Letter of Intent Signed with Hebei Vanadium Titanium Industrial Technology Research Institute

Subsidiary of HBIS Group Chengsteel Company in China and AVL initiate collaboration.

Key Points:

• AVL signs Letter of Intent with Hebei Yanshan Vanadium and Titanium Industry Technology Research Co Ltd, a subsidiary of HBIS Group Chengsteel
• Chengsteel is currently the world’s third largest vanadium producer
• Potential purchase of AVL’s vanadium products and Project investment opportunities
• Consideration of technical services for the Australian Vanadium Project
• Letter of Intent confirms interest from both parties to discuss a binding purchase and sale agreement
• Letter of Intent is non-binding and sets terms for discussion
• AVL Managing Director and COO to visit HBIS in January, a visit to Western Australia by HBIS Vanadium executive management being planned