Neometals Quarterly Activities Report
(For the quarter ended 30 June 2023)

HIGHLIGHTS

• Cash balance A$24.6 million, investments of A$19.9 million and no debt.

• Successful demonstration trial of process improvements to the refinery Hub yielded outstanding recovery results exceeding EU Battery Regulation requirements - nickel, cobalt and copper recoveries (>95%), lithium (pending, previously >83%);
• Finalising engineering cost study (ECS) for Hub section of a ~50tpd (21,000tpa) integrated LiB recycling plant; and
• Finalising front-end-engineering (FEED) and mechanical package supply contracts for 10tpd Mercedes Benz Spoke.

• Ownership in the Finnish Vanadium Recovery Project (VRP1) JV company increased to 72.5%;
• Financial Investment Decision (FID) deadline for VRP1 extended until 30^th September 2023 to align with approval timelines of banking syndicate led by the European Investment Bank; and
• Execution of Glencore offtake agreement for 100% of vanadium products subsequent to quarter end, removing volume risk and satisfying a key condition of debt financiers.

• Confirmation of potential industry-leading operating costs (1,768/t lithium hydroxide) for the proprietary, patented ELi process in engineering cost study (ECS) on a proposed 25,000tpa lithium-brine conversion plant in Portugal;
• Commencement of pilot test work program in Canada with focus on brine purification stage before electrolysis; and
• Design work advanced on planned demonstration plant at Bondaltis Estarreja chlor-alkali operation.

• Pre-feasibility study update for direct shipping (DSO) and mixed gravity concentrate (MGC) operation delivers ~$A375 NPV₁₀ over a 13-year operation with a 2.9yr payback at an IRR of 45% p.a.; and
• Continued negotiations for binding offtake agreement with Jiuxing Titanium and contract mining and crushing contractors to minimise capital outlay and maximise intrinsic value of Barrambie for shareholders.

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