Announcement PDF 30 January 2024 QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 DECEMBER 2023 HIGHLIGHTS • An industry-leading Total Recordable Injury Frequency Rate of 2.73, with no recordable injuries for the period • Engineering and design progress for the beneficiation plant ahead of schedule at 81% complete, with overall construction progress at 31% complete • Receipt of multiple debt financing proposals including debt capital markets instruments for the Yangibana Project in line with 60% target gearing ratio. This includes proposals from certain major global mining funds for funding and/or strategic partnerships1 • Final stage financier and bank due diligence progressed including site visits • Adoption of a Green Financing Framework accredited by Det Norske Veritas (“DNV”) in conjunction with Hastings’ ESG framework, including certification to enable the issue of green finance instruments (bonds or loans) for the Yangibana Project • Publication of the annual 2023 Sustainability Report • Quarterly dividend of CAD 762,800 (AUD 847,700) from Hastings’ 21.15% ownership in TSX-listed Neo Performance Materials Inc. • Hastings had $42 million in cash and equivalents as of 31 December 2023, in addition to a $50 million At-the-Market equity financing facility, providing working capital funding flexibility. Hastings Chief Executive Officer, Mr Paul Brown, said: “Throughout the December 2023 quarter, Hastings has steadily advanced key workstreams to pave the way for the commencement of main construction on one of Australia’s most significant rare earths mining and processing operations. “The Hastings team continues to look at opportunities to de-risk the project execution schedule on multiple fronts and in December we saw the arrival of the shell for the SAG mill at the port of Dampier – the first major piece of long-lead equipment for the beneficiation plant. With a third of critical path items by value already ordered and on schedule for delivery, project delivery risks continue to be managed and eliminated. “We have made substantial progress on the project financing front, following the receipt of multiple financing proposals from several prospective partners which include highly reputable global mining funds. Our primary focus is on securing the optimal financing package that results in the greatest realisation of long-term value for the Company and its shareholders through the development of the Yangibana Project.” Hastings Technology Metals Ltd (ASX:HAS) (“Hastings” or “the Company”) is pleased to report on development, corporate and exploration activities for the three-month period to 31 December 2023. Activity focused mainly on project finance workstreams and detailed engineering and design for the Yangibana Rare Earths Project’s (“Yangibana Project”) beneficiation plant in the Gascoyne region of Western Australia. SUSTAINABILITY Health and Safety A Total Recordable Injury Frequency Rate of 2.73 for the quarter remains industry leading, despite an 18% increase from the prior corresponding quarter due to a reduction in the hours worked following the finalisation of early site works at the Yangibana Project. There were no recordable injuries reported during the quarter. Lead performance indicators were a focus towards the end of the quarter, which included the implementation of health and safety interactions with the site leadership team increasing our in-field engagement. Environmental, Social and Governance During the quarter, Hastings published its annual Sustainability Report for 2023. The report provides an overview of the Company’s accomplishments over the 12 months to 30 June 2023 and sets out ESG objectives as the development of Yangibana Project progresses. Some of the 2023 performance highlights included a 40.3% female participation rate and zero non-compliance across Native Title, Environmental Regulation and Corporate Governance. During the quarter, Hastings announced it has established a Green Financing Framework under which the Company may issue Green Bonds and Green Loans. The Framework has been independently verified by DNV, confirming alignment with the International Capital Market Association’s Green Bond Principles and Loan Market Association’s Green Loan Principles. The Company’s ESG credentials are aligned with United Nations Sustainability Development Goals as a signatory of the UN Global Compact. The rare earth concentrate produced from the Yangibana Project will realise significant environmental benefits as critical inputs for electrification and renewable energy technologies. In addition, the accreditation also recognises Hastings’ commitment to create a more sustainable operation, including: • • • a target of 40-80% renewable energy sources 82% of water usage to be met by recovered process water for the project’s water requirements use of modern efficient engineering designs to achieve high recoveries YANGIBANA PROJECT DEVELOPMENT Development Activities Following completion of early infrastructure