Slide 1: Investing in a vanadium future with Australian Vanadium
For personal use only Investing in a vanadium future with Australian Vanadium February 2016 Vincent Algar Chief Executive Officer
Slide 2: Disclaimer
Disclaimer For personal use only The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Comment It is com
Slide 3: Who is AVL?
Who is AVL ? For personal use only • Vanadium focused ASX listed company • Active evaluation and development of a long-life, low-cost vanadium mine at Gabanintha in Western Australia • Significant project with large, high-grade resource • Believe vanadium energy storage market will disrupt global va
Slide 4: Corporate Snapshot
Corporate Snapshot Capital structure and major shareholders For personal use only Key Statistics (as at 24/2/16) Ordinary shares on issue 762.7m Options on issue (ex at 1.5c 261m expire Dec 2017) AVL Share Price History Share price AUD $0.016 $0.020 160,000,000 Market capitalisation $12.2m (Cash ~$0
Slide 5: Australian Vanadium: Investing in a vanadium future
Australian Vanadium: Investing in a vanadium future For personal use only Strong news flow and growth expected in 2016 Company Milestones • Resource update completed. Quality, grade and tonnage to support long life, low cost operation. • Detailed metallurgical study completed, outstanding results su
Slide 6: Vanadium Markets: Energy Storage
For personal use only Vanadium Markets Energy Storage 6
Slide 7: Vanadium in Energy Storage
Vanadium in Energy Storage For personal use only “Energy storage has the potential to transform our entire energy system.”– Clean Energy Australia 7
Slide 8: Vanadium in Energy Storage: Unique characteristics of VRBs
Vanadium in Energy Storage Unique characteristics of Vanadium Redox Batteries (VRBs) For personal use only » VRBs provide a stable supply of renewable energy; very high capacity ideal for large-scale energy storage applications such as wind and solar » VRBs have unique advantages over other batterie
Slide 9: Redox Battery Market Beckons in Australia
Redox Battery Market Beckons in Australia Can the VRB be the ultimate grid energy storage solution for Australia? For personal use only • Rising power costs present good entry point in Australian market. For example reducing operating expenditures (power bills) by peak shifting • Multiple fringe-of-
Slide 10: AVL Vertical Integration Strategy
AVL Vertical Integration Strategy For personal use only Australian Vanadium Gabanintha V-Ti-Fe Project Vanadium Vanadium production production for Battery Market Renewable energy for Steel Market (when in production) system installer Subsidiary company VSUN created to distribute Vanadium Redox Batte
Slide 11: MOU with GILDEMEISTER Energy Storage
MOU with GILDEMEISTER Energy Storage VRB Producer a global leader in commercial implementations For personal use only • GILDEMEISTER energy storage GmbH develops the CellCube, the world’s most commercially advanced Vanadium Flow Battery based on 15 years of development with over 100 installations wo
Slide 12: MOU with Sun Connect
MOU with Sun Connect AVL to work with Australian Commercial Solar leader for VRB market For personal use only penetration • Sun Connect is a nationally operated company a top-five national commercial solar solution company, recognised for its excellence with installing commercial renewable energy sy
Slide 13: Vanadium Markets: Steel
For personal use only Vanadium Markets Steel 13
Slide 14: Vanadium Markets - Steel
Vanadium Markets - Steel Despite reduced rate of steel production, demand for For personal use only vanadium continues to grow 3% • Steel is primary market (92% of vanadium 4% Steel Alloy consumption) Titanium Alloy Chemical Catalyst • Addition of 0.2% vanadium increases steel strength Other up to 1
Slide 15: Vanadium Markets - Overview
V Vanadium Markets - Overview Future outlook for supply and demand offers compelling opportunity For personal use only for early involvement 15
