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TELLUS HOLDINGS LTD

The Role of Geological Repositories in the Environmentally Sound Management of Hazardous Waste

RichardMcAreeGeneral Manager - Business Development

7th International Contaminated Site Remediation Conference Incorporating 1st International PFAS Conference

11th September2017

Safety I Service I People I Sustainability

Safety

Service

People

Sustainability

TCO_3_110 _006_ Jul2017_Rev5

Disclaimer

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SummaryinformationThis presentation (‘Presentation’) has been prepared by Tellus Holdings Ltd (ABN 97 138 119 829) (‘Tellus’) and is for information purposes only. This Presentation contains summary information about Tellus and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete or comprehensive, and does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with other periodic announcements on www.tellusholdings.com.au

FutureperformanceThis Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies whichare subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions, and independent third party expertise.Such forward-looking statements, opinions, and estimates are not guarantees of futureperformance.

Not an offer and not investmentadviceThis presentation does not constitute an offer, invitation, or recommendation to subscribe for or purchase any security and neither this presentation nor anything contained in it shall form the basisof any contract orcommitment.

This presentation is not a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) and has not been lodged with the Australian Securities and Investment Commission(“ASIC”). The information provided in this presentation is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account therecipient’s investment objectives, financial circumstances or particular needs. Those individual objectives, circumstances and needs should be considered, with professional advice, when deciding if an investment isappropriate.

Risks of investmentAn investment in Tellus shares is subject to investment and other known and unknown risks, some of which are beyond the control of Tellus. Tellus does not guarantee any particular rate of return orthe performance of Tellus nor does it guarantee the repayment of capital from Tellus or any particular tax treatment. Information on key risks is contained at the end of this Presentation.

Not for distribution or release in the UnitedStatesThis presentation has been prepared for publication in Australian and may not be distributed or released on United States.This presentation does not constitute an offer or shares for sale in the United States or in any other jurisdiction in which such an offer would be illegal.

Safety and Quality

Tellus’ strategy is safety first and we maintain internationally recognised management systems

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What is a Geological Repository?Geological Repositories are increasingly seen as a method of permanently isolating difficult

to manage wastes from the biosphere using a multi barrier safety case. Recognized internationally by regulators, community and customers as best practice for higher hazard waste management

Principle benefits of geological repositories

Multi-barrier system (man-made or engineered barriers and a natural-barrier) underpinned by geology, hydrogeology and operational procedures

Permanently isolate waste from the biosphere in geological time

Passively safe (once the site is closed, it requires no ongoing monitoring)

Store like with like – creates oopportunity for future recycling/ recovery

No ongoing contingent liability

Considered “international best practice”

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Proven Low Risk Technology

150 projects worldwide

Europe a leader in UG salt storage – Germany 20 mines

Tellus business model and technology is proven international best practice

EU Waste Acceptance Criteria (2003/33/EC)

“….in salt mines, the salt is considered to provide total containment”.

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Advantages of Geological Repositories

Geological Repository – Arid Near Surface Clay (Eg: Sandy Ridge)

Landfill

6 * Adapted from 10th International Waste Management and Landfill Symposium, Sardinia, 2005, R. COSSU, Dipartimento IMAGE, Università di Padova, Via Loredan, 20, 35131 Padova

Engineered Barriers (Short Life)

• Landfills do not permanently isolate waste from the biosphere• Risk of groundwater contamination (pollutionrisk)• Typical landfill liner thickness ~1.5m or less• Lifespan of containment– 10-30 years(*)

• Cannot guarantee permanent isolation (hence cannot remove liability)

Natural Barriers (Long Life)

• Can permanently isolate waste from the biosphere• No risk of groundwatercontamination• Natural GeologicalBarriers• Lifespan of containment– hundreds of thousands to millions of years• Can issue permanent isolation / disposal certificates – hence can

removeliabilityGeological Repository – Deep Underground Salt (Eg: Chandler)

“Applying Environmentally Sound Management principles may result in a loweroption in the hierarchy being chosen but result in a better overall environmentaloutcome” UK Government - DEFRA

Environmentally Sound ManagementTellus’ Geological Repositories can uniquely meet both ESM solutions and support thecircular

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economy

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Key Criteria

Safety CaseSafety Cases for both Tellus facilities are based on multi barrier concept, underpinned by geology,

hydrogeology, operational procedures and in the case of Sandy Ridge, an arid climate

Packaging Transport Operations Closure & Control Period

Extensive Clay and Salt beds

Waste Characterisation

Engineered barriers during operations Natural barriers

• Site meets international and Australian site selection criteria

• Waste characterisation based on strict waste acceptance criteria

• Collaboration Agreement with Toll Group, for safe and reliable transport

• Store like with like materials, for operational safety and to create opportunities for the

future potential recovery of valuable materials

• Waste that cannot be recycled, can be permanently isolated

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Clay formation:~ 40m thick, ~40km wide and ~ 160km long, 70 million years old

