The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals

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The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
The Vertically Integrated Primary
Vanadium Producer
February 2019 Corporate Presentation
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Disclaimer

These presentation slides and any other material provided with these slides (the “Presentation Materials”) do not comprise an admission document, listing particulars or a prospectus relating to
Bushveld Minerals Limited (the “Company”) or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be
relied on in connection with a decision to purchase or subscribe for any such securities. The Presentation does not constitute a recommendation regarding any decision to sell or purchase securities in
the Company.

No reliance may be placed for any purpose whatsoever on the information contained in the Presentation Materials or the completeness or accuracy of such information. No representation or warranty,
express or implied, is given by or on behalf of the Company or its respective shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or
opinions contained in the Presentation Materials, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud).

The Presentation Materials contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known and
unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from
such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updates or revisions to such forward-
looking statements.

The Presentation Materials should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be
distributed to persons with an address in the Republic of South Africa, the Republic of Ireland, Australia or Japan or in any other country outside the United Kingdom where such distribution may lead
to a breach of any legal or regulatory requirement. No securities commission or similar authority in Canada has in any way passed on the merits of the securities offered hereunder and any
representation to the contrary is an offence. No document in relation to the Company’s securities has been, or will be, lodged with, or registered by, The Australian Securities and Investments
Commission, and no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation to the Company’s securities. Accordingly, subject to certain exceptions, the
Company’s securities may not, directly or indirectly, be offered or sold within Australia, Japan, South Africa or the Republic of Ireland or offered or sold to a resident of Australia, Japan, South Africa or
the Republic of Ireland.

Neither this presentation nor any copy of it may be taken or released or distributed or published, directly or indirectly, in the United States of America (the “United States”). The material set out in the
presentation materials is for information purposes only and is not intended, and shall not be construed, as an offer for securities for sale in the United States or any other jurisdiction. The Company’s
securities (the “Securities”) have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority of
any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation
under the US Securities Act except pursuant to an exemption from or in a transaction not subject to the registration requirements of the applicable securities legislation. The Company has not been
registered and will not register under the United States Investment Company Act of 1940, as amended.

The technical information contained within this presentation has been reviewed and approved by Dr Luke Longridge, consulting geologist. Dr Longridge has a PhD in Geology (2012) and over 6 years'
experience working on vanadiferous magnetite deposits in the Bushveld Complex. He is a member of the Geological Society of South Africa and is a registered Professional Natural Scientist (Pr Sci.Nat.)
in South Africa. Dr Longridge has sufficient experience 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 under the JORC Code (2012). Dr Longridge consents to the inclusion in this presentation of the matters based on his information in the form and context in which it
appears.
                                                                                                                                                                                                                  2
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Introducing Bushveld Minerals

800                      Listed on AIM:                                              Ticker: BMN
                         Basic ordinary shares                                     1 119 057 953
                                                                                                                                               Share price:
700                      Market Capitalisation                                 US$556 million                                                    37GBp
                         Warrants                                                          nil
600                      Options                                                           nil

500                                                                                                  December 2017:
                                                                                                    Bushveld Minerals
400                                               April 2017: Bushveld                              increase effective
                                                  Minerals acquires an                             interest in Vametco
                                                    effective 27% in                                     to 59%
300
                                                        Vametco
                                                                                                                          September 2018:
              Share price:
                                                                                                                          Bushveld Minerals
200             1.8 GBp
                                                                                                                          increase effective
                                                                                                                         interest in Vametco
100                                                                                                                            to 74%

    0
    Jan - 17 Mar - 17 May - 17 Jul - 17 Sep - 17 Nov - 17 Jan - 18 Mar - 18 May - 18 Jul - 18 Sep - 18 Nov - 18 Jan - 19
                                                                    Bushveld Minerals Market Cap (US$'m)

Source: Bloomberg, 24 February 2019 ; Link Asset Services, as at 31 January 2019
                                                                                                                                                              3
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Company Overview

       A growing, low cost, vertically integrated primary vanadium                                                                        An energy storage project developer and component
                                 producer                                                                                                                    manufacturer

     • High grade ore for primary                                       • Large, low cost vanadium                               • Electrolyte              • Vanadium Redox Flow • MW scale energy storage
       vanadium mining & processing                                       processing                                               manufacturing              Battery (VRFB)        project development
     • Largest primary vanadium                                         • Focus on expansion and                                 • Co-location in Vametco     Assembly &          • Deployment models include
       resource base in the world                                         enhancement of brownfield                                process => significantly   manufacturing         PPAs, leasing models
                                                                          operation                                                lowering costs

         The Group is targeting a 10,000 mtV production in the medium term                                                       Targeting initial 200MWh of   Targeting 1,000 MWh opportunities by 2020
                                                                                                                                       electrolyte p.a.

1.     The Company also holds a 10.04% shareholding in AIM-listing AfriTin Mining Limited and a 100% holding in Lemur Holdings

Source: Bushveld Minerals
                                                                                                                                                                                                                4
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Bushveld Vanadium

