Announcement PDF Element 25 Limited Investor Update Building a World-Class Battery Grade Manganese business July 2023 – London, New York, Toronto Investor Update ASX:E25 Disclaimer This presentation contains only a brief overview of Element 25 Limited and its associated entities (“Element 25") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Element 25's projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification. This presentation contains multiple forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Element 25’s control, may cause the actual results, performance and achievements of Element 25 to differ materially from those expressed or implied in this presentation. To the maximum extent permitted by law, Element 25 does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Element 25, and will not be responsible for any loss or damage arising from the use of the information. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Element 25 or its activities. Corporate Summary ASX Ticker: E25 Introduction: Issued Shares: 218M Share Price: A$0.55 Market Cap: A$120M Debt: Nil Developing the world class Butcherbird Manganese Project in Western Australia to produce high quality manganese concentrate and battery grade High Purity Manganese Sulphate Monohydrate (HPMSM) products for traditional and new energy markets. Reference: www.asx.com.au -3- Experienced Owners Team BOARD OF DIRECTORS Seamus Cornelius Chairman Lawyer Justin Brown Managing Director Geologist John Ribbons Non-Executive Director CPA Fanie van Jaarsveld Non-Executive Director Analytical Chemist Sam Lancuba Non-Executive Director Chemical Engineer Ian Huitson Study Manager Mining Engineer Sias Jordaan Marketing Manager Accountant Neil Graham Development Manager Chemical Engineer Recent additions strengthens Recentdepth additions of industry & operational strengthens depth experience for both& of industry mining and operational. chemical processing divisions. PROJECT DEVELOPMENT AND OPERATIONS TEAM Michael Jordon Chief Financial Officer CPA Doug Flanagan COO (HPMSM) Engineer -4- Gideon van Wyk GM Manganese Ore Bus. Mechanical Engineer Clint Moxham GM Operations. Mining Engineer/Geol. Our Strategic Vision… Stage 1 Stage 2 Stage 3 Stage 4 365Kt per annum 1 Mt per annum High Purity MnSO4 MnSO4 Expansion Expansion The Prize Zero Carbon Manganese™ In production, optimising process, preparing expansion Strong OEM support –signed with Stellantis for offtake and financing Engineering design and costing in progress using DMS option Long term - multiple HPMSM modules globally 1 year plan 5 year plan Cashflow Low capital cost, rapid start up to establish E25 as a producer while minimising dilution. Improved resource utilisation, reduction in unit operating costs, increased operating cash. Position E25 as a globally dominant producer of high purity, sustainable manganese products. -5- Best in class, zero carbon, ethically produced, scalable high purity manganese for global markets. Traditional Manganese & Battery Raw Materials HPMSM - EV FUEL Mn ALLOYS Used in steel, alloys and aluminium products. High silica concentrate suitable for Si-Mn alloys Global demand grows in line with steel consumption A key raw material for Electric Vehicle (EV) Batteries E25 Manganese Concentrate Australian location close to Asian markets New approach to improve HPMSM ESG credentials Strong demand growth linked to the rapid transition to EV mobility E25 process offers key advantages -6- Large long mine life manganese concentrate operation 100% E25 owned, long term tenure. E52/2350 M52/1074 Granted Mining Lease Measured & Indicated Simple Logistics Resources are the basis for the 42-year Base Case -7- Very simple geology equals low-cost, low impact manganese units Classification Tonnes (Mt) Mn (%) Contained Mn (Mt) Resource 263 10.0 20.8 Reserve 50.6 10.3 5.22 RESOURCE GROWTH POTENTIAL • Enough resource base for multidecade long expansion pathway. • Can produce concentrate, battery grade HPMSM and EMM without resource limitation. ENVIRONMENTALLY BENIGN OPERATION -8- • Ore from surface • No explosives required • No waste water • One reagent – water • Extremely low levels of contaminants Stage 1: Project Delivery Complete – Engineering Optimisation Progressing Process Water Storage Tails Storage ROM Stocks Main Access Road Processing Plant Ore