Sprott RE and 121 Mining Investment EMEA Conferences
Powering the green transformation Sprott Rare Earths Conference November 2021 ASX: PEK Disclaimer This document has been prepared as at November 2021 by Peak Resources Limited (the “Company”) . The document is for information purposes only and has been extracted from documents or materials which have been filed with the Australian Stock Exchange and/or the Australian Securities and Investments Commission and/or publicly available information . While every effort is made to provide accurate information, this document and the information contained in it is subject to material updating, revision and further amendment, and therefore the information contained herein is not a substitute for the recipient’s independent investigation and analysis . It will be the recipient’s responsibility to undertake such independent investigation, assessment or analysis of the legal, taxation, financial and other consequences of the investment opportunity, including the merits of investing and the risks involved . In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the investment opportunity . All information in this document is subject to change without notice, and any person who receives this document should not rely or act upon it . This presentation is not an offer or invitation to subscribe for or purchase securities in the Company (or any other securities) and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever . Neither this document nor the information contained in it should be considered a recommendation by the Company or any of its shareholders, directors, officers, agents, employees or advisers in relation to any investment opportunity in the Company . The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions . While the information contained in this presentation has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representation or warranty (express or implied) as to the accuracy, suitability or completeness of the information contained in this presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed . Accordingly, neither the Company nor any of their shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability or responsibility for any loss, damage, cost or expense whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this document and the information contained in it . Certain statements contained in this document constitute : ( i ) “forward - looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 ; (ii) forward looking information under the provisions of Canadian provincial securities laws ; and/or (iii) other forward - looking statements, estimates and projections which by their nature involve substantial risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future . When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward - looking statements or information . Such statements include without limitation : statements regarding timing and amounts of capital expenditures and other assumptions ; estimates of future reserves, resources, mineral production, optimization efforts and sales ; estimates of mine life ; estimates of future internal rates of return, mining costs, cash costs, mine site costs and other expenses ; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof ; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production ; estimates of reserves and resources, and statements and information regarding anticipated future exploration ; the anticipated timing of events with respect to the Company’s mine sites and statements ; strategies and the industry in which the Company operates and information regarding the sufficiency of the Company’s cash resources . Such statements and information reflect the Company’s views, intentions or current expectations as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information . Many factors, known and unknown could cause the actual results, outcomes and developments to be materially different, and to differ adversely, from those expressed or implied by such forward looking statements and information and past performance is