Slide 1: Bridging Engineering Study Results
BRIDGING ENGINEERING STUDY RESULTS PHASE ONE FINANCING LAUNCH EDITION Q4 2023 1
Slide 2: Disclaimer
DISCLAIMER1 Disclaimer, Acknowledgement and Agreement. Vulcan, to the maximum extent permitted by law, expressly excludes and disclaims all liability (including, without limitation, any liability arising out of fault or negligence on the part of any person) for any direct, indirect, consequential or
Slide 3: Our Targets
OUR TARGETS Vulcan’s unique Zero Carbon Lithium™ Project We are aiming to become the world’s first aims to produce both renewable geothermal integrated lithium chemicals and renewable energy energy, and lithium hydroxide for Electric Vehicle producer with net zero greenhouse gas emissions. (EV) batt
Slide 4: Purpose and Mission
Purpose Mission We will empower a Becoming Europe`s leading Zero net zero-carbon Carbon Lithium™ business & future enabling energy security through geothermal energy 4
Slide 5: Phase One Bridging Study Results
PHASE ONE BRIDGING STUDY RESULTS MEETING EU’S BATTERY ELECTRIC VEHICLE CRITICAL RAW MATERIAL NEEDS: Lithium • Targeting approximately 24,000 tonnes lithium hydroxide (LHM) production capacity per Hydroxide annum planned from Phase One, enough for ca. 500,000 Battery Electric Vehicles (BEVs). 1,2,3 •
Slide 6: Phase One Bridging Study Results: 5 Key Outcomes
PHASE ONE BRIDGING STUDY RESULTS 5 KEY OUTCOMES REDUCED 1. Streamlining into one core production area that is already commercially RISK producing brine, with increased lithium reserves. REDUCED 2. CAPEX ~€100m reduction down to est. €1,399m, combining assets, whilst moving to higher project definiti
Slide 7: Key Outcomes: Reduced Risk
PHASE ONE BRIDGING STUDY RESULTS 5 KEY OUTCOMES REDUCED 1. Streamlining into one core production area that is already commercially RISK producing brine, with increased lithium reserves. ONE CORE PRODUCTION AREA: • Improved Field Development Plan (FDP), from two production areas down to one core prod
Slide 8: Key Outcomes: Reduced Capex and Low Cost
PHASE ONE BRIDGING STUDY RESULTS 5 KEY OUTCOMES REDUCED 2. EST. CAPEX ~€100m reduction down to est. €1,399m, combining assets, whilst moving to higher project definition. 3. Further decline in OPEX to est. €4,022/t LHM, one of the lowest on the LOW COST industry cost curve, while maintaining green c
Slide 9: Key Outcomes: Robust Financials
PHASE ONE BRIDGING STUDY RESULTS 5 KEY OUTCOMES ROBUST 4. Maintained est. NPV at €3.9Bn (A$6.5Bn) pre-tax, €2.6Bn (A$4.3Bn) post- FINANCIALS4 tax, and €705m target annual revenues. 4 year payback, despite drop in lithium prices. Base Case Financials LHM Price difference Bridging Engineering between
Slide 10: Key Outcomes: Execution Ready
PHASE ONE BRIDGING STUDY RESULTS 5 KEY OUTCOMES EXECUTION 5. READY Class 2 cost estimate, ready to award key ECP(m) contracts. 10,000s of hours of successful in-house A-DLE piloting completed. HIGHER PROJECT DEFINITION: • Reduced uncertainty provides Class 2 cost estimate, ready to award key contrac
Slide 11: Key Outcomes: Optimisation Plants and Financing
PHASE ONE BRIDGING STUDY RESULTS 5 KEY OUTCOMES EXECUTION 5. READY €50m Optimisation Plants starting up. Launching project level debt and equity financing with strong support. PRODUCTION TEAM IN TRAINING: • Lithium Extraction Optimisation Plant (LEOP) in final stages of commissioning, opening schedu
Slide 12: Contents
CONTENTS I. INTRODUCTION II. ZERO CARBON LITHIUM™ PROJECT A. OUR PROCESS 1. The Resource 2. Field Development Plan (FDP) 3. Geothermal renewable energy 4. Direct Lithium Extraction (A-DLE) 5. Lithium electrolysis B. E&S C. Economics & Financing III. TIMING AND KEY TAKEAWAYS 12 12
Slide 13: I. Introduction
7 te | Vv |.INTRODUCTION
Slide 14: Our Achievements to Date
OUR ACHIEVEMENTS TO DATE Stellantis becomes first automaker to invest Commissioning Became a equity in a lithium of LEOP after commercial company: $76m three years of renewable energy Successful in-house investment into Vulcan DLE test works Lithium producer development of Vulcan Energy Resources Lt
Slide 15: Experienced Team Ready to Deliver
EXPERIENCED TEAM READY TO DELIVER Executive Chair Managing Dire ctor & CEO Dr. Francis Wedin Cris Moreno Founder of Zero Carbon Lithium™ Project. 20+ years’ major energy and chemicals project Extensive lithium and climate tech industry executive execution experience experience 370 FTE 29 29nations,
Slide 16: Board of Directors
Gavin Rezos Cris Moreno Dr. Francis Wedin Deputy Chair Managing Director & CEO Executive Chair Executive Chair/CEO positions of three companies that grew from start-ups to the ASX 300. Extensive international investment banking and project Founder of Vulcan's Zero Carbon Lithium™ Project and has ext
Slide 17: Seasoned, Highly Experienced Leadership Team
SEASONED, HIGHLY EXPERIENCED LEADERSHIP TEAM TO ENSURE SUCCESSFUL EXECUTION OF PHASE ONE Team overview Vincent Pedailles Carsten Bachg Markus Ritzauer Thorsten Weimann Dr. Stefan Brand Chief Commercial Officer Vice President Project Chief Financial Officer Chief Development Officer Chief Technology
Slide 18: Why Do We Need Lithium in Europe?
