Vanadium Resources Ltd. · ASX:VR8

Vanadium Resources — 1-2-1 & Mining Indaba 2023

26 slides from Vanadium Resources's conference presentation, February 2023

  1. Slide 1: Steelpoortdrift Vanadium Project

    Steelpoortdrift Vanadium Project 1-2-1 & Mining Indaba Presentation February 2023 ASX:VR8 WWW.VR8.GLOBAL

  2. Slide 2: Disclaimer

    Disclaimer This presentation does not constitute investment advice. This presentation has been prepared by Vanadium Resources Limited (“the Company” or ASX:VR8) to provide summary information about the Company and its activities as at the date of this presentation (February 2023). Neither this prese

  3. Slide 3: Emerging Vanadium Producer

    Emerging Vanadium Producer One of the world’s largest and DFS indicates strong financial Ore body easy to mine, Using conventional / proven highest-grade vanadium outcomes with post-tax NPV7.5% of low strip ratio & low concentrate & Salt Roast Leach deposits US$1.2Bn (US$0.9Bn att.), 42% operating c

  4. Slide 4: Corporate Overview

    Corporate Overview Corporate Structure (ASX: VR8) – as at 1 February 2023 Top Shareholders Board of Directors 1 Danterne Pty Ltd1 9.4% Jurie Wessels 484.4m A$0.084 A$40.7m 2 Raubex Pty Ltd 9.1% Executive Chairman Shares on issue Share Price Market Cap (undiluted) (@ $0.084c) 3 Romfal Sifat Pty Ltd 4

  5. Slide 5: Milestones Delivered

    Milestones Delivered In the last 12 months VR8 has delivered important de-risking milestones for Steelpoortdrift DFS completed on-time and on budget – Revised Mineral Resource and Ore Reserve providing validation for the development of estimate with enhanced block model and the Steelpoortdrift Proje

  6. Slide 6: Why Vanadium

    Why Vanadium Listed as a Critical Mineral in Australia, the US, UK and European Union, Vanadium demand is expected to grow significantly from its energy storage capabilities Vanadium Redox Flow Batteries (VRFB’s) Steel & Alloys ➢ VRFBs forecast to represent between 15 – 25% of total battery capacity

  7. Slide 7: Global Demand & Pricing Dynamics

    Global Demand & Pricing Dynamics Forecasters expect over 1,200GW of battery capacity to be added between today and 2050, with approximately 600GW before 2025.1 Could add up to 10,000mtV of Projection of MtV demand change 2020-2025 Vanadium Pentoxide 98% min Europe US$/lb demand into an already under

  8. Slide 8: DFS Delivers World Class Vanadium Project

    DFS Delivers World Class Vanadium Project US$1.21bn US$896m US$152m 42% (A$1.9bn) (A$1.4bn) (A$237m) NPV7.5% (post-tax) Attributable NPV Yearly Free Cashflows IRR (post-tax) 27 months US$211m US$3.24 US$9.50 (A$329m) (Deloitte forward mid-range) Incl. Contingency Payback Start up Capex Cash Costs V2

  9. Slide 9: Location – in the Bushveld Complex

    Location – in the Bushveld Complex This world-renowned mining location is host to several mining operations, multiple major mining companies are active in the area, and is in close proximity to existing infrastructure. Other Mines in the Bushveld Complex Vametco – Vanadium Mine Rhovan – Vanadium Min

  10. Slide 10: Mine, Concentrator & SRL

    Mine, Concentrator & SRL Mine Site – View of the North of Mining Area The mine site, concentrator and SRL sites are located within a substantial mining and smelting district, with well established infrastructure (including water, power, sealed roads, rail, etc) VR8 Offices and Warehouses in Steelpoo

  11. Slide 11: Resources & Ore Reserves

    Resources & Ore Reserves ➢ Global Mineral Resource of 680Mt at 0.70% V2O5 ➢ Total Ore Reserve of 77Mt at 0.72% V2O5 ➢ Mineralisation outcrops at surface and dips shallowly (~10º) – less waste to mine, low strip ratios (0.88x waste : ore) and cheaper mining cost ➢ Orebody able to achieve a high-grade

  12. Slide 12: Global Primary Resources

    Global Primary Resources 3.0% 2100 Tonnes In Situ Grade Concentrate Grade 1800 2.5% Resource Tonnage (Millions) 1500 2.0% 1200 %V2O5 1.5% 900 1.0% 600 0.5% 300 0.0% 0 Largo Glencore Bushveld Bushveld Bushveld Vanadium Australian Richmond Technology Maracás Rhovan Vametco Brits Mokopane Resources Van