Tellus - bringing “International Best Practice” solutions for a difficult to manage problem

Sandy Ridge - wastes accepted and excluded

Chemical waste (NEPM Schedule A List 1: Waste categories) Yes

Naturally occurring radioactive waste (“NORM”) – (LLW) Yes

Sealed Radioactive Sources - Low level radioactive waste (LLW) Yes

Intermediate (ILW) & High level radioactive waste (HLW) No

Waste Acceptance Criteria

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Chandler - wastes accepted and excluded

Chemical waste (NEPM Schedule A List 1: Waste categories) Yes

Naturally occurring radioactive waste (“NORM”) – Exemption Level Yes

Sealed Radioactive Sources - Low level radioactive waste (LLW) No

Nuclear Waste (enriched uranium & plutonium) - LLW, ILW,HLW No

Waste AcceptanceTellus has the ability to store and permanently isolate a broad range of hazardous materials across many

different industry groups

STORAGEAND PERMANENT ISOLATION OF HAZARDOUS WASTE

USING GEOLOGICAL REPOSITORIES

Fly Ash

STORAGE AND PERMANENT ISOLATION OF HAZARDOUS WASTE

USING GEOLOGICAL REPOSITORIES

Mercury andMercury Compounds

STORAGEAND PERMANENT ISOLATION OF HAZARDOUS WASTE

USING GEOLOGICAL REPOSITORIES

NORM Waste

STORAGEAND PERMANENT ISOLATION OF HAZARDOUS WASTE

USING GEOLOGICAL REPOSITORIES

Inorganic Chemicals

(NEPM Type D)

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Example NEPM Waste Types and Specific Wastes

• Type A - Plating and Heat Treatment • Asbestos

• Type B -Acids • Pesticides

• Type C -Alkalis • Fly Ash

• Type D - InorganicChemicals • Mercury

• Type F - Paints, Resins and Inks • NORM

• Type G -Organic Solvents • Pesticides

• Type J -Oils • PFAS

• Type M – OrganicChemicals • Spent PotLining

• Type N – Soil &Sludge • Sealed Sources(LLW)

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Tellus Geological Repository Projects

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Mount Walton - ClayVault WA (JV)

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Sandy Ridge Project (WA)

After 11 years of operations

Waste Inspection Building

Low Level Rad. Materials Store

Weighbridge

Admin office andInspection Gate

Container Yard

Kaolin ProcessPlant and Store

Kaolin Ore Stockpile

Services Area (fuel, power, water,

maintenance)

Technology Park(future)

Accommodation Village (1.8km)

Water Ponds and Wash-down

Water Supply (12km)

Active Mine Pit

Active Waste Cell 1st Cell being Rehabilitated

Closed Cells(monitoring phase)

Unique assets: Waste permanently isolated in ~ 70 million year old claybedGeology: Clay bed is ~ 6m deep under impermeable caprock, average ~ 40m thick, ~40km wide and ~ 160km long Aquifer and climate: No aquifer and in an arid area Infrastructure:7.6 km from existing IWDF site

Sandy Ridge Project (WA)

Cells in construction with waste placement under cover

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High integrity cell caps installed – site passively safe

Waste placement taking place with clay installed over waste

Sandy Ridge – Waste Placement

Sandy Ridge Video – not attached

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Chandler Project (NT)

Container wash down

Container Transfer Yard

Mine development Spoil Stockpiles

Temporary Salt

Stockpile

Topsoil Stockpile

Portal

Solar Hybrid PowerStation

Admin Building

Technology Park

ShaftsGeneral Stores and

Maintenance Facilities

Water pond catchment

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3.2km

1.5km

0.8km

1.8km

860 m downcast (salt productionshaft) 820 m upcast shaft (ventilation)5,760 m decline (waste andventilation)

Unique assets: Waste permanently isolated in a ~ 500 million year old salt bedGeology: Salt bed ~ 800m deep, ~ 250m thick, ~ 18km wide, salt bed (length unknown) Aquifer and climate: No aquifers have passed through the salt bed over the last ~ 500 million years. Located in an aridarea.Infrastructure: Has Access to Central Australian RailwayLine

Chandler Project (NT)

Individual rooms mined into salt bed allow permanent isolation orresource recovery later

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Tellus Solution

Geological Repositories - A Solution for Industry

• Most NEPM 75 wastes (Scheduleor Intractable wastes)

• NORM (Naturally Occurring Radioactive Material) &LLW (non-nuclear Low Level Radioactive Waste) such as Sealed Radioactive Sources (SRS)

• From any location inAustralia• Including hazardous wastes

for which there may currently be no practical or economicsolution

• Standard containers used for packaging and transport

• Full door to door logistics solution available in conjunction with industry leading transport & logistics partners (i.e. Toll Group)