and non-processing infrastructure construction works in the September quarter, overall construction progress on the Yangibana Project is at 31% complete. At 31 December 2023, $142 million has been spent on non-process infrastructure and long-lead equipment for the beneficiation plant. Development activities during the period focused on advancement of detailed engineering and design for the beneficiation plant which is currently at 81% complete. The engineering and design for the bulk earthworks were completed during the quarter, with civil and structural elements progressing in accordance with plans. Engineering and design of the Tailings Storage Facility were also advanced. Contracts and Procurement Negotiations of key commercial agreements advanced during the quarter, including the power purchase agreement for the Yangibana Project’s power station. The Kurrbili Accommodation Village catering contract was issued to the market for competitive tender in December and targeted for award in the next quarter. Long-lead equipment for the Yangibana Project received during the quarter included the arrival of the shell for the SAG Mill at the Port of Dampier in December 2023. Other equipment that arrived included the regrind mill motor, hot gas generator and SAG Mill head feed end head and trunnion discharge head feed and trunnion. To date, $22 million has been invested in the procurement of long-lead items for the beneficiation plant, with the flotation cells, thickener, and mill liner handler currently under fabrication. Figure 1: Shell for SAG Mill arriving at Port of Dampier CORPORATE At-the-Market Facility As part of the Company’s project funding strategy, Hastings secured an At-the-Market (“ATM”) facility with Alpha Investment Partners (“AIP”). This ATM facility represents a strategic equity financing option for up to $50 million, offering the Company the flexibility to raise capital incrementally over a four-year period at an issue price referable to prevailing market prices, subject to a floor price that is set by Hastings. The ATM facility does not impose restrictive conditions, preserving the Company’s operational and capital raising freedom. This makes the ATM facility a compelling option for Hastings, aligning with the Company’s long-term growth strategy and commitment to maximising shareholder value. This standby equity capital facility aligns with Hastings' commitment to prudent financial management, facilitating a controlled approach to capital raising, and minimising shareholder dilution. The facility can be terminated by Hastings at any time without penalty to the Company. As collateral for the ATM facility, Hastings issued 6.5 million shares to AIP during the quarter. Project Funding Package Hastings received non-binding indicative financing proposals1 from multiple parties, including from global mining funds, senior debt, and fixed income investors (debt capital markets), to fund the Yangibana Project in line with the target gearing ratio of 60% of the total funding package 2. This is in addition to the previously announced financing support from commercial banks and government agencies3. Final due diligence phase progressed including investor and bank site visits, and due diligence calls with Hastings’ partners such as thyssenkrupp, ALS and GR Engineering Services. Hastings and its financial advisers are monitoring market conditions for USD denominated debt noting there was a material reduction in the US Treasury yield recently. Following confirmatory due diligence by various financiers and favourable debt capital market conditions, Hastings will progress on the optimal financing pathway and harmonise terms and pricing with the preferred syndicate/ consortium. Figure 2: Investor due diligence site visits Partnership with Estonian Government to assess downstream processing opportunities As part of the Company’s long-term vision to establish an integrated mine-to-magnet European supply chain, Hastings has signed a Memorandum of Understanding (“MoU”) with the Estonian Government’s investment agency Ettevotluse ja Innovatsiooni Sihtasutus to collaborate on a joint scoping study into the potential development of downstream rare earth processing capabilities in Estonia. This firmly aligns with the Estonian Government’s objectives to strengthen Estonia’s and the European Union’s ability to provide strategic materials needed for electric vehicles and renewable energy technologies. Recently the German government’s Budget Committee highlighted the necessity for Germany to set up a €1 billion equity fund to finance strategic raw material projects within the EU. This MOU is aligned to Hastings’ long-term vision to build a European-centric mine-to-magnet supply chain and further reinforces its strategic 21.15% shareholding in Neo Performance Materials Inc. (“Neo”), a leading global manufacturer of rare earth magnetic products. Neo currently owns the only operating commercial rare earth separation facility in Europe, located