Blackstone Minerals : BSX Investor Presentation - RIU Explorers Conference 2022

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ersonalBSX INVESTOR PRESENTATION

RIU Explorers Conference, February 2022

ASX:BSX

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CAUTIONARY & FORWARD LOOKING STATEMENT

The PFS referred to in this Presentation is the study of the potential viability of the Ta Khoa Refinery Project. It has been undertaken to understand the technical and economic viability of the TKR.

The Company has concluded that it has a reasonable basis for providing the forward-looking statements included in this announcement. The reasons for this conclusion are outlined throughout this announcement. However, the assumptions and results of the PFS set out above and elsewhere in this announcement ("PFS Parameters") have been developed through feasibility work completed to the level of AACE/AusIMM Class 4 (+/-25% accuracy) and the use onlyof macroeconomic assumptions. For the avoidance of doubt, investors are advised that the PFS Parameters do not constitute a production forecast or a target in relation any mineral resources associated with wit the Company. The Company wishes to expressly clarify that the PFS Parameters are based on the expected grade of nickel, cobalt and copper that is reliant upon 3PF for which there is currently no supply agreement. The PFS Parameters have been

disc osed by Blackstone to provide investors with an intended scale and nature of the Project.

The PFS referred to in this announcement has been undertaken to assess the technical and financial viability of the Project. Further evaluation work, including a Definitive Feasibility Study ("DFS") is required before the Company will be in a position to provide any assurance of an economic development case. The PFS is based on material assumptions set out in Section 1.13 of the Executive Summary in this announcement. These include assumptions about the availability of funding and the pricing received for the Ta Khoa Refinery Project products. While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be c rrect or that the range of outcomes indicated by this PFS will be achieved. To achieve the outcomes in this PFS, the pre-production capital (including contingency) of US$491m, additional capital for pre-commitment activities such as a DFS , pilot plant development and working capital is likely to be required.

useInv stors should note that there is no certainty that the Company will be able to raise this amount of funding required when needed. It is also possible that such funding will only be available via equity funding which may have a dilutive effect on the Company's share value. The Company may also pursue other strategies in order to realise the value of the Ta Khoa Refinery Project, such as a sale, partial sale or joint venture of the Ta Khoa Refinery Project. If this occurs, this could materially reduce the Company's proportionate share of ownership of the Ta Khoa Refinery Project. Accordingly, given the uncertainties involved, investors should not make any investment decisions based solely on the results of the PFS.

This report contains certain forward-looking statements. The words "expect", "forecast", "should", "projected", "could", "may", "predict", "plan", "will" and other similar expressions are intended to identify forward looking statements. Indications of, and guidance on, future earnings, cash flow costs and financial position and performance are also forward-looking statements. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward

looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may be affected by a range of variables that could cause actual results or trends ersonalto differ materially. These variations, if materially adverse, may affect the timing or the feasibility of the development of the Ta Khoa Nickel Project.

The project development schedule assumes the completion of the TKR Definitive Feasibility Study (DFS) by Q3 2022. A DFS for the TKNP is assumed to be completed in H1 2023. Development approvals and investment permits will be sought from the relevant Vietnamese authorities concurrent to studies being completed. Delays in any one of these key activities could result in a delay to the commencement of construction (planned for early H2 2023). This could lead on to a delay to first production, currently planned for 2025. It is expected that the Company's stakeholder and community engagement programs will reduce the risk of project delays. Please note these dates are indicative only.

The JORC-compliant Mineral Resource estimate forms the basis for the Scoping Study in the market announcement dated 14 October 2020. Over the life of mine considered in the Scoping Study, 83% of the processed Mineral Resource riginates from Indicated Mineral Resources and 17% from Inferred Mineral Resources; 76% of the processed Mineral Resource during the payback period will be from Indicated Mineral Resources. The viability of the development cenario envisaged in the Scoping Study therefore does not depend on Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The Inferred Mineral Resources are not the determining factors in project viability. Please refer to the Cautionary Statement in the Scoping Study market announcement dated 14 October 2020.

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BLACKSTONE MINERALS - CORPORATE SNAPSHOT

BLACKSTONE MINERALS LIMITED
ASX Code							BSX
OTCQX Code						BLSTF
Shares on Issue						449.6m
Last Share Price (11 February 2o22)			A$0.615
Market Capitalisation					A$277m
only								~A$60m
Cash as at 31 December 2021
Options							12.4m
3-month Avg Daily Vol. (shares)				1.5m
0.9								10.00
0.8								9.00
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0.7
0.6								7.00
0.5								6.00
							5.00
0.4
							4.00
0.3								3.00
0.2								2.00
0.1								1.00
0.0								0.00
ersonal Jan-21	Feb-21Mar-21	May-21	Jun-21	Sep-21	Oct-21	Nov-21	Dec-21	Jan-22
Volume (m)	Share Price (A$) - RHS
Apr21-	Jul21-	Aug21-				Feb22-

BOARD OF DIRECTORS
Scott Williamson	Hamish Halliday	Dr Frank Bierlein	Alison Gaines	Hoirim Jung
Managing	Non-Executive	Non-Executive	Non-Executive	Non-Executive
Director	Chairman	Director	Director	Director
ANALYST COVERAGE	Debt Advisors
		Major Shareholders
		Deutsche Balaton	14%
		Fidelity		10%
		EcoPro		9%
		Board & Management	7%

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INVESTMENT SUMMARY

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Vertically integrated business model

• Developing an integrated upstream (mining) and downstream (refining) battery metals processing business in Vietnam that produces NCM Precursor products for Asia's growing Lithium-ion battery industry

Globally relevant nickel sulfide mineral resource

• Global Ta Khoa Nickel Project (TKNP) resource of 130 Mt at 0.37% Ni for 485kt of Nickel

Base case Ta Khoa Refinery (TKR) designed to produce ~80ktpa NCM 811 Precursor

• Targeting ~50% of TKR nickel concentrate feed to be supplied by the TKNP
• Strategic investments establish pathway to access other potential concentrate feed sources
• Strong relationships with third-party concentrate feed providers

Partnership based model

• Excellent relationships in Asia with cathode, battery, and electric vehicle manufacturers
• Focus on supply chain solution from mine to consumer

Blackstone strategy being delivered into rising macroeconomic environment

• Growth in nickel demand from battery related applications to be exponential in the next decade
• Blackstone has positioned for the once in a generation movement towards high nickel content cathodes

needed for the EV revolution	4

BLACKSTONE INTEGRATED BUSINESS MODEL

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Blackstone Upstream Business	Blackstone Downstream Business	Targeting South - East Asian
Ore → Concentrate	Concentrate → MHP → Precursor NCM	Lithium-ion battery and EV market

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X%

Ta Khoa Nickel
Targeting
Project (90%)
				~80tkpa
	40ktpa nickel in
			Ta Khoa Refinery
				NCM811
	intermediate
	feed sources					Precursor
Minago (~7%)
		Third Party			X%
		Concentrate Feed
Wingellina (~15%)		Providers (3PF)

Base Case Ta Khoa Refinery can supply enough nickel to produce

between ~0.50 - 0.75million EVs p.a.

NCM is forecast to be the dominant battery chemistry. Overall there is a shift to higher nickel content cathodes which increases the need for OEMS to secure supply:

• Nickel intensity in increasing on a per vehicle basis as the EV industry trends towards NCM811 cathode usage
• Long range/ larger vehicles typically have a battery capacity of between 70-90 kWh battery capacity and would require ~55-75kg of Nickel (source BMI)

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