no guarantee of future performance . Such risks and factors include, but are not limited to : the volatility of prices of rare earth elements and other commodities ; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates ; uncertainty of future production, capital expenditures, and other costs ; currency fluctuations ; financing of additional capital requirements ; cost of exploration and development programs ; mining risks ; community protests ; risks associated with foreign operations ; governmental and environmental regulation ; the volatility of the Company’s stock price ; and risks associated with the Company’s by - product metal derivative strategies . These forward - looking statements, estimates and projections speak only as of the date of this document . Subject to any continuing obligations under applicable law and the ASX Listing Rules, the Company does not intend, and does not assume or undertake any obligation, to update or release any revisions to, these forward - looking statements, information, projections and estimates to reflect events or circumstances after the date of this document . Furthermore, in furnishing this document, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this document or to correct any inaccuracies in, or omissions from, this document which may become apparent . Compliance Statement I nformation contained in this presentation relating to financial forecasts, production targets, infrastructure, project execution, cost estimating, metallurgical test work, exploration results, Mineral Resource estimates , Ore Reserve estimates and studies are taken from the Company’s ASX announcements dated 22 February 2016 , 2 March 2017 , 12 April 2017 , 28 August 2017 , 12 October 2017 , 25 August 2021 and 28 October 2021 . The ASX announcements are available to view on / https : //www . peakresources . com . au/asx - announcements/ . The Company confirms that at this time it is not aware of any new information or data that materially affects the information included in the relevant announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed . The Company confirms that at this time the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements . The Company also advises that it is undertaking a Bankable Feasibility Study Update and negotiating an Economic Framework Agreement with the Government of Tanzania, and the outcome of one or both, may confirm new information or data that materially affects the information included in the relevant announcement . 2 Teesside Rare Earth Refinery ? Strategic location ? Chemical processing experience ? “Plug and play” infrastructure solution ? Nameplate capacity - 9,900 – 11,600tpa of REO equiv. - incl. 3,000 – 3,500tpa of NdPr Oxide United Kingdom Tanzania Who we are A unique Tanzanian - UK opportunity to develop integrated world - class rare earth operations to support global decarbonisation Ngualla Rare Earth Mine and Flotation Plant ? One of the largest and highest grade undeveloped NdPr deposits ? High - grade of 4.80% REO Reserves ? +20 year life - of - mine ? High grade concentrate of 45% REO 3 Note: The Bankable Feasibility Study (“BFS”) is reported in the Company’s ASX announcements dated 12 April 2017, 28 August 20 17, 12 October 2017. The BFS Update is reported in the ASX announcement dated 25 August 2021 and the Target Production Capacity Increase in the ASX announcement dated 28 Octobe r 2 021. The technical information and Competent Persons Statements for the Ore Reserves and Mineral Resources are reported in the Company’s ASX announcements dated 22 February 2016, 2 March 2017 and 12 April 2017. Tees Valley / Teesside Integrated upstream - downstream strategy ? Tanzanian Cabinet approval of a Special Mining Licence application in July 2021 ? Fully piloted flowsheet from Ore - to - NdPr Oxide ? Completed Bankable Feasibility Study with update underway ? + 20 year life - of - mine supported by Ore Reserve ? Ore Reserves account for less than 20% of Mineral Resource Our Unique Positioning Corporate snapshot Positioned to become one of the world’s lowest cost, fully