Ann: Outstanding PFS Results 5Mtpa Expansion, page-2

OUTSTANDING RESULTS FROM 5MTPA STAGE 2 PFS
PAVES WAY FOR MAJOR EXPANSION OF PILGANGOORA
LITHIUM-TANTALUM PROJECT
Exceptional financial outcomes and robust economics demonstrate compelling case for expansion
after first production from the Stage 1, 2Mtpa Pilgangoora Project in mid-2018
Highlights
• Pre-Feasibility Study (“PFS”) completed assessing expansion to achieve 5Mtpa run-of-mine ore production
and processing capacity.
• The Stage 2 PFS has delivered exceptional results, with headline outcomes including:
o Outstanding project economics, Post-tax NPV1
10% of A$2.1Bn, rapid payback (3 years), and strong IRR
(56%);
o Average annual production after Stage 1 and 2 production ramp-up of approximately 800ktpa (over
100ktpa LCE) of 6% spodumene concentrate and ~780,000 lbs per annum of tantalite;
o Competitively low cash operating costs2 of US$210/tonne CIF3
for first 5 years and LOM cash operating
costs2 of US$225/tonne CIF3 attributable to the Pilgangoora Project’s Tier 1 scale, grade and product
quality;
o Forecast LOM project revenue of A$11.5Bn ($ real) and life of mine EBITDA of A$6.5Bn ($ real) over
an estimated 17-year mine life underpinned by existing reserves and based on a life-of-mine average
spodumene concentrate price of US$594/tonne CIF; and
o Capital development estimate of A$207M for the Stage 2 expansion to achieve 5Mtpa ore processing
capacity.
• Definitive Feasibility Study (“DFS”) on the Stage 2 expansion already well underway and on track for
completion by mid-2018, paving the way for a Final Investment Decision in Q3 2018, start of construction by
Q4 2018 and commissioning from Q4 2019.
• DFS diamond drilling complete and RC drilling underway targeting further Resource and Reserve growth.
• The expansion of Pilgangoora to 5Mtpa is strongly supported by its cornerstone customers and strategic
partners including its previously announced strategic off-take and financing arrangements with Ganfeng and
Great Wall Motor Company for the expansion of Stage 2.