Neometals Regulatory News (NMT)

This announcement contains inside information

30 June 2023

Neometals Ltd

("Neometals" or "the Company")

Vanadium Recovery Project Update

Highlights

· JV Shareholders to the Neometals vanadium recovery project have extended the project Financial Investment Decision ("FID") deadline until 30th September 2023;

· Project level equity finance attracting good interest from Nordic and International investors; and

· Due diligence by debt financing club, led by European Investment Bank, also progressing favourably.

Emerging sustainable battery materials producer, Neometals Ltd (ASX: NMT & AIM: NMT) ("Neometals" or "the Company"), is pleased to announce that the Vanadium Recovery Project ("VRP1") special purpose vehicle, Recycling Industries Scandinavia AB ("RISAB"), is making strong progress in the lead up to its VRP1 FID.

Neometals has a 72.5% interest in VRP1 with Critical Metals Ltd ("Critical Metals"). VRP1 is at the financing stage ahead of a decision to construct and produce high-purity vanadium pentoxide ("V2O5") from high-grade vanadium-bearing steel making by-product ("Slag") generated by SSAB EMEA AB and SSAB Europe Oy (collectively "SSAB") in Scandinavia.

RISAB has engaged leading Nordic investment banks, SEB and Aventum Partners, to lead VRP1 financing processes*[1]. Project financing activities are progressing well with due diligence led by the European Investment Bank and a preferred banking club. Project level equity finance is attracting good interest from Nordic and International investors.

To allow for additional due diligence evaluation work and negotiations with potential financiers, RISAB, Neometals and Critical Metals have extended the FID deadline under the RISAB shareholders deadline to 30 September 2023. SSAB is supportive of the progress that RISAB has made and the parties are in advanced discussions to formalise a corresponding extension to the investment decision deadline under the SSAB slag supply agreement to align with project financing timelines.

Neometals Managing Director Chris Reed said:

"The project team has made outstanding progress towards financing the Vanadium Recovery Project. We look forward to advancing the financing discussions with the interested parties and progressing to a FID in the coming quarter."

Authorised on behalf of Neometals by Christopher Reed, Managing Director

ENDS

For more information, please contact:

About Neometals

Neometals is an emerging, sustainable battery materials producer. The Company has developed a suite of green battery materials processing technologies that reduce reliance on traditional mining and processing and support circular economic principles.

Neometals' three core battery materials businesses, listed below, are commercialising these proprietary, low-cost, low-carbon process technologies:

· Lithium-ion Battery ("LIB") Recycling (50% equity) - to produce nickel, cobalt and lithium from production scrap and end-of-life LIBs in an incorporated JV with leading global plant builder SMS group. The Primobius JV is operating a commercial disposal service at its 10tpd Shredding 'Spoke' in Germany and is the recycling technology partner to Mercedes Benz. Primobius' first 50tpd operation, in partnership with Stelco in Canada is expected to reach investment decision in Q3 2023;

· Vanadium Recovery (72.5% equity) - to produce high-purity vanadium pentoxide via processing of steelmaking by-product ("Slag"). Targeting a 300,000tpa operation in Pori, Finland, underpinned by a 10-year Slag supply agreement with leading Scandinavian steelmaker SSAB. Finnish project investment decision with JV partner, Critical Metals, expected Q2 2023. MOU with H2Green Steel for up to 4Mt of Slag underpins a potential second operation in Boden, Sweden; and

· Lithium Chemicals (earning 35% equity) - to produce battery quality lithium hydroxide from brine and/or hard-rock feedstocks using patented ELi® electrolysis process owned by RAM (70% NMT, 30% Mineral Resources Ltd). Co-funding pilot plant and evaluation studies on a 25,000tpa operation in Estarreja with Portugal's largest chemical producer, Bondalti Chemicals S.A.

For further information visit www.neometals.com.au