Announcement PDF Yangibana Project Economics Update Integrated tolling and offtake agreement 16 February 2024 Hastings Technology Metals Ltd | ASX:HAS 1 Picture: 3D Render of Yangibana Beneficiation Plant (Mapability) DISCLAIMER DISCLAIMER This presentation has been prepared by Hastings Technology Metals Limited (“Company” or “Hastings”). This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in the Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile statement or offer information statement nor does it constitute investment or financial product advice (nor taxation, accounting or legal advice) and it is not intended to be used as a basis for making an investment decision. 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COMPETENT PERSONS’ STATEMENT The information in this presentation relating to Mineral Resources and Ore Reserves have been prepared by a Competent Person in accordance with the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”) and have been extracted from the release title ‘Annual Report to shareholders’ dated 28 September 2023 which is available to view at www.asx.com.au under the code “HAS” (the original release). The Company confirms that it is not aware of any other new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Hastings confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. The information that relates to Mineral Resources is based on information compiled by David Princep and Lyn Widenbar. Both Mr. Princep and Mr Widenbar are independent consultants to the Company and members of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Princep and Mr Widenbar have sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this announcement and to the activity which they are undertaking to qualify as a Competent Person as defined in the JORC Code. The information that relates to the Ore Reserves at Bald Hill, Simon’s Find, Fraser’s, Auer, Auer North, Yangibana and Yangibana North is based on information reviewed or work undertaken by Mr. Stephen O’Grady. Mr O’Grady is an independent consultant to the Company and a member of the AusIMM, and a Director of Intermine Engineering Consultants. Mr O’Grady has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the preparation of mining studies to qualify as a Competent Person as defined by the JORC Code. Mr O’Grady consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. The scientific and technical information that relates to process metallurgy is based on information reviewed by Ms. Narelle Marriott (General Manager Process Development) of Hastings Technology Metals Limited. Ms. Marriott is a member of the AusIMM and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined by the JORC Code. Ms. Marriott owns shares in the company and participates in the company employee share plan. Ms. Marriott consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears. The information that relates to Exploration Results in relation to the Yangibana Project is based on information compiled by Dr. Louis Schürmann (PhD) (Chief Geologist) of Hastings Technology Metals Limited. Dr. Schürmann is a Fellow of the AusIMM and has sufficient experience that is relevant to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Dr. Schürmann consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears. 2 STRATEGIC HIGHLIGHTS Integrated tolling and offtake agreement supports enhanced economics and builds on de-risking milestones for Yangibana Project Project execution strategy significantly de-risked • • • • • Innovative tolling and offtake agreement providing higher payabilities Improved project economics underpinned by highly competitive processing fees • • • • • • Senior management team in place with strong track record of project delivery Yangibana Project is ‘shovel ready’ with $120 million1 invested to date in completion of critical non-processing infrastructure $22 million1 invested to date in ordering long-lead critical path equipment Engineering Procurement Construction (“EPC”) contract in place with leading engineering and construction company GR Engineering Services Hastings to receive rare earth oxides’ prices minus highly competitive tolling fees for multi-stage processing of concentrate to mixed rare earth carbonate and separated oxides Rare earth oxides’ prices realised with lowered operational risk 96% of Hastings revenue basket comes from higher value rare earth elements including neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb) 61% increase in post-tax NPV11 to $865 million 14% increase in post-tax IRR to 31.28% 82% increase in life of mine cashflow to $3,345 million