Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Diggers and Dealers 2022
43 slides from Australian Vanadium's conference presentation, August 2022
Slide 1: Diggers and Dealers 2022
DIGGERS AND DEALERS 2022 August 2022 ASX:AVL
Slide 2: ASX Chapter 5 Compliance and Cautionary Statements
ASX CHAPTER 5 COMPLIANCE AND CAUTIONARY AND FORWARD- LOOKING STATEMENTS 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 reliabilit
Slide 3: Corporate Overview
A S X : AV L C O R P O R AT E O V E R V I E W Australian Vanadium AVL SHARE PRICE HISTORY (22/7/2022) KEY STATISTICS AS AT 22/07/22 Ordinary Shares on Issue 3.94b Share Price A$0.041 Options on Issue 355,385,353 Exp 18/12/22 @ $0.025 Option Price (AVLOA) A$0.017 Average Daily Traded Volume 27.3M (~$
Slide 4: Executive Summary
A S X : AV L A U S T R A L I A N VA N A D I U M L I M I T E D Executive Summary Attractive Economics Front End Engineering Highest Grade and Contractor The Australian Vanadium Project is located Recently announced Bankable Feasibility CMB EPC and Processing Plant EPCM near Meekatharra, Western Austr
Slide 5: Vanadium Markets
A S X : AV L Vanadium Markets 92% 6% 2% 5
Slide 6: Global Vanadium Dominated by China and Russia
A S X : AV L Global Vanadium Dominated by China and Russia Vanadium produced as a by-product from steel Vanadium produced as a by-product from steel 1 primary vanadium mine 2 primary vanadium mines Sources - iScience 24, 103277, November 19, 2021 & TTP Squared, Inc 6
Slide 7: Projected energy storage growth to shift demand
A S X : AV L VA N A D I U M M A R K E T S Projected energy storage growth to shift demand 250,000 Current 200,000 global production ~118,000 MTV per annum 150,000 MTV 100,000 AVL’s planned 50,000 production 6,270 MTV per annum - 2020 2021 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e Steel E
Slide 8: Why use the VRFB for energy storage?
VSUN ENERGY Why use the VRFB for energy storage? Vanadium Lifespan over Non-flammable Multiple daily Able to store Easy to scale electrolyte can 20 years with no making it safer cycles, with large amounts power and be reused degradation in than other 100% depth of energy for energy indefinitely or p
Slide 9: Experienced Corporate Team
A S X : AV L C O R P O R AT E O V E R V I E W Experienced Corporate Team International vanadium credentials Over 10 years of experience chairing Has over 25 years of experience Over 40 years of global vanadium public and private companies post in the mining industry, spanning experience including pr
Slide 10: Experienced Technical Team in Place and Growing
A S X : AV L C O R P O R AT E O V E R V I E W Experienced Technical Team in Place and Growing 20 years of experience in Responsible for drilling and More than 20 years resource development in WA field safety programs at the of experience in multi across multiple commodities. Australian Vanadium Proj
Slide 11: Strong ESG Focus
A S X : AV L ESG IN ACTION Strong ESG Focus Carbon emissions intensity of global vanadium production operations Evraz Highveld Steel & Vanadium co-production 39 (historical) China-based recovery from vanadium slag 33 Largo Resources Ltd - Menchen Mine 9 The vanadium produced by the AVL Project is es
Slide 12: Community Partners
AA SXS :X :AV AVLL ESG IN ACTION Strong ESG Focus Community Partners ▸ AVL is working with the Yugunga-Nya People to provide employment opportunities and help build a brighter future for the younger members of the group ▸ AVL is a proud supporter of the Stephen Michael Foundation and its work suppor
Slide 13: Governance
