Rhyolite Ridge American Source of Lithium & Boron for a - PowerPoint PPT Presentation

Rhyolite Ridge American Source of Lithium & Boron for a Sustainable Future RIU Resources Round-up, Sydney - 8 May 2019 1 ASX: INR

Imp Importa ortant no nt notices tices an and d disclaimers disclaimers This presentation has been prepared as a summary only and does not contain all information Competent Persons Statement about ioneer Ltd’s ( ioneer or the Company ) assets and liabilities, financial position and The information in this presentation that relates to Exploration Results is based on information performance, profits and losses, prospects, and the rights and liabilities attaching to ioneer’s compiled by Bernard Rowe, a Competent Person who is a Member of the Australian Institute of securities. The securities issued by ioneer are considered speculative and there is no Geoscientists. Bernard Rowe is a shareholder, employee and Managing Director of ioneer Ltd. guarantee that they will make a return on the capital invested, that dividends will be paid on Mr Rowe has sufficient experience that is relevant to the style of mineralisation and type of the shares or that there will be an increase in the value of the shares in the future. deposit under consideration and to the activity being undertaken 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’. Bernard Rowe consents to the inclusion in the ioneer does not purport to give financial or investment advice. No account has been taken of report of the matters based on his information in the form and context in which it appears. the objectives, financial situation or needs of any recipient of this presentation. Recipients of this presentation should carefully consider whether the securities issued by ioneer are an appropriate investment for them in light of their personal circumstances, including their In respect of Mineral Resources referred to in this presentation and previously reported by the financial and taxation position. Investors should make and rely upon their own enquiries Company in accordance with JORC Code 2012, the Company confirms that it is not aware of before deciding to acquire or deal in the Company's securities. any new information or data that materially affects the information included in the public report titled “Updated Rhyolite Ridge Mineral Resource Statement” dated 23 October 2018 and released on ASX. Further information regarding the Mineral Resource estimate can be found in Forward Looking Statements that report. All material assumptions and technical parameters underpinning the estimates in Various statements in this presentation constitute statements relating to intentions, future the report continue to apply and have not materially changed. acts and events which are generally classified as “forward looking statements”. These forward looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other important factors (many of which are In respect of production targets referred to in this presentation and previously disclosed, the beyond the Company’s control) that could cause those future acts, events and circumstances Company confirms that it is not aware of any new information or data that materially affects the to differ materially from what is presented or implicitly portrayed in this presentation. information included in the public report titled “Outstanding Results from Rhyolite Ridge Pre - Feasibility” dated 23 October 2018. Further information regarding the production estimates can be found in that report. All material assumptions and technical parameters underpinning For example, future reserves described in this presentation may be based, in part, on market the estimates in the report continue to apply and have not materially changed. prices that may vary significantly from current levels. These variations may materially affect the timing or feasibility of particular developments. No offer of securities Nothing in this presentation should be construed as either an offer to sell or a solicitation of an Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, offer to buy or sell ioneer securities in any jurisdiction, or be treated or relied upon as a “potential” and similar expressions are intended to identify forward -looking statements. recommendation or advice by ioneer. ioneer cautions security holders and prospective security holders to not place undue reliance Reliance on third party information on these forward-looking statements, which reflect the view of ioneer only as of the date of this presentation. The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or The forward-looking statements made in this presentation relate only to events as of the date warranty is made as to the accuracy, completeness or reliability of the information. This on which the statements are made. Except as required by applicable regulations or by law, presentation should not be relied upon as a recommendation or forecast by ioneer. ioneer does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. Note: All $’s in this presentation are US$’s except where otherwise noted. ASX: INR 2

Overview ioneer is ion is se set t to to de deli live ver r a Shares Share Price (3 May 2019) major li major lith thium ium-bo boro ron n mine mine 1.47B A$0.19 in in th the USA e USA Market Cap Options (Unlisted) A$270M 47.4M 100%-owned Rhyolite Ridge: • +30 year mine life, capable of producing: Performance Rights Cash (30 March 2019) • +20,000 tonnes p.a. lithium carbonate 1.4M A$60M • +170,000 tonnes p.a. boric acid Ownership • Forecast to be world’s lowest cost lithium at Debt Top 20 Zero ≈US$1,800/tonne due to boron credit 60% Directors / Management Enterprise Value Lithium is a key ingredient Boron is a raw A$210M 9% in lithium-ion batteries material for insulation, which are powering the fibreglass and other electric vehicle revolution energy saving products ASX: INR 3

Rhyolite Ridge Lithium-Boron Project Multi-generational source of lithium and boron  Strategically located in a tier one Lithium is a key ingredient in lithium-ion mining jurisdiction - Nevada batteries which are  Definitive Feasibility Study to be powering the electric vehicle revolution completed in 3Q 2019  Production set to commence in 2021 Boron is an essential ingredient in specialty  Excellent potential to increase glass, insulation, permanent magnets production scale and mine life used in electric motors and high-strength alloys Unique deposit as lithium and boron can be extracted using proven commercial ASX: INR processes to produce lithium and boron end-products on site 4

Rhyolite Ridge video This video is available on the ioneer YouTube Channel ASX: INR 5

PFS demonstrates robust project economics Annual Revenue Total Capex Annual EBITDA $450M $450M $599M $599M $297M $297M After-tax After-tax NPV IRR Cashflow (7% real): 28% 28% $6.6B $6.6B $1.8 $1.8B Lithium carbonate = 20kt p.a. Boric acid = 173kt p.a. ASX: INR Note: The PFS base case used lithium carbonate sale prices ranging from US$12,693/tonne to US$16,862/tonne (CIF China) and a constant boric acid sale price of US$700/tonne (CIF Asia). 6

Lowest operating cost Rhyolite Ridge to be at bottom of the lithium cost curve • Operating costs ~ $1,800/tonne lithium carbonate • Acid plant provides all steam and power required (with boric acid credit) plus excess 38MW of green power for sale • Boric acid revenue at $700/tonne pays for most of • Ore leaches and washes well with overall lithium site operating costs and boron recoveries > 80% Industry Lithium Carbonate Cost curve ASX: INR 7

Capex flexibility 600 Capex optimisation opportunities: Other, $57 Contingency, • The acid plant is a key capex driver 500 $68 • PFS demonstrated rapid payback of capital: 4 years Indirects, $111 400 million • Recently announced US$60M saving on sulphuric acid US$ plant from PFS capex estimate 300 Acid Plant, $173 • Potential further savings from DFS trade-off studies, fit for purpose design and optimisation 200 Procesing 100 Facilities, $190 0 PFS Estimates Total PFS Capex = US$599M ASX: INR 8 8

Funding flexibility & strategic partnering Multiple options to fund US$599M in capex 100% ownership  Engaging with interested parties on potential: o Lithium and/or boron offtake o Vendor and export credit finance Two o Option to finance acid plant (~30% of product capex) separately streams PFS Completed Well positioned to assess and negotiate funding:  Large , scalable project provides optionality  Funded to progress project with ~A$60M cash  USA supplier of critical minerals ASX: INR 9