Hub in Quebec VRIC Presentation January 2020 Forward Looking - PowerPoint PPT Presentation

Developing a Rare Earths Hub in Quebec VRIC Presentation January 2020

Forward Looking Statement Our presentation contains “forward - looking statements” not based on historical facts. Forward -looking statements express, as of the date of this presentation, our estimates, forecasts, projections, expectations and opinions as to future events or results. The forward looking statements that are contained in this presentation are based on various assumptions and estimates by the Corporation and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Corporation’s filings with Canadian Securities Administrators. Various factors may prevent or delay our plan s, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and including as regards the commercialization of any of the technology, general business, economic, competitive, political and social conditions. The Corporation expressly disclaims any obligation to update any forward-looking statements, except as required by applicable securities laws. Neodymium Oxide Neodymium Metal NdFeB Magnets Electric Motors Developing a Rare Earths Hub in Quebec Page 2 | Geomega (GMA.V)

Challenges of Critical Minerals What are the challenges in Critical Mineral deposits for juniors? • No Majors to be acquired by • Have to develop the deposit yourself • High risk of financing • Exposed to sharp drops in commodity prices (bubbles) • Often requires a new technology • Developing a Rare Earths Hub in Quebec Page 3 | Geomega (GMA.V)

Challenges of New technologies What are the challenges to developing new technologies? • Long R&D process • Black box approach – no credibility • Scale up is too aggressive • Cost overruns during construction • Most often is the challenging part of the business and not the mining portion • So how is Geomega doing it differently? Developing a Rare Earths Hub in Quebec Page 4 | Geomega (GMA.V)

Canada & Quebec Advantage What is Canada’s & Quebec’s advantage in Rare Earths? • Are our mining projects better than those in China, Africa or Australia? • Is our infrastructure better? • Is our labor cost cheaper? • Cheap & Clean Energy Strong support for innovation Developing a Rare Earths Hub in Quebec Page 5 | Geomega (GMA.V)

Quebec – North America’s REE hub ISR Technology to be used to establish Quebec as the clean and cost-efficient recycler of choice • outside of China for NdFeB • Expand to recycling other secondary feeds of rare earths / specialty metals Use ISR to refine REE mining concentrates • Use ISR on alternative REE bearing feeds such as red muds, coal, tailings and other mining feeds • RE & Processing Refining of NdFeB Specialty Alternative REE Mining Metals Recycling REE Feeds Concentrates Recycling Developing a Rare Earths Hub in Quebec Page 6 | Geomega (GMA.V)

Quebec – North America’s REE hub An operational clean REE recycling & refining industry will lead to: • 1. Development of the REE mines of Quebec Montviel and several other projects are already well defined 2. Attract downstream processing Metal making and magnet manufacturing - energy intensive processes that would thrive with low cost and clean energy of Quebec 3. Attract downstream manufacturers that use REE in their products Developing a Rare Earths Hub in Quebec Page 7 | Geomega (GMA.V)

Geomega’s approach Developing the ISR Technology to extract and refine REE Stage 1: Lab scale development of the technology – completed • Adjust ISR to process REE magnets and perform a sequence of scale ups of • 10x each to demonstrate the technology in mini-pilot – completed Stage 2: • Scale up REE magnet recycling to a demonstration plant – ongoing Adjust ISR to process other REE feeds and mining concentrates - ongoing • Convert the demonstration plant to a commercial plant • Stage 3: Scale up ISR for other REE feeds and mining concentrates • GRADUAL SCALE UP IS THE KEY Developing a Rare Earths Hub in Quebec Page 8 | Geomega (GMA.V)

Geomega’s approach The gradual scale up has several advantages: 1. Reduces the technological risk of scaling up new and innovative processes 2. Reduces CAPEX and financial risk by starting from low volume & highest grade material available 3. Allows to establish cash flow to make the company less dependent on equity financings 4. Brings credibility to the technology 5. Establishes a relationship with the clients / industry 6. Lowers the risk when scaling up to lower grade and larger volume feed material Developing a Rare Earths Hub in Quebec Page 9 | Geomega (GMA.V)

Geomega’s ISR Technology ▪ Proprietary technology ▪ Environmentally safe ▪ Small footprint ▪ Low CAPEX ▪ Recovery of main reagents > 95% ▪ No liquid effluent produced ▪ Iron oxide as product Developing a Rare Earths Hub in Quebec Page 10 | Geomega (GMA.V)