                                                                                   •  440 Mt   high grade open cast primary vanadium
                                                                               • 440 Mt high grade open cast primary vanadium
       A growing, low cost, vertically integrated primary vanadium                    resource base, Including ~55Mt combined reserves
                                                                                 resource base, Including ~55Mt combined reserves -
                                 producer                                             -the largest primary vanadium resource
                                                                                 the largest primary vanadium resource
                                                                                  • High
                                                                               • High gradegrade of 1.5-2.0%
                                                                                            of 1.5-2.0%   V2OV5 2among
                                                                                                                 O5 among
                                                                                                                       thethe highest
                                                                                                                           highest in in
                                                                                                                                       the
                                                                                      the world
                                                                                 world
                                                                                  •  Low  cost primary vanadium processing capacity
                                                                               • Low cost primary vanadium processing capacity
                                                                                     supplying ~3% of global vanadium market
                                                                                 supplying ~3% of global vanadium market
   • High grade ore for primary                  • Large, low cost vanadium
     vanadium mining & processing                  processing                     • Scalable
                                                                               • Scalable      processing
                                                                                          processing      platform
                                                                                                      platform  withwith scope
                                                                                                                     scope  forfor
                                                                                                                                additional
   • Largest primary vanadium                    • Focus on expansion and             additional
                                                                                 brownfield      brownfield
                                                                                             capacity       capacity expansions
                                                                                                      expansions
     resource base in the world                    enhancement of brownfield
                                                   operation                       • Targeting 10,000
                                                                               • Targeting 10,000 mtVmtV   of vanadium
                                                                                                       of vanadium      production
                                                                                                                     production  in in
                                                                                                                                     the
                                                                                      the medium
                                                                                 medium term      term
         The Group is targeting a 10,000 mtV production in the medium term

Source: Bushveld Minerals
                                                                                                                                             5
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Bushveld Vanadium

                                                             A growing, low cost, vertically integrated primary vanadium
                                                                                       producer
  • 440 Mt high grade open cast primary vanadium
    resource base, Including ~55Mt combined reserves -
    the largest primary vanadium resource
                                                                                                       3 Mokopane Vanadium
  • High grade of 1.5-2.0% V2O5 among the highest in the
    world
  • Low cost primary vanadium processing capacity
    supplying ~3% of global vanadium market
  • Scalable processing platform with scope for additional
    brownfield capacity expansions
                                                                                    2 Brits Vanadium

  • Targeting 10,000 mtV of vanadium production in the                         1
    medium term                                                           Vametco

Source: Bushveld Minerals
                                                                                                                             6
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Company Overview – Vametco Alloys

                                       1. Vametco
 •     Low cost primary vanadium mine and processing plant
 •     CY2019 production >2,560mtV, guidance to be provided in Q1 2019 operational           A growing, low cost, vertically integrated
       update                                                                                      primary vanadium producer
 •     142.4 Mt Resource with average in-magnetite grades of 1.96% V2O5 (26 Mt reserve
       average in-magnetite grade of 1.96% V2O5)
 •     Solid cash generation capacity EBITDA >US$100m in CY2018
 •     Scope to grow production through operations optimisation programme                                                   3 Mokopane Vanadium

  Bushveld Vametco results (100%)                         CY18         CY17          CY16
Vanadium produced                     (mtV)               2,560        2,649         2,856
Vanadium sold                         (mtV)               2,573        2,721         2,810
FeV LMB price                       US$/Kg V               81.2         32.6          18.5
USD/ZAR exchange                      $=ZAR                13.2         13.3          14.7
                                                                                                         2 Brits Vanadium
Revenue                               US$'m               192.2         79.1          51.7
                                                                                                     1
EBITDA                                US$'m               107.5         23.9           3.3     Vametco
Production costs                     US$/kgV               19.7         16.6          12.9

Source: Bushveld Minerals
                                                                                                                                                  7
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Company Overview – Brits Vanadium Project

                                           2. Brits Vanadium Project

                                                                                    A growing, low cost, vertically integrated
   • Outcropping, strike extension of the Vametco mine                                    primary vanadium producer
   • Drilling confirms V grades similar to Vametco (1.5 – 2.0% V2O5 in magnetite)
   • Mineral resource estimate expected Q1 2019
                                                                                                                   3 Mokopane Vanadium

                                                                                                2 Brits Vanadium

                                                                                            1
      Ore body extends West to East and dips in northerly direction at 20 degrees
                                                                                           1
                                                                                      Vametco

Source: Bushveld Minerals
                                                                                                                                         8
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Company Overview – Mokopane Vanadium Project

                                            3. Mokopane Vanadium Project
 • 298 Mt JORC, outcropping reserve and resource
 • Vanadium in-magnetite grades of 1.75% V2O5                                                                                                                 A growing, low cost, vertically integrated
 • Positive PFS completed January 2016: Expect to be granted a New Order Mining                                                                                     primary vanadium producer
   Right

 Item                                                 Unit            Value          Development priorities
                                                                                                                                                                                             3 Mokopane Vanadium
     Production                                     Mt/yr               5,500         Three options under
     Mineral Resource                                  Mt                2981         consideration:
     Ore Reserve                                       Mt                28.5         •      Supply ore to China
     Grade (in-situ)                                    %                1.4%         •      Supply ore to other brownfield
     Grade (in-magnetite)                               %                1.7%                plants
                                                   US$/kg                             •      Develop greenfield integrated
     Assumed Vanadium Price                                                  33
                                                      FeV                                    mine & processing plant
     Initial Capital Costs                          US$ m                 298                producing 5 500 mtV tpa V2O5
     NPV @ 9% real                                  US$ m                 418                flake product                                                                2 Brits Vanadium

     IRR real                                           %                 25%                                                                                         1
                                                                                                                                                                Vametco

2.     The Mokopane Vanadium Project PFS, completed by MSA Group was based on the MML only which is 63Mt even though the overall project resource is 298 Mt

Source: Bushveld Minerals
                                                                                                                                                                                                                   9
The Vertically Integrated Primary Vanadium Producer - February 2019 Corporate Presentation - Bushveld Minerals
Vanadium Fundamentals
Vanadium Price – Structural Changes Or Temporary?