Capital payback period reduced by 23% to 3.4 years 1As of 31 December 2023 3 Photo: Kurrbili Village at dusk INTEGRATED TOLLING AND OFFTAKE AGREEMENT Higher rare earth oxide revenue achieved through competitive and fixed price offshore toll processing Increased payability for the Yangibana Project’s concentrate through outsourcing multistage processing to mixed rare earth carbonate and rare earth oxides Key Terms Company Baotou Sky Rock Rare Earth New Material Co., Ltd (“Baotou Sky Rock”) Description Established in 2006, Baotou Sky Rock is a privately-owned Chinese high-tech enterprise specialising in the production and research and development of rare earth metals and permanent magnet materials. Its main products are sintered neodymium baron and sintered samarium cobalt magnets. Products Minimum of 10,000tpa of rare earth concentrate, commencing upon Hastings’ certification that the mine has been successfully commissioned Term Seven years commencing on date of execution of the term sheet, with an option to extend for another five years at Hastings’ election Pricing Rare earth oxide pricing to be based on 15-day average market pricing for neodymium, praseodymium, dysprosium and terbium oxides recovered, less a competitive capped hydrometallurgical process and oxide separation fee Payment Structure Irrevocable letter of credit No upfront capital cost required for hydrometallurgical and oxide separation plant Stage 1 – Yangibana Project Mining and Beneficiation Rare Earth Concentrate Integrated Tolling and Offtake Agreement Hydrometallurgy Mixed Rare Earth Carbonate Indicative Domestic Operating Costs1 ~US$13 to 27/kg REO Indicative China Processing Costs2 Up to 75% lower 1 Source: Refer Slide 14 2 Based on integrated tolling and offtake agreement with Baotou Sky Rock Oxide Separation Rare Earth Oxides ~US$2 to 6/kg REO Up to 70% lower 4 IMPROVED STAGE 1 PROJECT ECONOMICS The Yangibana Project is fully permitted, long-life and high-margin Robust project economics Integrated Tolling and Offtake Model (February 2024)1 Profit-Sharing Model (May 2023) Variation Post-tax NPV11 (ungeared) $865 million $538 million 61% Post-tax IRR (ungeared) 31.28% 27.54% 14% Payback Period 3.4 years 4.4 years 23% Key Financial Outcomes (AUD) Capital Costs (incl. $142 million spent as of 31 December 2023) $503 million $470 million 7% Remaining Capital Costs (excl. $142 million spent as of 31 December 2023) $361 million $383 million 6% Net Revenue (LOM) $9,639 million $7,201 million 34% Free Cash Flow (LOM) $3,345 million $1,835 million 82% Average EBITDA per annum $258 million $174 million 48% Improved metrics driven by move from previous domestic profit-sharing model (50:50) to realising 100% of net revenue, as well as lower processing fees under the integrated tolling and offtake model Mine schedule optimisation Focus on initial five years to identify cost savings through targeting lower strip ratio zones, while maintaining the grade to the beneficiation plant Concentrate dryer Addition to suit external offtake requirements for concentrate with a moisture content of between 6-8% - reducing concentrate transport costs Key Material Assumptions / Updates The Updated Stage 1 Yangibana Project Economics relies on the Base Case Financial Model (“BCFM”) and the assumptions adopted in the Staged Development Study released in connection with the BCFM on 31 May 2023. Those assumptions continue to apply and have not materially changed, other than in respect of the following matters: • • Stage 1 standalone: The impact of Stage 2 for the Yangibana Project (i.e. the potential hydrometallurgical plant) is excluded from the economic analysis. • Mining: Mine schedule optimisation for the first five years of mining targets lower strip ratio • Macroeconomics: FX Forward (Bloomberg January 2024), 10-year average AUD:USD 0.65 • Cost assumptions: Incorporation of MREC and oxide separation fees based on the fees Offtake and payabilities: Shift from domestic profit-sharing model to rare earth concentrate sale and third-party processing (hydrometallurgical and oxide separation) to achieve a full rare earth oxide basket price, on terms expected in the Term Sheet for the Integrated Arrangement. Adjustments to yields and costs may be required following pre-production pilot test work, as contemplated in the Term Sheet. • Spent capital cost: $142 million of capital cost estimate incurred as of 31 December 2023 • Commodity price: Average 10-year blended neodymium and praseodymium (“NdPr”) oxide price (Wood Mackenzie, CRU, Adamas Intelligence) of US$121/kg real, 2024$ (reduction from US$129/kg adopted