A S X : AV L ESG IN ACTION Strong ESG Focus Governance Renewable energy strategy ▸ Experienced and competent Board of Directors ▸ AVL will utilise renewable energy resources on its sites ▸ Tight adherence to ASX listing rules ▸ Use of solar and/or wind generation at the minesite and ▸ Long term enga
Slide 14: The Australian Vanadium Project
THE AUSTRALIAN VANADIUM PROJECT 14
Slide 15: Project Location
Unique FeTi Co Product sales opportunity Infrastructure – port, water, gas, rail, road, power, airport Access to local workforce Abundant renewable energy resources The Australian Vanadium Project Project Location 15
Slide 16: Recent BFS - Robust Project Metrics
A S X : AV L Recent BFS – Robust Project Metrics STRONG OPEX, RESOURCE FINANCIAL CAPEX OUTCOMES Total Resource C1 OPEX 239Mt @ 0.73% V2O5 Pre-Tax NPV7.5 IRR High-grade 95.6Mt @ 1.07 V₂O₅ US$4.43/lb V2O5 A$833M 20.6% Ore Reserve 30.9Mt @ 1.09 V2O5 EBITDA Annual Average PRE-PRODUCTION Proved 10.5Mt @1
Slide 17: Resource Total Magnetic Intensity Section
T H E A U S T R A L I A N VA N A D I U M P R O J E C T Resource Total Magnetic Intensity Section A S X : AV L Note: Information within this slide as detailed in ASX Announcement "Bankable Feasibility Study for Australian Vanadium Project" dated 6th April 2022. 17
Slide 18: Pit, Beneficiation Plant and Processing Plant
A S X : AV L T H E A U S T R A L I A N VA N A D I U M P R O J E C T Pit, Beneficiation Plant and Processing Plant 18
Slide 19: Project Delivery
Project Delivery 19
Slide 20: Vertical Integration Vanadium
A S X : AV L Vertical Integration Vanadium & PROCESSING Production 20
Slide 21: Vanadium Electrolyte Plant
A S X : AV L T H E A U S T R A L I A N VA N A D I U M P R O J E C T Vanadium Electrolyte Plant • Vanadium electrolyte plant being built at Kwinana industrial area, south of Perth • Partly funded by Australian Government manufacturing grant of $3.69M • Vanadium electrolyte technology and vanadium fee
Slide 22: Project Delivery
A S X : AV L A U S T R A L I A N VA N A D I U M P R O J E C T Project Delivery 01 02 03 04 05 Final EPC/EPCM Financial BFS Investment Partnerships Close and Production Completed Decision Construction Bankable Securing debt Selection of Execute FEED, Australian Feasibility Study financing from EPC/EP
Slide 23: Australian Vanadium Project
A S X : AV L IN SUMMARY Australian Vanadium Project Expertise Timing Project Business Model International vanadium Increased vanadium Globally significant Vertically integrated experience, skilled consumption in the steel resource, strong approach, collaboration knowledgeable technical market, steel
Slide 24: Australian Vanadium Limited
+61 (08) 9321 5594 info@australianvanadium.com.au Level 1, 85 Havelock Street, West Perth, Western Australia 6005 Australian Vanadium Limited | ASX: AVL australianvanadium.com.au
Slide 25: Resource table
A S X : AV L GEOLOGY & MINING Resource table DOMAINS CATEGORY Mt V2O5 % Fe % TiO2 % SiO2 % Al2O3 % LOI % Measured 11.3 1.14 43.8 13.0 9.2 7.5 3.7 Indicated 27.5 1.10 45.4 12.5 8.5 6.5 2.9 HG 10 Inferred 56.8 1.04 44.6 11.9 9.4 6.9 3.3 Subtotal 95.6 1.07 44.7 12.2 9.1 6.8 3.2 Measured - - - - - - - I
Slide 26: Ore Reserve Table
A S X : AV L GEOLOGY & MINING Ore Reserve Table . The Ore Reserve for the Australian Vanadium Project 2022 Bankable Feasibility Study is detailed in the table below. V2O5 Ore Reserve Mt V2O5% Fe2O3% TiO2% SiO2% LOI% Ore Reserve Mt production kt Proved 10.5 1.11 61.6 12.8 9.5 3.7 70.9 Waste 238.5 Pro
Slide 27: Social Media Impact
Social Media Impact AVL’s world renowned social media channels provide followers with updates on the company's activities and additional market information about vanadium as a critical metal and battery metal. 27