integrated rare earth producers Share Price Shareholder Summary Capital Structure Shares 1,988 m Share Price 1 0.07 A$/sh 52 Week Range 0.041 – 0.155 A$/sh Market Capitalisation 1 137 A$m Cash 2 20.6 A$m Debt 2 - A$m 1 ASX figures as at 19 November 2021 ; 2 Cash balance as of 30 September 2021 $0.00 $0.04 $0.08 $0.12 $0.16 Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 Apr 21 Jul 21 Oct 21 A$/sh 21.93% 24.30% 53.80% Appian Capital Remaining Top 20 Other 1,988m shares 4 Recent milestones 5 Significant de - risking and major milestones achieved within last six months 16 April 2021: Implementation of Teesside Planning Permission Milestones supporting de - risking 22 July 2021: Ngualla SML application approved by Tanzanian Cabinet 6 August 2021: Announcement of two - tranche A$30m capital raising 28 September 2021: Shareholders approve Tranche 2 of Placement, SPP and ANRF Royalty Agreement 28 May 2021: Execution of 250 year lease over Teesside Refinery site 6 August 2021: Announcement of proposed repayment and termination of ANRF Royalty Facility 6 September 2021: Date open for Share Purchase Plan (SPP) 25 August 2021: Commencement of BFS update 13 August 2021: Tranche 1 of Placement completed 8 September 2021: Announcement of senior technical and commercial executive appointments 1 October 2021: SPP closes at ~A$1.7m Peak’s investment thesis 6 Differentiated rare earth exposure…world class high - grade deposit with de - risked integrated strategy 1 See ASX Announcements in relation to BFS referenced on Slide 3; 2 See ASX Announcements dated 28 May and 11 June 2021; 3 See ASX Announcement dated 22 July 2021. 1. Compelling NdPr / market outlook • Strong nexus to global decarbonisation initiatives • Rapid growth in EV and wind turbines • Increasing prices and market tightness 2. World class high - grade deposit 1 • High grade (4.8% TREO) with low radionuclides and acid consuming elements • +20 year mine life (based on Reserves) • Low opex and capex intensity 3. Vertically integrated • Integrated operation from Ore - to - NdPr Oxide • Optimised margins across value - chain • Reduced reliance on Chinese refiners 4. “Plug & Play” refinery solution 2 • Strategic location with 250 - year lease • Proximity to infrastructure and utilities • Benefits from “Freeport” status 5. De - risked execution strategy 1,3 and compelling value • SML approved by Tanzanian Cabinet with all key approvals in place • Flowsheet based on extensive pilot plant work • Robust BFS completed in 2017 with BFS update underway • Supporting robust economics and returns 6. Experienced Board and Management • Well - rounded Board with combined technical, commercial, governance and Tanzanian experience • Management team with extensive international and African mining, marketing and rare earth expertise 1. Compelling market … emerging deficit 7 Rapid growth in demand for NdFeB magnets supporting a growing supply - demand deficit for NdPr Oxide - 50 100 150 200 250 300 2020 2021 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F kt NdFeB Magnet Uses Others (Aerospace, Defense, Medical, etc.) Consumer Electronics, Appliances & Powertools Industrial Applications Wind Power Generators Automotive Micromotors, Sensors & Speakers EV Traction Motors (40) - 40 80 120 160 2022f 2023f 2024f 2025f 2026f 2027f 2028f 2029f 2030f kt NdPr Oxide Balance Production Demand Balance 1 Adamasintel report Q3 - 2020 NdPr oxide market balance… emerging deficit 1 NdFeB magnet consumption… CAGR of 9.7% from 2020 - 2030 1 1. Electric vehicles… the accelerating revolution 8 Accelerated transition at both national and industry level towards EV implementation and ICE phase out National Policies & Recent Developments UK • New ICE sales to be banned from 2030 • Launch of “Driving the Electric Revolution” and an associated £80m investment in electrification technologies • A commitment of £3.2b funding in Nov 2021 to support EV and offshore wind development • An additional £350m in funding announced in Oct 2021 to the existing £1b Automotive Transformation Fund • Recent EV investment commitments – Nissan establishing