                                                Advent of grade 3 rebar in China                                         Constrained supply, with short
                                                                                       Problems with production of
                                                The new standard forced Chinese        electrical power and resulting   term reductions and limited new
                                                rebar producers to start using         load shedding in South Africa           supply prospects
                                                vanadium (grade 3) for high strength

                                                                                                                                      +
                                                                                       negatively impacted vanadium
                                                rebar applications                     production leading to the
                                                                                       2008 price spike
                        Russia’s vanadium                                                                                 Robust and growing demand
                      material disappeared,                                                                                  from steel sector with
                     the market price moved                                                       Highveld Steel         significant upside from energy
US$/t

                     up and thereafter Russia                                                     & Vanadium                storage application uses
                       restarted production                                                       stops
                                                                                                  production

                                                                                                                          A sustained structural market
                                                                                                                             A sustained structural
                                                                                                                          deficit, with significant price
                                                                                                                              market deficit, with
                                                                                                                                      upside
                                                                                                                            significant price upside

  Source: Metal Bulletin, TTP Squared
                                                                                                                                                            11
Concentrated Supply

                                                             SALT ROAST FLOWSHEET (14% of Global Vanadium Feedstock Production)
     Vanadium feedstock              Three key steps:
     production by source                                                                           • Grade a key barrier to entry
                                     • Salt roasting of magnetite concentrate with sodium salts
                                       at ~1,200oC to form water soluble sodium vanadate            • Three active primary producers – two in SA and one in
                                       material                                                       Brazil
            12%       14%
                                     • Leaching, filtration, desilication, precipitation followed   • Primary driver of economics = VANADIUM
                                       by reaction to form vanadium pentoxide/trioxide              • Financing remains a challenge even for primary
                                     • Vanadium pentoxide/trioxide is converted into FeV or           greenfield projects
                                       NV or other vanadium end products
              74%
                                                   STEEL PLANT CO-PRODUCTION FLOWSHEET (74% of Global Vanadium Feedstock Production)

               Primary
                                     • Magnetite concentrate is smelted in a blast furnace/EAF      • Primary of economics = STEEL & IRON ORE
               Co-production         • TiO2 is extracted as a slag, while vanadium reports with     • Capex = key barrier to entry is capex – 5x as much
               Secondary               hot metal                                                      capex as primary production
                                     • Vanadium extracted as a slag through controlled re-          • Concentrated in China and Russia
                                       oxidation of hot metal, which is further processed into
                                                                                                    • 93% of V production in China, 200% of V production in
                                       pig-iron/ steel
                                                                                                      Russia
                                     • Vanadium slag, with elevated vanadium grade, is
                                                                                                    • Process produces a V slag further processed into
                                       processed through primary vanadium extraction (salt
                                                                                                      vanadium through primary V process
                                       roast flowsheet)
Source: Bushveld Minerals analysis
                                                                                                                                                              12
Concentrated Supply

            High input                             • Low Fe grade
Vanadium Characteristics And Uses

Characteristics                               Applications

    •      Fabricability                       Steel
    •      High strength-to-weight ratio                                                                   • The steel industry
    •      Corrosion resistance                                                                              accounts for ~90% of
                                                                                                             total vanadium
    •      Weldability
                                                                                                             consumption
                                                                                                           • Enforcement of standards
                                               Construction steel -        Alloys for aerospace industry
                                                                                                             driving up demand
                                               rebar

                                               Chemicals
     •      Ability to exist in 4 different                                                                • Electrolyte accounted for
            oxidation states                                                                                 ~2% of 2017 global
     •      Water-soluble                                                                                    vanadium consumption,
                                                                                                             but could grow up to
     •      Resistant to attack by alkalis,
                                                                                                             44% by 2027 as VRFBs
            hydrochloric acid, sulphuric                                                                     gain momentum
            acid, and salt water               Long duration utility scale batteries

Source: Bushveld Minerals analysis, Roskill
                                                                                                                                         14
Vanadium Demand - Steel Sector Demand Drivers Are Robust

                                                                    0.12   2017 Vanadium use in steel
• Strong correlation between economic
  development and vanadium intensity of use in
  steel                                                              0.1   0.097

• The steel sector accounts for ~90% of the                                           0.078
                                                                    0.08
  vanadium consumption

                                                     KgV/MT steel
• Industrialised economies, such as the USA,                                                     0.054             0.051
                                                                    0.06                                 0.053             0.048
  typically use more vanadium per tonne of steel
  than emerging economies such as India and                                                                                        0.038
  China                                                             0.04                                                                   0.035

• As emerging markets develop, the gap will                         0.02
  narrow, driving up vanadium intensity of use and
  thus vanadium demand
                                                                      0
                                                                            North    Europe        CIS    World    Japan   China   Other   India
                                                                           America                       Average

Source: Bushveld Minerals analysis, TTP Squared
                                                                                                                                                   15
Greater Enforcement In China Of Existing And New Rebar Standards Driving
Greater Vanadium Intensity Of Use In Steel
2010 Code for Design of Concrete Structures                 2011 Update of Code for Construction                   2015-2017 Quenching and tempering techniques                             2018 China’s new high-strength
(GB50010-2010)                                              Quality Acceptance of Concrete Structures              used by rebar producers to minimise use of                               rebar standard introduced in January
issued in August 2010 and took effect from 1                (GB 50204 – 2002) – issued in December                 alloying elements, thus blunting impact of codes                         2018, effective November 2018
July 2011                                                   2010 and took effect from 1 August 2011                on vanadium demand

                           China Crude Steel and Vanadium
                                                                                           2010 - 2014   2014 - 2017                                        China Rebar Product Structure
                                                                                                                                                                                                                      0.45%
               1,000,000                                               60,000                CAGR          CAGR
                900,000                                                                                                                 100%                                                                          19.36
                                                                       50,000
                800,000                                                                         5.2%       0.8%                          90%                                                                            %

                                                                                                                          % of China Rebar Structure
                700,000                                                                                                                            80%
                                                                       40,000

                                                                                Vanadium (tV)
                600,000                                                                         3.9%       1.5%                                    70%
  Steel (kt)

