ChemX Materials Ltd. announced that it will build a High Purity Alumina (HPA) Pilot Plant after a Pre-feasibility Study (PFS) confirmed the viability of the company's proprietary HiPurA® technology. The PFS, conducted by engineering firm Primero Group, indicates the 50 tonne per annum (tpa) pilot plant requires capital expenditure of AUD 2.5 million with a contingency of AUD 0.41 million. Using data obtained from the Company's successful HPA micro-plant commissioning phase and subsequent operation, the PFS incorporated several work streams and equipment modifications which have led to the design of an appropriately sized pilot plant.

The aims of the HiPurA® HPA pilot plant are to: Optimise operating conditions to reduce the scale-up risks associated with a commercial plant. Produce the larger quantities of HPA needed for the final stages of qualification. Continue with development of additional materials that the HiPurA® technology can produce.

High Purity Alumina (HPA) is a high value critical material used in lithium-ion batteries to manufacture ceramic separators, which provide increased thermal insulation for improved safety and charging. HPA is also an irreplaceable ingredient in the production of synthetic sapphire, which is used in LEDs, semiconductors, and optical lenses. ChemX completed the commissioning of the individual stages of its HPA micro-plant prior to the conclusion of the 2nd Quarter 2022.

The micro-plant shall continue to be utilised, alongside the development of the pilot plant. The key objectives of the micro-plant are: Optimisation of process and controls under continuous operation Achieving a 99.99% (4N) Purity HPA on a consistent basis. Production of HPA samples to be used for customer qualification testing.

Research and development of additional products for assessment including achieving a targeted 99.999% (5N) Purity and aluminium sulphate /aluminium nitrate for lithium battery cathodes. Following successful production of HPA through the continuous operation of the HiPurA® micro-plant the Company has submitted samples to an accredited laboratory for assaying. Chemical analysis will provide ChemX with the ability to specifically calibrate the final purification step to produce 4N HPA, capable of being used as a coating on the separator between the cathode and anode of lithium-ion batteries.

Upon receipt of assays, any adjustments to the purification steps that may be required will take place at the Company's recently secured larger facility in Perth, Western Australia. The industrial facility will house both the HiPurA® HPA micro-plant and the HiPurA® HPA pilot plant, providing significant operational synergies. The purified solution from the pilot plant will be used as a feed to the micro- plant which will be repurposed to produce a range of 5N, or higher, products.

Achieving production of HPA through the micro-plant represents a significant competitive step forward for ChemX. The Company intends to produce HPA samples for qualification with separator manufactures and sapphire growers, with a view to securing offtake agreements. As a result, the company will now begin its formal marketing campaign with interested parties.

The HiPurA® process is significantly different to the currently used Alkoxide method and other known technologies that produce HPA, including those that remain under development. Importantly, the HiPurA® process is independent of any given mining operation, thus avoiding any mine development timeframes or associated operational risks. Production facilities can be positioned in multiple locations close to prospective end users, with the HiPurA® process utilising a relatively low cost and globally plentiful feedstock.

The HiPurA® HPA technology is scalable, lower cost, independent of mine production, modular and able to produce several high purity products to meet the requirements of multiple markets. Due to the unique nature of the technology, a Patent Application was lodged on 7th July 2022 to globally protect the IP that is 100% owned by ChemX.