Announcement PDF HASTINGS Technology Metals Limited ASX Stock Code: HAS Future Producer of Neodymium & Praseodymium to the Permanent Magnet Industry Investor Presentation June 2017 1 HASTINGS Technology Metals Ltd All currency amounts are in A$ unless stated otherwise. Disclaimer This presentation has been prepared by Hastings Technology Metals Limited (“Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent decisions about the affairs, financial position or prospects of the Company. The Company reserves the right to update, amend or supplement the information at any time in its absolute discretion (without incurring any obligation to do so). Neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to any person or entity as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation. Pursuant to the general law (whether for negligence, under statute or otherwise), or any Australian legislation or any other jurisdiction. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in the Company. Future matters This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of the Company. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause the Company’s actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. The Company does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. Exploration Targets The terms “Target” or “Exploration Target” where used in this presentation should not be misunderstood or misconstrued as an estimate of a Mineral Resource as defined in this context. Exploration Targets are conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain further exploration will result in the determination of a Mineral Resource. Competent Persons’ Statement The information in this presentation that relates to Resources is based on information compiled by Lynn Widenbar. Lynn Widenbar is a consultant to the Company and a member of the Australasian Institute of Mining and Metallurgy. The information in this presentation that relates to Exploration Results is based on information compiled by Andrew Border, an employee of the Company and a member of the Australasian Institute of Mining and Metallurgy. Each has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this report and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”). Each consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. US disclosure This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). The Company’s shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers. HASTINGS Technology Metals Limited 2 Key Facts  Hastings’ Yangibana Project in Western Australia - to produce Mixed Rare Earth Carbonate (MREC) rich in Neodymium (Nd) and Praseodymium (Pr)  Nd and Pr are critical elements in manufacture or Permanent Magnets - used in advanced and green technologies such as wind turbines, electric vehicle (EV), CFC-free refrigeration, robotics, medical, etc.  Completed pilot plant test-work in beneficiation and hydrometallurgy. Validates Yangibana’s simple and cost effective production process  Definitive Feasibility Study (DFS) to be published by Oct 2017 HASTINGS Technology Metals Limited 3 Key Facts • Lead Agency Project Status granted by W.A. state government to assist in permit process & final approvals  Experienced Management Team with rare earths mining and production experience and capability  Commercial off-take discussions underway with European and Chinese buyers  Mine Construction in Q2 2018 and Production by 2H 2019, subject to final permitting  AUD 30m equity raised since 2014 and debt free  CAPEX of AUD300m required to fund mine and plant construction.  Estimated NPV ~ AUD 420m and 2.6 years EBITDA payback from commencement date HASTINGS Technology Metals Limited 4 Rare Earths Key rare earths and applications Permanent Magnets, Wind Turbines, E-Vs, Robotics, Speakers, Hard-Disks, Lasers HE-Vs, Electron Microscopes, Batteries, IR-absorbing Optical Glasses, Lenses, Chemical catalyst Polishing compound, Catalytic converter, Coating TV glass, Red pigment Samarium-Cobalt Magnets, Chemical Reagent, Potential applications in Quantum Computing HASTINGS Technology Metals Limited Permanent Magnets, Aircraft Engines, Ceramic Dyes, Welder’s Goggles, Magnetocaloric Refrigeration Solid State Devices, Actuators, Sonars, Sensors, Lighting 17 Elements on Periodic Table Color for Television sets, Anticounterfeiting in banknotes, Quantum Memory Chips Additive to Permanent Magnets, Laser materials, Neutron-absorbing rods 5 Nd-Pr based Permanent Magnets Stronger, lighter & smaller NdFeB (Neodymium, Iron, Boron Magnet) - strongest permanent magnet commercially available: Nd-Pr approx. 