in the Staged Development Study). zones of the Yangibana Project’s ore bodies, while maintaining the grade to the beneficiation plant. The mine life remains at 17 years, and annual average production of rare earth concentrate remains at 37,000tpa (“Existing Targets”). Refer to per ASX announcements ‘Yangibana Ore Reserves Increase by 25%’ dated 6 February 2023 and ‘Corporate Presentation – Staged Development Strategy’ dated 31 May 2023 Updated capital cost Increase of $33 million to $503 million consisting of additions of the concentrate dryer facility, escalations, warranty extensions, earthwork rates, EPC indirects and holding costs. provided in the Term Sheet, updated power tariffs (40% renewable) from Independent Power Producer, and other revisions for escalation 5 YANGIBANA PROJECT’S BASKET PRICE FORECAST Based on market consultants and the expected element composition for the Yangibana Project Average basket price and opex from first production to 20301 Consultant / source Market Consultant Expected gross basket price (US$/kg TREO) (real, 2024$)1 High Case Base Case 1 US$/kg TREO US$/kg TREO1 100 90 CRU 57.3 72.9 Adamas Intelligence 54.3 60.4 36.4 N/A 2 49.33 66.7 50 22.5 22.5 40 Woodmac CRU, AI, Woodmac Blend OpEx (incl. MREC processing and oxide separation costs) 80 70 Blend (High Case) 60 Blend (Base Case) 30 CRU (Base) Woodmac (Base) Adamas (Base) Blend (CRU/AI/WM - Base) Opex 2-Year Historical Average CRU (High) Adamas (High) CRU / Adamas Blend (High) 30-Nov-30 30-Sep-30 31-Jul-30 31-May-30 31-Mar-30 31-Jan-30 30-Nov-29 30-Sep-29 31-Jul-29 31-May-29 31-Mar-29 31-Jan-29 30-Nov-28 30-Sep-28 31-Jul-28 31-May-28 31-Mar-28 31-Jan-28 30-Nov-27 30-Sep-27 31-Jul-27 31-May-27 31-Mar-27 31-Jan-27 30-Nov-26 30-Sep-26 31-Jul-26 0 31-May-26 Yangibana Project will be one of the highest margin producers globally once in production – first quartile on global margin curve as assessed by CRU 10 31-Mar-26 High-value NdPr composition leads to higher realised rare earth oxide basket price 20 31-Jan-26 Up to 52% NdPr composition in certain parts of the orebody Yangibana Opex 1 Pricing includes 13% VAT 2 Woodmac does not publish a high case 3Hastings’ modelling adopts the blend (CRU, AI and Woodmac) base case forecast Source: Wood Mackenzie (January 2024) Global rare earths short-term outlook, CRU (August 2023) Updated REE Prices and Margin 2023, Adamas Intelligence (Q1/2024) Rare earth pricing quarterly outlook Average 10-year blended NdPr oxide price (Woodmac, CRU, Adamas Intelligence) of US$121/kg real 2024$ 6 WORLD-CLASS ASSET The Yangibana Project’s average NdPr:Total Rare Earth Oxide (“TREO”) ratio surpasses most global projects Yangibana Revenue NdPr Average NdPr:TREO Ratio1 3% Sichuan (China) 3% Dy Tb Other 4% 14% Mountain Pass (US) 16% Kangankunde (Malawi) 20% Ngualla (Tanzania) 21% Bayan Obo (China) 21% Mt Weld (Western Australia) 91% 23% Nolans (Northern Territory) Songwe Hill (Malawi) 26% Hastings’ Revenue Basket 96% anticipated to come from the ‘Big Four’ rare earth magnet elements (Nd, Pr, Dy, Tb) 33% Yangibana Project (Western Australia) 37% ‘Big Four’ Rare Earth Elements Neodymium, praseodymium, dysprosium and terbium are critical elements in green technologies, defence applications and digital devices 1 Source: Refer to Slide 13 and Slide 14 7 ADVANCED PROJECT DEVELOPMENT 8 STRONG BASE TO RAMP UP CONSTRUCTION $142 million invested to date1 for Stage 1 of the Yangibana Project De-risked project delivery 500 Slight increase in capital cost to $503 million due to addition of a concentrate dryer to meet product specifications and additional holding costs – remaining capital of $361 million 503 470 142 87 400 Development ready Fully permitted to begin construction with first concentrate production in 2026 $120 million invested to date1 in finalising early site works • Kurrbili Accommodation Village • Yangibana Airstrip • SipHon Well Borefield • Site Access Roads Critical path equipment $22 million invested to date1 in long lead items • • In Transit/Delivered – SAG Mill and Regrind Mill Fabrication – Flotation Cells, Thickener, Mill Liner Handler 1As of 31 December 2023 A$m Non-Processing Infrastructure 300 200 383 361 100 0 May 2023 February 2024 Remaining capital cost Spent 9 YANGIBANA PROJECT’S PROGRESS Kurrbili Village SipHon Borefield Yangibana Airstrip SAG Mill Shell 10 BENEFICIATION PLANT CONSTRUCTION $210 million Engineering, Procurement and Construction contract in place with GR Engineering Services1 GR Engineering Services Leading engineering and contracting company with strong track record of delivering integrated project solutions Cost