Ann: Trading Halt, page-451

POSCO AND PILBARA MINERALS TO EVALUATELARGER DOWNSTREAM CHEMICAL FACILITY IN LINEWITH CONTINUED GROWTH OF PILGANGOORAStrong demand from South Korean customers and their partners encourages POSCO and PilbaraMinerals to consider a larger South Korean JV chemical conversion facility, to be supported byadditional offtake from the Pilgangoora ProjectHIGHLIGHTS• POSCO and Pilbara Minerals sign a non-binding MoU to consider a larger jointly owned chemicalconversion facility of up to 40ktpa LCE (currently 30ktpa LCE), based on the patented PosLXpurification process to produce industry leading, high-grade hydroxide and carbonate products.• As part of the agreements under consideration, the existing offtake agreement for spodumeneconcentrate from the Pilgangoora project would increase to support the jointly owned SouthKorean JV chemical plantfrom 240ktpa to 315ktpa of spodumene concentrate (dry metric tonnesbasis) over the life-of-mine (LOM).• Pilbara Minerals’ right to participate as a 30% joint venture partner in the South Korean JVchemical plant is required to be exercised on or before 28 February 2019, with finaldocumentation and board approvals to be completed in May 2019.• Due diligence activities assessing the proposed joint development in South Korea are underway,with key commercial terms of the joint venture (previously agreed between the parties)expected to be formalised in joint venture documentation in the coming months, including atechnology licensing agreement for the patented PosLX purification process.• Stage 2 DFS results, existing Ore Reserves1 and associated project engineering provide potentialflexibility in the design and layout of the Pilgangoora project to facilitate a future expansionbeyond the 5Mtpa Stage 2 project (“Stage 3”).• Initial Stage 3 studies are underway which proposes ultimate ore processing capacity of up to7.5Mtpa, but with the ability to initially configure an interim step to process 6.2Mtpa, deliveringup to 1,000,000 tonnes per annum of spodumene concentrate or over 130Ktpa on an LCE basis.