Ann: HOA Signed for Bauxite Aluminium Fluoride Project, page-2

Heads of Agreement for ALCORE project to produce Aluminium Fluoride from bauxite Bauxite producer, Australian Bauxite Limited (ABx) is pleased to announce that it has finalised a Heads of Agreement (HoA) with technology provider, Refined Ore Industries Limited (ROIL) for the ALCORE project which is the development of bauxite beneficiation and refining technology to produce from bauxite Aluminium Fluoride which is used in aluminium production and in lithium ion batteries.

ABx has assisted ROIL’s commercial and technological development over the past 3 years and has subsequently been offered the licence from ROIL for the refining of bauxite, on the following terms:

1. Exclusive global rights for the refining of bauxite, to produce Aluminium Fluoride (AlF3), and coproduct oxides of aluminium, silicon, iron, titanium from the bauxite;

2. Production of Corethane Gas from the refining of coal to provide electrical power, heating and cooling for the bauxite refining plant so that is has energy security; and,

3. Exclusive global marketing rights for all Aluminium Fluoride (AlF3) and related coproducts produced by other ROIL technology projects unrelated to ABx in Australasia and Asia.

ABx is to issue 1.4 million ABx shares to ROIL on completion of the Full Agreement. Patent ROIL is the owner of the technology intellectual property company, Berkeley Process Technologies Pty. Ltd. which owns the patent application No . 2017902627 dated 5 June 2017 for the “Ores to Elements” process (the CORE process) that involves the refining of various ore types using a combination of fluorine acids and related thermal energy process steps.

ABx assisted ROIL to finalise and lodge this patent application so that the ALCORE project could proceed. Project The ALCORE project will apply the CORE Process to refine bauxite ore containing aluminium, iron, silica and titanium for the low energy, low emissions production of Aluminium Fluoride (AlF3) and coproducts including very pure forms of silica SiO2, iron oxide Fe2O3 and titanium oxide pigment TiO2.

2 Stages: ROIL personnel will undertake high-technology engineering projects focused on the CORE Process. ABx will work with ROIL to develop ALCORE in the following 2-stage process: Stage 1: Engineering Evaluation Plant (EV Plant) A$12.5m to A$16m (being costed)

Stage 2: 50,000 tonnes per year production plant “ALF 1” for approximately A$50m Timetable Design & costing of EV Plant underway now and due by end February 2018 Shareholder consultation, approvals & funding strategy – from now until end Q1 2018 Funding – during Q1 & Q2 2018 Marketing samples for offtake contracts - in September &-November 2018 Bankable feasibility study of ALF 1 production plant - by end Q1 2019 Commissioning ALF 1 Production Plant - by end 2019 Summary: Bauxite refining converts Tasmanian bauxite valued at approximately US$50 per tonne into a suite of products worth in excess of US$800 per tonne of bauxite.

. Advantage: ABx bauxite is a clean ore, ideally suited to this type of refining because it is free of radioactive elements and base metals. This gives ALCORE two key advantages: (1) The ALF3 product and all coproducts can be produced at very high purity; and, (2) No residues means no need for costly waste disposal.



Really nice announcement.. a clear path now with lot's of upside.