WHY DO WE NEED LITHIUM IN EUROPE? The market Vulcan has offtake • EU targets new cars to be 100% electric by 20351. agreements with • 1,400GWh li-ion battery manufacturing estimated capacity by 20302 some of the largest for EV transition. battery, cathode and • Predictions indicate Europe will see a
Slide 19: Why Do We Need Geothermal Renewable Energy in Europe?
WHY DO WE NEED GEOTHERMAL RENEWABLE ENERGY IN EUROPE? The market • EU to be climate neutral by 2050. Germany to be fully renewable by 2035.1 • EU wants to develop local sources of energy.2 The crisis • Dual crises: Ukraine war and climate crisis. • EU is now sourcing gas from Norway and other areas
Slide 20: Policy Tailwinds in Vulcan's Favour
POLICY TAILWINDS IN VULCAN’S FAVOUR The recently released Critical Raw Materials1 and Net Zero Industry Acts2 present a strong focus on fast-tracking the permitting processCritical Raw Materials and funding Act for technologies of relevance to the strategic autonomy of the EU economy Critical Raw Ma
Slide 21: II. Zero Carbon Lithium Project
II. ZERO CARBON LITHIUM™ PROJECT 21
Slide 22: Building Renewable Energy and Lithium Chemicals Production
BUILDING RENEWABLE ENERGY AND LITHIUM CHEMICALS PRODUCTION 270 GWh power p.a. LiCl concentrate for 24,000tpa Phase one Up to 560 GWh heat p.a. 24,000tpa LHM equivalent LHM (capacity) 2. Well 3. Geothermal 4. Lithium Extraction Plant 5. Central Lithium Plant Electric sites Plant (LEP) (CLP) Mobility
Slide 23: Improvement in Our Phase One Project Structure
IMPROVEMENT IN OUR PHASE ONE PROJECT STRUCTURE PHASE ONE DFS PUBLICATION PHASE ONE BRIDGING STUDY PUBLICATION €1,496m CAPEX €1,399m CAPEX Central Lithium Plant (CLP) Central Lithium Plant Phase 1: 24ktLHM Central Lithium Plant Phase 1: 24ktLHM Lithium Extraction Plant (LEP) LEP Lionheart – 16Kt LEP
Slide 24: Why Change the Development of Phase One?