in Sillamae, Estonia, and is currently constructing a sintered rare earth magnet manufacturing facility in Narva, Estonia with production expected from 2025. Quarterly Expenditure During the quarter, the Company had cash outflows on exploration and evaluation costs of $4 million, and cash outflows for project development of $20 million. $257,000 was paid in respect of directors’ fees, salaries, and consulting fees. Hastings had $42 million in cash and equivalents as of 31 December 2023. Authorised by the Board for release to the ASX. FOR FURTHER INFORMATION CONTACT: Charles Lew Executive Chairman +65 62209220 Paul Brown Chief Executive Officer +61 8 6117 8605 Teck Lim Chief Financial Officer +61 8 6117 6118 MEDIA ENQUIRIES: Stephanie Vanicek Communications Manager +61 405 183 237 Disclaimer: There are no guarantees that the indicative proposals will result in approved project funding. Refer to ASX Release ‘Quarterly Activities Report (for the period ended 30 September 2023)’, dated 31 October 2023. 3 See ASX Release ‘Quarterly Activities Report (for the period ended 30 June 2023)’, dated 17 July 2023, ‘NAIF increases financial support for Yangibana Rare Earths Project to A$220 million’, dated 17 January 2023, ‘Letter of Support secured from Export Finance Australia for $100m loan’, dated 21 March 2023. 1 2 ABOUT HASTINGS TECHNOLOGY METALS LIMITED Hastings is a Perth based rare earths company primed to become the world’s next producer of neodymium and praseodymium concentrate (“NdPr”). NdPr are vital components in the manufacture of permanent magnets used every day in advanced technology products ranging from electric vehicles to wind turbines, robotics, medical applications, and digital devices. Hastings’ flagship Yangibana Project located in the Gascoyne and Pilbara regions of Western Australia, contains one of the most highly valued NdPr deposits in the world with a NdPr to Total Rare Earth Oxide ratio of up to 52% in some areas of the orebody. The Yangibana Project will be developed in two stages with an initial focus on the construction of the mine and beneficiation plant to produce 37,000 tonnes per annum of mixed rare earth concentrate, followed by the construction of a hydrometallurgical plant with the capacity to process 15,000 tonnes per annum of mixed rare earth carbonate. The Yangibana Project is permitted for longlife production and with offtake commitments and debt finance being finalised. Furthermore, Hastings has a 21.15% strategic shareholding in TSX-listed Neo Performance Materials, a leading global rare earth processing and advanced permanent magnets producer, providing the Company with the opportunity to explore opportunities to create a mine-to-magnet supply chain. For more information, please visit www.hastingstechmetals.com COMPETENT PERSONS’ STATEMENT Information in this presentation relating to Mineral Resources and Ore Reserves have been prepared by a Competent Person in accordance with the 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 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code 2012”). 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 2012. 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. 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 2012. Ms. Marriott owns shares in the Company and participates in the Company’s 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. 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 2012. 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. APPENDIX – MINING TENEMENTS HELD AS AT 31 DECEMBER 2023 YANGIBANA PROJECT Gascoyne Metals Pty Ltd (70%) / Yangibana Pty Ltd (30%) Tenement Locality Status E09/2296 WA Live E09/2298 WA Live E09/1703 WA Live E09/1704 WA Live E09/1705 WA Live E09/1706 WA Live E09/2333 WA Live M09/0159 WA Live M09/0161 WA Live M09/0163 WA Live G09/0011 WA Live G09/0013 WA Live Yangibana Pty Ltd (100%) Tenement G09/0017 G09/0018 G09/0020 G09/0021 G09/0022 G09/0026 G09/0027 G09/0028 L09/0093 L09/0095 L09/0096 L09/0097 M09/0158 M09/0162 M09/0176 M09/0178 E09/1700 E09/1943 E09/1944 E09/2018 Locality WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA Status Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Gascoyne Metals Pty Ltd (100%) Tenement E09/1989 E09/2007 E09/2084 E09/2086 E09/2095 E09/2129 E09/2137 E09/2334 E09/2364 E09/2403 E09/2404 G09/0010 G09/0014 G09/0023 G09/0024 G09/0025 G09/029 L09/0066 L09/0067 L09/0068 L09/0069 L09/0070 L09/0071 L09/0072 L09/0074 L09/0075 L09/0080 L09/0081 L09/0082 L09/0083 L09/0085 L09/0086 L09/0087 L09/0089 L09/0091 M09/0157 M09/0160 M09/0164 M09/0165 M09/0177 M09/0179 Locality WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA Status Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live Live BROCKMAN PROJECT ARK GOLD PROJECT Hastings Technical Metals Ltd (100%) Hastings Technical Metals Ltd (100%) Tenement E80/5248 P80/1626 P80/1628 P80/1629 P80/1630 Locality WA WA WA WA WA Status Live Live Live Live Live Tenement G09/0017 G09/0018 Locality WA WA Status Live Live