's investment option and revealing project economics.
• Lifezone aims to provide some of the cleanest nickel and cobalt to supply the EV battery market as automakers seek to reduce their carbon footprint and diversify from Indonesian nickel.
• Tanzania offers an attractive mining jurisdiction with a pro-investment agenda under the new president. The country's infrastructure investments will help unlock stranded mineral deposits.

As the electric vehicle (EV) revolution accelerates, securing sustainable sources of key battery metals like nickel and cobalt is becoming increasingly crucial. Lifezone Metals (Lifezone) is positioning itself as a key player in this space through its flagship Kabanga nickel project in Tanzania and its proprietary hydrometallurgy technology.

The Green Nickel Opportunity

Lifezone describes itself as a "hybrid company" that combines new sources of battery metals with innovative processing technology. The company's CEO Chris Showalter explained:

"We like to view ourselves as really a solution provider to the industry to provide clean green sources of battery metals by applying innovative hydrometallurgy."

Lifezone's key competitive advantage lies in its ability to design bespoke hydrometallurgical flowsheets for each project it works on. This expertise, developed initially in the South African PGM sector, allows Lifezone to unlock the value of chemically complex or geographically constrained mineral deposits that would otherwise be uneconomic.

Interview with Chief Executive Officer & Director, Chris Showalter

The Kabanga Nickel Project

Lifezone's crown jewel is the Kabanga nickel project in Tanzania, which it acquired from Barrick and Glencore in 2021. Kabanga is one of the world's largest undeveloped nickel sulfide deposits with a resource of 62.5 million tonnes (Mt) measured and indicated resources at 2.02% nickel (Ni), 0.28% copper (Cu) and 0.16% cobalt (Co) with an additional 25.1 Mt Inferred resources at 2.23% Ni, 0.31% Cu and 0.16% Co. The high-grade nature of the orebody is a key value driver.

However, the remote location and lack of infrastructure previously rendered the project stranded. Lifezone's hydromet technology removes these constraints by allowing concentrate to be processed to final refined metal in-country, greatly enhancing the economics.

Tanzania's recent investments in rail, power and port infrastructure have also significantly de-risked the project. Showalter noted:

"The commitment Tanzania has made to this infrastructure is going to unlock all these other stranded orebodies that didn't have the infrastructure there to make their projects viable."

Strategic Partnerships

Lifezone has secured the backing of two mining majors - BHP and Glencore - providing strong validation of its technology and the Kabanga project.

BHP invested $100 million in 2021 for a 17% stake in Kabanga, with an option to increase to 60% post-DFS based on a 7x NPV multiple. Showalter sees this as hugely endorsing the project's potential:

"BHP coming back into Africa for the first time, coming into the Kabanga project - huge endorsement."

Meanwhile, Lifezone has a 50/50 joint venture with Glencore to build an autocatalyst recycling plant in the US based on Lifezone's PGM expertise. This will be a capital-light, quick-to-market opportunity to demonstrate Lifezone's technology in action.

Near-Term Catalysts

Lifezone is fast approaching major milestones:

• Completion of the Kabanga DFS in Q4 2024, which will provide a third-party validated NPV and trigger BHP's investment option.
• Signing of offtake agreements, with negotiations underway with parties like JOGMEC of Japan. Lifezone can monetize its 40% marketing rights to fill any remaining equity funding gap.
• Delivery of the autocatalyst recycling plant DFS with Glencore.

Showalter believes these catalysts are not yet fully appreciated by the market, saying:

"Right now, we're trading around $7, so there's a material discount right now for investors before BHP comes in and decides on their option."

The Investment Thesis for Lifezone Metals

• Exposure to one of the world's largest, highest grade undeveloped nickel projects
• Strategic partnerships with BHP and Glencore significantly de-risk the investment case
• Near-term catalysts including BHP decision, project financing and offtake to drive re-rating
• Unique hydromet technology delivers capital-light growth and royalty cash flows
• Positioned to be a leader in sustainable "green" battery metal supply
• Downside protection from 0.7x P/NAV multiple with BHP

Lifezone Metals offers a differentiated investment opportunity in the battery metals sector. The company's combination of a world-class nickel asset and proprietary processing technology sets it apart from peers. With major partnerships in place and a value-accretive pathway to production, Lifezone appears well-placed to capitalize on the once-in-a-generation opportunity presented by the global energy transition.

Macro Thematic Analysis

The battery metal supply chain is undergoing a profound transformation as the world moves towards electrification. Nowhere is this more evident than in the nickel market, where demand is forecast to grow exponentially from both the EV battery and stainless steel sectors. However, surging demand is coinciding with growing consumer scrutiny of the environmental and social impacts of mineral production.

Indonesia has rapidly emerged as the dominant player in the global nickel industry, accounting for nearly 60% of worldwide supply. The country's producers benefit from low costs due to the abundance of laterite ores, lax environmental regulations, and the ability to export intermediate products to China for further refining. However, this has come at a significant environmental cost, with widespread deforestation and the production of highly carbon-intensive nickel pig iron.

In contrast, Lifezone Metals is positioning itself as a supplier of choice for sustainably minded automakers and battery manufacturers. By producing low-carbon nickel and cobalt from its Kabanga project in Tanzania, Lifezone aims to offer an alternative to Indonesian supply.

CEO Chris Showalter encapsulated the opportunity:

"If Tesla really wants to get their CO₂ footprint down, nickel's the place they can get it the fastest because it is a big contributor. That's where a project like Kabanga is so well-positioned to provide some of the cleanest, non-Indonesian nickel and cobalt."

As EV sales continue to accelerate and battery makers compete to secure long-term supplies of responsibly sourced raw materials, companies like Lifezone that can deliver "green" nickel are set to command a growing premium. The company's partnerships with BHP and Glencore provide a strong endorsement of this strategy and will be key to unlocking value for shareholders in the years ahead.