WHY CHANGE THE DEVELOPMENT OF PHASE ONE? TO REDUCE RISK & INCREASE VALUE • Phase One FDP now only focused on mainly Proved Reserves in the core, producing “brownfields” Lionheart development area, i.e. reduced risk. Improved Field • Improved Resources and Reserves outcome from Lionheart alone (196kt
Slide 25: A. Our Process: Using the Best from the Industry
A . OUR PROCESS: USING THE BEST FROM THE INDUSTRY 25
Slide 26: Starting with the Resource
1. STARTING WITH THE RESOURCE… 270 GWh power p.a. LiCl concentrate for 24,000tpa Phase one Up to 560 GWh heat p.a. 24,000tpa LHM equivalent LHM (capacity) 2. Well 3. Geothermal 4. Lithium Extraction Plant 5. Central Lithium Plant Electric sites Plant (LEP) (CLP) Mobility Renewable heat and brine tra
Slide 27: The Upstream Lithium Resource: The Largest in Europe
THE UPSTREAM LITHIUM Höchst Chemical Park: RESOURCE: THE LARGEST Central Lithium Plant Frankfurt planned location Legend IN EUROPE Stellantis Rüsselsheim Plant Production licence Access to the licence through a brine offtake Vulcan’s Upper Rhine Valley Brine Field (URVBF), consisting of 16 licence
Slide 28: Phase One Area
PHASE ONE AREA Upper Rhine Valley Brine Field: Europe‘s largest, and a globally significant, lithium resource and reserve 28
Slide 29: Phase One Area
PHASE ONE AREA Höchst Chemical Park: Central Lithium Plant planned location Frankfurt Legend Production licence Phased growth approach, Phase One starting from Access to the licence through a brine offtake core of field where Vulcan already owns Lithium and production/re-injection wells in operati
Slide 30: World-Class Lithium and Renewable Energy Opportunity
WORLD-CLASS LITHIUM AND RENEWABLE ENERGY OPPORTUNITY Key parameters • Phase One is focused on Vulcan’s proven, brine-producing Lionheart (LIO) development area. • Improved Field Development Plan aims to produce and reinject up to a target rate of 950l/s of lithium rich brine over 30 years from Phase
Slide 31: Field Development Plan Improvements
FIELD DEVELOPMENT PLAN IMPROVEMENTS PHASE 1 Definitive Feasibility Study PHASE 1 Bridging Engineering Study Area(s) Lionheart Lionheart (Insheim, Landau Sued, Rift Taro (incl. Kerner East) North) (Insheim, Landau Sued, Rift North) Sites Well 9 (incl. 2 existing) 7 (incl. 2 existing) Wells 14 + 4 (ex
Slide 32: Evolution of the Field Development Plan
EVOLUTION OF THE FIELD DEVELOPMENT PLAN • Strong Reserves & Resource outcome from Lionheart & Taro. DFS • For maximum Li recovery, matrix injection plan. • Matrix injection led to increased injection pressure. • Improved Reserves Outcome from Lionheart. • Brownfields production area only. Reduction
Slide 33: Three Robust LHM Production Scenarios
THREE ROBUST LHM PRODUCTION SCENARIOS LHM production (tpy) Lithium dilution (mg/L) Parameters 25,000 200 180 • 950 l/s production target 20,000 24 new wells, 4 existing BASE CASE 160 • 15,000 140 -1.8%py • 11 producers (86l/s per producer) 10,000 120 • Hybrid re-injection • Up to 70 bar pressure 100
Slide 34: Three Robust LHM Production Scenarios
THREE ROBUST LHM PRODUCTION SCENARIOS BASE CASE HIGH CASE LOW CASE Plan Producer Plan Injector Current Producer Current Injector 35
Slide 35: Producing from the Brine Resource via Interconnected Well Sites
2. PRODUCING FROM THE BRINE RESOURCE VIA INTERCONNECTED WELL SITES 2.Well sites 36
Slide 36: Phase One Upstream-Downstream Production Structure
PHASE ONE UPSTREAM-DOWNSTREAM PRODUCTION STRUCTURE CLP GEO+LEP Phase One: LiCl to CLP expanding upstream capacity, Landau Höchst building downstream. Increasing the number of Landau production/re-injection well sites Production/ re- from two to seven. injection well site Building new, larger geother
Slide 37: Increasing Upstream Brine Production
INCREASING UPSTREAM BRINE PRODUCTION Well-known area • >1,000 oil & gas and 24 deep geothermal wells already completed in the URVBF. • In our Phase One project area, four deep geothermal wells have been in operation for more than 10 years. In-house expertise, team and assets Vulcan has established i
Slide 38: In-House Well Execution Company
IN-HOUSE WELL EXECUTION COMPANY • Highly experienced and integrated well construction and operations team from oil and gas and geothermal industry. • Full scale well delivery process capability: fully aligned towards VULCAN’s field development plan. • Experience in onshore operations, HPHT drilling,