ISR Technology Demo Plant FEED study Updated Economics - production of 1.5 tons per day Demo plant feed throughput 1.5 tpd / 8hr day Average grade of feed stock 30% TREO (Nd, Pr, Dy, Tb) Capital costs $2.6 MM Direct operating costs $3 / kg of TREO Targeted Sales $10 MM Target Profit Margin 20% Expansion potential Up to 4.5 tpd / 24hr operation Developing a Rare Earths Hub in Quebec Page 11 | Geomega (GMA.V)

Demo Plant Location A brand-new industrial complex has been secured in Saint-Bruno-de- ▪ Montarville Strategic location for the first Rare Earth Magnet recycling operations in North ▪ America 30 minutes from Montreal ▪ 6 hours from Major North American cities (Boston, NY, Toronto) ▪ Within 30 minutes to major seaways through the Port of Montreal (access to ▪ largest container transshipment center in the Great Lakes system) and Contrecoeur marine terminal Serviced by CN and CP railways ▪ 40 minutes from two airports (Trudeau & St Hubert airports) ▪ Developing a Rare Earths Hub in Quebec Page 12 | Geomega (GMA.V)

Upcoming Milestones 2019 2020 Debt / Offtake Results of Government Agreements Optimization of FEED Study Funding Pilot Plant Q2- Q3 Q4 Q1 Q1 Q1 H1 2020 Q3 Equity Selection of Start EPCM Plant Financing Demonstration Commissioning Plant Location Complete Feed Sourcing Contracts & Stockpiling Material – always ongoing Developing a Rare Earths Hub in Quebec Page 13 | Geomega (GMA.V)

More Feed? 2018 Neodymium (NdFeB) magnet production – 160,000 tons ($11B US) 15-30% waste in production = 24,000 to 48,000 tpy • Electric Vehicles – Avg. 3 kg NdFeB per EV 2018 sales – 2M EV = 6,000 tonnes NdFeB • Avg. lifespan 8-10 years • Wind Power – 3MW = up to 2 tons NdFeB Annual growth – avg. 50,000 MW = 15,000 tpy NdFeB • In 2017 decommissioned 650 MW and growing • Decommissioning growth approx. 25% per year • MORE GROWTH = MORE MAGNET WASTE IN THE FUTURE Developing a Rare Earths Hub in Quebec Page 14 | Geomega (GMA.V)

Permanent Magnet Sector 9.4% avg annual growth from 2015 to 2024 Source: Walter T. Benecki LLC & Dr. John Ormerod Source: Roskill Developing a Rare Earths Hub in Quebec Page 15 | Geomega (GMA.V)

More Feed? Educating the upstream recycler 100s to 1000s recycling & scrap companies in every country • Most don’t recognize the value of the magnet • Magnet is considered waste and discarded with the steel • Recycling industry always evolves towards new materials • Government Support Labeling as Critical Materials • Regulations to mandate recovery • OEM / Major Corporations Support Everyone looking for a solution that is clean and cost efficient • NO BUYER / NO GOVERNMENT SUBSIDIES = NO RECYCLING Developing a Rare Earths Hub in Quebec Page 16 | Geomega (GMA.V)

Feed Overview Starting model is robust • Growth opportunity in magnet recycling is significant • Additional growth expected from other secondary sources • Geomega Forecast vs Magnet Waste Market Value 2,000 $1,800M 1,800 1,600 1,400 1,200 $1,120M $ MILLIONS 1,000 800 600 400 200 $60M $10M $30M - FEED - 500 tpy (1.5 tpd) FEED - 1,500 tpy (4.5 tpd) 2nd plant addition potential Current Magnet Waste Market 2030 Magnet Waste Market OXIDE - 150 tonnes/year OXIDE - 450 tonnes/year FEED - 3,000 tpy (9 tpd) OXIDE - 900 tonnes/year Sales Value 15% Primary Waste 30% Primary Waste End of Life Magnet (5% current, 10% 2030) Developing a Rare Earths Hub in Quebec Page 17 | Geomega (GMA.V)

REE Circular Economy 3 different feeds 2 1 3 3 Developing a Rare Earths Hub in Quebec Page 18 | Geomega (GMA.V)

Where is the REE sector today? Chinese monopoly results in: • Major geopolitical risk • Price volatility & supply uncertainty • Demand destruction • Difficult to establish new mines Source: Hobart M. King BUT, today’s reality is: • Low but stable prices • Drives demand growth • Positive for innovation • Positive for recycling Source: Bloomberg Developing a Rare Earths Hub in Quebec Page 19 | Geomega (GMA.V)