Announcement PDF Australian Critical Rare Earth Minerals Investor Presentation I 18 July 2023 ASX I OD6 1 Important Information Disclaimer This presentation has been prepared by OD6 Metals Ltd (ACN 654 839 602) (OD6) and is current as at the date of this document. The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without considering the investment objectives, financial situation or needs of any particular person. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate considering your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance. Any securities that may be issued by OD6 should be considered speculative and there is no guarantee implied or explicit that there will be a return on the capital invested or that any dividend will be paid or that there will be an increase in the price or value of OD6’s shares in the future. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of OD6, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Competent Person Statement The information contained in this presentation that relates to the Mineral Resource estimation is based on information reviewed by Mr Jeremy Peters who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Chartered Professional Geologist and Mining Engineer of that organisation. Mr Peters is a Director of Burnt Shirt Pty Ltd, consulting to OD6 and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Peters consents to the inclusion of the data in the form and context in which it appears. Forward Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of OD6 and its projects, are forward looking statements. Such forward looking statements: • may include, among other things, statements regarding incomplete and uncertain proposals or targets, production and prices, operating costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions; • are necessarily based upon several estimates and assumptions that, while considered reasonable by OD6, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and • involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forwardlooking statements. OD6 disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements. All forward looking statements made in this presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein. No representation is made that, in relation to the tenements the subject of this presentation, OD6 has now or will at any time in the future develop further resources or reserves within the meaning of the Australian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves (The JORC Code). No New Information This document contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (2012 JORC Code) and available for viewing at https://www.od6metals.com.au/investors/asx-announcements/. OD6 confirms that it is not aware of any new information or data that materially affects the information included in any original ASX market announcement. 2 Globally Significant Clay Hosted Rare Earth Discovery 100% owned project areas • 344Mt @ 1,308ppm TREO Inferred Resource at a 1,000ppm cut off grade at Splinter Rock • MagREO represent an average of ~23% of TREO grade • 10-80m thick intersections • 60 to 75% average acid leach recoveries • 250km2 of clay basins mapped by an Airborne electromagnetics (AEM) survey • <5% of clay basin area included in the Resource • Close to port, roads and essential infrastructure TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3 MagREO (Magnet Rare Earth Oxide) = Nd2O3 + Pr6O11 + Tb4O7 + Dy2O3 % Magnet REO = (MagREO / TREO)*100 3 Insatiable Demand For Rare Earth Magnets A growing MagREO rare earth demand and supply deficit • Transitions from carbon to renewable economy - strong demand for critical MagREO MagREO demand forecast (t) 1,2 Approximately 8.6% CAGR • 8.6% expected compound annual growth rate (CAGR) for MagREO • Value of global MagREO consumption expected to triple by 2035 – rising from US$15.1 billion in 2022 to US$46.2 billion in 2035 2 168,200 116,360 1. MagREO (Magnetic Rare Earth Oxide) = Pr6O11 + Nd2O3 + Tb4O7 + Dy2O3 2. Source Adamas Intelligence, June 2022 3. NdPr = Two of the critical rare earth elements Neodymium (Nd) and Praseodymium (Pr), represent the major value and revenue sources from Rare Earth Element production. 