1/3 by material weight ~10x more powerful, and 3x lighter than traditional ferrite magnet  Superior performance, compact, lightweight and more efficient Synchronous PM Drive Motors used in HEV and EV Advantages  Extremely high torque, miniaturisation, lightweight and very efficient HASTINGS Technology Metals Limited 6 Rare Earth Utilization Facts Demand in consumption numbers • Each HEV contains about 2.7kg REE • Global HEV and EVs have increased 13 fold from 2012 to 2016 (~ 2m) - still only 0.2% of total global vehicle fleet [1] • Anticipated strong demand for EVs China targeting 5m by 2020 [2] HASTINGS Technology Metals Limited • Each 2MW wind turbine contains 340420kg REE in NdFeB permanent magnet • GWEC* est. 330 GW to be installed from 2017 to 2021 ~ 66,000 tonnes** Neodymium & Praseodymium ~ 60,000 t.p.a. 2025 ~ 7.4% CAGR • Average Industrial Robot uses 5kg of Nd-Pr • China utilises 1/10th number of robots per 10,000 manufacturing employees compared with Japan (IFR 2016) • 16 of 17 REE in smartphone • Global smartphones to reach 6.1 bn by 2020 from 2.6 bn in 2016 (Ericsson) • ~750 tonnes REE per annum * Global Wind Energy Council. ** Estimated ~200kg Nd-Pr per 1 MW Wind Turbine. 7 New Advanced Technologies Additional demand for rare earths from new innovations and technologies PVC stabilizers Magnetocaloric Refrigeration Industrial Robots Protect PVC from thermal degradation and exposure to UV rays (Mostly La & Ce) Additional demand 14,000 tonnes by 2025 30% to 50% more energy efficient, zero CFC usage. (Mostly Nd-Pr) NdFeB ~ 1kg per unit Chinese robotic usage to increase. ~ 20 kg of NdFeB per Ind. Robot. (~5kg Nd-Pr) Additional demand 10,000 tonnes p.a. by 2025. HASTINGS Technology Metals Limited Additional demand 6,300 tonnes p.a. by 2025 Source: Adamas Intelligence – Emerging Applications of REEs – The Next 10 Years. 8 % Total Global Rare Earth Supply Global Rare Earth Supply 2016 Supply diversification increasingly strategic 11% 3% 3,000 MT 1% 1% 1% 105,000 MT 1,700 MT 1,100 MT 14,000 MT 83% China Australia Russia India Brazil Thailand Vietnam Malaysia HASTINGS Technology Metals Limited Source: US Geological Survey, Mineral Commodity Summaries 2017 2016 Global Supply 126,000 MT Excluding Illegal Supply 9 Growth in Demand for Nd-Pr Providing critical elements for Permanent Magnets Expect Strong Growth in Nd-Pr Demand • 2017 Demand Nd-Pr ~ 39,000 tonnes – Argus Metals estimates 2010 – 2020 CAGR – 9% • Permanent Magnets - increased demand from wind turbines, electric vehicles (EVs), digital devices and robotics • Roskill estimates EV penetration rate to increase to ~ 35% of total vehicles by 2030* • Nd-Pr cannot be produced alone - to succeed projects must contain high Nd-Pr as a % of TREO Source: Roskill HASTINGS Technology Metals Limited • Yangibana is well positioned to benefit from increase in Nd-Pr demand. Source: Roskill European Rare Earth Resources conference May 2017. 10 View from Beijing China signs up to Paris Agreement Policy initiatives in support of Paris targets • Non-fossil energy sources to increase to 20 percent of total energy requirement by 2030 [3] • Requires deployment of 800 - 1,000 gigawatts in nonfossil capacity, close to current US total electricity capacity [4] • Reduce pollution - Beijing to establish police force to deal specifically with environmental offences [5] • Incentives to promote EV - 2016 EV sales up 70% to 630,000 units. 2020 target = 5m [2] • Support local industry - “Made in China 2025” [6] means larger amount of rare earth supply will remain in China for use by Chinese manufacturers to combat pollution HASTINGS Technology Metals Limited 11 View of Procurement Managers 15 Apr 2017: Introduction of ISO 20400 New Sustainable Procurement Standard • New ISO 20400 compliance standard for procurement • Compliance necessary across three key areas: • Environmental Impact • Social Sustainability • Economic Sustainability • Pressure on manufacturers to source all materials from sustainable sources – tough to justify providing renewable or green end-products when component materials originate from unsustainable sources. • Another reason China is cracking down on illegal mining of