Slide 28: Our Partners
ASX:AVL Our Partners —= P|S|M Gmwett @HCF ae ATCO A» _#_ | AXANSTO Y US VANADIUM sues = iar P = Metso:Outotec = ioustaes.. G coLpER Im=RO LJ Curtin University | celicwbe © Grant Thornton wood. ORELOGY = E22 Dinky TECH % bars " Australian Government
Slide 29: Finance
FINANCE 29
Slide 30: Financial Sensitivities
A S X : AV L The Australian Vanadium Project Project Vanadium Pricing Sensitivity (A$) Financial Sensitivities V2O5 Pricing Scenarios Year 1-5 (US$) $9.50/lb V2O5 $10.50/lb V2O5 $10.50/lb V2O5 $12/lb V2O5 • NPV - Highest sensitivity to long term V2O5 Year 6-25 (US$) $9.50/lb V2O5 $9.50/lb V2O5 $10.5
Slide 31: BFS Opex Breakdown
A S X : AV L BFS Opex Breakdown USD/lb V2O5 Mining $ 1.42 CMB $ 0.93 Refinery $ 2.02 Others $ 2.60 Co0 product FeTi -$ 2.51 C1 $ 4.46 D&A $ 1.01 C2 $ 5.46 Sustaining capital $ 0.21 Other associated $ 0.49 costs C3 $ 6.16 31
Slide 32: BFS Capex Breakdown
A S X : AV L BFS Capex Breakdown Pre V2O5 Production Capex Post V2O5 Production Capex (Yrs 1-4) (A$ M) (US$ M) (A$ M) (US$ M) Gabanintha (Mine and CMB) Gabanintha (Mine and CMB) Mining 4 3 Mining 7 5 CMB Plant 82 59 CMB Plant 9 7 CMB Infrastructure 45 33 CMB Infrastructure 2 2 Area Infrastructure 26
Slide 33: Funding Model
A S X : AV L Funding Model $49M Modern Manufacturing Initiative grant Equity Debt 33
Slide 34: VSUN Energy
Australian yY VANADIUM LIMITED VSUN Energy
Slide 35: VSUN Energy - Renewable Energy Storage Company
VA N A D I U M I N E N E R G Y S T O R A G E VSUN Energy – Renewable Energy Storage Company VSUN Energy is a 100% owned subsidiary of AVL dedicated to grow the vanadium redox flow battery (VRFB) market in Australia. VSUN Energy offers clients VRFB solutions from a range of manufacturers appropriate
Slide 36: VRFBs - long duration energy storage
VSUN ENERGY VRFBs – long duration energy storage 10kW for 10 hours 200kW for 4 hours 15MW for 4 hours 5kW for 6 hours 36
Slide 37: Nickel, Copper and Cobalt from tails stream
A S X : AV L C O L L A B O R A T I O N W I T H B R YA H R E S O U R C E S L I M I T E D ( A S X : B Y H ) Nickel, Copper and Cobalt from tails stream • Bryah holds a suite of mineral rights including nickel, copper and gold over the Australian Vanadium Project at Gabanintha • AVL holds the mineral r
Slide 38: Offtake status - Vanadium
A S X : AV L Offtake status - Vanadium HBIS - Hebei Yanshan Vanadium and Titanium Industry Technology Research Co Ltd, a subsidiary of HBIS Group Chengsteel in China, one of the world’s largest steelmakers ▸ Letter of Intent to negotiate and sign a binding technical services and vanadium purchase ag
Slide 39: FeTi coproduct after vanadium extraction
A S X : AV L FETI COPRODUCT MARKETS FeTi coproduct after vanadium extraction • 3.5mm crushed FeTi pellet ready for shipping “as is” after vanadium extraction • Fe 55%, TiO2 15% material has established market in Chinese blast furnaces. • Used as blast furnace refractory protection • Unique sale oppo
Slide 40: Offtake status - FeTi coproduct
A S X : AV L Offtake status – FeTi coproduct Letters of Intent have been signed for offtake of iron titanium (FeTi) coproduct from the Australian Vanadium Project. ▸ Non-binding and record interest of the buyers to support Hebei Province the Project and to negotiate and agree a binding ore sale cont
Slide 41: CMB Flowsheet
A S X : AV L CMB Flowsheet 41
Slide 42: Processing Plant Flowsheet
A S X : AV L Processing Plant Flowsheet 42
Slide 43: Australian Vanadium Limited
+61 (08) 9321 5594 info@australianvanadium.com.au Level 1, 85 Havelock Street, West Perth, Western Australia 6005 Australian Vanadium Limited | ASX: AVL australianvanadium.com.au