67,662 51,851 2015 2020 2025 2030 2035 NdPr market balance (t) 2,3 2,968 • Significant NdPr supply deficits expected • Demand underpinned by growth from electric vehicles, wind power and consumer electronics 246,111 (4,620) (12,042) (15,532) (20,834) (37,811) Rapidly emerging NdPr market deficit forecast 2022 2024 2026 (57,063) 2028 2030 2032 2034 4 New Australian Supply Urgently Needed Mine concentration is a significant risk to the global supply chain 2022 Existing global mine production (t) 140,000 Diversity of supply is a priority for governments and corporations with Australia well placed to provide additional capacity China continues to dominate both mine production and downstream processing 38,000 30,000 17,000 100 500 1,000 1,000 2,000 2,700 3,000 8,000 Source: USGS Mineral Commodity Summaries, Rare Earths pubs.usgs.gov/periodicals/mcs2023/mcs2023.pdf 5 Rapid Exploration Progress Since Listing Delivering on our commitments to shareholders 1. Drilling commences at Splinter Rock 3. Immediate outstanding drilling success 5.Airborne Electromagnetic Survey complete 7. Second phase drilling complete at Splinter Rock 9. Very high metallurgical recoveries 11. Third phase drilling underway at Splinter Rock Initial 179-hole AC program for 5,862m of drilling Results from first 65-hole returns grades up to 6,729ppm TREO average 22.3% MagREO Vast scale of target areas identified with over 250km2 clay basins mapped Total 83 holes drilled for 4,305m at average depth of 50m and max depth 100m Up to 96% of MagREO acid leach recoveries. Average 60 to 75% Further 188 holes for 10,000m planned 1 Aug 22 Sep 22 Oct 22 3 5 Nov 22 Dec 22 Jan 23 4 6 2 9 7 Feb 23 11 Mar 23 Apr 23 8 10 May 23 Jun 23 Jul 23 12 2. CSIRO engaged for REE exploration 4. Continued excellent drilling success 6. Drilling commences at Grass Patch 8. High-grade REEs identified at Grass Patch 10. Bumper REE grades at Splinter Rock 12. Maiden Mineral Resource Estimate Utilising cutting edge exploration tools Further extensions of 10-80m thick high-grade clay hosted REE Initial 93-hole AC program for 3,399m of drilling Grades up to 3,340ppm TREO, with up to 38.5% MagREO 74 out of 83 holes returned significant high grade TREO results 344Mt @ 1,308 ppm TREO Inferred Resource at a 1,000ppm cut off grade Refer to OD6 ASX Announcements https://www.od6metals.com.au/investors/asx-announcements/ 6 Highly Targeted Exploration Program Airborne Electromagnetic (AEM) Success • AEM has facilitated mapping of clay locations, expanse and potential thickness A • 250km2 of clay basins mapped • Clays are conductive, and are readily mapped with AEM (yellow to red colours). • Granites are not conductive (blues to green) • 74 out of 83 holes (~90%) returned significant high grade TREO results from last drill program B Refer to ASX announcement 15 December 2022, “AEM shows Vast Scale of Target Areas” 7 Splinter Rock Geology Heavily enriched in Rare Earths A • Splinter Rock tenure and exploration model targeting clay basins fed by REE weathering of Booanya granites X Y • The strong enrichments in REE distinguishes Booanya granites from all other granite groups in the Esperance area • CSIRO engaged to use cutting edge exploration techniques A X B Y B 8 Deep REE Clay Basins Drilling Success The thickest and highest grade in Australia • Near surface, thick clay basins • 60 to 70m thick mineralised clays • Predicted by AEM to continue along strike for kilometres 55m @ 1,781ppm TREO 71m @ 1,330ppm TREO X Y 69m @ 1,483ppm TREO 68m @ 1,316ppm TREO Refer to ASX announcement 18 April 2023, “Bumper REE Grades and Extensive Thicknesses at Splinter Rock” 9 Mineral Resource Modelling <5% of identified clay basins included in Mineral Resource Estimate Centre Prospect Scrum Prospect 149Mt @1,423 ppm TREO 120Mt @1,222 ppm TREO Prop Prospect 33Mt @1,180 ppm TREO Flanker Prospect 42Mt @1,246 ppm TREO 10 Splinter Rock Mineral Resource Estimate At 1,000 ppm cutoff grade Prospect Category Australia’s highest grade and largest clay hosted MRE Delineated from less than 5% of identified target area Tonnes (Mt) TREO (ppm) Pr6O11 (ppm) Nd2O3 (ppm) Tb4O7 (ppm) Dy2O3 (ppm) MagREO MagREO (ppm) (% of TREO) Centre Inferred 149 1,423 71.2 244.6 2.6 14.1 329 23.1 Scrum Inferred 120 1,222 57.7 208.1 2.7 14.7 283 23.2 Flanker Inferred 42 1,246 58.9 210.9 2.9 16.0 288 23.2 Prop Inferred 33 1,180 49.9 179.4 2.3 12.9 244 20.7 Total Inferred 344 1,308 62.5 220.2 2.6 14.5 300 22.9 The Mineral Resource estimate has been reported by an independent Competent Person in accordance with the provisions of the JORC Code TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3 MagREO (Magnet Rare Earth Oxide) = Nd2O3 + Pr6O11 + Tb4O7 + Dy2O3 % Magnet REO = (MagREO / TREO)*100 For full Mineral Resource estimate details refer to OD6 ASX announcement 18 July 2023, “Maiden Mineral Resource Estimate”. OD6 is not aware of any new information or data that materially affects the Mineral Resource estimate included in that release. All material assumptions and technical parameters underpinning the Mineral Resource estimate in that release continue to apply and have not materially changed. 