Australian Strategic Materials Ltd · ASX:ASM

Australian Strategic Materials — Rare Earth Conference (December 2020)

17 slides from Australian Strategic Materials's conference presentation, December 2020

1. Slide 1: New Technologies and Manufacturing: ASM - Independent Supplier of Critical Metals

   New Technologies and Manufacturing ASM - Independent Supplier of Critical Metals David Woodall – Managing Director December 2020 © 2020©ASM 2020Ltd ASM Ltd

2. Slide 2: Disclaimer

   Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Australian Strategic Materials Ltd, industry growth or other trend proje

3. Slide 3: Contents

   Contents • ASM – Mine To Manufacturing • Critical Materials - Essential For New Technology • Critical Material Supply • Critical Materials Demand • An Emerging Integrated Metals Supplier • Dubbo Project Optimisation • Evolution of ASM’s Metals Business • Potential Timetable • ASM’s Focus – Next 6 Mo

4. Slide 4: ASM – Mine to Manufacturing

   ASM – Mine to Manufacturing • Key products defined • Flowsheet optimised to deliver key products, with potential Dubbo Project at a lower capital and operating costs with increased revenue • Envisioned to be “net zero carbon” • Ownership of a novel patented metallisation process • World class Ziron

5. Slide 5: Critical Materials – Essential for New Technology

   Critical Materials – Essential for New Technology Electric Vehicles - ~5kg Wind turbines – ~ 195kg of Nd/MW Defence / Aerospace Rare Earth Permanent Magnets Growth - 3.4M to 25.3M EV cars by 2030 Forecast 7.9% annual growth - 2020 to 2024 Jet turbines, GPS, defence systems Source: Deloitte Insight –

6. Slide 6: Critical Materials Supply – Snap Shot

   Critical Materials Supply – Snap Shot 1. Production of oxides, metals and metal powders highly concentrated 2. Suppliers of concentrates and oxides receive discounted Realised Pricing 3. Metals and Powders integrated within manufacturing sectors where additional value is gained. Projected Regional P

7. Slide 7: Critical Materials Demand - Rare Earth Magnets

   Critical Materials Demand - Rare Earth Magnets Electric vehicles will consume 1t out of 4t of permanent magnets globally by 2030 Growth Rare Earth Permanent Magnets to 2030 46.8% 25.7% 14.9% Commercial EV Passenger EV Electric Mobility traction motors traction motors Vehicles Source: Adamas Intellig

8. Slide 8: ASM – An Emerging Independent Critical Metals Supplier

   ASM – An Emerging Independent Critical Metals Supplier Metals & Metal Ore Concentrate Oxide Magnets Components OEMs Alloys Powders US $ 4B US $ 40B US $ 400B US $ 4,000B ASX Producers and Developer Peers Business Model § Producers achieve a % of Realised Price compared to ü Higher Realised Prices. F

9. Slide 9: Dubbo Plant Optimisation

   Dubbo Plant Optimisation Defined Dubbo products Optimised flowsheet Potential improved project financial returns © 2020 ASM Ltd 9

10. Slide 10: Ziron Tech - Innovation – Technology - Value

    Ziron Tech - Innovation – Technology - Value ASM has 95% interest in Ziron Technology Corporation (Ziron Tech) ASM owns the pilot plant and all IP related to the metallisation process Ziron Tech team integrated into ASM © 2020 ASM Ltd 10

11. Slide 11: ASM’s Integrated Metals Business

    ASM’s Integrated Metals Business • Long term stable, secure, and sustainable supply; Rare Earths • Potential to provide strip metal alloy for permanent magnets; • Potential to be part of a permanent magnet solution • Independent, lower cost, environmentally responsible supply Titanium • Independent

12. Slide 12: Global Independent Metals Producer

    Global Independent Metals Producer Agreement with Dongkuk R&S Korea Target - 2021 Japan Australia Proven commerciality – 1,000 kg pd TBC Target – 2022 / 23 North America Europe TBC Develop a Korean metals facility Target – 2022 / 23 © 2020 ASM Ltd 12

13. Slide 13: Potential Timetable – Sustainable, Secure & Stable Supply

    Potential Timetable – Sustainable, Secure & Stable Supply Optimisation of Dubbo Project Korean - 3,000 to 5,000t metal plant Financing for development of Dubbo Project Offtake and Strategic Partner Agreement EPC / EPCM Korean Consortium Korean Transition Independent Supply Chain Strategy Constructio

14. Slide 14: ASM Focus – Next 6 Months

    ASM Focus – Next 6 Months • Complete optimisation of the Dubbo Project • Progress Offtake and Strategic Partner discussions • Progress EPC / EPCM Financing • Progress Korean metal plant • Progress financing of the Dubbo Project © 2020 ASM Ltd 14

15. Slide 15: Dave Woodall

    Dave Woodall ASM Managing Director asm-au.com ASM_aus © 2020 ASM Ltd © 2020 ASM Ltd

16. Slide 16: Dubbo Project Resources & Reserves

    Dubbo Project Resources & Reserves Dubbo Project – Mineral Resources Tonnes ZrO2 HfO2 Nb2O5 Ta2O5 Y2 O 3 TREO* Resource Category (Mt) (%) (%) (%) (%) (%) (%) Measured 42.81 1.89 0.04 0.45 0.03 0.14 0.74 Inferred 32.37 1.90 0.04 0.44 0.03 0.14 0.74 Total 75.18 1.89 0.04 0.44 0.03 0.14 0.74 *TREO% is

17. Slide 17: Corporate Profile

    Corporate Profile Capital Structure Ordinary Shares 119.05 million Share Price (1 December 2020) A$4.18 Market Capitalisation A$497.63 52 week low/high A$0.84/$4.25 Cash (30 September 2020) A$16.5M Enterprise Value A$481.13M Average Daily Turnover (3 Months) A$1.75 million Experienced Board and Mana

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