Slide 39: Ongoing Site Activities
ONGOING SITE ACTIVITIES 42
Slide 40: Connecting the Heat and Lithium to the G-LEP
CONNECTING THE HEAT AND LITHIUM TO THE G-LEP 270 GWh power p.a. LiCl concentrate for 24,000tpa Phase one Up to 560 GWh heat p.a. 24,000tpa LHM equivalent LHM (capacity) 2. Well ICPP 3. Geothermal 4. Lithium Extraction Plant 5. Central Lithium Plant Electric sites Interconnected Pipelines and power P
Slide 41: Site Infrastructure: Industrial Water and Brine Cycles
SITE INFRASTRUCTURE: INDUSTRIAL WATER & BRINE CYCLES GEO+LEP GEO+LEP CLP Industry Water Cycle LiCl to CLP Landau Höchst Landau Production/ re- injection well site Production/ re- • Vulcan will use an intermediate heat exchangers at each well sites to transfer injection well site the heat from the ge
Slide 42: Phase One – Permits Either Already Granted or On Track
GEO (ORC) PHASE ONE – PERMITS 1. Permit Body CoL, (SGD Süd) EITHER ALREADY GRANTED 2. Type of Permit BP (BImSchG) 3. Submission Date / State 2023-12 OR ON TRACK WITH TIMELINE 4. Approval Date / State 2024-06 1. Permit 2. Permit Type & Approval Date GEO+LEP CLP Body P- MOP SOP EIA LiCl to CLP 1 >>
Slide 43: Harvesting Renewable Energy from the Brine
3. HARVESTING RENEWABLE ENERGY FROM THE BRINE 270 GWh power p.a. Up to 560 GWh heat p.a. 3. Geothermal Plant Landau Landau Renewable energy 48
Slide 44: Increasing Our Current Renewable Energy Production
INCREASING OUR CURRENT RENEWABLE ENERGY PRODUCTION Long established industry with strong growth • Geothermal energy: 16GW of power & 107GW of heat capacity deployed worldwide¹. • There are currently 36 geothermal plants operating in Germany, 42 active projects (c. 84 wells), and the Federal Governme
Slide 45: Current Geothermal Assets
CURRENT GEOTHERMAL ASSETS 50
Slide 46: Renewable Energy Plant to Be Built in Landau Industrial Park
RENEWABLE ENERGY PLANT TO BE BUILT IN LANDAU INDUSTRIAL PARK Geothermal renewable energy plant to be built to supply the local community • Initially planned to produce mostly power, Vulcan’s new geothermal plant will increase district heat production over time for local communities. • Vulcan is nego
Slide 47: Renewable Energy Production Target and Tariff
RENEWABLE ENERGY PRODUCTION TARGET AND TARIFF Power price forecast - (€/MWh, Germany) Energy production (MWh/a) * 300 900,000 800,000 250 700,000 200 600,000 +190% average premium for Vulcan via FiT over 20 years 500,000 150 400,000 100 300,000 200,000 50 100,000 0 - 2026 2028 2030 2032 2034 2036 20
Slide 48: Energy Balance: Net Positive Producer of Renewable Energy
ENERGY BALANCE: NET POSITIVE PRODUCER OF RENEWABLE ENERGY¹ A world-first in lithium Energy Balance (MW) MW 100 HEAT BALANCE POWER PRODUCTION POWER CONSUMPTION ENERGY BALANCE 80 60 40 80 71 71 20 40 31 27 0 -4 -9 -15 -21 -22 -31 -20 -40 Negative power balance Positive power balance Positive energy ba
Slide 49: Adding Further Value by Producing Lithium
4. ADDING FURTHER VALUE BY PRODUCING LITHIUM 270 GWh power p.a. Up to 560 GWh heat p.a. 4. Lithium Extraction Plant (LEP) Landau 54
Slide 50: Global Lithium Supply Today
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant GLOBAL LITHIUM SUPPLY TODAY Hard rock mining 60% Sourcing lithium hydroxide from hard rock mines for lithium currently has a high CO2 footprint. Once you mine it, the rock must be roasted global with fos
Slide 51: Commercial Growth of DLE
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant COMMERCIAL GROWTH OF DLE Tonnes LCE Lithium supply growth 564,930 4,000,000 20% Source: Fastmarkets DLE Other 18% 3,500,000 supply +465% +256% Fastmarkets is one of 3,000,000 in 10y in 10y 16% the most t
Slide 52: Advantages of Adsorption-Type Direct Lithium Extraction
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant ADVANTAGES OF ADSORPTION-TYPE DIRECT LITHIUM EXTRACTION (A-DLE) Track record Global, multi-decade commercial precedent in the lithium industry. Low operating cost Water is used to recover the lithium
Slide 53: A Wave of Sustainable Lithium Supply Is Building