                500,000                                                30,000                                                                      60%                                                                67.31
                                 Quenching & tempering                                                                                                                                                                  %
                400,000                                                                         9.8%       -3.1%                                   50%
                                 techniques among steel                20,000
                300,000                                                                                                                            40%
                                  plants leads to lower V
                200,000                consumption                                                                                                 30%                                                                6.49%
                                                                       10,000
                100,000                                                                                                                            20%
                       0                                               0                                                                           10%
                                                                                                                                                                                                                      3.77%
                                                                                                                                                       0%
                         10

                         11

                         12

                         13

                         14

                         15

                         16

                         17
                       20

                       20

                       20

                       20

                       20

                       20

                       20

                       20

                                                                                                                                                          05

                                                                                                                                                                  07

                                                                                                                                                                          09

                                                                                                                                                                                 11

                                                                                                                                                                                         13

                                                                                                                                                                                                  15

                                                                                                                                                                                                           17
                                                                                                                                                        20

                                                                                                                                                                20

                                                                                                                                                                        20

                                                                                                                                                                               20

                                                                                                                                                                                       20

                                                                                                                                                                                                20

                                                                                                                                                                                                         20
               China crude steel production (LHS) (kt)        China crude steel consumption (LHS) (kt)
                                                                                                                                                        Gr.1 - 235MPa      Gr.2 - 335MPa        Gr.3 - 400MPa
               China vanadium consumption (RHS) (tV)                                                                                                    Gr.4 - 500MPa      Gr.5 - 600MPa

Source: Bushveld Minerals analysis, TTP Squared
                                                                                                                                                                                                                                   16
Vanadium In Energy Storage

  Vanadium-Flow Batteries: The                                               The potential for the technology
  Energy Storage Breakthrough                                                to be the second most deployed
  We've Needed                                                               ESS battery in the world is there

                                                  Although steel sector
                                                 anchors demand, global
                                                  adoption of Vanadium
                                                Redox Flow Batteries could
   Vanadium-flow batteries used in                 see global vanadium
   large-scale renewable                         demand double by 2027
   integration projects are already                                           A revolution [is] coming in
   cost competitive not only against                                          vanadium redox flow batteries
   lithium-ion, but also against
   natural gas turbines                                                          Robert Friedland, Chairman,
                                                                                              Ivanhoe Mines

Source: DNV GL Energy Transition Outlook 2018
                                                                                                                 17
“Electrification Of Everything”

 World energy demand by carrier, EJ/year
500

450

400
                                                                                                                                    • The share of electricity in
350
                                                                                                                                      the global energy mix has
300                                                                                                                                   risen from 10% in 1980
250                                                                                                                                   to 20% today
200                                                                                                                                 • It will more than double
150                                                                                                                                   to 45% by 2050
100

 50

   0
    1980       1985       1990      1995        2000   2005   2010   2015      2020   2025   2030    2035    2040    2045   2050

                              Coal         Oil     Natural Gas       Biomass      Direct Heat       Electricity     Solar Thermal

Source: DNV GL Energy Transition Outlook 2018
                                                                                                                                                                    18
Growing Demand For Stationary Energy Storage

 World final electricity demand by sector, PWh / year
                                                                        Primarily electric
60
                                                                         vehicles, including
55                                                                       cars buses and
                                                                         trains
                                                                                                               • Stationary, grid-
50                                                                                                               connected (residential,
45                                                                                                               commercial and
40                                                                                                               industrial users) will
35                                                                                                               account for >70% of
30                                                                                                               world final electricity
25
                                                                                                                 demand
20                                                                                                             • Primarily electric
15                                                                                                               vehicles, including cars
                                                                                   Primarily consumer
10                                                                                 electronics                   buses and trains will
  5                                                                                                              account for almost 20%
 --
      1980         1990       2000         2010            2020             2030               2040     2050
                              Transport   Buldings      Manufacturing       Other

Source: Navigant
                                                                                                                                            19
Growing Demand For Stationary Energy Storage

Total Energy Storage Market, MWh

 900,000

 800,000                                                                                                          • Consumer electronics
                                                                                                                    have dominated energy
 700,000
                                                                                                                    storage in the past
 600,000
                                                                                                                  • Going forward,
 500,000
                                                                                                                    however, transportation
 400,000                                                                                                            and stationary energy
 300,000                                                                                                            storage will dominate
                                                                                                                    energy storage, with
 200,000
                                                                                                                    stationary energy
 100,000                                                                                                            storage the most
         0                                                                                                          nascent and rapidly
             2018   2019          2020         2021       2022      2023     2024      2025         2026   2027     growing
                           Electric Vehicles          Consumer Electronics     Stationary Storage

 Source: Navigant
                                                                                                                                              20
Utilities, Commercial And Industrial Sectors To Dominate Stationary Storage

                                                                                           Annual Installed Stationary Energy Storage Capacity and                                       • Stationary energy
                                                                                           Deployment Revenue by Market Segment                                                            storage demand is
                                                                                                                                                                                           growing rapidly (58%
                                                                                                 120,000                                                               60                  p.a.) and will exceed
Total Energy Storage Market, MWh                                                                                                                                                           468GWh by 2027 on a
                                                                                                 100,000                                                               50
                                                                                                                                                                                           cumulative, installed
900,000
800,000                                                                                           80,000                                                               40                  basis, with annual
                                                                                                                                                                                           additions forecast to

                                                                                                                                                                            US billion
700,000
                                                                                           MWh    60,000                                                               30
600,000                                                                                                                                                                                    reach 80GWh by 2025
500,000
                                                                                                  40,000                                                               20
400,000                                                                                                                                                                                  • Utility scale and
300,000
                                                                                                  20,000                                                               10                  commercial and
200,000
100,000
                                                                                                                                                                                           industrial applications
        0
                                                                                                        0                                                              0                   will account for > 85%
            2018     2019     2020     2021   2022   2023     2024   2025    2026   2027                    2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
                   Electric Vehicles   Consumer Electronics   Stationary Storage                    Utility-Scale   Commercial & Industrial   Residential   Total Revenue
                                                                                                                                                                                           of energy storage
                                                                                                                                                                                           applications

