Neometals - Vanadium Recovery Project Update Highlights Financing Progress and Long-Term Potential

About Neometals

Neometals is an Australian company focused on sustainably producing critical and strategic battery materials. The company has developed and is commercializing three environmentally-friendly processing technologies to produce lithium, nickel, cobalt and vanadium from recycling lithium-ion batteries and recovering steel waste. This helps reduce reliance on traditional mining while creating more circular and resilient supply chains to support the energy transition.

Neometals operates through three core business units that are exploiting the technologies via partnerships, joint ventures and licensing models:

Lithium-ion Battery Recycling (50% technology share) - Commercializing through Primobius GmbH joint venture with SMS group (50% equity each). SMS group is building the recycling plants as Primobius' co-owner, leveraging its 150 years as a German plant builder. Primobius is providing recycling services as principal in Germany and has started plant supply and technology licensing with Mercedes-Benz. Investment decisions upcoming for Primobius' first 50tpd commercial plant and a JV facility in Canada with Stelco by end 2023.

Lithium Chemicals (70% technology share) - Commercializing the patented ELi electrolysis process, 30% owned by Mineral Resources Ltd, to produce battery-grade lithium hydroxide from brines and hard rock at low costs. Co-funding pilot trials in 2023 and demonstration plant trials in 2024 to evaluate a potential 25,000tpa LiOH operation in Portugal under a 50:50 JV with Bondalti, Portugal's largest chemical company.

Vanadium Recovery (100% technology) - Producing high-purity vanadium pentoxide from steelmaking by-product slag at low costs. An investment decision is pending with JV partner Critical Metals on a planned 9,000tpa vanadium pentoxide operation in Pori, Finland (Neometals 72.5% equity). 10-year slag supply from SSAB and offtake agreement with Glencore. MOU with H2Green Steel for a potential larger second operation in Sweden.

Vanadium Recovery Project Update

Highlights:

• Shareholders have extended the timeline for an investment decision on Neometals' vanadium recovery project.
• Project equity financing is progressing with a preferred investor.
• Debt financing club led by the European Investment Bank is also advancing favorably, with credit approval expected in October 2023.

The Finnish vanadium recovery project is operated through a special purpose vehicle called Recycling Industries Scandinavia (RISAB), which is 72.5% owned by Neometals and 27.5% by Critical Metals. The project is at the financing stage ahead of deciding whether to build a plant producing high-purity vanadium pentoxide from slag generated by steelmaker SSAB in Scandinavia.

Due to additional time needed to finalize equity and debt financing, the RISAB shareholders have extended the timeline for an investment decision. SSAB continues supporting the progress and discussions are advanced to formally extend the project's financing deadline under SSAB's slag supply agreement.

RISAB has appointed SEB and Aventum Partners, leading Nordic investment banks, to lead the financing processes. Both equity and debt workstreams are progressing towards having binding agreements in place during November 2023.

Neometals' Managing Director Chris Reed said good progress is being made towards financing the vanadium recovery project, although it has taken longer than expected. But he remains positive on a successful outcome.

Conclusion

Neometals is an innovative company leveraging proprietary technologies to establish circular and sustainable supply chains for critical battery materials. This helps reduce reliance on traditional mining while supporting the global energy transition.

Through joint ventures and partnerships, Neometals is advancing commercial-scale plants to profitably produce high-purity materials from recycled batteries and steelmaking by-products. The company has a promising project pipeline and capabilities to be a significant player in the circular battery materials supply chain.

The updated timeline for an investment decision on Neometals' Finnish vanadium recovery project provides flexibility to finalize favorable financing packages. Securing binding equity and debt funding agreements in coming months would demonstrate the project's merits and represent a positive milestone.

Investors have an opportunity to gain exposure to Neometals' unique capabilities and growth potential in the critical minerals recycling and recovery sector, which is rapidly gaining importance amid the global energy transition.