a £1bn EV hub – Stellantis £100m investment for its first dedicated battery electric vehicle site – Ford establishing a £230m EV factory Global Automotive Industry Targets +1m EV capacity 40% EV sales by 2030 ICE phase - out by 2035 100% EV by 2025 ICE phase - out by 2030 ICE phase - out by 2030 ICE phase - out by 2036 ICE phase - out by 2030 70% EV Europe by 2030 ICE phase - out by 2030 15x new BEW in 2025 50% sales EV / hybrids by 2030 ICE phase - out by 2040 EU • Proposal to ban sale of new ICE from 2035 • Public charging stations to be installed no more than 60km apart on major roads by 2025 • Targeting 3.5m new charging stations by 2030 • Construction of the Tesla Gigafactory in Berlin • Auto brands planning to switch entirely to EV’s in EU by 2030 – Bentley, Volvo, Ford, Opel & Vauxhall USA China • March 2021 - announcement of US$174bn EV package – 500k charging stations – Consumer rebates – Electrification of government fleet • November 2021 – US$12b IPO of EV maker Rivian Automotive • Targeting 50% EV market share by 2035 • Ban of ICE versions of motorcycles / three - wheelers in some cities • Continuation of a New EV subsidy until 2022 Glasgow / COP26 • 32 countries committed to banning the sale of new ICE vehicles by 2040 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21 US$/kg Historical NdPr Oxide price, 2N 1 1. Compelling market … rising projected prices 9 Market tightness and projected deficits to support higher long - term prices $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F US$/kg Forecast NdPr Oxide price, 2N 2 Current Spot $122.18 1 Asian Metal. 2 Adamasintel. Note: range covers three updated pricing scenarios (real 2020 US$) released in May 2021 3 OCBRITDA = Operating cost before royalties, interest, tax, depreciation and amortisation; based on sale of NdPr Oxide only Operating Cost (OCBRITDA 3 ) $32.24 Assumed Price (BFS) $77.50 1. Compelling market … need for diversity of supply 10 Increasing international focus on the need for diversity of supply and supporting rare earths production outside of China ? China’s dominance in supply ? Strategic importance of rare earths ? Rumoured further Chinese consolidation ? Nexus with e - mobility and decarbonisation ? Increasing market tightness ? COVID - 19 related supply disruptions ? Rising geo - political and trade tensions ? Australian Government - “Resources Technology and Critical Minerals Processing National Manufacturing Priority” road map ? European Union - European Commission President, Ursula von der Leyen, warning against over - reliance on China for rare earths ? United States - President Biden issuing an executive order to review critical material supply chains including rare earths 85.5% 4.5% 10.0% Global Rare Earth Production China Legal China Illegal Non China Need for Diversity of Supply… Key Points International Developments… Recent Initiatives 1 Adamasintel report Q3 - 2020 11 Mass production of EVs has commenced… Behind each Battery is a Motor • Over 90% of all new energy vehicles will be equipped with an NdFeB permanent magnet motor 1 • 0.5 - 1kg per vehicle is the incremental demand for neodymium (Nd) and praseodymium (Pr) for each internal combustion engine (ICE) vehicle which gets replaced by a new energy electric vehicle (48v mild Hybrid, HEV, PHEV, BEV) 1 • 40 countries have committed to banning the sale of new ICE vehicles by 2040 Transition to renewable generation… 1 Megawatt from 200kg NdPr Oxide • Each direct drive wind turbine uses a permanent magnet motor that generates between 2 - 6MWof performance 1 • Each megawatt requires approx. 