Associated News, page-1626

A recap for new investors and those recently sidetracked:

20+ Reasonsto Invest in QPM

1. QPM’s Townsville Energy ChemicalsHub (TECH) Project on 7-Mar-23 received Significant Investment Projectdesignation by the Queensland Government. This results in elevated multi-agencyand cross-government collaboration and coordination https://www.treasury.qld.gov.au/investment/queensland-treasurys-investment-support/

2. The TECH Project and LansdownEco-Industrial Precinct where it will be situated are two of only eight QLDGovt prescribed projects. A prescribed project is one which is of significance,particularly economically and socially, to Queensland or a region. Declaring a prescribed project enlivens the Coordinator-General’s powers to ensure timely decision-making in relation to prescribed processes and prescribed decisions. https://www.statedevelopment.qld.gov.au/coordinator-general/project-facilitation/prescribed-projects/list-of-projects

3. A large proportion of the project’sdebt financing has been conditionally secured, with further support pending: https://www.youtube.com/watch?v=BujvDu96zn8

4. All Stage 1 & 2 offtake issecured under binding offtake agreements with Tier 1 partners POSCO, LGES & GM: https://qpmetals.com.au/investor-centre/asx-announcements/> Investment and Offtake with General Motors 12-Oct-2022.

5. Ore supply exceeding Stage 1 nameplatehas been secured with binding agreements and is diversified, with four NewCaledonia miners SLN, SMT, SMGM & MKM (Mar23 Qrtly).

6. Ore supply is “ore fatale” overburdenlaterite from New Caledonia. The ore is in abundance, high grade (1.6%) & with limited competition: https://qpmetals.com.au/investor-centre/investment-presentations/ > 20-July-2022 Noosa Conference Presentation.

7. Gas supply, a key and price-volatileinput, is pending guaranteed from the newly acquired Moranbah Gas Project(MGP), which collects waste gas from operating metallurgical coal mines inQLD’s Bowen Basin. QPM subsidiary QPME will operate the asset.

8. The MGP will not only guarantee gassupply at best in market rates, but also generate revenue through supply toother industrial users such as Incitec Pivot and to the Townsville PowerStation to produce electricity, targeting peak load times. Projected revenuefor CY24 is ~$40M AUD: https://qpmetals.com.au/investor-centre/asx-announcements/> 17-July-23.

9. The TECH Project is calculated as beingapprox. 1M tonnes carbon negative:https://qpmetals.com.au/qpme/carbon-abatement-hub/

10. The TECH Project produces little to nowaste! All material entering the plant is being targeted to leave as sellableproduct. The Direct Nickel process is a clear environmental winner in everycategory compared with the industry standard High Pressure Acid Leach (HPAL)process; https://www.altiliumgroup.com/the-dni-process/

11. There are eight sellable productsfrom the facility, providing a counter to cyclical price movements in the keyproducts nickel and cobalt (QPM AFS).

12. The TECH Project enjoys solid if notspectacular support from all three levels of Australian government. TownsvilleCouncil and the State Government have completed all project approvals and arefacilitating the early building works of the Lansdown precinct. The FederalGovt has shared funding for Lansdown and is establishing the NationalReconstruction Fund with significant funding for minerals processing projectsas part of a focus on securing strategic minerals and creating a domesticbattery manufacturing plan. The QLD Premier recently completed a trade missionto Korea meeting QPM’s partners POSCO, LGES and the Korean Export Credit AgencyK-SURE: https://buff.ly/3rtwB7P

13. All local, state and federal governmentapprovals required for the project have been granted:

https://qpmetals.com.au/investor-centre/asx-announcements/> 15-Dec-2022

14. The TECH Project’s battery productsare poised to enable our downstream partners to gain maximum benefits from the EUBattery Regulation and Battery Pass’ESG provenance requirements.

15. The TECH Project’s battery productsare poised to enable downstream partners to gain maximum benefits from theUSA’s Inflation Reduction Act’s (IRA) domestic or free trade agreementsuppliers.

16. Townsville is QLDs second largestcity, has a skilled nickel processing workforce from the 2016-shuttered QNIYabulu project. Both government and former workers will have a poor view ofthat site after the previous owner Clive Palmer withheld entitlements andstymied creditors, whilst spending big on tilts in politics. The alleged newowners of the facility have not updated the market in over 7 months: https://inqld.com.au/business/2022/12/22/clive-sells-the-farm-palmers-2-billion-deal-to-offload-troubled-townsville-nickel-refinery/

17. The Lansdown Eco Industrial Precinctis well supported by nearby critical infrastructure, including road, rail, gaspipeline, water pipeline and the ability to connect to the power grid. Both Federaland State government funding has been allocated to assist with funding thisinfrastructure (QPM AFS).

18. The MGP offers Bowen Basin coalminers the opportunity to avoid significant financial penalties now applicable to largeindustrial polluters under the Safeguard Mechanism in failing to meet theirrequired annual 4.9% emission reductions: https://qpmetals.com.au/investor-centre/investment-presentations/5-Apr-2023 Moranbah Project Presentation.

19. The TECH Project is the mostadvanced of those using the Direct Nickel processing technique. There isfurther potential for creating future plant Stages (e.g. in New Caledonia) orproviding technical assistance to those other less advanced companies: https://www.altiliumgroup.com/news/

20. Nickel-based lithium ion batterychemistries are preferred for long range in EVs and heavy duty applications. Thetransition of the global vehicle fleet from ICE to EV in these categories iscurrently miniscule: https://www.iea.org/reports/global-ev-outlook-2023

21. German KBR Plinke,Andritz and Siemens suppliers have entered into a Collaboration Agreement with QPM, toadvance the project for the mutual benefit of all parties, meet the specifiedrequirements, provide performance guarantees and identify the quickest pathwaythrough construction and commercial production (Mar23 Qrtly).

22. QPM is currently trading at <10%of its Net Present Value (NPV)₈ (~$200M AUD v $2,665M AUD Stage 1only, QPM AFS) despite the de-risking from being at an AFS stage.

23. QPM is far more advanced than TheCall discussionfrom Mon 24^th July attendees would have youbelieve. Upstream ore supply is locked in with four binding agreements! Priceassumptions affect our ore supply cost at the same time as our finishedproduct! Construction approvals are all approved! Financing targeting Dec23quarter! Process trailing far more advanced than just the ALS WA facility! Costhas been rigorously examined by the key plant builders themselves & anIndependent Technical Expert!

I'm sure there's stuff I've missed!
Lots of further de-risking news incoming in the coming months