• Transport partner can arrange any necessary movement permits

• Geological repositories recognised as international best practice, allowing a permanent isolation certificate (PIC) to be issued tocustomer

• “Chain of Responsibility” and“Cradle to Grave” obligationssatisfied(Legal)

• IAS 37 (Contingent liability) satisfied – removed from Financial Statements Accounting)

• (*Client to get independent accounting & legal advice)

• Cost of service can be materially below amount originally provisioned

• Domestic service where potentially only previous option was export (expensive)

• Typically significantly cheaper than any treatment or incineration basedalternatives due to simple, low energy, low technology solution

• Waste can potentially be removed from site in bulk, which saves time and further cost

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*

Characterisation

Pre gate – project management services Post gate - services

Treatment

Post gate - circular economy

Salt and clay sales

Tellus Services

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Packaging

Transport

Storage(retrievable)

Permanent Isolation

Resale of recovered materials

Recovery of valuablematerials (on / offsite)

Removing Contingent LiabilityTellus’ clients generate significant liabilities that aren’t easily removed

Tellus removes its clients’ liabilities by issuing Permanent Isolation Certificates

OperationalLiability

• Liabilityarises through approvalsobligations, generation ofwaste and rehabilitationrequirements

Legal Liability

• Liability is a consequence of OperationalLiabilityandencompasses legal title, duty of care, Directors’ duties, etc.

Financial Liability

• Liability recognised on clients’ balance sheets, whichnegativelyimpacts financialhealth and ability to optimise capital structure

PermanentIsolation inRepository

• Tellus permanently isolates clients’ waste in a geologicalrepository,employing best practice and proven methodology

Client Issued with PIC

• Tellus issues client a PIC, which can be used as evidence* by the waste producers stakeholders (auditor) that can potentially absolves the client of its hazardouswasteliabilityresulting in a net gain(*Client to get independent accounting & legal advice)

Removalof Financial Liability

• Tellus solves a valuable problem for its clients by removing financial liability from the balance sheet and improving clients’ financialpositions

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Late2018

Completion ofBFS, FID & financial

close (expected)

Build begins

Mid 2019Apirnta

operational (expected)

2021Chandler

operational

Timelines

Sandy Ridge Facility (WA)

October 2016

Lodged draftEISforadequacy

review withNTEPA

February2017

Lodged EIS forPublic

Exhibition

(6weeks)

Late H2 2017

Ministerial approval (expected)

2010 -2012>2 years of research acrossAustralia to find the bestsites2012 -2016>4 years of studies andstakeholder engagement

✓ ✓Chandler Facility (NT)

Late H22017

Ministerial approval(expected)

June2016

Lodged DraftPER,start offinal

environmentalapprovals process

✓

Late 2018 Sandy Ridge

ready for first placement

Late 2017 –Toll warehouses

available

April 2017

Lodged PER Submission✓

April 2017

Public exhibitionclosed✓

Australian Gov. Major Project Facilitation (MPF)

May 2017 Sandy Ridge and Chandler Projects awarded Major Project Facilitation (MPF) service by the Australian Federal Government

NT Gov. Major Project Status (MPS)

September 2014 Northern Territory Government grants Major Project Status to the Chandler Project

2013 –2016

>3 years of feasibility andapprovals related studies,drilling, pilots andstakeholder engagement✓

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Deep Geological Repositories – Case Study

Winsford Rocksalt Mine - UK

Largest salt mine in the UK - operating for over 170 years – combined mining and storage business.

Mining by drill and blasting

Operating since 1844Salt for snow and ice clearance in winter

Mining with continuous miners Large underground voids created

Located in rural part of NW England

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Minosus

Minosus JV set up by Salt Union Ltd and Veolia for storage and disposal of hazardous wastes

Level 3 verification testing

APC from Energy from Waste plantsSecure receiving facility constructed

WAC met – waste loaded for underground APC delivered in bulk - packed on site

Underutilised existing shaft

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Minosus – Dry Packaged Placement

Multiple packages taken underground and placed into secure permanent isolation location

Containers opened in sealed storage room

Containers being driven to disposal areaContainers received 200m below ground

APC bags “pyramid stacked” Monitoring of underground atmosphere

Transit containers moved into mine shaft

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Germany – Hydraulic Backfilling

APC residues used extensively as mine backfill incorporating liquid wastes as part of the recipe

Testing of backfill recipes

Liquid waste receiving tanksAPC residues being unloaded

Surface mixing and pumping plant APC backfill in disposal room

Bulk receiving of APC and liquid waste

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Contacts and Appendix

Key Contacts – Tellus

Richard McAree

General Manager - Business Development

: +61 2 8257 3395 : Richard.mcaree@tellusholdings.com

Scott Carroll

Technical Business Development Manager

: +61 2 8257 3395 : scott.carroll@tellusholdings.com