Stockpiles Feedstock for HPMSM conversion -9- Our Goal – Zero Carbon High Purity Manganese… Stage 1 First production of manganese concentrate to sell to manganese alloy manufacturers Multi-stage growth potential Stage 2 Expansion of the concentrate production to produce manganese feedstock to convert to MnSO4 Stage 3 Establishing a conversion facility to convert the concentrate to battery grade HPMSM with renewable energy New Energy Vehicle (NEV) Demand Growing Strongly Umicore chemistries addres vehicles equals more EV batteries! of More total Light-duty CAM d Global CAM demand (GWh) LDV only – Chemistry split 2,400 ~25% CAGR 1,300 ~75% 400 Mn 2022 ~25% 2026 NMC/NCA, Manganese-rich Reference: McKinsey & Company: - Electric vehicles: The next growth engine in chemicals, 2023 - 11 - 2030 LF(M)P U a m d to d a Geopolitical Challenges are Influencing Investment Trends Supply Chain Diversification • Current battery raw material supply is dominated by China. • Single source supply threatens supply security. • Supply chain diversity increasingly important to OEMs. Manganese is increasingly important as an EV battery cathode material. OEMs are seeking ethical, cost competitive, low carbon supply. Australian HPMSM can solve these challenges. ESG • OEM commitments to zero carbon require low carbon supply. • E25 process provides the lowest carbon intensity HPMSM available. Transparency & Traceability • ESG considerations are increasingly influencing supply decisions. • Carbon Zero commitments by vehicle makers requires clarity on supply chain carbon intensity. • Single source Australian manganese processed in a vertically integrated USA facility for OEM customers can solve this challenge. Reference: McKinsey & Company: - Electric vehicles: The next growth engine in chemicals, 2023 - 12 - The Battery Industry is Looking to Manganese Changing Chemistries NMC LMR LFP LMFP Manganese in cathodes: 17% of material but only 2% of cost (NMC 622) Reference: Volkswagen, Stellantis, Tesla, CPM Group, Morgan Stanley Research, Bloomberg New Energy Finance Umicore Capital Markets Day 2022 Reference: Volkswagen, Stellantis, Tesla, CPM Group, Morgan Stanley Research, Bloomberg New Energy Finance Mn Battery Chemistries are Adapting to Supply Constraints Manganese, the battery raw material supply chain solution? PDAC 2023 Keynote Speaker “…manganese (is) the single most critical mineral for batteries right now,” he said. “How many companies outside of China make manganese commercially for a battery right now? Which is the hottest metal for batteries? How many? None, not one,” Hoffman said, adding “and there’s where the opportunity is — unbelievable.” “…manganese is the single most critical mineral for batteries right now…” Ken Hoffman, co-head of the EV battery materials research group and senior expert at McKinsey & Company https://www.benzinga.com/news/23/03/31265433/exclusive-ev-battery-guru-ken-hoffman-at-pdac-talks-critical-minerals-which-metals-will-rise Low cost, efficient HPMSM process – significant improvements… Problems with Current Technologies • • • • • The Element 25 Process makes significant changes & improvements… Large volumes of waste residues Toxic Reagents Inefficient Higher Cost Outdated processing technology Reagents/Cost Carbon Emissions Waste Residue Element 25 Process • • • • • More efficient (fast kinetics, reduced energy) Minimises reagent requirements Reduced carbon intensity Lower volumes of waste residues Non-toxic residues may be able to be repurposed. 99.99% MnSO4 - 15 - Targeting Zero Carbon Manganese – ESG is integral to our thinking • LCA covers Scope 1,2 and 3 emissions from mining through Existing producers often use high energy processes to the proposed USA-based HPMSM processing plant. like electrowinning and/or toxic reagents like fluoride. E25 HPMSM to produce ~1.7kg of CO2 for every 1kg of HPMSM: o ~ 67% lower than competitors in China. o up to 47% lower than competitors outside China. o ~26% lower than next lowest project’s optimised case. • E25 process is not yet fully optimised for carbon reduction. • E25 to explore renewable energy and other potential carbon reduction strategies to further reduce CO2. Supply chain transparency and traceability partner. 