200kg pure NdPr Oxide 1 • At Glasgow COP26 the world committed to “phasedown” of coal power with 26 countries also committing to a ban of new coal power plants 1. NdPr demand growth … underpinned by EVs and wind turbines 1 Adamasintel report Q3 - 2020 11 12 1. NdFeB Magnets… supports emerging hydrogen vehicles 1 ’Research and Markets – Hydrogen Fuel Cell Vehicle Market Research Report Hydrogen Vehicles … the alternative Hydrogen vehicles also use NdFeB Magnets • Hydrogen vehicles based on hydrogen fuel cell technology seen to be an alternative to growingly mainstream EV technology based on rechargeable electric batteries • Hydrogen vehicles have advantage of shorter refuelling (recharging) times and longer driving ranges compared to standard EV technology • Fuel cell technology particularly suitable for long - haul heavy vehicles including heavy duty trucks, buses, coaches and trains • Hydrogen vehicle sales forecasted to grow at a CAGR of ~ 11 % through to 2025 1 • Hydrogen vehicles also require an electric motor – all commercially available vehicles currently use permanent magnet technology utilising NdFeB magnets Fuel - Cell Vehicle Permanent Magnet Motor (NdFeB containing) Toyota Mirai 182 - hp/221 lb - ft AC permanent - magnet electric motor Hyundai Nexo 120kw/395NM permanent - magnet synchronous motor Hyundai Kona 150kW permanent - magnet synchronous motor Honda Clarity 135 kW synchronous permanent - magnet motor Peugeot e - Expert 100kw permanent - magnet motor 12 2. World - Class Project … Ngualla is large scale and high - grade 13 Large high - grade Reserves and Resources supporting a low cost and potentially multi - generation project Location: Tanzania ( ~1,000km west of Dar es Salaam and ~150km from Mbeya) Geology: Weathered carbonatite with a high - grade bastnasite - r ich zone, low in acid consuming elements and radionuclides Ore Reserves: 18.5Mt grading 4.80% REO for 887kt REO Mineral Resources: 214.4Mt grading 2.15% REO for 4.61Mt REO Life of Mine: +20 years (covering only Ore Reserves) Mining: Open Pit with low strip ratio of 1.77 ROM Throughput: 800ktpa dry ore Annual Production: 37.2ktpa of concentrate (45% TREO grade) Environmental Certificate: Received March 2017 Mining Licence: SML application approved by Tanzanian Cabinet but yet to be formally granted 1 See ASX Announcements in relation to BFS referenced on Slide 3 2. World - Class Project … Ngualla’s multi - commodity potential 14 Subject to further exploration there is potential for Ngualla to become a multi - commodity project 1 See ASX Announcements in relation to BFS referenced on Slide 3 • Occurs in the North - East of deposit • Strikes as high as c.35% Fluorite to date • Uses - chemical, metallurgical and ceramic processes Fluorspar Niobium Phosphate Barium • Occurs in the North - East of deposit • Strikes c.1% Nb 2 O 3 to date • Uses - high strength steel alloys and in super conducting materials • Occurs in the North - East of deposit • Strikes c.20% Phosphate to date • Uses – key component of fertilisers • Occurs within same mineralisation zone as rare earth project – Weathered Bastnaesite contains c.40% BaSO 4 • Uses - petroleum drilling 2. World Class Project ... Potential growth options at Ngualla and Teesside 15 Multi - commodity potential at Ngualla and scope for third party tolling and downstream expansion at Teesside Teesside Ngualla Monazite Concentrate Ngualla contains significant monazite mineralisation within its Southern Rare Earth Zone which could support a direct concentrate export operation Heavy Rare Earths Peak has identified heavy rare earth rich apatite mineralisation within the Northern region of the Ngualla deposit including Dysprosium and SEG Commodity Adjacencies The Ngualla deposit is highly prospective for a range of commodities including niobium, fluorspar and phosphate 1 2 3 Tolling of 3 rd Party Concentrate Expansion of the Teesside refinery and subsequent tolling and/or offtake of 3 rd party rare earth concentrate Downstream Development Further downstream integration into Rare Earth supply chain including development of alloy and/or magnet facilities Rare Earth Recycling Development of a Rare Earth recycling facility which extracts metal content from used magnets and other electrical components 4 5 6 3. Vertically integrated … from Ore - to - NdPr Oxide 0% 20% 40% 60% 80% 100% Concentrate Mixed Carbonate Refined Oxide Realisable price 1 (% of ct. NdPr Oxide value) 16 Strategically and financially compelling approach to optimising the value chain Optimised supply chain ? Reduced supply chain risks with total control over refinery feed ? Removes reliance upon Chinese oxide refinery / tolling solutions ? Ability to further optimise integrated system for any changes in market conditions 1 Enhanced value ? Greater value capture of contained RE metal in producing refined oxides ? Ability to expand mine and refinery in the future to unlock additional revenue streams (export of concentrate, tolling of 3 rd party concentrate) 2 Unlocking of strategic partners and funding opportunities ? Unlocks strategic partners i.e. partnership, offtake and funding opportunities aimed at supporting the development of ex - Chinese supply chains 3 1 Internal Analysis 17 Strategic location with existing infrastructure and utilities and access to competitively priced reagents London Tees Valley Location: • Wilton Int. Teesside Industrial zone in Tees Valley N - E England Port: • Within 3 km of Teesport deepwater port • Teesport 3rd largest UK port by volume Other Infrastructure: • Road, rail, air and sea connections Utilities: • Access to competitively priced chemicals/reagents, water disposal & treatment facilities • Power generated on - site Workforce & Government Support: • Experienced and skilled workforce • Strong community and government support Lease Agreement: • Size – 19ha site • Term – 250 years • Rent – nominal “peppercorn” payment Planning Permission: • Granted by regional council • Implemented in April 2021 Status: • “Freeport Status” • Tax, planning and customs benefits 4. “Plug & Play” solution … UK - Teesside Refinery 5. Re - risked execution… Special Mining Licence application approved 18 The SML application has been approved by the Tanzanian Cabinet Ngualla … SML and remaining PL 1 See ASX Announcement on 22 July 2021 Tanzania • Well established mining jurisdiction • Fourth largest gold producer in Africa • Pro - business and foreign investment policies under new President Samia Suluhu Hassan • Significant momentum in mining sector under President Hassan including formal granting of Kabanga Nickel’s SML in Oct 2021 Ngualla SML … Specifics • SML application approved by Tanzanian Cabinet • Exclusive rights to mine over 18.14km 2 area • To be issued to PR NG Minerals Ltd (“PR NG”), a 100% Peak subsidiary • PR NG to transfer the SML to a newly incorporated entity to be owned beneficially - 84% by Peak and 16% by the Tanzanian Government • Remaining Prospecting Licences (“PL”) to be retained by PR NG Next steps: - Finalise Newco Constitution & Shareholders’ Agreement - Formal grant SML and Framework Agreement 5. De - risked execution… potential timeline 19 Construction is currently targeted to commence by the end of December 2022 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 2022 2023 2024 Framework Agreement Bankable Feasibility Study Update FEED EPCM / EPC Selection Offtake Agreements Project & Export Financing Site Preparation & Early Works Ngualla Mine & Concentrator Detailed Design and Construction Teesside Refinery Detailed Design and Construction Commencement Commissioning and Ramp - Up: Dec 2024 Regulatory: Technical: Commercial: Construction: Final Investment Decision: Dec 2022 5. Compelling value proposition … original BFS and optimisation 20 Large scale, high - grade deposit with a long mine life and low opex and capex intensity. Final BFS Update expected in June 2022 2,810 4,230 1,900 330 NdPr Oxide La Oxide Eq. Ce Oxide Eq. SEG + Mix. Heavy Annual Production (tpa) 9,300tpa of RE Oxide eq. $77.50 $3.70 $2.20 $8.00 NdPr Oxide La Oxide Eq. Ce Oxide Eq. SEG + Mix. Heavy Pricing Assumptions (US$/kg) Ngualla Project Metrics Metric 2017 BFS 2021 BFS Update Target LOM 26 years 20 years Av. Grade 4.8% REO 4.8% REO Strip Ratio (x) 1.77x 1.77x Av. Throughput 711ktpa 800ktpa Av. REO Concentrate 32.7ktpa 37.2ktpa Av. Production (REO eq.) 9.3ktpa 9.9 – 11.6ktpa Financial Dashboard: BFS and Optimisation 2017 Metric Post tax & Royalties Pre tax & Royalties IRR 22% 26% NPV 8% US$614m US$914m BFS and Optimisation - 2017 *1 Royalties & tax subject to the negotiations with the Tanzanian government. US $32.24 is the breakeven point for positive c ash flow only from the projected 2,810t