rare earths HASTINGS Technology Metals Limited 12 Case for continuing Nd-Pr Price Increase Praseodymium Neodymium: Praseodymium neodymium market prices went up significantly as some domestic enterprises suspended production. Recently, Potentially supply shortage of Nd–Pr praseodymium was offeredin at RMB Prices of neodymium Nd – Proxide increase 302,000-305,000/T and praseodymium neodymium 2017. metal at RMB 388,000/T. Rare Earth mining projects reduced to a handful New ISO 20400 Sustainability Standards Strong Anticipated Demand for Clean & Green Technology HASTINGS Technology Metals Limited China targeting polluting illegal miners [5] – less supply EU- 2030 Agenda for Sustainable Development Goals ”Made in China” 2025 – RE supply will remain in China for local Praseodymium: Praseodymium oxide offers climbed manufacturing [6] up to RMB 375,000-380,000/T and deal prices also moved up. Later market price is expected to hike further due to steady downstream demands and state reserve. 13 Yangibana Mining and Production of Neodymium & Praseodymium 14 Western Australia Base Advantages of geographic location • Australia Sovereign Risk Rating AAA/Aaa (S&P/Moody’s) – lower cost of capital • High rank for corporate governance and Rule of Law. (WJP Rule of Law Index 2016). • Western Australia - long history of successful mining projects • Regulatory Compliance & Sustainability Environment, health and safety, working conditions, corporate social responsibility ❏ Broome  Brockman ❏ Port Hedland Yangibana ❏ Carnarvon ❏ Geraldton ❏ Perth • Highly developed infrastructure • Lead Agency Project Status – WA government providing dedicated resource to navigate all permitting and approvals. HASTINGS Technology Metals Limited 15 Site Location Central Western Australia Yangibana is situated 280 km north-east from the port town of Carnarvon Airstrips available at: • Carnarvon • Gascoyne Junction • Gifford Creek • Edmund Edmund Mangaroon Gifford Creek Road from Carnarvon follows Gascoyne River to Gascoyne Junction, then along Lyons River to Mangaroon and on to Yangibana 2 Aquifers on mineralised ground and ongoing hydrology drilling. HASTINGS Technology Metals Limited Carnarvon Gascoyne Junction 16 Favourable Terrain Above ground ore outcrops – level terrain, easy to mine Open Pit Mining on Flat Terrain Key Rare Earths: Neodymium (Nd) Praseodymium (Pr) Dysprosium (Dy) Terbium (Tb) Nd & Pr account for ~ 82% of in-ground economic value. HASTINGS Technology Metals Limited 17 Granted Leases Mining, General Purpose & Exploration Leases • Total Yangibana area ~ 650 km2 • 21 years Mining Leases Granted ~ 50 km2 • No Native Title Claims on mineralised ground • Contain ~ 90% of JORC Resource • Various Miscellaneous and General Purpose Leases granted • Supporting infrastructure • Application lodged for permits to commence mine construction and production plant.* HASTINGS Technology Metals Limited * Company ASX release: 3-Apr-2017 Mine permitting applications for Yangibana Nd-Pr Project Lodged. 18 Drill Programme 2017 Increasing JORC Resources & Mine Life • Airborne survey in 2016 identified 22 priority mineralised targets for future exploration after 2017 (18 Oct 2016) • Fraser’s Southwest Deposit drill results – high grade to 2.00% TREO (25 Oct 2016) • Auer North Deposit – high grade of 2.08% TREO = 35 – 37% Nd-Pr as %TREO • Drill programme for 2017 alone is to increase M & I Resources to support 10-year mining operation (16-May-2017) • Bald Hill drill results contain 1.90% TREO and 39% Nd-Pr as % of TREO (7-Jun-2017) HASTINGS Technology Metals Limited *ASX company releases on specified dates. 19 JORC Resource Rich in Neodymium and Praseodymium • • • • • Jan 2017 updated JORC estimate sets out Measured Resource in 100% ground In-ground grade of Nd - Pr as % of TREO average from 33% (0.39%/1.18%) to as high as 43% in some Eastern Belt deposits New JORC estimates represent 19% increase in TREO and a 22% increase in Nd + Pr from prior estimates of Oct 2015 Current JORC resource approaching 15 years of mine life Resources contained on Hastings 100% owned ground and smaller portion on 70% JV ground HASTINGS Technology Metals Limited * Hastings ASX release 17 Jan 2017 Total Yangibana JORC Resources Category Measured Indicated Inferred TOTAL Tonnes Nd2O3+Pr2O3 TREO Nd2O3 Pr2O3 2,155,000 5,446,000 5,807,000 13,408,000 % 0.42 0.41 0.36 0.39 % 1.01 1.30 1.12 1.18 ppm 3,410 