Alpha HPA Limited provided an update on project activities for its HPA First Project, representing the commercialisation and production of critical high purity aluminium products driving de-carbonisation. Alpha is fully funded to commercial production at its Stage 1, Precursor Production Facility (PPF) which is under construction in Gladstone, QLD and scheduled to commence commissioning ahead of production of the company's high purity Aluminium Precursors from the September quarter 2022. The company is concurrently satisfying the remaining conditions precedent to the full-scale Project Final Investment Decision, with a focus on product sales and offtakes and project financing.

MOU signed with Brenntag: Alpha has signed a Memorandum of Understanding (MoU) with Brenntag Holding GmbH (Brenntag) for the potential sale and/or distribution of Alpha's products within Europe, Middle East and Africa (EMEA). Alpha and Brenntag will work co-operatively and on a non-exclusive basis to develop end-user markets and logistics solutions to the battery chemical markets. The MoU also considers potential commercial collaboration in test and/or commercial production facilities.

HPA order received for delivery from Stage 1 PPF: Following successful qualification, Alpha has received a sales order to a US based lithium-ion battery manufacturer for an initial 1 metric tonne of HPA for delivery from the Stage 1 PPF in April 2023. The customer is in the early stages of scaling their manufacturing, with much larger volume demand forecast from 2024. Further Al-nitrate sales: Alpha has received further high-value sales orders via as US based web-catalogue platform for a further 9kg @ $350/kg.

The order is part of an ongoing series of sales over the previous 12 months delivering high purity aluminium nitrate to researchers and end-users. Alpha is anticipating larger volume orders through this avenue as the Stage 1 PPF ramps up production making commercial volumes available for manufacturing applications. Anode coating test work expands: Alpha has further expanded its test work in coating both lithium-ion cathode and anode active material utilising the company's 5N purity aluminium nitrate as the chemical precursor.

Alpha now has active coating test work underway or commencing with seven separate counterparties including large scale battery manufacturers as well as both anode and cathode developers. The coating process is capable of delivering a fine controlled coating of either high purity alumina (Al2O3) or high purity boehmite (Al-O-OH) on either lithium-ion battery anode or cathode particles. The coating delivers a number of benefits including increased rate performance, improved safety and faster charging.

First stage electrochemical results have proved strongly encouraging, particularly for the boehmite coating path, which as a lower temperature process, represents a significantly lower cost coating. The test work is specifically designed to facilitate increased end-user acceptance of Alpha's 5N purity aluminium nitrate precursor as the key ingredient in the coating process. Successful development of 5N purity anhydrous Al-sulphate precursor: Following interaction with a significant lithium-ion cathode manufacturer, Alpha's product development team have successfully developed an anhydrous form of its aluminium sulphate precursor at 5N purity.

Alpha is now marketing both anhydrous and hydrated aluminium sulphate precursors, per below: Hydrous Al-sulphate >> Al2(SO4)3.16H2O and Anhydrous Al-sulphate >> Al2(SO4)3. Stage 1 ­ PPF: The company continues to make good progress on the construction of the Stage 1 PPF component of the HPA First Project as detailed below: The Stage 1 PPF remains on track for commissioning in the September quarter. Mains electricity connected ­ supplied with renewables via CleanCo: The Stage 1 PPF is now connected to mains electricity supplied via CleanCo QLD generated from 100% renewable sources. Administration and laboratory buildings installed: The administration and laboratory buildings are now installed with electrical connections and plumbing in place.

The buildings are currently being fit out with Alpha targeting mid mid-September for occupation. Firewater, LNG and key reagent tanks installed: LNG and key reagent tanks are now installed at the PPF building. Fire water tanks are installed and filled.

The fire water tank will service both Stage 1 and Stage 2 of the HPA First Project. Fencing and security gate installation commenced: Fencing and security gate installation is now underway with expected completion by mid-September. Operations readiness: Senior operations leadership and technical staff have now relocated to Gladstone to focus on operations readiness.

All technical and operations positions have now been hired with the final cohort starting September 5th. With the remaining Stage 1 operation staff commencing, Alpha will have a 44% female workforce. Operations readiness programs include: technical training and assessment documentation under development (University of Alpha) structured to support progressive learning; commissioning and operating procedures under development with support from technology providers; pipe and valve labelling to support plant familiarisation; and laboratory equipment all on site and scheduled for installation and commissioning and method development.

Stage 2 ­ full scale project: In parallel with the PPF, the Company maintains a number of workstreams directed at completing the remaining conditions precedent to the full-scale HPA First Project FID. Federal Govt $45 million MMI-C grant advanced: Alpha has been notified that $45 million grant approved under the Modern Manufacturing Initiative, collaborations stream (MMI-C) is now proceeding to negotiation of a grant agreement. The Company looks forward to working collaboratively with the Department of Industry, Science and Resources to complete the MMI-C grant agreement process.