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant A WAVE OF SUSTAINABLE LITHIUM SUPPLY IS BUILDING… THE “NEW NORMAL” A-DLE used commercially to produce lithium since 1996, rapidly increasing production Livent, formerly FMC, and a global Top 3 lithium
Slide 54: Now with the Oil and Gas Industry Behind It
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant …NOW WITH THE OIL AND GAS INDUSTRY BEHIND IT The next wave: Big Oil into Big Lithium Adsorption-type DLE has synergies with and similarities to integrated oil and gas projects, including piping network
Slide 55: Commercial Growth of Adsorption-Type DLE
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant COMMERCIAL GROWTH OF ADSORPTION-TYPE DLE1 LCE t/p.a. A WAVE OF SUSTAINABLE LITHIUM SUPPLY IS BUILDING Vulcan (EU) targeting phased ramp up of 500,000 A-DLE accounts for 10% Zero Carbon Lithium™ Project o
Slide 56: Examples of Commercial A-DLE Plants
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant EXAMPLES OF COMMERCIAL A-DLE PLANTS ARGENTINA – LIVENT HOMBRE MUERTO DLE PLANT -30,000 TPA LCE CHINA - EVEBATTERY 10,000 TPA LCE COMMERCIAL PLANT BUILT WITH SUNRESIN ARGENTINA – ERAMET CENTENARIO-RATONES
Slide 57: Differences Between A-DLE and Novel DLE Methods
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant DIFFERENCES BETWEEN ADSORPTION-TYPE DIRECT LITHIUM EXTRACTION (A- DLE) AND NOVEL, NON-COMMERCIAL DLE METHODS DLE method Material Main advantages Main disadvantages IN COMMERCIAL USE FOR >25 YEARS, EXPONE
Slide 58: VULSORB – Vulcan's Proprietary Sorbent for A-DLE
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant VULSORB® - VULCAN‘S PROPRIETARY SORBENT FOR A-DLE OPERATION In-house A-DLE intellectual property In the past, Vulcan tested a series of commercially available sorbents, which all worked well with our b
Slide 59: Our Activities to De-Risk A-DLE on Upper Rhine Valley Brine
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant OUR ACTIVITIES TO DE-RISK A-DLE ON UPPER RHINE VALLEY BRINE Standard approach for applying known metals extraction process to a mineral source Technology selected in scoping work 2018-2020. 3 years o
Slide 60: Vulcan's Pilot Plants PP1 and P1A at Insheim
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant VULCAN‘S PILOT PLANTS PP1 AND P1A AT GEOTHERMAL PLANT IN INSHEIM HAVE ENABLED EXTENSIVE OPTIMISATION WITH REAL “LIVE” BRINE Better picture for P1A Pilot Plant PP1 Pilot Plant P1A Column volume 1 L • Co
Slide 61: Stable Performance in Both Pilot Plants
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant STABLE PERFORMANCE IN BOTH PILOT PLANTS, CONTINUOUS OPTIMISATION AND IMPROVEMENTS Pilot Plant P1A VULSORB® performance was stable for more than >2000 A-DLE cycles with geothermal brine at 60 to 75 °C a
Slide 62: Lithium Extraction Optimisation Plant (LEOP) in Landau
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant LITHIUM EXTRACTION OPTIMISATION PLANT (LEOP) IN LANDAU PROVIDES LITHIUM CHLORIDE SOLUTION TO MAKE BATTERY GRADE LHM AT CLEOP • In-house designed Lithium Extraction Optimisation Plant (LEOP) in commission
Slide 63: Lithium Extraction Optimisation Plant LEOP
State of Industry Sorbent Technology Lab / Pilot Plants / Optimisation Scale Up Commercial Plant LITHIUM EXTRACTION OPTIMISATION PLANT LEOP 68
Slide 64: Ensuring Commercial Operational Readiness for A-DLE
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant ENSURING COMMERCIAL OPERATIONAL READINESS FOR A-DLE AT VULCAN LAB PILOT PLANT PP1 PILOT PLANT P1A LEOP COMMERCIAL LEP SOP 2020 SOP 2021 SOP 2022 SOP H2 2023 SOP H2 2026 Grams of product Kilos of product
Slide 65: Lithium Extraction Plant (LEP) in Landau
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant LITHIUM EXTRACTION PLANT (LEP) IN LANDAU Phase One commercial: Lithium Extraction Plant (LEP) • Building permit submitted in November 2023, in line with Vulcan’s timeline. • Will be constructed next to n
Slide 66: Our LEP Process Is Highly Integrated with Closed Water Loop
State of Industry Sorbent Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant OUR LEP PROCESS IS HIGHLY INTEGRATED WITH CLOSED WATER LOOP, MINIMAL ENERGY DEMAND AND MINIMAL WASTE STREAMS 36 wt-% HCl from CLP via truck Off-gas NaOH Si anti- SMBS HCl CO2 CW scalant NNF brine from IC
Slide 67: Converting Lithium to a Battery Grade Product