Note:       Utility segment includes thermal storage technology

Source: Navigant Research
                                                                                                                                                                                                                     21
Global Energy Storage Usage Moving From Short To Long Duration…

       Compound annual growth rate (CAGR) from 2018 to 2027                   2027 global forecast   Share of 2027market
       %                                                                      MWh                    %

                                                                                                           64.4%
                                                                                                                               90%
                      Generation Capacity                       45.2%                 61,596
                                                                                                                           Long duration
                   T&D Asset Optimization                      43.4%                  24,588               25.8%           energy storage

  Renewables Ramping/Smoothing                                     52.1%              7,575                7.9%
                                                                                                                               10%
                    Frequency Regulation                35.7%                         1,703                1.8%            Short duration
                                                                                                                           energy storage
                        Volt/VAR Support               32.1%                           122                 0.1%

                                            0%   20%     40%            60%

Source: Navigant
                                                                                                                                            22
Long Duration, Large Scale Storage – The Sweet Spot For VRFBs

                Vanadium Redox Flow Battery            • Long lifespan cycles: Ability to repeatedly charge / discharge over 35,000 times for a
                                                         lifespan of over 20 years
                                                       • 100% depth of discharge: Without performance degradation is unique to VRFBs
                                                       • Lowest cost per kWh when fully used at least once daily makes VRFBs today cheaper than
                                                         Li-ion batteries
                                                       • Safe, with no fire risk from thermal runaway
                                                       • 100% of vanadium is re-usable upon decommissioning of the system
                                                       • Scalable capacity to store large quantities of energy
                                                       • Flexibility: Allows capture of the multi-stacked value of energy storage in grid applications
      •    Simple architecture
      •    Large vanadium content                      • Very fast response time of less than 70ms
      •    Non degradation of vanadium implying high   • No cross-contamination: Only one battery element, unique among flow batteries
           residual value

Source: IRENA
                                                                                                                                                         23
Long Duration, Large Scale Storage – The Sweet Spot For VRFBs

Key categories to
consider                                         VRFB                                             Lithium-ion

                    • Excellent for long duration energy applications (4 or   • Excellent for power applications
1. Technical          more hours per day)                                     • Degradation accelerates with frequent use, temperature and deep
performance         • Lower roundtrip efficiency but longer life and no         discharges
                      degradation                                             • Usage limitations imposed by manufacturers

                    • No risk of fire from thermal runaway                    • Thermal runaway creates risk of fire and smoke that must be
2. Safety           • Electrolyte spillage is main risk                         managed
                                                                              • Restrictions on deployment in some locations
                    • Yet to experience economies of scale                    • Significant cost decreases in recent years due to EV-oriented
3. Cost             • High contribution of vanadium is both a risk and          R&D and capacity growth
                      an opportunity                                          • Cost reductions expected to slow

                    • More nascent technology                                 • Growing acceptance from deployment in frequency control
4. Market
                    • Challenge from fragmented supply market dominated         markets
acceptance
                      by start-up companies                                   • Credibility from large, consolidated cell manufacturers

                                                                                                                                                  24
Implications For Vanadium Demand Are Significant

  100,000                                                                                                                                                     96,250 mtV 27,500 MWh        •    While the market share
                                                                                                                                                                                       •       While the market share of
                    2017 vanadium production of 92,392 mtV                                                                                                                                      of VRFBs compared to
                                                                                                                                                                                               VRFBs compared to other
    90,000                                                                                                                                                                                      other energy storage
                                                                                                                                                                                               energy storage
                                                                                                                                         CAGR 41.9%                                             technologies is a key
                                                                                                                                                              82,280 mtV 18,700 MWh            technologies is a key
                                                                                                                                                                                                assumption, the ultimate
    80,000                                                                                                                                                                                     assumption, the ultimate
                                                                                                                                                                                                size and growth rate of
                                                                                                                                                                                               size and growth rate of the
                                                                                                                                                                      CAGR 39.9%                the stationary energy
    70,000                                                                                                                                                                                     stationary energy storage
                                                                                                                                                                                                storage market has even
                                                                                                                                                                                               market has even greater
                                                                                                                                                                                                greater impact
    60,000                                                                                                                                                                                     impact
                                                                                                                                                                50,875 mtV 9,250 MWh
                                                                                                                                                                                           •    Recent trends to revise
mtV

    50,000                                                                                                                                                                             •       Recent trends to revise
                                                                                                                                                                                                energy storage forecasts
                                                                                                                                                                                               energy storage forecasts
                                                                                                                                                                                                upward imply that
    40,000                                                                                                                                                                                     upward imply that
                                                                                                                                                                                                vanadium demand from
                                                                                                                                                                 CAGR 33.9%                    vanadium demand from
                                                                                                                                                                                                VRFBs may be greater
    30,000                                                                                                                                                                                     VRFBs may be greater than
                                                                                                                                                                                                than expected even
                                                                                                                                                                                               expected even under
                                                                                                                                                                                                under “aggressive
    20,000                                                                                                                                                                                     “aggressive forecasts”
                                                                                                                                                                                                forecasts”
                                                                                                                                          CAGR 13.2%
    10,000                                                                                                                                                       8,000 mtV 1,454 MWh   •       Within 10 years demand for
                        2,826                                                                                                                                                              •    Within 10 years demand
                                                                                                                                                                                               vanadium by energy
                                                                                                                                                                                                for vanadium by energy
            --                                                                                                                                                                                 storage could equate to 50-
                                                                                                                                                                                                storage could equate to
                        2017           2018           2019           2020           2021          2022           2023           2024       2025        2026         2027                       100% of today’s global
                                                                                                                                                                                                50-100% of today’s
                                                                                                                                                                                               market
                                                                                                                                                                                                global market
                   Baseline (Roskill)                    Vanadium 101 scenario                          Navigant assumptions                      BMI assumptions