5.2 4.8 PUBLISHED PEER COMPARISONS Kg CO2 eq. per kg (Scope 1+2+3) • Global Warming Potential 3.2 2.3 1.7 ELEMENT 25 EURO MANGANESE (RENEWABLE) GIYANI METALS THE E25 PROCESS IS THE LOWEST CARBON INTENSITY OPTION FOR HPMSM TODAY Reference: Company ASX Release dated 16 February 2023 EURO MANGANESE (GRID) CHINESE PLANTS (CURRENT) Stage 3 Expansion of Conversion Capacity – Multiple Plants Planned EU JP KR Mn Concentrate Feedstock (33% Mn): Up to 1M tonnes per annum manganese concentrate production planned at the Butcherbird Project in Western Australia. MY • E25 manganese concentrate is a very AU stable, easily transported feedstock. • Allows location optionality for the processing facility. • Feasibility Study Site: Louisiana USA Multiple potential sites being explored. - 17 - Design One Build Many US Inflation Reduction Act 2022 – What’s Changed? Summary of Impacts on Battery Supply Chains • Regulations effective from January 1, 2025. • Requirement for 40% of battery materials to be sourced from north American or allied countries from 2024. • Increasing to 80% by 2026. • Allied countries include Australia, manganese is a qualifying critical mineral. What does this mean for E25? • E25 HPMSM can meet all the stated requirements of the new regulations. • E25 resource size can supply conversion requirements for USA customers to meet their consumption needs for decades. • Potential built in north America to ensure customers’ HPMSM requirements meet regulatory and strategic goals. • After calendar year 2024, the incentives will not be available for EVs that contain critical minerals that were “extracted, processed, or recycled by a foreign entity of concern”. Reference: DLA Piper website, Argonne National Laboratory, US Dept. of Energy Mn Potential Production Plant Site – Ascension Parish Louisiana Pre-FID Activities Underway with local Engineering & Construction Contractors: • Conducting detailed assessments of the viability of the pr0posed site. • Focusing on local content where possible. • Negotiating partnerships with local reagent suppliers. • Commercial frameworks being advanced to prepare for FID: • • Logistics – inbound and outbound • Reagents supply agreements • Site lease • Engineering (FEED progressing on time and budget) Working with potential local design and construction contractors to develop contracting strategies. • Looking to bring a range of community benefits to Ascension Parish which underpins significant incentives package (subject to approval) • Advancing approval discussions with relevant regulators . - 19 - Note: artist’s impression – subject to final design Proposed Production Plant – Ascension Parish Louisiana Ore Storage Processing Train 2 Processing Train 1 Product storage and despatch - 20 - Feasibility Study - compelling economics Offtake & Financing – Stellantis & General Motors & USD$30M equity prepay USD$85M senior debt • Binding agreements signed for offtake and funding. • Binding agreements signed for offtake and funding. • Key commercial terms include: • Key commercial terms include: • Five (5) year HPMSM supply commitment (nominal 10Ktpa). • Seven (7) year HPMSM supply commitment (up to 32,500Ktpa). • Stellantis commits US$30M funding to E25’s HPMSM • GM commits $85M funding to E25’s HPMSM processing facility. processing facility. • Funding committed as senior project debt. First US$15 has been completed as equity at A$1 per share. • Seven year post construction repayment schedule. • • Arrangement includes commitments from E25 with respect to ESG and IRA. (Reference: Company ASX Release dated 9 January 2023) • Arrangement includes commitments from E25 with respect to ESG and IRA. (Reference: Company ASX Release dated 26 June 2023) Project Financing Strategy – Building the Capital Stack Multiple funding pathways being actively negotiated: US$30M $15M Equity & $15M Prepay Binding documents executed • US$115M secured through GM and Stellantis deals. • Discussions in progress with other potential offtake partners. US$85M Senior debt Binding documents executed • Offtake + Finance. • Debt/Pre-Pay/Equity all in play. US$30-50M • Other funding avenues: Senior debt/Prepay/Equity with offtake Negotiations in progress. • Nordic/Green Bonds/PE Debt. US$100-150M • Traditional project finance. Senior debt plus equity Negotiations in progress • Government funding – DoE/DoD. US$289M • Green bonds. Construction Capital Cost Feasibility Study Estimate for Train 1 Construction - 23 - Our