Mallee Resources : MYL Investor Presentation

ersonal use only

CRITICAL MINERALS FOR A SUSTAINABLE FUTURE

AVEBURY NICKEL - A TRANSFORMATIVE ACQUISITION OPPORTUNITY

JUNE 2022

Disclaimer

DISCLAIMER

These presentation materials and the accompanying verbal presentation (together, the Presentation Materials) have been prepared by Mallee Resources Limited (Company or MYL) as at 10/6/2022 and statements are current only as at that date. Information in the Presentation Materials remains subject to change without notice. The Company has no responsibility or obligation to inform you of any matter arising or coming to its notice, after the date of this document, which may affect any matter referred to in this document. By receiving the Presentation Materials, you acknowledge and represent to the Company that you have read, understood and accepted the terms of this disclaimer. It is the

onlyresponsibility of all recipients of these Presentation Materials to obtain all necessary approvals to receive these Presentation Materials and receipt of the Presentation Materials will be taken by the Company to constitute a representation and warranty that all relevant approvals have been obtained.

NOT AN OFFER

These Presentation Materials are for information purposes only. The Presentation Materials do not comprise a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with the Australian Securities and Investments Commission) or any other law. The Presentation Materials also do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied upon in connection therewith or act as any inducement to enter into any contract or commitment with respect to securities. In particular, these Presentation Materials do ot constitute an offer to sell or a solicitation to buy, securities in the United States of America.

NOT INVESTMENT ADVICE

The Presentation Materials are not investment or financial product advice (nor tax, accounting or legal advice) and are not intended to be used for the basis of making an investment decision. Recipients should obtain their own advice before making any investment decision.

SUMMARY INFORMATION

The Presentation Materials do not purport to be all inclusive or to contain all information about the Company or any of the assets, current or future, of the Company. The Presentation Materials contain summary information about the Company and its activities which is current as at the date of the Presentation Materials. The information in the Presentation Materials is of a general nature and does not purport to contain all the information which a prospective investor may require in evaluating a possible investment in the Company or that would be required in a prospectus or product disclosure statement or other offering document prepared in accordance with the requirements of Australian law or the laws of any other jurisdiction, including the United States of America.

useWhile reasonable care has been taken in relation to the preparation of the Presentation Materials, none of the Company or its directors, officers, employees, contractors, agents, or advisers nor any other person (Limited Party) guarantees or makes any representations or warranties, express or implied, as to or takes responsibility for, the accuracy, reliability, completeness or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this document. No Limited Party represents or warrants that this document is complete or that it contains all information about the Company that a prospective investor or purchaser may require in evaluating a possible investment in the Company or acquisition of shares in the Company. To the maximum extent permitted by law, each Limited Party expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of or reliance on information contained in this document including representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this document including, without limitation, any financial information, any estimates or projections and any other financial information derived therefrom.

FORWARD LOOKING STATEMENTS

Certain statements contained in the Presentation Materials, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such. Subject to any continuing obligations under applicable law the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in this document to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any such statement is based.

REFERENCES TO MINERAL RESOURCES 2022

The Mineral Resource estimate including JORC Table 1, sections 1, 2 and 3 and the competent persons statement has been previously reported by the Company in accordance with the 2012 Edition of the 'Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves' (JORC Code) on 8 April 2022 and is publicly available at https://bit.ly/3jifzlM. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

PROSPECTUS

The Company is in the process of preparing a prospectus (Prospectus) for the offer of fully paid ordinary shares in the capital of the Company (Shares) in relation to the capital raising contemplated by the Presentation Materials. A copy of the Prospectus is anticipated to be available by June 2022 and will be available on the Company's website at https://malleeresources.com.au/. All offers of Shares for the capital raising referred to in the Presentation Materials will be made in, or accompanied by, the Prospectus. Investors should consider the Prospectus in deciding whether to acquire Shares and any person who wishes to apply for Shares must complete the application form that will be in or will ccompany the Prospectus.