certainty Fixed price component of $180 million (~85%) Key benefits Lowers project delivery risks, provides greater certainty on timeframe and process and product quality guarantees Early works agreement Detailed engineering and design work for beneficiation plant ahead of schedule at 81% complete 1 Refer ASX announcement “Hastings Reduces Yangibana Delivery Risk Awards EPC Process Plant Contract to GR Engineering”, dated 3 May 2023 11 APPENDIX 12 RESOURCES AND RESERVES Yangibana Rare Earths Project TOTAL JORC (2012) MINERAL RESOURCES (30 OCT 22)1 TOTAL JORC (2012) ORE RESERVES BY DEPOSIT (6 FEB 23)1 Category mt %TREO %NdPr TREO tonnes Deposit mt %TREO %NdPr NdPr: TREO Measured 4.97 0.96 0.37 47,721 Bald Hill 8.12 0.79 0.32 41 Indicated 19.51 0.88 0.32 171,936 Fraser’s 1.77 1.01 0.43 43 Sub-total 24.49 0.90 0.33 219,657 Simon’s Find 2.69 0.53 0.28 53 Inferred 5.45 1.05 0.31 57,298 Auer 2.83 0.96 0.34 35 TOTAL 29.93 0.93 0.32 276,955 Yangibana 1.31 0.79 0.37 47 Yangibana North 4.21 1.29 0.34 26 TOTAL 20.93 0.90 0.33 37 1 Refer ASX announcement “Yangibana Ore Reserves Increase by 25%”, dated 6 February 2023; numbers may not add due to rounding; for reference that the Ore Reserves stated is included as part of the Mineral Resources Disclaimer: There is no certainty that further exploration work will result in the determination of Mineral Resources (or Ore Reserves) SOURCE DOCUMENTS References PEER COMPRISON – NDPR:TREO RATIO Mine Ownership Ticker Stage of Development Capex (A$m) Reserves Tonnage (mt) TREO Grade Yangibana Hastings Technology Metals Ltd HAS:ASX Pre-production 503 20.93 0.90% Songwe Hill Mkango Resources Ltd MKA:TSXV Feasibility 479 18.15 1.16% Nolans Arafura Rare Earths Ltd ARU:ASX Pre-production 1,680 29.50 2.90% Mt Weld Lynas Rare Earths Ltd LYC:ASX Production N/A 19.7 8.60% Bayan Obo China Northern Rare Earth Group High-Tech Co Ltd 600111:CH Production N/A >2,200 2.55% Ngualla Peak Rare Earths Limited PEK:ASX FEED Completed 441 18.5 4.8% Kangankunde Lindian Resources Limited LIN:ASX Stage 1 Feasibility due Q1/2024 N/A 261 (Resource) 2.19% Inferred 20% Mountain Pass MP Materials Corp MP:NYSE Production N/A 29.3 6.32% 16% 28 February 2023: SEC Filing: Form 10-K – Annual Report, Sichuan Rising Nonferrous Metals Share Co. Ltd Proven and Probable 600259:CH Production N/A N/A N/A N/A 14% 15 December 2020: Ord Minnett Report, “Hastings Tech Metals, Thematic Firing” Category Proven and Probable Proven and Probable Proven and Probable Proven and Probable Proven and Probable Proved and Probable NdPr:TREO ratio 37% 33% 26% 23% 21% 21% Source 6 February 2023: ASX Announcement: “Yangibana Ore Reserves Increase by 25%” 5 July 2022: SEDAR Announcement: “Mkango Announces Results of Definitive Feasibility Study For The Songwe Hill Rare Earths Project In Malawi - NPV of US$559.0 Million And IRR of 31.5%” 11 November 2022: ASX Announcement: "Nolans Project Update" 13 December 2023: ASX Announcement: "Arafura Rare Earths: Equity Raise Presentation" 6 August 2018: ASX Announcement: “Lynas announces a 60% increase to Mt Weld Ore Reserves, one of the world’s richest sources of Rare Earths” 15 December 2020: Ord Minnett Report, “Hastings Tech Metals, Thematic Firing” S&P Capital IQ Pro: Property ID 31805 Reserves and Resources 24 October 2022: ASX Announcement: “Ngualla Rare Earths Project Completion of Bankable Feasibility Study Update” 30 November 2023: ASX Announcement: “Completion of FEED Study” 3 August 2023: ASX Announcement: “Maiden Mineral Resource” 7 Feb 2024: ASX Announcement: “Indaba Mining Conference Presentation” HYDROMETALLURGICAL AND SEPARATION COSTS OF DOMESTIC DEVELOPERS AND OPERATIONS Mine Ownership Ticker Total Costs / Processing Costs ($m) REO Production (tpa) Nolans Arafura Rare Earths Ltd ARU:ASX US$138m 4,919t 7 February 2019: ASX Announcement: “Nolans DFS Delivers Robust Project Economics” 11 November 2022: ASX Announcement: “Nolans Project Update” Mt Weld Lynas Rare Earths Ltd LYC:ASX A$346.2m 16,780t 12 October 2023: ASX Announcement “2023 Annual Report” Eneabba Iluka ILU:ASX A$160m 12,400t 4 April 2022: ASX: Announcement “Eneabba Rare Earths Refinery – Final Investment Decision Presentation” Source Note: Cost indication range was based on Hastings’ Onslow Hydrometallurgical study and desktop analysis of peers’ processing costs escalated to 2024 real$. Note estimates are a desktop study only. AUD/USD rate of 0.65 was adopted. 14 Follow us on Hastings Technology Metals Limited ABN 43 122 911 399 Level 6, 197 St Georges Terrace Perth Western Australia 6000 T: +61 8 6117 6118 E: info@hastingstechmetals.com hastingstechmetals.com 15