Slide 16: Globally Significant Project
For personal use only Globally Significant Project 17
Slide 17: Global Player
Global Player Gabanintha Project is significant development project on a global scale For personal use only in grade and size Australian Vanadium 18
Slide 18: Vanadium Peer Comparison
Vanadium Peer Comparison • Gabanintha a globally significant deposit. For personal use only • Measured and Indicated Resources of 24.7Mt • Undervalued with significant leverage to current share price • TNG Market Cap of 110M. BMN 24M . AVL is 12m 350.00 Gabanintha 1.60 1.48 1.40 57Mt @1.00%V2O5 as p
Slide 19: Gabanintha Vanadium Project: Drilling to advance existing potential
Gabanintha Vanadium Project Drilling to advance existing potential For personal use only 20
Slide 20: Gabanintha Vanadium Project: Discrete high-grade zone
Gabanintha Vanadium Project Discrete high-grade zone, simple geometry For personal use only 21
Slide 21: Gabanintha Vanadium Project: Discrete high-grade zone
Gabanintha Vanadium Project Discrete high-grade zone, simple geometry For personal use only 22
Slide 22: Gabanintha Vanadium Project: High grade resource in favorable jurisdiction
Gabanintha Vanadium Project High grade resource in favorable mining jurisdiction For personal use only » Project located in the Murchison District of Western Australia » 600km from the port of Geraldton, 30km from Mining Town of Meekatharra » One of the highest-grade vanadium deposits being advanced
Slide 23: Vanadium Resource
Vanadium Resource Large high-grade resource For personal use only JORC Million In situ bulk Material Resource V2O5 % Fe% TiO2 % SiO2 % Al2O3 % LOI% Tonnes density Class High grade Measured 7 3.73 1.09 43 12 10 8 3.4 Indicated 4.3 3.29 1.07 41 12 12 9 4.6 Inferred 45.5 3.67 0.97 42 11 12 8 2.8 Subtot
Slide 24: Gabanintha Vanadium Project: Robust Resource with optionality
Gabanintha Vanadium Project Robust Resource with significant optionality and upside for development For personal use only Blend Summary Tonnes (Mt) V2o5 Fe2o3 Sio2 Tio2 15 LGOX 10.4 0.54 34.22 27.19 7.19 10 LGFR 8.4 0.55 36.54 27.24 7.25 50 HGOX 4.9 1.06 59.16 11.70 12.29 25 HGFR 13.7 1.02 60.41 11.
Slide 25: Metallurgical Test Work Update
Metallurgical Test Work Update New test work defines processing path forward For personal use only • High recovery rates from all ore types, including oxidised materials • Strong recoveries achieved from coarse grind sizes, scope to maintain low operating costs • Concentrate grades up to 1.5% V2O5 a
Slide 26: Gabanintha Vanadium Project: Concept engineering study shows potential
Gabanintha Vanadium Project Concept engineering study shows potential For personal use only CONCEPT STUDY PARAMETERS – CAUTIONARY STATEMENT The Concept Study in this presentation (nominal +/- 50% accuracy) is based on low-level technical and economic assessments, and is insufficient to support estim
Slide 27: Gabanintha Concept Study
Gabanintha Concept Study Concept engineering study shows economic potential For personal use only • Engineering concept study being updated from 2014 to include new resource and metallurgical data • New study considers high and low grade zones including oxide high grade utilizing 37.4 Million Tonnes
Slide 28: Australian Vanadium: Investing in a vanadium future
Australian Vanadium: Investing in a vanadium future For personal use only Strong news flow and growth expected in 2016 Company Milestones • Resource update completed. Quality, grade and tonnage to support long life, low cost operation. • Detailed metallurgical study completed, outstanding results su
Slide 29: For personal use only
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Slide 30: Vincent Algar, Chief Executive Officer
For personal use only Vincent Algar, Chief Executive Officer Telephone: +61 (8) 9228 3333 Email: info@australianvanadium.com.au Website: australianvanadium.com.au Office Location: 129 Edward Street ,Perth, Western Australia 6000 31