11 Splinter Rock Mineral Resource Estimate Focused on quality over quantity of resource P A quality MRE targeting the Best of the Best grade, recovery, strip ratio, acid consumption Cut-off grade (ppm TREO) Tonnes (Mt) TREO (ppm) Contained TREO MagREO (k tonne) (ppm) MagREO (% of TREO) Contained MagREO (k tonnes) 400 1,141 869 992 198 22.7 225 600 838 1,006 842 230 22.9 192 800 583 1,140 664 262 30.0 152 1,000 344 1,308 450 300 22.9 103 1,200 196 1,471 288 338 22.9 66 1,400 105 1,625 171 372 22.9 39 For full Mineral Resource estimate details refer to OD6 ASX announcement 18 July 2023, “Maiden Mineral Resource Estimate”. OD6 is not aware of any new information or data that materially affects the Mineral Resource estimate included in that release. All material assumptions and technical parameters underpinning the Mineral Resource estimate in that release continue to apply and have not materially changed. Final recovered tonnes will be significantly less than the contained tonnes stated and subject to ongoing metallurgical testwork. 12 MRE TREO Value and Distribution Nd, Pr, Dy, Tb represent ~90% of potential contained value TREO REE value TREO % distribution Distribution Nd2O3 54.7% 16.8% Pr6O11 15.0% 4.8% Tb4O7 Dy2O3 MagREO is ~90% of value Pr6O11 Nd2O3 Dy2O3 10.4% 1.1% Tb4O7 9.0% 0.2% Gd2O3 2.6% 1.5% CeO2 1.8% 44.3% Lu2O3 1.7% 0.1% Y2O3 1.6% 5.9% La2O3 0.8% 21.2% Ho2O3 0.8% 0.2% Er2O3 0.7% 0.5% Eu2O3 0.3% 0.4% Yb2O3 0.2% 0.5% Sm2O3 0.2% 2.4% Tm2O3 0.1% 0.1% Nd2O3 MagREO Value La2O3 Y2O3 1,308 ppm TREO Pr6O11 CeO2 TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3 MagREO (Magnet Rare Earth Oxide) = Nd2O3 + Pr6O11 + Tb4O7 + Dy2O3 Note: Contained value is based on spot pricing sourced from Adamas Intelligence “ Rare Earth Pricing Quarterly Outlook” Q2 2023. The chart is illustrative only of where rare earth economic value will be primarily derived from. 13 Phase 3 Drilling Continues At Splinter Rock Pursuing the “Best of the Best” Centre Prospect • 188 hole, 10,000m drill program commenced in June 2023 • Highly targeted utilising AEM • Focus on testing the length, continuity of grade and thickness of the prospects Scrum Prospect 54% to 78% recoveries (average 62%) three samples 64% recovery from single sample Prop Prospect • Metallurgical samples will also be selected for further work at ANSTO 44% to 96% recoveries (average 71%) five samples • A$180k will be co-funded by the WA Government flagship Exploration Incentive Scheme (EIS) Flanker Prospect Refer to ASX announcement 24 April 2023, “Successful Exploration Incentive Scheme Applicaton” 76% recovery from single sample 14 Strong Metallurgical Results Identifying the best metallurgical areas • Very high metallurgical recoveries achieved using simple acid leach • Highest recoveries are in clay basins and channels away from granites margins • Centre Prospect: 54% to 78% with average 62% • Prop Prospect: 44% to 96% with average 71% Centre Prospect Scrum Prospect 54% to 78% recoveries (average 62%) three samples 64% recovery from single sample • Impressive leach response time observed: • indicating reductions in acid strength is possible • Screening of coarse grained material expected to reduce leach material by 30-50% without appreciable loss of MagREO • Testing, analysis, optimisation and mineralogy continuing at ANSTO, CSIRO and Murdoch University • >50 new samples at ANSTO with more to be added from Phase 3 drilling to identify “best of the best” areas Refer to ASX announcement 3 April 2023, “Very High Metallurgical Recoveries” Recoveries only reflect initial rare earth leaching, with further losses expected in precipitation, impurity removal, purification and drying. Prop Prospect 44% to 96% recoveries (average 71%) five samples Flanker Prospect 76% recovery from single sample 15 Indicative Processing Steps Simplified process map to deliver rare earth products MREC/H Mixed Rare Earth Excavate Transport Screen Acid leach Purify Precipitate Mine near surface clays Clays to processing plant Coarse material removal Rare Earths leached into solution Removal of impurities eg Al, Fe, U, Th Rare Earth carbonate precipitation Salt Renewable power No drill and NoNo milling crushing No flotation No milling RE Separation Water NaOH base Solvent extraction and separation Chlor-alkali process P No drill & blast No crushing blast Na2CO3 or NaOH HCl acid H2O NaCl Mixed RE Carbonate or Hydroxide product flotation NoNo high temperature No high temperature cracking cracking Recycle