Slide 1: Australia's Newest Lithium Miner: Equity Raising Presentation
For personal use only AUSTRALIA’S NEWEST LITHIUM MINER Equity Raising Presentation 30 September 2022 Gareth Manderson (CEO) Simon Iacopetta (CFO) corelithium.com.au | ASX CXO Not for release to US wire services or distribution in the United States
Slide 2: Important & Cautionary Notes
IMPORTANT To the fullest extent permitted by law, the Company, the Lead Manager and its respective affiliates, related bodies corporates, officers, Forward‐looking Statements This release contains “forward-looking information” that is based on the employees, partners, agents and advisers make no rep
Slide 3: Important & Cautionary Notes (cont.)
IMPORTANT Not an offer This presentation is for information purposes only and is not a The distribution of this presentation in the United States and elsewhere outside Australia may be restricted by law. Persons who come into & CAUTIONARY prospectus, disclosure document, product disclosure statement
Slide 4: Important & Cautionary Notes: JORC Code
IMPORTANT You represent, warrant and agree that you have not relied on any statements made by the Lead Manager or other Limited Parties in Statements made in this presentation are made only as at the date of this presentation. None of the Lead Manager, nor any of their or Cores’ relation to the Offe
Slide 5: Equity Raise Provides Clear Pathway to Production and Growth at Finniss
EQUITY RAISE PROVIDES CLEAR PATHWAY TO PRODUCTION AND For personal use only GROWTH AT FINNISS Q4 2022 & CY 2023 Q4 2022 & CY 2023 Accelerate Organic Production Growth Initiatives Expansion and BP33 Studies and Mine Development Life Extension 2016 JULY 2021 SEPTEMBER 2021 OCTOBER 2021 JULY 2022 SEPTE
Slide 6: Company Overview
For personal use only Sealed Road to Darwin Port COMPANY OVERVIEW
Slide 7: The Finniss Project Provides the Foundation for the Future Core Lithium Business
The Finniss Project Provides the Foundation for the Future Core Lithium Business For personal use only (tenure circa. 500km2) Finniss is Australia’s newest lithium mine DSO auction underway, targeting first shipment in Q4 2022 Located 88km by sealed road to Darwin Port Low-risk in Tier 1 jurisdictio
Slide 8: Mature Customer Base
MATURE CUSTOMER BASE For personal use only Company Contract Period Product Pricing Binding Offtake 1 4 Years 300,000t Formula-based referencing market prices Binding Offtake 2 4 Years 300,000t for spodumene concentrate Binding Term Sheet 3, 4 4 Years Up to 110,000t NOTES 1. Refer CXO ASX announcemen
Slide 9: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only BOARD CAPITAL STRUCTURE Greg English Share Price - 29 September 2022 Cash - 31 August 2022 Non-Executive Chair A$1.105/share A$110M Stephen Biggins 2 Managing Director Shares on Issue - 29 September 2022 Debt - 31 August 2022 Heath Hellewell 1,737M Nil Non-Ex
Slide 10: Finniss Lithium Project Update
For personal use only FINNISS LITHIUM PROJECT UPDATE • Project Delivery • Mine Plan & Organic Growth
Slide 11: Simple DMS Process & High Quality Concentrate
SIMPLE DMS PROCESS & HIGH QUALITY CONCENTRATE Simple processing means lower cost and low start-up risk For personal use only Simple DMS (gravity) produces high quality product Grants Open Cut Mine ✓ +99% of lithium is spodumene ✓ Large spodumene crystals liberate at 6mm coarse crush ✓ Simple mineral
Slide 12: Finniss Lithium Project Update September 2022
Finniss Lithium Project Update September 2022 Tailings Storage Facility within WRD Mine Water Dam 1 For personal use only Waste Rock Dump (WRD) Grants Open Pit (Stage 2) Run of Mine (ROM) Pad Grants Open Pit (Stage 1) Crushing Infrastructure Raw Water Dam Dense Media Separation (DMS) Plant Admin Bui
Slide 13: Finniss Lithium Project Infrastructure
Finniss Lithium Project Infrastructure To Grants Open Pit Mine September 2022 Mine Run of Mine (ROM) Pad For personal use only Dense Media Separation Crushing Infrastructure (DMS) Plant Concentrate ROM Pad • Crushing plant on schedule to complete DSO shipment tonnes Q4 2022 corelithium.com.au | 13 •
Slide 14: Mine Plan Visibility
MINE PLAN VISIBILITY For personal use only SPODUMENE CONCENTRATE CONSENSUS PRICE FORECAST2 VS. COST $7,000 $4,000 Sep-22 Spot Price Mine Plan Visibility from Commercial Production in 1H 2023 $3,500 Life of Mine (LOM) 3 12 years $3,000 $2,500 1,917 US$ per tonne Spodumene Concentrate Production (kt)