Source: Bloomberg New Energy Finance (BNEF), BMI, Bushveld Energy analysis, Bushveld Minerals analysis, Navigant, Roskill, TTP Squared
                                                                                                                                                                                                                             25
Vanadium Use In Energy Storage May Exceed Expectations
Energy forecasts for new technologies may significantly undervalue actual growth potential

     Solar PV growth continues to exceed forecasts                                                                   The same phenomenon is occurring with energy storage,
     Annual PV additions: historic data vs IEA WEO predictions                                                       where Bloomberg New Energy Finance has more than
     in GW of added capacity per year                                                                                doubled its 2030 energy storage forecast in two years

                                                                                                                     300
                                                                                                                                   +115%

                                                                                                                     250

                                                                                                                     200

                                                                                                                     150

                                                                                                                     100

                                                                                                                      50

                                                                                                                       0
                                                                                                                                 2016 forecast           2018 forecast

Source: BNEF Energy Outlook 2016, BNEF Energy Outlook 2018, PVMA, World Economic Outlook, www.visualcapitalist.com
                                                                                                                                                                             26
Vanadium In Energy Storage

 1     The VRFB market opportunity is large and has the potential to be 10 times the size of the current vanadium
       commodity market

 2     The robust steel demand anchor for vanadium is critical to support vanadium supply development

 3     Bushveld Minerals is uniquely positioned to effectively address VRFB adoption hurdles

 4     …and in the process support the diversification and strengthening of vanadium demand profile….

 5     …while capturing a compelling commercial opportunity...

 6     …and establishing a natural hedge for vanadium production against future vanadium price downswings

                                                                                                                    27
Thus A Vertically Integrated Business Model Unlocks Significant Value

       A growing, low cost, vertically integrated primary vanadium                     An energy storage project developer and component
                                 producer                                                                 manufacturer

   • High grade ore for primary                  • Large, low cost vanadium    • Electrolyte                • VRFB assembly &     • MW scale energy storage
     vanadium mining & processing                  processing                    manufacturing                manufacturing         project development
   • Largest primary vanadium                    • Focus on expansion and      • Co-location in Vametco                           • Deployment models include
     resource base in the world                    enhancement of brownfield     process => significantly                           PPAs, leasing models
                                                   operation                     lowering costs

         The Group is targeting a 10,000 mtV production in the medium term     Targeting initial 200MWh of       Targeting 1,000 MWh opportunities by 2020
                                                                                     electrolyte p.a.

       Leveraging its low-cost scalable primary vanadium production platform to unlock the substantial opportunity in the energy
                                               storage market through vertical integration

Source: Bushveld Minerals
                                                                                                                                                                28
Bushveld Energy – Unlocking The Energy Storage Opportunity

                                                                 An energy storage project developer and component manufacturer

  • •Bushveld
       BushveldEnergy      is focused
                   Energy is   focusedonon
     developing
       developingand      promotingthe
                     and promoting     the
     role
       roleofofvanadium
                vanadium in inthe
                                thegrowing
                                    growing
     global
       globalenergy
                energy storage    market
                        storage market
     through
       throughapplication
                  application ininVRFBs
                                   VRFBs
                                                   • Electrolyte manufacturing          • VRFB assembly & manufacturing       • MW scale energy storage project
  • •ItsItslong
             longterm
                   term vision
                         vision isisto
                                     tobecome
                                         become                                                                                 development & Direct VRFB sales
        a   significant electricity
     a significant electricity storagestorage      •     Initial 200MWh                 • Partnership or investment with
                                                                                                                              • Deployment models include PPAs,
        provider in Africa by 2020,                      electrolyte facility in East     VRFB firms and local partners
     provider in Africa by 2020,                         London, SA
                                                                                                                                leasing models
        meeting the demand for utility                                                  • Medium term focus, once local       • 1st project with Eskom installed
     meeting       the  demand       for
        scale energy storage in Africa byutility   •     Designed to convert              market for storage is established   • Significant success to date in
     scale     energySouth
        leveraging      storage     in Africa by
                              Africa-mined               vanadium feedstock                                                     creating the market, especially in
                                                         from Vametco                                                           South Africa
     leveraging      South vanadium
        and beneficiated      Africa-mined
       and beneficiated vanadium
                                                       Targeting initial 200MWh of                       Targeting 1,000 MWh opportunities by 2020
                                                             electrolyte p.a.

Source: Bushveld Minerals
                                                                                                                                                                     29
Bushveld Energy – Unlocking The Energy Storage Opportunity

                                                               An energy storage project developer and component manufacturer

  • •Bushveld
       BushveldEnergy      is focused
                   Energy is   focusedonon
     developing
       developingand      promotingthe
                     and promoting     the
     role
       roleofofvanadium
                vanadium in in the
                                thegrowing
                                    growing
     global
       globalenergy
                energy storage    market
                        storage market
     through
       throughapplication
                  application ininVRFBs
                                   VRFBs
                                                   • Electrolyte manufacturing        • VRFB assembly & manufacturing       • MW scale energy storage project
  • •ItsItslong
             longterm
                   term vision
                         vision isisto
                                     tobecome
                                         become                                                                               development & Direct VRFB sales
        a   significant electricity
     a significant electricity storagestorage      •   Initial 200MWh                 • Partnership or investment with
                                                                                                                            • Deployment models include PPAs,
        provider in Africa by 2020,                    electrolyte facility in East     VRFB firms and local partners
     provider in Africa by 2020,                       London, SA
                                                                                                                              leasing models
        meeting the demand for utility                                                • Medium term focus, once local       • 1st project with Eskom installed
     meeting       the  demand       for
        scale energy storage in Africa byutility   •   Designed to convert              market for storage is established   • Significant success to date in
     scale     energySouth
        leveraging      storage     in Africa by
                              Africa-mined             vanadium feedstock                                                     creating the market, especially in
                                                       from Vametco                                                           South Africa
     leveraging      South vanadium
        and beneficiated      Africa-mined
       and beneficiated vanadium
                                                           ˜US$10 m capex                Assembly facilities have low          No capex – main cost salaries
                                                                                         capex intensity ˜US$15-20m            of project development team