5. CONVERTING LITHIUM TO A BATTERY GRADE PRODUCT 270 GWh power p.a. Up to 560 GWh heat p.a. 5. Central Lithium Plant (CLP) Frankfurt 73
Slide 68: Lithium Processing: Proven, Sustainable Methods, Strong Partners
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant LITHIUM PROCESSING: PROVEN, SUSTAINABLE METHODS, STRONG PARTNERS Proven chlor-alkali type process, sustainable inputs, no fossil fuels • Vulcan to use the electrolysis process to convert lithium chl
Slide 69: Electrolysis – Great Benefits, Low Risk
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimisation Scale Up Commercial Plant ELECTROLYSIS – GREAT BENEFITS, LOW RISK Key benefits in final step in our production steps (lithium Low risk base technology Additional de-risking activities chloride converted to battery-grade LHM
Slide 70: LiOH Electrolysis Process – Very Similar to Chloro-Alkali
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimisation Scale Up Commercial Plant LIOH ELECTROLYSIS PROCESS – VERY SIMILAR TO CHLORO-ALKALI Traditionally LiOH·H 2O (LHM) has been produced from inorganic precursors by re-crystallisation of inorganic precursors, e.g.: Li2CO3 + Ca(O
Slide 71: Building on a Three-Stage Approach
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimisation Scale Up Commercial Plant BUILDING ON A THREE-STAGE APPROACH: THE BASIS FOR THE TECHNOLOGY PACKAGE USED NESI’s 3-stage approach to electrolysis process development, all completed: • Stage 1: Short and long duration brine tes
Slide 72: Ensuring Operational Readiness with CLEOP
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimisation Scale Up Commercial Plant ENSURING OPERATIONAL READINESS WITH OUR CENTRAL LITHIUM ELECTROLYSIS OPTIMISATION PLANT (CLEOP) Finalising construction of the • Both optimisation and commercial plants will be located at the Höchst
Slide 73: CLEOP: Perfect Training Ground
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant CLEOP: PERFECT TRAINING GROUND, SIMILAR TO CLP, ONLY SMALLER Electrolysis Crystallizing + Drying HAVAC E- Office Room Dryer Centrifuge 1 Centrifuge 2 IBC Container LiCl Electrolysis LiOH Crystallize
Slide 74: Efficient Construction through Pre-Assembled Skids
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant EFFICIENT CONSTRUCTION THROUGH PRE-ASSEMBLED SKIDS 9m 8m 81
Slide 75: CLEOP Groundbreaking Ceremony Completed
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimisation Scale Up Commercial Plant CLEOP GROUNDBREAKING CEREMONY COMPLETED WITH CHEMICAL PARK PARTNERS INFRASERV 82
Slide 76: Numbering Up, Not Scaling Up Electrolysis Cells
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimisation Scale Up Commercial Plant NUMBERING UP, NOT SCALING UP ELECTROLYSIS CELLS Commercial scale cells already successfully demonstrated PILOT PLANT (EXT.) DEMO PLANT (EXT.) CLEOP COMMERCIAL CLP SOP 2021 SOP 2022 SOP H1 2024 SOP H
Slide 77: Straightforward Simplicity: Plant Design Advantage
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimization Scale Up Commercial Plant STRAIGHTFORWARD SIMPLICITY: PLANT DESIGN ADVANTAGE Unit Unit NaHSO3 Chlorine LHM Packaging Wastewater NaOH Scrubber (EVS) NaHSO3 LHM to Condensate LiCl-Solution NaOH vents Infraserv Steam Chlorine F
Slide 78: Built for Growth: Base Infrastructure for Up to Three Phases
State of Industry Electrolysis Technology Lab / Pilot Plants / Optimisation Scale Up Commercial Plant BUILT FOR GROWTH: BASE INFRASTRUCTURE PROVIDED FOR UP TO THREE PHASES Location in the Industrial Park Höchst • CLP planned to be located in Frankfurt (Industrial Park Höchst). Close to 100,000sqm se
Slide 79: Lithium Extraction and Conversion into LHM – Designed as One Plant
LITHIUM EXTRACTION AND CONVERSION INTO LHM – DESIGNED AS ONE PLANT Proven technologies combined in an integrated way providing a sustainable flow sheet The Resource Lithium Extraction Plant (Lionheart- Landau site) Concentrated Lithium Chloride solution (by truck) Central Lithium Plant (Höchst site
Slide 80: B. Environment, Social, Governance
Ministers' B. ENVIRONMENT,SOCIAL, GOVERNANCE 88
Slide 81: ESG Credentials Highlights
ESG CREDENTIALS HIGHLIGHTS Low ESG Risk Rating from ~9,5kT CO2 avoided from ESG linked KPIs, individual Sustainalytics (01/2023) renewable energy generated and shared targets, including First amongst peers (market at NatürLich Insheim annually implementation of a cap >$0.6bn) and in the 2nd sustaina