3,260 2,820 3,100 Ppm 770 870 770 810 TREO % 1.01 1.13 0.98 1.04 Nd2O3 ppm 3,410 3,300 2,890 3,200 Pr2O3 Ppm 770 820 740 780 Hastings 100% owned ground – Eastern Belt Category Tonnes Measured Indicated Inferred TOTAL 2,155,000 3,221,000 3,416,000 8,792,000 Nd2O3+Pr2O3 % 0.42 0.41 0.36 0.39 Hastings 70% owned JV ground Category Tonnes Nd2O3+Pr2O3 % TREO % Nd2O3 ppm Pr2O3 Ppm Indicated Inferred TOTAL 2,225,000 2,391,000 4,616,000 0.42 0.35 0.38 1.55 1.32 1.43 3,200 2,730 2,960 940 810 870 20 Yangibana Advantage High Nd & Pr content means high economic basket value • • • • • Pilot confirmed ore upgrade from ~ 1.2% in-ground to 23% TREO in Beneficiated Concentrate – 18x times upgrade Exceptional high recovery & upgrades in: • Nd & Pr • Middle & Heavy RE Comparison of TREO in Beneficiated Concentrates Neodymium Lanthanum Cerium Samarium Europium Gadolinium 90% 80% 70% 1.91 1.00 0.73 1.13 0.81 HASTINGS CHINA (1) CHINA (2) INTER. (1) INTER. (2) $ 24.25 $ 12.70 $ 9.27 $ 14.35 $ 10.28 60% 50% 40% 30% Economic Value Factor of 1.91 almost double of China Producer #1 0% 20% 10% Economic Value Factor Basket Price USD/kg HASTINGS Technology Metals Limited Terbium 100% Value for each unit of Yangibana RE concentrate is 67% to 270% > many major light RE producers in the world Yangibana high basket price of USD24.25 (current) due to increase in Nd & Pr prices Praseodymium 21 Economic Value from Nd - Pr Permanent Magnets to drive Nd – Pr prices higher Rare Earth Elements In Yangibana Basket Value Price Escalation in Basket Price assumption 1.6 1.52 1.52 1.5 1.42 1.4 1.3 1.30 1.2 1.19 1.1 1.07 1 2017 Nd-Pr = 82% of In Ground Value 1.03 2019 2020 1.06 2021 2022 2023 2024 2025 2026 Current Yangibana Basket = USD 24.25 /kg Assume 2017 @ 1.0 = current price = USD24.25 Lanthanum Cerium Praseodymium Neodymium Samarium Europium Gadolinium Dysprosium Terbium Yttrium Others HASTINGS Technology Metals Limited By 2026 conservative estimates projects price increase of 1.52x = USD 36.40 Expect strong increase in demand for Permanent Magnets to drive up Nd-Pr price Source: Pricing Source BAIINFO; Price projections Argus Metals – see Appendix for individual price details. 22 The Yangibana Process and Product The Steps from Ore to Mixed Rare Earth Carbonate (MREC) Successful Beneficiation and Hydrometallurgy pilot plant test-work proves simple and effective production process flow sheet 1m t.p.a. ore mined ~30-40k t.p.a. Beneficiated Concentrate ~15,000 t.p.a. MREC MINING BENEFICIATION HYDROMETALLURGY • • Open pit contract mining @ rate of 1m t.p.a. • • • Total JORC Resource ~ 13.4 m tonnes Total Rare Earth Oxides (TREO) Grade ~ 1.18% * ASX release: 17-Jan-2017 HASTINGS Technology Metals Limited • • Pilot Plant achieved 23% TREO concentrate Post-pilot optimisation 85% TREO recovery Upgrade from TREO to Beneficiation concentrate is 18-20X Less Reagent Needed * ASX release: 20-Mar-2017 • Acid bake, water leach & impurity removal • TREO recovery rates in final MREC =/> industry standards • ~8.500 t.p.a. Separated REO MREC • Up to 40% Nd-Pr portion of TREO in MREC • Removed impurities to acceptable product specifications • Sale of MREC Production Samples for offtake customers testing * ASX release: 22-May-2017 * See Company ASX releases for additional information on all processes. * ASX release: 22-May-2017 23 Yangibana Beneficiation Flowsheet Successful completion of pilot plant test work Continuous Pilot Plant Test - Successfully validated simple and effective flowsheet Confirmed 70% TREO recovery rates and a concentrate upgrade to 23% TREO ~ 18 times from ore.  Achieved lower consumption of reagents thereby lower OPEX costs. Flotation Pilot Plant Operation at ALS, Perth  Recent post-pilot Process Optimisation achieved up to 85% TREO recovery  Engineering design work for full scale processing plant underway  Flotation concentrate with high % Nd and Pr sent to next stage of processing i.e. hydrometallurgy Final flotation concentrate to hydrometallurgy pilot HASTINGS Technology Metals Limited Monazite Flotation from pilot *ASX releases 20-Mar-2017. 