Source: Bushveld Minerals
                                                                                                                                                                   30
All      News       Images        Videos       Shopping        More                     Settings            Tools

 The Battery Energy Storage Opportunity Is Real And Now…
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Panasonic Sustainable Energy | Green Technology​
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See the latest report on Disruptive Technology’s impact on Renewable Energy. Connected World.
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South Africa makes huge distributed energy storage commitment ...
https://www.energy-storage.news/.../south-africa-makes-huge-distributed-energy-stora...
Oct 23, 2018 - South Africa's state-owned utility Eskom has unveiled its Distributed Battery Storage
Programme at an event this week, committing to ...

Eskom gearing up for big grid-scale battery storage roll-out
www.engineeringnews.co.za/.../eskom-gearing-up-for-big-grid-scale-battery-storage-r...                                            An energy storage project developer and component manufacturer
Oct 22, 2018 - Speaking at the SA Energy Storage 2018 conference in ... a replacement plan for the
100 MW Kiwano concentrated solar power (CSP) project ...
Missing: announces ​| ​Must include: a
                                     ​ nnounces

Eskom launches 1,440MWh battery network in South Africa - Batteries ...
www.batteriesinternational.com/.../eskom-launches-1440mwh-battery-network-in-sout...
Oct 25, world
        2018 - bank battery
               25 October    programme
                          2018: Eskom, the South African utility, has launched a two-phase                                                    Sign in
1,440MWh distributed battery storage programme to cover the ...

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Eskom plans 800 MWh of battery storage by Dec 2019
https://renewablesnow.com/.../eskom-plans-800-mwh-of-battery-storage-by-dec-2019...
About 9,270,000 results (0.59 seconds)
Oct 26, 2018 - Eskom plans 800 MWh of battery storage by Dec 2019 ... Eskom's battery
programme is to be realised with financing from the AfDB and the ...
World Bank      Group     Commits       $1 Billion for Battery Storage to Ramp Up                     ...
Missing: announces ​| ​Must include: a
                                     ​ nnounces
https://www.worldbank.org/.../world-bank-group-commits-1-billion-for-battery-stora...                               • Electrolyte manufacturing          • VRFB assembly & manufacturing       • MW scale energy storage project
Sep 26, 2018 - The $1 billion in World Bank Group financing is expected to mobilize another $4 billion
Eskom       to launch        batteryandstorage
                                                                                                                                                                                                 development & Direct VRFB sales
                                         public andprogramme        | News     | IJGlobal
in concessional    climate financing                private investments. The program aims to finance
                                                                                                                    •     Initial 200MWh                 • Partnership or investment with
https://ijglobal.com/articles/138345/eskom-to-launch-battery-storage-programme
17.5 gigawatt hours (GWh) of battery storage by 2025 – more than triple the 4-5 GWh currently
                                                                                                                                                                                               • Deployment models include PPAs,
installed
17  hoursinago
             all developing   countries.
                 - South Africa's Minister of Energy, Jeff Radebe, has announced that Eskom will launch                   electrolyte facility in East     VRFB firms and local partners
a tender for the first phase of a 360MW distributed battery ...                                                                                                                                  leasing models
Powering New Markets for Battery Storage - World Bank Group
                                                                                                                          London, SA
                                                                                                                                                         • Medium term focus, once local       • 1st project with Eskom installed
SOUTH      AFRICA: Eskom launches technology to store energy | Afrik 21
https://www.worldbank.org/en/news/.../powering-new-markets-for-battery-storage
Sep 26, 2018 - A new World Bank Group (WBG) program aims to close that gap. “Accelerating Battery
https://www.afrik21.africa/en/south-africa-eskom-launches-technology-to-store-energy/                               •     Designed to convert              market for storage is established   • Significant success to date in
Storage for Development” is a new, first-of-its-kind global program to accelerate the deployment of
Nov 7, 2018 - South Africa is planning to design a new energy storage battery. The initiative will boost
battery storage for energy systems in developing and middle-income countries.                                             vanadium feedstock                                                     creating the market, especially in
the use of renewable energy and reduce coal ...
                                                                                                                          from Vametco                                                           South Africa
Accelerating Battery Storage for Development - World Bank Group
USTDA     Supports Energy Storage in South Africa, Creating ...
https://www.worldbank.org/en/topic/energy/brief/battery-storage-program-brief
https://ustda.gov/.../ustda-supports-energy-storage-south-africa-creating-opportunities-...
Oct 15, 2018 - The World Bank Group (WBG) has committed $1 billion for a program to accelerate
Aug  22, 2018in-battery
investments      USTDAstorage
                        Supports  Energypower
                              for electric Storage in South
                                                systems in ...Africa, Creating ... “Projects and
technologies under USTDA's program undergo significant ... with Eskom but also municipal power
                                                                                                                        Targeting initial 200MWh of                       Targeting 1,000 MWh opportunities by 2020
systems in South Africa and across the continent.”.                                                                           electrolyte p.a.
Accelerating Battery Storage for Development - World Bank Group
https://www.worldbank.org/en/news/.../accelerating-battery-storage-for-development
29
Sep Renewable        Energy
    26, 2018 - Accelerating     Markets
                            Battery         You
                                    Storage for   Need to...Watch
                                                Development.        OutGroup
                                                             World Bank For Commits
                                                                             in 2019$1 ...
https://www.greentechmedia.com/.../29-renewable-energy-markets-you-need-to-watch...
Billion for Battery Storage to Ramp Up Renewable Energy ...
Source:  Bushveld   Mineralsutility Eskom has announced a two-phase plan for 1.4 gigawatt- hours of
                                                                                                                                                                                                                                      31
Nov 20, 2018 - The national
energy storage at its sites throughout the country, he said.
Energy Home - World Bank Group
The Battery Energy Storage Opportunity Is Real And Now…

