Communicators

Highlights

-          Scoping Study for Vulcan’s Zero Carbon Lithium™ Project demonstrates the potential for a combined operation producing lithium hydroxide and renewable energy, with net zero carbon footprint.

-          The Scoping Study is based on a staged expansion plan:

-          Stage 1: Construction and operation of Direct Lithium Extraction (DLE) and lithium hydroxide plant at an operating, producing geothermal well and plant[i], and;

-          Stage 2: Drilling ten new geothermal production wells, construction of new, combined geothermal, DLE and lithium hydroxide plant at Vulcan’s 100 %-owned Ortenau license[ii].

-          Multi-disciplinary, international in-house and independent expert team, in conjunction with specialist consultants, behind the first of its kind Zero Carbon Lithium™ study.

-          Discussions with potential strategic off-take partners and consideration of financing alternatives have commenced.

-          Positive Scoping Study outcomes expected to trigger the commencement of mineral processing work and a Pre-Feasibility Study (PFS) targeted for completion in late 2020.

-          Vulcan is leading the mining and resources industry with its unique Zero Carbon Lithium™ Project.

Managing Director, Dr. Francis Wedin commented: “Today marks a major milestone for the Company, and I would like to take this opportunity to thank our in-house team of lithium and geothermal experts, as well as our technical consultants, for their hard work in completing this study within our tight timeframes. The Scoping Study outlines a plan to produce battery-quality lithium hydroxide from Stage 1, ultimately growing with the market in Europe during a considerably larger Stage 2. Over the project life, both stages were found to have a positive outcome. Critically, the project benefits from readily available renewable heat and power to be used in lithium processing, and lack of high cost mining. The smaller Stage 1 provides a sensible first step for the Company.

We have shown with this Scoping Study the potential to commercially produce the raw materials required for the transition to electric vehicles, with a net zero carbon footprint, while decarbonizing the German energy grid with generation of renewable energy. We don’t see commerciality and environmental footprint as being mutually exclusive, indeed we seem them as being inextricably linked going into the 2020s, which is why we designed our Zero Carbon Lithium™ process from the ground up to be a net zero carbon, minimal impact process. This is currently a key differentiator for us in an industry with a very significant carbon footprint, but ultimately we hope that we will be the first of many, as we see a customer-driven push for companies to innovatively decarbonize the battery raw materials supply chain. Our process is the perfect fit for the Vulcan Lithium Project, a combined geothermal and lithium brine resource in the heart of the European lithium-ion battery industry, and the largest lithium resource in Europe by a considerable margin. European lithium-ion battery production is the fastest growing in the world, with new capacity plans announced regularly, and zero local supply of battery quality lithium hydroxide. The Company now has eight major unique selling points:

1. Unique Zero Carbon Lithium™ Process: premium product satisfying manufacturers’ and customers’ demand for net zero carbon EV raw materials.

2. Positive Scoping Study: world-leading industry experts in lithium extraction and geothermal behind first of its kind study, provides solid basis for feasibility studies to commence shortly.

3. Diversified Project: plan to produce geothermal energy means that project would also benefit from German Renewables Feed-in-Tariff.

4. Size: the largest JORC lithium resource in Europe, capable of being the major supplier of battery-quality lithium hydroxide to the European market.

5. Location – The Right Market, Compelling Supply-Demand Dynamic: in the centre of the European lithium-ion industry, major advantage for a semi-bulk product. Europe is the fastest growing lithium-ion production centre globally in the 2020s, with zero local supply of lithium hydroxide.

6. Rapidly Advancing Lithium Project: Maiden Resource & Scoping Study completed in just five months. Access to producing wells & a fast-track to production.

7. Team: In-house and independent geothermal and lithium expertise in-country for project execution.

8. Local Partners & Infrastructure Access: MoU with German utility Pfalzwerke geofuture allows for project to be de-risked via detailed test work on live brine, whilst providing pathway to short-term production.

We are already planning the next steps as we look towards our mineral processing test work and Pre-Feasibility Study, and we plan to maintain our momentum of being one of the fastest growing lithium projects in the world.”

Investor Relations Europe

Dr Eva Reuter

Friedrich Evert Anlage 35-37

Tower 185

60327 Frankfurt

e.reuter@dr-reuter.eu

+49 (0) 69 1532 5857

Please follow the link to view entire original news in English: https://www.asx.com.au/asxpdf/20200221/pdf/44f9tjldkj6y1b.pdf

[i]  Insheim Indicated Resource area. Subject to VUL’s MoU with Pfalzwerke geofuture, ASX announcement 26/11/2019

[ii]   Ortenau Inferred Resource area.