Slide 82: Aiming for Lowest CO2 Footprint in the Lithium Industry
AIMING FOR LOWEST CO2 FOOTPRINT IN THE LITHIUM INDUSTRY • Vulcan is developing the first and only carbon neutral lithium project in the world1 • Zero fossil fuels used directly in lithium production process • Globally significant decarbonisation opportunity through Vulcan’s Zero Carbon Lithium™ Proj
Slide 83: Aiming for Lowest Water and Land Footprint
AIMING FOR LOWEST WATER AND LAND FOOTPRINT IN LITHIUM INDUSTRY Engineered to have industry-leading environmental performance: our core mission Data based on the DFS. Vulcan in the process of updating its LCA with Minviro based on Bridging Engineering Study. ca. 15t 3,124m 2 15t CO2 450t land water C
Slide 84: An Environmental and Governance Leader
AN ENVIRONMENTAL AND GOVERNANCE LEADER • Vulcan offers strong local employment opportunities, with over 370 employees to date, and growing, across a number of disciplines including engineering, project execution, chemicals and technology development. • Locally produced and processed battery-grade li
Slide 85: Part of the Local Community
PART OF THE LOCAL COMMUNITY • Thousands of local direct and indirect jobs to be created, linked to the energy transition, decarbonisation and electrification of transport. • Vulcan’s projects provide a unique, tangible benefit which literally “flows” into local communities: renewable heating for dis
Slide 86: C. Economics and Financing
Ministers' C. ECONOMICS AND FINANCING 94
Slide 87: Improved Phase One Project Forecast Capex
IMPROVED PHASE ONE PROJECT FORECAST CAPEX €102M €111M €360M €358M Well Geothermal Lithium Extraction Plant Central Lithium Plant sites Plant (LEP) (CLP) ICPP ICPP CAPEX Breakdown €201M €1,399M €M 100% 400 26% 26% 350 300 19% DRILLING 250 14% 200 8% 360 358 150 7% €267M 100 267 201 50 102 111 0 Drill
Slide 88: Forecast Capex Comparison DFS vs. Now
FORECAST CAPEX COMPARISON DFS VS. NOW CAPEX Estimate €M Evolution • €97M CAPEX drop compared Base to the DFS despite more Engineering and Execution 38 Removal of 1 ORC accurate engineering with 56 Class 2 Estimate • Contingency at 12% 13 7 • Drilling cost increase based FDP update on new FDP • Wells
Slide 89: Global Cost Curve LHM – Projected 2025
GLOBAL COST CURVE LHM – PROJECTED 20251 Vulcan’s Zero Carbon Lithium™ Project has the potential to be one of the lowest cost integrated LHM projects in the world. Lithium hydroxide delivered costs - 2025 ($/tonne, ddp Rotterdam) Vulcan’s process: Vulcan Energy • No feedstock cost $4,2231 €4,022 • Ve
Slide 90: Integrated Renewable Energy and Lithium Operation: Opex
INTEGRATED RENEWABLE ENERGY AND LITHIUM OPERATION: OPEX OPEX Structure €/a LEP CLP LEP+CLP Geothermal Opex % of 100 €M/a €M/a €M/a €M/a total Power 13 18 31 24 40% 80 Maintenance 16 8 24 11 25% Labour 5 5 10 0 8% 60 Materials (Ex reagents) 5 3 10 - 6% 24 40 Reagents 6 1 6 - 4% 11 Sorbent 2 - 2 - 2%
Slide 91: Lithium Production and Conversion: Very Low Opex
LITHIUM PRODUCTION AND CONVERSION: VERY LOW OPEX GEOTHERMAL OPEX €/t LHM LEP OPEX LHM CLP OPEX LHM Combined OPEX LHM 1% 9% 4% 9% 9% 4% 9% 3% 3% 23% 3% 7% 3% 31% 4% 2% 2% 41% 2% 29% 10% 6% 6% 61% 8% 9% 12% 29% 10% 9% 24% 18% €40M/a €2,227/t LHM €1,796/t LHM €4,022/t LHM Power Maintenance Labour Mater
Slide 92: Lithium Price Volatility Mitigated by Strategic Supply Partner Contracts
LITHIUM PRICE VOLATILITY MITIGATED BY STRATEGIC SUPPLY PARTNER CONTRACTS • High quality of European-focused offtake partners • All offtakes are binding, take-or-pay, with agreed pricing mechanisms • Pricing mechanisms are a basket of fixed, floor-ceiling and fully floating prices which provides assu
Slide 93: Lower LHM Price Forecasts: Limited Impact
LOWER LHM PRICE FORECASTS: LIMITED IMPACT • Larger price drops during the first two years of Vulcan’s production, down 38% LHM Price difference between DFS & BES • New average 10-year €23,865/t LHM price forecast, down 9% compared to previous forecast Average 2y Average 10y Average 20y Average Proje
Slide 94: Target Project Economics: Bridging Engineering Study