saline water Rehabilitate Transport Clay Washing Site revegetated Clays returned to mine void Clay washing, neutralisation and filtration Clay Rare Earths Water Reagents REOs Oxides Individual Rare Earth oxides Nd Pr Dy Tb No high No high pressure leach pressure leach No high No high temperature temperature leach leach 16 Maximising Economic Potential All key elements present for maximum economic potential TREO MagREO Grade MagREO Thickness Leachability Exceptional clay rare earth grades returned at multiple, large-scale Prospect areas Valuable magnet rare earth elements represent large proportion of TREO grade Extensive clay thickness with evidence of continuity and consistency of grade Very high metallurgical recoveries achieved with impressive leach response observed 17 Pursuing The Best Of The Best A disciplined approach to maximising value Explore Design Evaluate • Identify high-grade, ‘sweet-spot’ REE zones • Optimise leach recovery and impurity removal • Aggressively grow Mineral Resources via latent scale potential • Remove coarse grain material to reduce acid consumption • Pursue “Best of the Best” grade, recovery, stripping ratio and acid consumption • Target thick areas with low strip ratio potential • Low cost exploration, high value for money • CSIRO collaboration • Produce a MREC with potential conversion to REO • Refine process with ANSTO • Integrate ChlorAlkali Benefits • Renewable energy sourcing – solar / wind • Existing Infrastructure – port, road • Deliver Scoping Study 18 Sustainably Creating Value Acting with integrity to responsibly deliver rare earth resources for a low carbon future Our sustainability priorities: ESG Workplace health and saftey and mental health Our aim is to minimize our environmental impact, look after our people, grow with our communities and create value for our investors Aboriginal engagement, heritage and Traditional Owners Business ethics RISK Regulatory compliance and change Flora and fauna Corporate governance and risk management 19 Corporate snapshot High calibre leadership team, tight capital structure and well funded Capital Structure ASX: OD6 Price per share1 A$0.225 Total number of shares on issue2 102.45M Performance rights and options2 32.70M Market capitalisation (undiluted)1 A$23.05M Cash2 A$3.52M Debt2 A$0.00M Enterprise value1 A$19.53M Share Price History A$/share Dr Darren Holden Mr Brett Hazelden Mr Piers Lewis Dr Mitch Loan NON-EXECUTIVE CHAIR MANAGING DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Register Detail 0.72 0.62 Founders (exc. Directors and Management) 0.52 0.42 40% 42% 0.32 Institutions 0.22 0.12 Jun 22 Aug 22 Oct 22 Dec 22 Feb 23 Apr 23 Directors and Management 5% 13% Retail / Other Jun 23 1. As at 14 July 2023 2. As at 30 June 2023. Refer to ASX announcement “Quarterly Activities and Cashflow Report” Note: 47,435,249 shares (46%) escrowed until 22 June 2024 20 Investment Highlights 1 Dominant land holding near Esperance port 100% interest in a vast tenement package with multiple rare earth mineralised prospects 2 Consumption of rare earth magnets expected to triple by 2035 3 Globally significant new maiden Mineral Resource Estimate declared 4 Strong metallurgical results 5 6 Targeting critical rare earth element materials 344Mt @ 1,308ppm TREO Inferred Resource utilising a 1,000ppm cut off grade Simple Acid Leach process with high recoveries of 60% to 75% Sustainably creating value Acting with integrity to responsibility deliver rare earth resources for a low carbon future Skilled board and management High calibre geological, metallurgical, project development and corporate professionals 21 Appendix ASX I OD6 Immense 4,828km2 tenement package Multiple large-scale prospects identified 23 Grass Patch Project Three high-potential Prospect areas confirmed • High-grade clay REEs successfully identified in 93-hole reconnaissance drilling program • Grades of up 3,340ppm TREO with up to 38.5% MagREO encountered • Thick clays encountered of up to 59m (average range of 3m to 20m) • Three key areas to be targeted for further exploration: • Belgian Prospect • Circle Valley Prospect • Scaddan Prospect • High-potential Prospect areas to undergo metallurgical testing to determine potential recoveries and inform future exploration Refer to ASX announcement 24 March 2023, “Grass Patch Drilling Identifies High-Grade REEs” 24 Contact us Registered Office c/o LCP Group Level 1, 50 Kings Park Road West Perth WA 6005 Phone: +61 8 6189 8515 Email: info@od6metals.com.au Share Registry Computershare Investor Services Level 11, 172 St Georges Tce Perth WA 6000 www.od6metals.com.au ASX I OD6