1. South Africa’s integrated resource plan has bold
   opportunities for battery energy storage:                                                                           An energy storage project developer and component manufacturer
             •     15,000MW of new renewable electricity
                   generation by 2040
             •  9,000 MW in peaking generation capacity
                with provision for alternative technologies
                (such as battery energy storage) to
                participate
       reipppp round 6                                                                                                                Sign in

             •     Licencing threshold for self-generation
All     News       increased
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                                                                                                         • Electrolyte manufacturing            • VRFB assembly & manufacturing       • MW scale energy storage project
                   door for many commercial and industrial
About 12,500 results (0.36 seconds)
                                                                                                                                                                                        development & Direct VRFB sales
                   energy users to self-generate                                                         •     Initial 200MWh                   • Partnership or investment with
South African Minister of Energy announces REIPPPP projects                                                                                                                           • Deployment models include PPAs,
https://www.miningreview.com/south-african-minister-energy-announces-reipppp-pro...                            electrolyte facility in East       VRFB firms and local partners
                                                                                                                                                                                        leasing models
Apr 5, 2018 - As in most of the bid rounds, the Northern Cape will receive the majority of the
                                                                                                               London, SA
2. Continuing Renewable Energy IPP Programme
investment with 15 new wind, solar PV and CSP projects, the ...
                                                                                                                                                • Medium term focus, once local       • 1st project with Eskom installed
        continues
New South      African to   add renewable
                         REIPPPP                      energyfortoNovember
                                     bid round scheduled              the grid...               •              Designed to convert                market for storage is established   • Significant success to date in
        creating opportunities for battery storage
https://newsbase.com/.../new-south-african-reipppp-bid-round-scheduled-november                                vanadium feedstock                                                       creating the market, especially in
New South African REIPPPP bid round scheduled for November. 6 June 2018. AfrElec - Africa Power
Monitor. 06 June 2018 Week 22 Issue 157. South Africa's ...                                                    from Vametco                                                             South Africa

South Africa to launch new 1.8 GW REIPPP round this year – pv ...
https://www.pv-magazine.com/.../south-africa-to-launch-new-1-8-gw-reippp-round-th...
Jun 1, 2018 - After signing the 27 outstanding renewable PPAs assigned in previous rounds in April,
                                                                                                             Targeting initial 200MWh of                         Targeting 1,000 MWh opportunities by 2020
the South African government believes the new ...                                                                  electrolyte p.a.

People also ask
Source: Bushveld Minerals
What is Reippp?                                                                                                                                                                                                              32
Bushveld Minerals Investment Proposition

                     1                                               2                                   3

    Positive price outlook         The largest primary vanadium resource base (439.6Mt    Brownfield infrastructure
         as a result of                              combined resource                      create scope for low
     sustained structural            ~2% in-magnetite V2O5 amongst the highest in the     capex and quick scale-up
            deficit                                           world                        of production capacity
                                               1st quartile cost curve position

                     4                                               5                                   7

   Vertical integration with high                    Management team                       Shareholder Return
 quality, low cost production base                  combines more than                   Committed to delivering
 allows us to be a key player in the                100 years’ experience                  attractive returns to
 multibillion-dollar energy storage                                                            shareholders
      industry through VRFBs                                         6
                                                  Concentrated global supply
                                                with South Africa as the largest
                                                  host of high-grade primary
                                                      vanadium resources
                                                                                                                      33
Several Catalysts Along Its Integrated Business During CY2019

       A growing, low cost, vertically integrated primary vanadium                      An energy storage project developer and component
                                 producer                                                                  manufacturer

    • Maiden Mineral Resource Estimate at         • Vametco optimsation          • Construction of              • Strengthen ties        • Commissioning first
      Brits Vanadium                                programme to maximise V        electrolyte                    with VRFB OEM            VRFB system at
    • Mining Right for the Mokopane                 throughput production          manufacturing plant                                     Eskom (SA’s utility)
      Vanadium Project                            • Brownfield processing        • Deployment of V                                       • Secure MW scale
    • Commence operations at Mokopane               capacity expansion             electrolyte rental product                              mandates

                                                                                 Targeting initial 200MWh         Targeting 1,000 MWh opportunities by 2020
             The Group is targeting a 10,000 mtV production in the medium term
                                                                                     of electrolyte p.a.

       • Outline a capital allocation framework and dividend policy in Q1 2019
       • List on the Johannesburg Stock Exchange by the end of CY19

Source: Bushveld Minerals
                                                                                                                                                                  34
Bushveld Minerals Corporate Video: https://www.brrmedia.co.uk/broadcasts/5a5626af9ed50c2f9b04679c/bushveld-minerals-an-emerging-
integrated-vanadium-producer
Vanadium 101 Webinar: https://edge.media-server.com/m6/p/i2wo6bk9
Vanadium 101 Slides: http://www.bushveldminerals.com/wp-content/uploads/2018/05/Bushveld-Minerals-Vanadium-101_Final.pdf
Energy Storage 101 Webinar: http://webcasting.brrmedia.co.uk/broadcast/5bd2eae5b01efb6b20c2f9eb/5bd348eba21632633b00003d
Energy Storage 101 Slides: http://www.bushveldminerals.com/wp-content/uploads/2018/11/Energy-Storage-Vanadium-Redox-Flow-
Batteries-101.pdf

                                                                                                                                   35
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