p.a. NdPr sales; . *See ASX Announcement: “ Bankable Feasibility Study Update Target Production Capacity Increase ” dated 28 October 2021 *See ASX Announcement: “ Lower price deck delivers similar BFS results for Ngualla ” dated 12 October 2017 # See ASX Announcement: Process optimisation study boosts Ngualla’s operating margin ” dated 28 August 2017 ; BFS Price deck: NdPr Mixed Oxide 2N Min 75% Nd2O3 US $77.50/kg; Cerium* US$ 02.20/kg; Lanthanum* US $03.70/kg; SEG & Mixed Heavy*US $08.00/kg n.a 10 n.a 15 25 25 180 n.a 30 50 53 450 850 2,700 Vital Metals Ionic Rare Earths RareX Peak Resources Hastings Technology Pensana Arafura Radionuclides Uranium (ppm) Thorium (ppm) 5. Compelling value proposition … attractive peer positioning 21 Peak contains the highest grade and largest resource endowment of all rare earth developers and low radionuclides, whilst also trading at a significant multiples discount 30 44 79 352 383 834 814 105 217 227 1,397 1,450 3,766 3,883 Ionic Rare Earths RareX Hastings Technology Vital Metals Arafura Pensana Peak Resources Mineral Resource 2 NdPr (kt) REO (kt) 0.0% 0.2% 0.3% 0.4% 0.4% 0.7% 1.0% 0.1% 1.2% 1.4% 1.5% 1.2% 2.8% 4.8% Ionic Rare Earths RareX Pensana Vital Metals Hastings Technology Arafura Peak Resources Grade 1 NdPr% REO % 22x 66x 112x 155x 134x 1,122x 1,139x 105x 300x 446x 587x 664x 3,241x 3,970x Peak Resources Pensana Vital Metals Arafura RareX Hastings Technology Ionic Rare Earths EV / Ct. Resource Multiple EV / ct. REO (US$ / t REO) EV / ct. NdPr (US$ / t NdPr) 1 Grades for Peak Resources, Arafura and Hastings Technology based on Ore Reserve while remaining peers based on Mineral Resour ce (no published Ore Reserve) 2 Net Mineral Resource accounting for relevant ownership stake in asset See Appendix II for further details 6. Experienced team … well - rounded Board of Directors Broad mix of technical, commercial, governance, legal and Tanzanian experience NON - EXECUTIVE CHAIRMAN: TONY PEARSON • Experienced natural resources executive and company director • Chair of ASX - listed Cellnet, Trustee of the Royal Botanic Gardens & Domain Trust and a Non - Executive Director of ASX - listed Xanadu and Communicare Inc. • B.Com, Accounting and Finance MANAGING DIRECTOR: BARDIN DAVIS • 20+ years investment banking and corporate experience in mining and energy sectors • Former roles include CFO of UPC/AC Renewables Australia, Head of Resources & Energy Group, Asia - Pacific for HSBC and Head of Metals and Mining Asia for Macquarie Capital • BAg Econ (1 st Class Hons), GradDipAcc, MAppFin, GAICD NON - EXECUTIVE DIRECTOR: GISELLE COLLINS • Deep experience across audit, risk, governance and compliance • Chair of Larrakia Darwin Hotel and a Non - Executive Director of Hotel Property Investments, Cooper Energy and Generation Life and a Trustee of the Royal Botanic Gardens & Domain Trust • BA Econ, GradDipAppFin, Chartered Accountant (CAANZ), GAICD 22 NON - EXECUTIVE DIRECTOR: HON. ABDULLAH MWINYI • Member of Tanzanian Parliament since 2007, and previously a Member of the East African Legislative Assembly (2007 – 2017) • Chairman of Swala Oil and Gas (Tanzania) Plc • Lawyer by profession and a founder of the firm Asyla Attorneys • LLB, LLM N ON - EXECUTIVE DIRECTOR: REBECCA MORGAN • Geologist and mining engineer with 19 years of resources industry experience working with major mining houses, consulting groups and explorers globally, including Africa • Currently Raw Materials Manager for Angolan - focused Minbos Resources • BSc App Geology (Hons), MSc (Mine Engineering) 6. Experienced team … extensive management experience International and African mining, development, commercial, marketing and rare earth expertise 23 COMPANY SECRETARY & CFO: PHILIP RUNDELL • 30+ years accounting experience and 10+ years secretarial and compliance experience • Former Partner at Coopers & Lybrand (now PwC) and Director at Ferrier Hodgson • B.Com, CA HEAD OF OPERATIONS: LELLO GALASSI • 20+ years managing and developing large international mining projects in the Democratic Republic of Congo, Guinea, South Africa, Chile, Guyana, Spain, Australia & Canada • Previous roles with Sabina Gold & Silver, ICL, Rio Tinto, Freeport McMoran and Phelps Dodge • MSAE, Aerospace Engineering & Computational Fluid Dynamics HEAD OF TECHNICAL SERVICES: MARK GODFREY • 40+ years metallurgical experience across numerous large mining companies including Glencore, Newcrest, MMG, Rio Tinto and BHP • Extensive experience in feasibility studies, pilot plant test work, flow sheet optimisation and project commissioning • BSc (Chemical Engineering) HEAD OF MARKETING: ANDREA CORNWELL • 25+ years marketing experience across numerous commodities • Most recently VP Marketing for South 32, based in Singapore • Prior roles with Vale, Anglo American, Shell and BHP • B IntBus, MBA CONSULTING METALLURGIST: GAVIN BEER • 30+ years technical and operational experience across rare earth and critical metal sectors • Previously GM, Metallurgy for Peak between 2015 and 2017, where he was responsible for development and optimisation of current refinery flowsheet • BSc Extractive Metallurgy COUNTRY MANAGER: ISMAIL DIWANI • Background in accounting, government relations and administration • Commenced with Peak in 2015, and has held several regulatory, commercial and leadership roles • B.BusAdmin, CPA (Tanzania) Appendices Appendix I. Ngualla schematic flowsheet 25 High - grade reserves, minimal blasting required, low strip ratio (1.78 LOM), barite pre - float, REO flotation and production of a 45% high - grade concentrate Appendix II. Teesside Refinery schematic flowsheet 26 Alkali roast followed by solvent extraction… benefits from a high - grade concentrate, low levels of radionuclides and acid consuming elements and avoids the environmental impacts of acid baking Appendix III. Peer Positioning 27 Information Sources Company Update Vital Metals n/a Ionic Rare Earths https://ionicre.com.au/wp - content/uploads/post/210303.pdf RareX https://www.rarex.com.au/post/high - neodymium - praseodymium - enrichment - confirmed - at - cummins - range - rare - earths - project Hastings Technology https://www.epa.wa.gov.au/sites/default/files/Referral_Documentation/Hastings%20APPENDIX%205 - 6.pdf Pensana https://www.asx.com.au/asxpdf/20140124/pdf/42m93lvmv1kv4q.pdf (previous asset owner, Rift Valley Resources) Arafura https://www.arultd.com/images/NEW_RADIATION_FACT_SHEET.pdf Radionuclides Ore Reserves & Mineral Resources Company Update Vital Metals https://vitalmetals.com.au/resources/ Ionic Rare Earths https://ionicre.com.au/wp - content/uploads/post/210303.pdf RareX https://www.rarex.com.au/post/rarex - delivers - major - resource - upgrade - at - cumminsrange - rare - earths - project - wa Hastings Technology https://hastingstechmetals.com/projects/yangibana/yangibana - jorc - resource/ Pensana https://pensana.co.uk/wp - content/uploads/2020/09/longonjo - mineral - resource - estimate - upgraded - 14 - Sept - 2020.pdf Arafura https://www.arultd.com/projects/nolans.html Appendix III. Peer Positioning 28 Information Sources Company Update Vital Metals https://wcsecure.weblink.com.au/pdf/VML/02431215.pdf Ionic Rare Earths https://wcsecure.weblink.com.au/pdf/IXR/02407706.pdf RareX https://wcsecure.weblink.com.au/pdf/REE/02436325.pdf Hastings Technology https://www.investi.com.au/api/announcements/has/1b153a11 - 7f7.pdf Pensana https://pensana.co.uk/shareholder - information/ Arafura https://wcsecure.weblink.com.au/pdf/ARU/02448843.pdf Shares on Issue Financials Company Update Vital Metals https://wcsecure.weblink.com.au/pdf/VML/02444810.pdf Ionic Rare Earths https://wcsecure.weblink.com.au/pdf/IXR/02443925.pdf RareX https://wcsecure.weblink.com.au/pdf/REE/02444773.pdf Hastings Technology https://www.investi.com.au/api/announcements/has/0625762a - 53d.pdf Pensana https://pensana.co.uk/wp - content/uploads/2021/11/Pensana_AR_Final.docx.pdf Arafura https://wcsecure.weblink.com.au/pdf/ARU/02442292.pdf Contact +61 8 9200 5360 email@example.com peakresources.com.au Address: 190 St Georges Terrace, Mezzanine Floor, Perth, WA 6000 Postal address: PO Box 603, West Perth 6872 ASX: PEK ACN 112 546 700
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