  13. Slide 13: Location of Mineral Resources & Ore Reserves

    Location of Mineral Resources & Ore Reserves ➢ The final pit design and Ore Reserves based on LOM of 25 years (designed to match Mining Right term) ➢ Final pit design was based on Pit 17, which highlights potential for a larger ultimate pit design ➢ Ore Reserves represents 12% of Mineral Resources a

  14. Slide 14: Open Pit Design and Schedule

    Open Pit Design and Schedule ➢ Detailed pit designs have been developed across three open pits and scheduled over the 25-year life of the project ➢ The mining schedule was able to achieve high ROM grades of greater than 0.80% V2O5 for the first 8 years, with a LOM average grade of 0.71% V2O5 13 WWW.

  15. Slide 15: Concentrator Plant

    Concentrator Plant Concentrator flow sheet based on proven technology Two-stage Crushing Circuit Wet Magnetic Separation Dewatering Ball Milling Regrind Magnetic Concentrate Product @ Separation Areas 2.08-2.16% V2O5 Dewatering 14 WWW.VR8.GLOBAL

  16. Slide 16: SRL Plant

    SRL Plant SRL flow sheet based on proven technology SO2 Scrubber SRL Plant comprises kiln Kiln roasting, desilification, Roasting ammonium metavanadate (“AMV”) precipitation, flash Crystalliser drying and V205 flake production Flash Concentrate feed rate of 790ktpa Drying with a grade of >2.00% V2O5

  17. Slide 17: Peer Comparison

    Peer Comparison Largo Maracas1,2&3 Steelpoortdrift (VR8) 4&5 Bushveld Mokopane6 TMT Project7,8 AVL Project9 Richmond Vanadium10 In Production DFS Stage PFS Stage DFS Stage BFS stage PFS Stage (Results as at 30 Dec 2021) V2O5 Price US$7.80/lb US$9.50/lb US$7.50/lb US$10.50/lb US$10.50/lb US$9.60/lb M

  18. Slide 18: Offtake, Strategic Investment and Project Financing

    Offtake, Strategic Investment and Project Financing Commenced process toward securing binding offtake, strategic investment and project financing Offtake Agreement & Strategic Investment ➢ A process is underway with a range of international traders and downstream users of vanadium ➢ In parallel, a p

  19. Slide 19: ESG Initiatives

    ESG Initiatives Renewable electricity Dry deposition of Co-products Community supply tailings Inclusion of PV solar plant Dewatering of tailings Studies underway to unlock Initiatives to maximize reduces carbon footprint and material means reduced risk value from other metals community involvement a

  20. Slide 20: Preliminary Project Timeline

    Preliminary Project Timeline Year CY23 CY24 CY25 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental & Water Permits Build Project Development & Operations Team FEED Offtake & Strategic Investment Debt Financing FID Engineering & Procurement Construction Production (incl. Ramp up) 19 WWW.VR8.G

  21. Slide 21: Growth Catalysts to Increase Shareholder Value

    Growth Catalysts to Increase Shareholder Value Key Catalysts to FID ➢ Secure long-term offtake(s) ➢ Secure project funding from combination of: ➢ Ropeway conveyor from Mine to SRL plant i. Debt ~65% PF debt Optimise ➢ Delineation drilling and re-optimisation ii. Equity ~35% from offtakers, strategic

  22. Slide 22: Investment Highlights

    Investment Highlights Strong financials with attributable NPV of A$1.4bn, IRR of 42% and payback period of 27 months Unlocking Steelpoortdrift as one of the Competitive Capex (US$211m) and lowest quartile Opex (Cash Cost US$3.24/lb) world’s largest and highest-grade Long life project with excellent

  23. Slide 23: Appendix

    Appendix February 2023 ASX:VR8 WWW.VR8.GLOBAL

  24. Slide 24: Board & Management

    Board & Management Jurie Wessels has 26 years’ experience in the exploration industry and co-founded a number of exploration and mining companies, including Bauba Resources Ltd (BAU.J), which owns three operating chrome mines, GoldStone Resources Ltd (GRL.L), which company is mining the Homase-Akrok

  25. Slide 25: Peer Comparison Table

    Peer Comparison Table Resourc Resource Concentrate Company Code Project Stage Resource Category e Information Source Grade Grade Tonnes Measured, Indicated Largo LGO.TSX Maracas Production 79 0.79 2.46 Largo Maracas NI43-101 Technical Report - 16th December 2021 & Inferred (NI43-101) Measured, Indic

  26. Slide 26: Contact details

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