TARGET PROJECT ECONOMICS¹: BRIDGING ENGINEERING STUDY Base Case Financials LHM Price difference Bridging Engineering between DFS & BES Revenues €M/a 705 Average 2y Average 10y Average 20y Average Project life EBITDA €M/a 521 0% -5% -2% -3% EBITDA margin % 74% -10% -9% -15% NPV pre-tax €M 3,906 -20%
Slide 95: Financial Sensitivities
FINANCIAL SENSITIVITIES PROJECT NPV POST-TAX 4,500 • EUR/USD: all LHM offtakes are linked to a Price Reporting Agency (PRA) with a USD index 4,000 or a fixed price in USD – Vulcan is currently working on amending some of its offtake 3,500 pricing mechanisms. NPV post-tax €m • Flow rate, Lithium conc
Slide 96: Financing Highlights and Considerations
FINANCING HIGHLIGHTS AND CONSIDERATIONS Preliminary Sources and Uses Contemplated structure Equity Total CAPEX investors c. €1.399m (incl. 12% contingency) (Listed Australian/German HoldCo) Top 4 shareholders Hancock Prospecting Francis <50% >50% 5% Other costs Vivien Wedin 10% (Including financing
Slide 97: Financing Highlights and Considerations
FINANCING HIGHLIGHTS AND CONSIDERATIONS CONTEMPLATED PROCESS FOR EQUITY FUNDING CONTEMPLATED PROCESS FOR DEBT FUNDING Official launch • November 2023 Official launch • November 2023 • Teaser + NDA • ECAs: Phase 1 – Introduction • Management firechats o Expression of interest received from BPI + due
Slide 98: Financing Highlights and Considerations
FINANCING HIGHLIGHTS AND CONSIDERATIONS PROJECT LEVEL EQUITY TOP CO Vulcan targets raising its equity requirement at a project level • VUL has already raised €320m for the STRATEGIC PARTNERS FINANCIAL PARTNERS project. • Strategic equity partner bringing expertise, offtake • Financial equity partner
Slide 99: III. Timing and Key Takeaways
III. TIMING AND KEY TAKEAWAYS 112
Slide 100: Phase One: Integrated Schedule
Award / Completion Milestone PHASE ONE: INTEGRATED SCHEDULE Construction Start 2023 2024 2025 2026 2027 2028 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Wellsites Execution Wellsite #1 Wellsite #2 Wellsite #3 Wellsite #4 Insheim Wellsite Landau Wellsite Wellsite #5 ICPP Eng. & Delive
Slide 101: Clear Roadmap to Commercialisation with Start of Production Expected in H2 2026
CLEAR ROADMAP TO COMMERCIALISATION WITH START OF PRODUCTION EXPECTED IN H2 2026 – ALIGNED WITH PUBLIC FUNDING APPLICATIONS Key milestones Jan-2021: Jul-2021: Sep-2021: Nov-2021: Feb-2022: Sep-2022: Feb-2023: May-2023: Nov-2023: Completion of PFS for Kuniko(1) IPO, Raise of €124m via an Acquisition o
Slide 102: Upcoming Milestones
UPCOMING MILESTONES Completion of COMMISSIONING, START UP OF LEOP AND CLEOP. The first tonnes of fully domestically-produced lithium chemicals in Europe. FINANCING PROCESS, including: o strategic equity process, o debt financing, o government grant applications, and o ECA funding assistance. Sign EP
Slide 103: Thank you
Thank you Questions? Contact our media and investor relations team info@v-er.eu @VulcanEnergyRes | www.v-er.eu | info@v-er.eu ASX:VUL FSE:VUL 116
Slide 104: Appendices
VULCAN ENERGY W ZERO CARBON LITHIUM” APPENDICES
Slide 105: Appendix 1: Full Disclaimer
APPENDIX 1: FULL DISCLAIMER No investment or financial product advice. This Presentation, and the information provided in it, does not constitute, and is not intended to constitute, financial product or investment advice, or a recommendation to acquire Vulcan Shares, nor does it constitute, and is n
Slide 106: Appendix 1: Full Disclaimer Cont.
APPENDIX 1: FULL DISCLAIMER CONT. Ore Reserves and Mineral Resources Reporting. It is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia comply with the Joint Ore Reserves Committee's Australasian Code for Reporting of Mineral Resources and O
Slide 107: Appendix 2: Competent Person Statement
APPENDIX 2: COMPETENT PERSON STATEMENT The information in this presentation that relates to estimates of Mineral Resources and Ore Reserves is extracted from the following ASX announcement: "Zero Carbon LithiumTM Project Phase One Bridging Engineering Study", released on 16 November 2023. The above
Slide 108: Appendix 3: Assumptions and Parameters
APPENDIX 3: ASSUMPTIONS AND PARAMETERS Geothermal assets Key inputs and outputs of model Input General General and economics Brine Flow rate 950 l/s total for Phase 1 FX EUR/USD 1.05 Lithium Concentration in Brine* 181 mg/l NPV discount rate 8%1 Tax rate 30% Output State royalty 0%2 Power produced a