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Australia's next nickel sulphide producer

only	Class-1 nickel in tier one location
▪ Substantial nickel sulphide Mineral Resources of 29.3 Mt at
0.9% Ni (264 Kt contained Ni) (JORC 2012)1
▪ Tasmania is an excellent mining jurisdiction
▪ Readily available, skilled local workforce

Short term production potential

use	▪	Mining operations have commenced at Avebury
▪	Underground mine and processing plant are in excellent
	condition and allow for a short term re-start to production

Experienced executive team

• Track record in base, battery and precious metals
• Demonstrated ability to deal with complexity and challenges

Positioned for a low carbon future

ersonal	▪	Tasmanian grid power is 100% renewable2
	▪	MYL is aligned with the ICMM Mining Principles and has
		adopted the Global Reporting Initiative framework (GRI)

Notes:

1.See page 2 on references to Mineral Resources3

2.Tasmanian Government (https://recfit.tas.gov.au/renewables/100_target_achievement)

Corporate snapshot

only	Capital Structure								Board
			Current Position			Proforma Position			Jeffrey Moore, Non-Executive Chairman
Shares on issue		▪	190.1 m.		▪	419.7 m.
				▪	B.Sc, MAusIMM, MGSA
Unlisted Options		▪	5.3 m.		▪	5.3 m.			▪	Geologist with extensive technical, managerial and project finance experience
Performance Rights		▪	4.6 m.		▪	Nil			▪ Former Director and CEO of significant ASX listed mining companies
Cash position		▪	A.$47.6 m.		▪	A.$84.0 m.			John Lamb, Managing Director
Debt position		▪	Nil		▪	US$30.0 m.
				▪	B. Surv(IT), Grad Dip Management, MBA, FAusIMM(CP), GAICD
use									▪ Over 30 years experience across mining, construction, forestry and logistics sectors
								▪ Former General Manager of the Avebury Mine and Rosebery Mines in Tasmania.
											Former General Manager of the Century Zinc Mine in Queensland
	Key Shareholders									Rowan Caren, Executive Director, CFO & Company Secretary
									▪	B. Com, CA
										▪ Over 30 years experience in natural resources sector providing financial and
											corporate services
ersonal			17%						▪ Extensive Director and company secretarial experience
				Perilya Limited
										Paul Arndt, Non-Executive Director
							Yandal Investments (Mark		▪	B. Sc, MBA, MSc, Grad Dip Engineering
					11%	Creasy)		▪ Managing Director and Chief Executive Officer of Perilya
					Board
								▪ Formerly held senior positions with Newcrest, Pasminco and MIM
		63%		2%	Institutional Investors
			7%		Other		Steve Hendel, (Proposed Nominee Director of Hartree)
										▪	B.A, J.D
										▪ Founding Partner and Managing Director of Hartree
										▪ Chairman of Sprague Resources LP. Former Partner at Goldman Sachs

Notes:
1.	Proforma values are as per the notice of meeting published on the ASX on 30 May 2022. The proforma shares on issue, cash and debt positions are forward looking estimates and are subject to uncertainty. These estimates assume effectuation of MYL's DOCA for Allegiance Mining Pty Ltd, a US$30 M. debt facility being	4
	entered into with Hartree and a A$70 m. equity capital raising (at a price of A$0.70 per share). Current cash position and debt position as at 8/6/22

Compelling acquisition of a highly prized asset

only				Map of Avebury Tenements
	▪ MYL acquires 100% of the shares of Allegiance via a
Acquisition		deed of company administration (DOCA)
▪ The DOCA extinguishes creditor claims and terminates
		non-governmental royalty agreements
	▪ $85.9 m. in cash and shares
	▪ ~$23.2 m. reimbursement of expenses incurred during
Consideration		the DOCA terms
use		▪ ~$5.6 m. of fees payable to the receivers, legal fees
		and accrued interest
	Outstanding	▪	MYL shareholder approval
	Approvals	▪	FATA approvals
	Other Proposed	▪ Life of mine offtake agreement
	▪	Loan agreement
	Agreements with
ersonal	▪	Hedging agreement
Hartree	▪	Security documentation
	▪ Secured creditor of Allegiance Mining Pty Ltd
			(Allegiance) and co-proponent of the DOCA for
	Hartree Metals		Allegiance
	▪ Hartree is a metal trader and is part of Hartree
	LLC (Hartree)
		Partners, a global energy and commodities firm
		▪ Funds managed by Oaktree Capital Management are
			the majority shareholder of Hartree Partners
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