Strategic Vision… Stage 1 Stage 2 Stage 3 Stage 4 365Kt per annum 1 Mt per annum High Purity MnSO4 MnSO4 Expansion Expansion The Prize Zero Carbon Manganese™ In production, optimising process, preparing expansion Strong OEM support –signed with Stellantis for offtake and financing Engineering design and costing in progress using DMS option Long term - multiple HPMSM modules globally 1 year plan 5 year plan Cashflow Low capital cost, rapid start up to establish E25 as a producer while minimising dilution. Improved resource utilisation, reduction in unit operating costs, increased operating cash. Position E25 as a globally dominant producer of high purity, sustainable manganese products. - 24 - Best in class, zero carbon, ethically produced, scalable high purity manganese for global markets. Thank you For more information, please contact Element 25 Limited: +61 8 6375 2525 admin@e25.com.au www.element25.com.au ASX:E25 Our Strategic Vision… FUTURE FOCUS CURRENT FOCUS Resource scale of the Butcherbird Project underpins long-term growth. Company Growth Stages Industry Segments Opportunity Manganese Ore All Manganese Industries Reliable Long Term Supply Ethical Clean Manganese Supply Long term ethical supply of manganese units for downstream processing Manganese is the world’s fourth largest metal market and is used in many products from steel to batteries, glass, ceramics and more. Demand for high quality, ethically sourced manganese units remains strong. Australia is close to market and geopolitically stable. Manganese Sulphate Lithium Ion Battery Cathodes Electrification of Global Vehicle Fleet Powering the EV Revolution Providing ethical, low carbon battery materials to enable the EV transition Manganese offers advantages including increased safety, lower costs and ethical supply. High Mn cathodes are in focus. A macro trend that will dominate the car industry for decades. Demand for high quality ethical HPMSM to grow for many years. Manganese Metal Steel and Specialty Alloys Supply Chain Diversity Future R&D Pathway Supply chain issues not limited to batteries. Traditional consumers are also desperate for ethical, low carbon supply of EMM. Strong interest from steel makers to access alternative, ethically sourced, low carbon steel inputs. Applying the E25 technology to other manganese products including EMM. Reserves and Resources Maiden Ore Reserve1 Category Tonnes (Mt) Mn (%) Contained Mn (Mt) Proved 14.4 11.5 1.65 Probable 36.2 9.8 3.56 Total 50.6 10.3 5.22 • indicated resources to reserve. • Maiden Reserve only exploits approximately 20% of global mineral resource. Global Mineral Resource2 Category Tonnes (Mt) Mn (%) Si (%) Fe (%) Al (%) Measured 16 11.6 20.6 11.7 5.7 Indicated 41 10.0 20.9 11.0 5.8 Inferred 206 9.8 20.8 11.4 5.9 Total 263 10.0 20.8 11.4 5.9 1Reference: Element 25 Limited ASX release dated 30 September 2022. 2 89% conversion of measured and Reference: Element 25 Limited ASX releases dated 17 April 2019. - 27 - • Excellent potential for future expansion. • More drilling has potential to add to global resource. Competent Person’s Statement The information in this presentation that relates to Exploration Results is based on information compiled by Mr Justin Brown who is a full-time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Justin Brown has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Justin Brown consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. All references to Mineral Resources pertain to the ASX release dated 17 April 2019. The Company confirms that all material assumptions, underpinning the estimations continue to apply and have not materially changed. All references to Mineral Reserves pertain to the ASX release dated 30 September 2022. The Company confirms that all material assumptions, underpinning the estimations continue to apply and have not materially changed. For further information on Element 25 Limited and its Projects please visit its website at www.element25.com.au which contains copies of all continuous disclosure documents to ASX, Competent Persons’ Statements and Corporate Governance Statement and Policies. DISCLAIMER The views expressed herein are not necessarily the views of the Australian Government, and the Australian Government does not accept responsibility for any information or advice contained herein. - 28 -