24 Yangibana Hydrometallurgy Flowsheet Successful completion of pilot plant test work Hydrometallurgy Pilot plant undertaken for three phases: • Acid bake • Water leaching & impurity removal • Carbonate product precipitation All three phases exceeded lab results and conform or exceed industry standards Final flotation concentrate from beneficiation pilot Produced 50 kg high purity MREC sample for customers containing 40.8% Nd & Pr as % of TREO Key engineering data collected for DFS and for industrial process plant design Process TREO Recovery Water Leaching >94% Impurity Removal 95% Carbonate precipitation >98.5% HASTINGS Technology Metals Limited *ASX releases 22-May-2017. Acid Bake Kiln from Pilot Water Leach Circuit Neutralisation & Precipitation Circuit 25 Lead Agency Project Status Granted by Department of Mines and Petroleum (DMP) Benefits Outcomes • Coordination of the approvals process across multiple government departments • Government support for the Project prior to receipt of Approvals = • Hastings assigned dedicated and experienced project approvals coordinator as a single point of contact with government HASTINGS Technology Metals Limited * Hastings ASX release 8 May 2017 • Approvals received within assigned timelines:  Coordination among other W.A. government agencies  Issues resolved in a timely manner 26 Milestones to Achieve Production • DFS Completion • EPC Management • Financing 27 Preparatory work prior to Plant Construction Pre-project implementation work 1. Project Implementation Schedule and Strategy • How and When – cost effectiveness • Contracting strategy (parcelling) 2. Forming the Project Management Team (PMT) • Skilled and experienced personnel 3. Secondary Works Approval for Construction • Liaising with government departments for all relevant approvals and permits 4. Prepare Invitation To Bid document (ITB) for Long Lead Items • Rotary kiln and Acid Plant • Tender documents to be prepared HASTINGS Technology Metals Limited 28 Timetable to Production Getting from Definitive Feasibility to production by 2H 2019 • Project Director (Mr KH Leong) – responsible for engineering design and equipment specification work. • Leong has extensive experience in engineering design, construction and project management. Formerly with Lynas and Petronas for 20 years. • Successfully constructed Lynas Phase 2 processing plant in both Mt Weld, Australia and Kuantan, Malaysia on time and on budget. HASTINGS Technology Metals Limited 29 Capital Expense Ensuring an efficient and effective utilisation of capital and reducing project risk CAPEX targets • Substantial progress in reducing CAPEX since PFS (from $420m down to $300m) • Optimised and re-engineered process plant utilising data from pilot plant test-work ** • Sourcing from global vendors to reduce Equipment and Construction costs • Availability of good second-hand equipment given mining downturn in WA • Reduction of contingencies in DFS • Ongoing CAPEX targeted achieved by Mr. Leong and team • Objective is to lower cost for construction of mine and production plant HASTINGS Technology Metals Limited AUD m Engineering 38.4 Procurement – Process & Mining 62.8 Procurement – Non Process & Infrastructures 24.0 Construction – Process & Mining 73.0 Construction – Non Process & Infrastructures 72.0 Commissioning Support by vendors 3.5 Owner’s Project Management Team costs 2.1 Site Office Expenses/Travelling 1.4 Construction Insurances 0.5 Contingencies (8%) 22.2 TOTAL CAPEX 300 m * * Based on refinements underway since PFS – numbers are not final and still form part of ongoing DFS process. ** e.g. Reduction in Tailings Dam due to hydromet efficiency identified. 30 Annual Operating Expense Estimated Annual Operational Costs • Substantial OPEX cost savings due to: • Optimised consumption of reagents identified in pilot plant test-work • Recycling and re-using by-products of process plant** • Lower transportation costs • OPEX costs ~ AUD14.10/kg producing 8,500 t.p.a. TREO from MREC @ AUD 0.75/USD • Estimate of Depreciation and Finance costs ~ AUD3.00/kg • Estimate pre-tax margin AUD15.20/kg at current rare earth prices. HASTINGS Technology Metals Limited Assumes 2020 production year and 8,500 tonnes TREO in MREC AUD m Mining Costs – based on 1 m t.p.a. mined 38.8 Reagents – Beneficiation & Hydrometallurgy 35.9 Power & Kiln Fuel 16.0 Labour & Accommodation 15.4 Equipment Hire & Maintenance 6.4 Consumables + General Contracts 3.1 Product Transportation 4.3 Estimated Annual Operating Costs (Excluding Interest & Depreciation) * Based on refinements underway since PFS – numbers are not final and still form part of ongoing DFS process. ** Sulphur & Lime removed from ore is re-used in acid bake process. 