Townsville Industry Breakfast

Benjamin BellManaging Director September 4, 2018

www.australianmines.com.au

We are a rapidly growing battery metals company that

specialises in cobalt, nickel and scandium for the

global electric vehicle (EV) sector.

• Founded in 2001

• Based in Perth, Western Australia

• Listed on the ASX under code AUZ

• Included in ASX ALL Ordinaries Index

• 90% owned by Australian retail investors

• Proven track record in mining

• One of ASX’s top performing stocks in FY2018 (recognised by the Australian Financial Review & Deloitte)

• Investing $1 billion in the Greenvale region (QLD) over

the next 3 years

Introduction to the Sconi Project

▪ Project overview

▪ Project timeline

▪ Development status Cross-section of Sconi ore body

www.australianmines.com.au

• Located near the town of Greenvale

• Will produce battery-grade cobalt and

nickel products for direct application in

electric vehicle batteries

• 100% owned by Australian Mines

• Life of project currently exceeds 20 years

• Construction workforce of 500 people

required between 2019 and 2021

• Once in production in 2021, the Sconi

Project will employ over 300 people on a

full-time basis

www.australianmines.com.au

• Converts raw cobalt-nickel ore into high-purity battery chemicals

• Ensures full value-add is captured on site (no further processing of product is required once

it leaves the Sconi site)

• Utilising a conventional, industry standard processing flow chart and construction design

20222018

Establishment of

24/7 Medical

Facilities

Upgrading the

regional Greenvale

Airport*

Upgrading of the

local road* and

telecommunications

Development of

training partnership in

Townsville

Finalise $1 billion

funding by

April 2019

Commence

construction by

June 2019

First export to

European battery

plant by Sept. 2021

Complete

Feasibility Study

September 2018

Commissioning of

processing plant by

July 2021

Construction of

accommodation at

Greenvale

* In close collaboration with the

Charters Towers local government

Upgrading sporting,

community facilities

in Greenvale*

• Product off-take partner = SK Innovation

• Korean-headquartered SK Innovation is a

global electric vehicle battery manufacturer

• SK innovation is part of global conglomerate

SK Holdings

• SK Holdings is the 57th largest company in the

world, with annual revenue in excess of

$150 billion

• SK Innovation provides batteries for

Mercedes Benz’s range of electric and hybrid-

electric vehicles for sale in Europe, as well as

Hyundai-Kia

• Signed binding agreement with Australian

Mines, for SK innovation to purchase 100% of

cobalt and nickel produced from Sconi

Community Engagement

▪ Local opportunities for the future

▪ Local construction opportunities

▪ Residential opportunities

Port of Townsville

• Around 90% of the ongoing annual operational expenditure will be with local

businesses

Ongoing operations at Sconi will require local businesses with experience in

maintenance, engineering, mechanical and electrical repairs, cleaning, assaying

and sampling

• The life-of-mine projection of at least 20 years for Sconi representing long term career

& contracting opportunities

• The Sconi Project will result in a significant upgrade of existing public and

common-use infrastructure located within the Greenvale region including roads,

airport and telecommunications

• The use of local businesses is a key requirement of the construction contract which

will be awarded to our head contractor.

• We have committed to develop an Australian Industry Participation (AIP) plan for the

Sconi Project.

In the construction phase, local businesses with experience in fabrication,

engineering, labour, plant and equipment hire, metalwork, welding, and drilling

would be invited to tender for work.

• Around 80% of the construction spend will be on local content utilising local suppliers.

• Australian Mines will continue to actively

engage with the Greenvale community

and Charters Towers local government

during the project’s development and

ongoing operation

• 80% of the Project’s total expected

workforce will be drawn from local area

• Proposing to operate a residential,

drive-in drive-out roster based out of

Greenvale, with remaining workforce

from Townsville

• Total expected workforce of 309 on-going

full time positions

• Includes indigenous employment targets

Roles Total Positions

Mining 93

General Administration 36

Environmental 5

Process Plant 92

Maintenance 55

Camp Management 28

TOTAL: 309 people

• Australian Mines is investing $1 billion

to build a battery metals plant near

Greenvale, Queensland

• Once in production, Australian Mines’

Sconi Project will rank as a Top 10

producer of cobalt globally

• Partnered with leading electric vehicle

battery manufacturer in SK Innovation

• Provides long-term career

opportunities for the local community

• Includes commitment to upgrade

existing public and common-use

infrastructure

Electric vehicle batteries being manufactured at SK Innovation’s facility

Benjamin Bell Managing Director

Australian Mines

6/66 St. Georges Terrace,

Perth, Western Australia

+61 8 9481 5811 info@australianmines.com.au www.australianmines.com.au