Slide 15: Commitment to ESG Best Practice
COMMITMENT TO ESG BEST PRACTICE For personal use only Core is committed to operating in a safe and sustainable manner, which means operating responsibly. ESG CREDENTIALS IN FOCUS ✓ Lithium production has a fundamental role to play in shaping the global energy future, as we transition to a low carbon
Slide 16: Mine Plan Organic Growth
For personal use only MINE PLAN ORGANIC GROWTH
Slide 17: Mineral Resources and Mine Plan Upgrade
MINERAL MINERAL RESOURCE AND ORE RESERVE ESTIMATES1 RESOURCES JORC Category 2021 2022 YoY Growth (Mt) For personal use only AND MINE Mineral Resource Estimate Ore Reserve Estimate 14.8Mt @ 1.4% 7.4Mt @ 1.3% 18.9Mt @ 1.3% 10.6Mt @ 1.3% +28% +43% PLAN UPGRADE Conversion Rate 50% 56% ESTIMATED CONCENTR
Slide 18: BP33 Development - Early Works
BP33 DEVELOPMENT - EARLY WORKS For personal use only BP33 is Core’s second proposed lithium mine Current estimated life of mine of 4 - 5 years 1 Located circa. 5km from Grants Open Pit, Crusher and DMS Plant Targeting first production in 1H 2024, subject to approvals Low capital-intensive, boxcut de
Slide 19: Organic Growth
For personal use only ORGANIC ORGANIC GROWTH GROWTH
Slide 20: Organic Growth Pipeline
ORGANIC GROWTH PIPELINE 8,620,000mN For personal use only OPERATION DEVELOPMENT STUDIES 8,600,000mN ADVANCED EXPLORATION EXPLORATION 8,580,000mN Over 500km 2 of tenure over highly prospective ground for lithium in the Northern Territory at Finniss. 8,560,000mN Anningie and Barrow Creek Shoobridge
Slide 21: Finniss Life Cycle and Growth Targets
FINNISS LIFE ORGANIC GROWTH STORY CYCLE AND 30 For personal use only GROWTH Proposed $25m Accelerated Exploration Budget Mine Life (year) and Exploration Expenditure ($ millions) TARGETS 25 $25m 20 15 Current Exploration Program $13m To date, Core has invested $1.8 million for each year of 10 mine l
Slide 22: Organic Growth - Existing Resources
ORGANIC GROWTH - EXISTING RESOURCES For personal use only BP33 1 Carlton 1 Current Mineral Resource 4.37Mt at 1.53% Current Mineral Resource 4.04Mt at 1.3% Current Ore Reserve 3.9Mt at 1.4% Current Ore Reserve 3.3Mt at 1.2% $3-5m drill program targeting $3-5m drill program targeting additional resou
Slide 23: The Investment Case and Focus for FY23
For personal use only THE THE INVESTMENT INVESTMENT CASE CASE AND FOCUS FOR FY23
Slide 24: Focus for FY23
OPERATIONAL • Commence production at Finniss DELIVERY • Transition owners' team from construction to operations For personal use only • Expedite development of underground operations FOCUS FOR FY23 HIGH IMPACT • Significantly enhanced company exploration budget EXPLORATION • Includes extension drill
Slide 25: Equity Raising Overview
For personal use only EQUITY RAISING OVERVIEW
Slide 26: Strategic Growth-Focused Equity Raise
STRATEGIC GROWTH-FOCUSED EQUITY RAISE Equity Raise represents a proactive capital management initiative in a favourable lithium pricing environment For personal use only ✓ A$100m fully underwritten institutional placement enables Core to fast-track exploration programs, expedite capital development
Slide 27: Equity Raising Summary
EQUITY RAISING SUMMARY For personal use only Fully underwritten A$100 million Placement ▪ Fully underwritten A$100 million placement of approximately 97.1 million new fully paid ordinary shares (“New Shares”) to sophisticated and Offer Size and Structure professional investors (“Placement”) ▪ The Pl
Slide 28: Use of Funds
USE OF FUNDS For personal use only The equity raising provides funding to Core for accelerating construction of Sources of Funds (A$M) DMS plant, fast-track exploration and resource definition programs, expedite Placement Proceeds 100 capital development at BP33, with $100m placement proceeds being
Slide 29: Indicative Placement Timetable
INDICATIVE PLACEMENT TIMETABLE For personal use only Event Date Trading Halt and Bookbuild Friday, 30 September 2022 Announcement of Completion of Placement Monday, 3 October 2022 Trading Halt Lifted – Trading Resumes on ASX Monday, 3 October 2022 Settlement of New Shares issued under the Placement
Slide 30: Other Equity Raising Information
For personal use only OTHER EQUITY RAISING INFORMATION OVERVIEW
Slide 31: JORC (2012) Resources and Ore Reserves
