First Term Sheet for Iron Titanium Coproduct signed with Tianzhu Steel

Conversion of Letter of Intent to Term Sheet for sale of AVL’s FeTi coproduct

• AVL completes first Term Sheet with end user steel mill for sale of iron titanium (FeTi) coproduct from the Australian Vanadium Project.
• Term Sheet is key milestone confirming market interest in coproduct as AVL continues to develop FeTi customer base in China and South East Asia.
• Wingsing International Limited, the commercial arm of Tianzhu Steel has signed a conditional Term Sheet for an initial 50,000 tonnes per annum (tpa) of AVL’s FeTi coproduct, with option to increase volumes after the first year.
• Tianzhu Steel has an annual steel production of 5 million tonnes per annum (mtpa) from its mill in Hebei Province, P.R. China.
• AVL plans to produce approximately 900,000 tpa of FeTi coproduct from the Australian Vanadium Project, after production of approximately 11,000 tpa of vanadium pentoxide from its proposed mine and processing facility in the Mid West region of Western Australia.[1]
• The FeTi coproduct will be shipped from port facilities at Geraldton.
• The non-binding Term Sheet extends the terms of the LOI and is the next step towards finalising a binding offtake agreement.

[1] See ASX announcement dated 6^th April 2022 ‘Bankable Feasibility Study for the Australian Vanadium Project’