Neometals Successfully Raises A$9 Million to Fund Growth

• Neometals completed a A$9 million placement to institutional investors, oversubscribed.
• Launching a A$13.1 million 1 for 8 entitlement offer to eligible shareholders.
• Funds to advance lithium-ion battery recycling JV, lithium chemicals, vanadium and titanium projects.
• Entitlement offer closes Dec 8 with the new shares being issued on Dec 15.
• Neometals focused on sustainable production of battery materials.

About Neometals

Neometals is an innovative battery materials company focused on recycling lithium-ion batteries and recovering metals from industrial waste. Through proprietary processes and strong industry partnerships, Neometals aims to produce battery metals such as lithium, nickel, cobalt and vanadium more sustainably. The company has three core business units based on its recycling and recovery technologies: it's Lithium-ion Battery (“LiB”) Recycling (50% technology), Lithium Chemicals (70% technology) and Vanadium Recovery (100% technology).

Neometals is commercializing its processes under principal, joint venture and licensing models to demonstrate economic and environmental benefits. This supports the energy transition by creating resilient, circular supply chains that reduce reliance on traditional mining.

Capital Raising

Neometals has received firm commitments from institutional investors to raise around A$9 million through a placement of new fully paid ordinary shares, representing an 8.6% stake of the Company's existing issued share capital.

Following this A$9 million placement, Neometals is also undertaking a 1 for 8 pro-rata entitlement offer for eligible existing shareholders to raise up to A$13.1 million.

Use of Funds

Proceeds from the placement and entitlement offer will primarily fund:

• Activities at Neometals' lithium-ion battery recycling JV, Primobius
• Further lithium chemicals research and development
• Vanadium and titanium business units
• Working capital, corporate costs and offer costs

Primobius Lithium-Ion Battery Recycling JV

Neometals holds a 50% stake in the Primobius lithium-ion battery recycling joint venture, with German plant builder SMS group holding the other 50%. Primobius provides recycling services in Germany and has begun plant supply and licensing activities, with carmaker Mercedes-Benz as its first partner.

Primobius is now targeting North America, with plans to make a first commercial 21,000 tonnes per annum plant offer to Canadian steelmaker Stelco before end 2023. Funding will support Primobius' purchase orders and continued commercialization.

Advancing Lithium Chemicals Production

Neometals is progressing commercialization of its ELi electrolysis process for producing battery-grade lithium hydroxide. This patented process aims to have lowest-quartile operating costs.

Equity funding will assist pilot plant trials in 2023 and planned demonstration plant trials in 2024 evaluating a potential 25,000 tonne per annum lithium hydroxide operation in Portugal. This would be a joint venture with local partner Bondalti, Portugal's largest chemical company.

Sustainable Vanadium Production

Neometals is developing a process to sustainably produce high-purity vanadium pentoxide from steelmaking by-product slag. The company is targeting steel mill partnerships to deploy this technology under a licensing model with low operational risks.

Part of the raised capital will support Neometals' 100%-owned vanadium recovery technology business unit.

Conclusion

With lithium-ion batteries playing a crucial role in the global transition to electric transport and renewable energy, there is growing focus on sustainably resourcing the critical metals they require.

As a recycler and recoverer of battery materials, Neometals is strategically positioned to benefit from this megatrend. Its proprietary technologies have the potential for strong commercial returns while also reducing environmental impacts.

The funds raised will assist progress towards revenue generation and possible future dividends through advancing Neometals’ core recycling and sustainability-focused operations. Investors have an opportunity to support the company’s growth in circular battery material supply chains.