120 m* 31 Profitability Forecasts + AUD100m NPV for every +10% Nd & Pr price increase 2019 • • • • 2020 2021 2022 2023 2024 Mining Rate tonnes 375,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 TREO tonnes 4,268 12,951 13,601 8,610 7,720 8,329 Revenue A$ m 128.8 364.0 301.0 339.9 357.6 377.5 Operating Costs A$ m (113.1) (169.1) (142.5) (122.2) (118.9) (125.0) EBITDA A$ m 34.3 204.1 154.1 214.4 238.2 253.5 Interest Paid A$ m (8.9) (7.8) (6.6) (5.4) (4.2) (2.8) Net Profits after Tax & Royalties A$ m (6.0) 107.7 72.0 116.6 136.7 150.0 Base NPV8 ~ AUD 421 m EBITDA payback 2.6 years from commencement of production Assumes ~ AUD 200 m debt vs AUD 100 m Equity split Highly geared towards Nd & Pr price recovery. HASTINGS Technology Metals Limited NPV in AUD from 2019 Scenario 421 m Base 520 m Nd & Pr (+10% in price) 620 m Nd & Pr (+20% in price) 323 m Nd & Pr (-10% in price) 32 The Hastings Team Directors, Management & Technical Team A diverse group of experienced professionals have been brought together to achieve the goal of production at Yangibana in 2019. The multi-disciplinary team includes highly specialised experts in rare earth minerals processing and metallurgy, process engineering, procurement, construction, project management, sales & marketing of rare earths, capital markets and corporate finance. 33 Board of Directors Experienced Directors and Management Team Charles Lew Tony Ho Jean Claude Steinmetz Executive Chairman Non Executive Director Private investor and entrepreneur Non Executive Director & Chair of Audit Committee Corporate Finance Director – HG Asia Securities 1990 - 1997 Director of Greenland Minerals & Bioxyne MD of ABN Amro Investment Bank Singapore 1997 - 2000 35+ years in senior corporate management with Brazin, Yates and Dolomatrix Independent Director of RHB Banking Group 2004 - 2016 30+ years experience in investment banking HASTINGS Technology Metals Limited Previously Chief Operating Officer for Lynas Corporation 25+ years Involved in the chemical industry with a strong focus on the automotive industry Chairman of the Auto Plastic and Innovative Materials Committee of Sino-EU Chemical Manufacturers Association 34 Management Team Experienced Directors and Management Team Charles Tan Andy Border Guy Robertson Kok Hoong Leong Aris Stamoulis Chief Operating Officer General Manager Exploration Chief Financial Officer & Company Secretary Project Director Director • 20+ years in Commercial, Procurement, Outsourcing & Supply Chain Management with MNCs • Mineral sands & aluminium mining • 35+ years experience as a geologist • Rare earths, copper, gold and industrial minerals • 25+ years CFO experience • Former senior finance executive with Jardine Lloyd Thompson, Colliers, Franklins • 38 years’ engineering experience, 15 years in project management • Senior Project Manager at Lynas Malaysia/ Lynas Corp. responsible for Phase 2 production plant • Project manager with PETRONAS for two petrochemical plants. HASTINGS Technology Metals Limited Corporate Finance • 20+ years experience in banking & finance • Worked for Deutsche Bank and Morgan Stanley in various roles in London, Singapore and Hong Kong. 35 Specialised Technical Team Dr Kwan Wong Narelle Marriott KYSPYmet Mineral Processing Consultants Flotation Specialist Principal Engineer – Beneficiation • 50+ years practicing metallurgist • Possesses extensive flotation treatment experience in rare earth oxide ores • Consulting activities in evaluating flotation test work, plant performance & commissioning; pilot plant test programme design and execution • Specialist speaker in flotation workshops. • Worked on 9 REO oxide development projects covering Australian & International deposits. HASTINGS Technology Metals Limited • 14+ years experience in the minerals processing and mining industry • Experienced in process and flowsheet development for beneficiation plants • Worked on 5 pilot plant operations in comminution and flotation of nickel and RE ores • Nickel, copper, uranium, iron ore and RE industries Robin Zhang Darren Sutton Process Engineering Manager Metallurgy Manager • 20+ years experience in R&D, project engineering, plant commissioning & running of operations in RE industry • 8 years at Lynas Corporation, Senior Technical Services Manager & Senior Project Development Manager • 11 years with Gansu Rare Earth Group - one of the largest rare ear