Amaero International Limited has secured a 10-year lease for its proprietary titanium alloy powder manufacturing plant in Victoria, Australia. The lease is for a 3,857 sqm facility in close proximity to Amaero's headquarters in the Monash Precinct. Additional works at the site are expected to begin in January 2022 to prepare for the installation of the titanium powder facility including the construction of a 600 sqm warehouse extension high bay to accommodate Amaero's first gas atomiser for the plant.

The plant will provide Amaero with a strong revenue and profit stream, with the Company expecting revenue once the plant is operational of AUD 40.8 million per annum1. This upgraded guidance from an initial estimate of AUD 30 million per annum followed evaluation trials of Amaero's process technology which confirmed that yields of high value particle size distribution of metal powder are better than the base case for the investment, and therefore, anticipated output from the facility is higher than previously expected. Amaero expects construction of the facility to be finalised and production to commence by Third Quarter CY2022, with the company expecting to further ramp up additional gas atomisers and revenues over the next few years.

The Company will relocate its current Melbourne based equipment to the new facility by Third Quarter CY2022. The plant will enable Amaero to produce aerospace grade titanium, to the higher standards at approximately half the cost of the nearest competitor and is expected to position Amaero as a supplier of choice of strategically important titanium alloy powder for defence, aerospace and critical manufacturing segments in allied nations. The quality and cost position of production is expected to provide the Company with a distinct advantage to secure long term off take agreements.

It will also position Amaero and other users in Australia and overseas with a reliable source of titanium alloy powder in a rapidly growing titanium market, with the total titanium market expected to grow from AUD 34 billion - AUD 46.5 billion in the next five years. Terms of the lease agreement: Parties: MTAA Superannuation Fund (Ferntree Business Park) Property Pty Ltd. and Amaero Engineering Pty Ltd. (Amaero); Property: 59-63 Normanby Road, Notting Hill; Gross Lettable Area: 3,857sqm (including a 600sqm high bay extension) subject to survey plans; Lease term: 10 years commencing at approximately 521,000 plus GST plus outgoings with annual increment of 3%. Lease commencement: 1 June 2022 or when the warehouse extension is completed, whichever is the latter.