MINERAL JORC (2012) RESOURCES AND RESERVES Mineral Resources Classification Ore Grade Contained Source: CXO ASX Release “Significant Increase to Finniss Lithium Project Mineral Resource & Ore Reserves”, 12 July 2022 Columns may not total exactly due to rounding RESOURCES Deposit Mt Li2O% Li2OT For p
Slide 32: Appendix: Key Risks & Offer Jurisdictions
For personal use only APPENDIX Appendix: Key Risks and Key Risks & Offer Jurisdictions Offer Jurisdictions
Slide 33: Key Risks
KEY RISKS This section discusses some of the key risks associated with an investment in shares in Core. There are a number of risk factors, specific to Core and of a general nature, which may affect the future operating and financial performance of Core, the industry in which it operates and the val
Slide 34: Key Risks: Risks Specific to Core
KEY RISKS Risks specific to Core (cont.) For personal use only Construction and The business of mineral exploration, project development, project commissioning and production, by its nature, contains elements of significant risk with no guarantee of development stage success. Ultimate and continuous
Slide 35: Key Risks: Risks Specific to Core (cont.)
KEY RISKS Risks specific to Core (cont.) For personal use only New projects and Core will actively pursue and assess other new business opportunities in the resources sector. These new business opportunities may take the form of direct project acquisitions acquisitions, joint ventures, farm-ins, acq
Slide 36: Key Risks: Underwriting Risk
KEY RISKS Risks specific to the industry For personal use only Underwriting risk ▪ there is a contravention by Core of law, or the Placement does not comply with law, or Core is prevented from allotting and issuing the New Shares; (cont.) ▪ there is a change in senior management at Core; ▪ there is
Slide 37: Key Risks: Operating Risk
KEY RISKS Risks specific to the industry (cont.) For personal use only Operating risk Mining operations generally involve a high degree of inherent risk and uncertainty. Such operations are subject to all the hazards and risks normally encountered in the exploration, development and production of li
Slide 38: Key Risks: Third Party and Environmental Risk
KEY RISKS Risks specific to the industry (cont.) For personal use only Third party risks Under state and Commonwealth legislation (as applicable), Core may be required to obtain the consent of and/or pay compensation to the holders of third-party interests which overlay areas within the tenements, i
Slide 39: Key Risks: General Investment Risks
KEY RISKS General investment risks For personal use only Reliance on key Core is reliant on a number of key personnel and consultants, including members of the Board. The loss of one or more of these key contributors could have an adverse personnel impact on the business of Core. It may be particula
Slide 40: Key Risks: Share Market Conditions
KEY RISKS General investment risks (cont.) For personal use only Share market Share market conditions may affect the value of Core’s quoted shares regardless of Core’s operating performance. Share market conditions are affected by many factors such conditions as: ▪ general economic outlook, which ma
Slide 41: Key Risks: Tax and Unforeseen Expenditure
KEY RISKS General investment risks (cont.) For personal use only Tax law may change Changes to tax legislation, the interpretation of tax legislation by the courts, the administration of tax legislation by the relevant tax authorities and the applicability of such legislation may affect the tax trea
Slide 42: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICTIONS This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austra
Slide 43: International Offer Jurisdictions: European Union, Hong Kong
INTERNATIONAL OFFER JURISDICTIONS European Union This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the For personal use only New Shares be offered for sale, in the
Slide 44: International Offer Jurisdictions: United Kingdom
INTERNATIONAL OFFER JURISDICTIONS United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the For personal use only meaning of section 85 of the Financial Serv
Slide 45: Thank You
For personal use only Thank You Core Lithium Ltd Level 5, 149 Flinders St, Adelaide, SA, 5000 INVESTOR ENQUIRIES Gareth Manderson Simon Iacopetta Chief Executive Officer Chief Financial Officer +61 8 8317 1700 +61 8 8317 1700 MEDIA ENQUIRIES Gerard McArtney Senior Consultant +61 421 505 557 Cannings