September 2021 Quarterly Activities Report

QUARTERLY REPORT

Period Ended 30 September 2021

IGO DELIVERS SOLID START TO FY22

Key Points

• Group sales revenue of A$189M and underlying EBITDA1 of A$97M, resulting in solid EBITDA margins of 51% for the Quarter
• Net Profit after Tax of A$46M, which includes A$13M IGO share of Lithium JV Net Profit
• Cash flows from operating activities of A$131M, generating an underlying free cash flow of A$111M for the Quarter, in line with the prior quarter
• Nova's quarterly production and cash costs were both within or better than guidance
• Greenbushes Chemical Grade Plant 2 commissioned and Chemical Grade Plant 3 EPCM contract awarded to Lycopodium
• Kwinana Refinery commissioning with first lithium hydroxide produced
• Acquisition of Silver Knight nickel-copper-cobalt sulphide deposit from Creasy Group and formation of exploration joint venture completed in October
• Payment of FY21 final dividend of A$0.10 per share fully franked, totalling A$76M
• Cash on balance sheet of A$552M and no debt with established A$450M debt facility remaining undrawn

Peter Bradford, IGO's Managing Director & CEO commented:

"We are pleased to have commenced FY22 strongly with a solid quarter of safe performance from Nova. In parallel, good progress was achieved within the lithium joint venture, with key growth projects being advanced during the first reporting period following the successful completion of IGO's investment in the lithium joint venture with Tianqi Lithium Corporation.

At the Greenbushes Lithium Mine, Chemical Grade Plant 2 has been commissioned, Tailings Retreatment Plant construction activity was progressed with commissioning expected in early 2022, and the EPCM contract for the design and engineering for Chemical Grade Plant 3 was awarded to Lycopodium Limited. At the Kwinana Refinery commissioning of Train 1 has been progressed with a key milestone achieved during August with the first lithium hydroxide produced. During this period, we have witnessed increased global demand for lithium, with prices responding strongly.

At Nova, quarterly nickel production and cash costs were better than pro-rata guidance which, combined with robust commodity prices, resulted in Nova continuing to achieve strong free cash flows and high margins. The guided lower production quarter-on-quarter reflects the mining of lower-grade stopes in line with the life of mine plan."

1 Refer to the Financial & Corporate section of this Quarterly Report for a description of underlying adjustments / exclusions. These adjustments, including underlying measures of EBITDA and free cash flow, are non-IFRS financial measures. They should not be considered as alternatives to an IFRS measure of profitability, financial performance or liquidity. All references to financial measures and outcomes in this Quarterly Report are to unaudited results.

Suite 4, Level 5	PO Box 496	T. [phone]	igo.com.au
85 South Perth Esplanade	South Perth WA 6951	F. [phone]	IGO Limited
South Perth WA 6151	Western Australia	E. [e-mail]	ABN 46 092 786 304

QUARTERLY REPORT

PRODUCTION SUMMARY

	Units	4Q21	1Q22	QoQ	FY22 Guidance1
Nova nickel	t	7,887	6,889	(13%)	6,250 to 6,750
Nova copper	t	3,538	3,023	(15%)	2,875 to 3,125
Nova cash costs2	A$/lb Ni	1.28	1.99	56%	2.00 to 2.40
Greenbushes spodumene3	kt	NA5	268	NA	Not provided6
Greenbushes Unit Costs4	A$/t	NA5	310	NA	Not provided6

1. Pro-rataYTD Guidance (FY22 guidance divided by four), where applicable.
2. Cash costs reported per pound of payable metal produced inclusive of royalties and net of by-product credits.
3. 100% attributable Greenbushes production, including both technical grade and chemical grade spodumene concentrate.
4. Unit costs are average cash cost of goods sold, inclusive of G&A costs and royalties.
5. IGO completed its investment in TLEA on 30 June 2021 and therefore reporting has only commenced from the September 2021 quarter.
6. Greenbushes production and cost guidance have not been provided as CY22 budgets are not yet available.
7. Kwinana Refinery is not yet in commercial production and therefore no reporting is available. Guidance for the Kwinana Refinery is expected to be provided once commercial production is achieved.

EXECUTIVE SUMMARY

IGO Limited (ASX: IGO) (IGO, the Company or the Group) has commenced the 2022 Financial Year (FY22) with strong results from both a production and financial perspective, while also progressing key growth initiatives across the portfolio.

Nova production was within guidance for the September 2021 Quarter (1Q22 or Quarter), with nickel, copper and cobalt production for the Quarter of 6,889t, 3,023t and 253t respectively. Cash costs of A$1.99 per payable pound for the Quarter were better than guided, albeit higher than the previous quarter of A$1.28 per payable pound.

Sales revenue for the Quarter was 29% lower than the previous quarter, primarily due to the divestment of the Tropicana Operation on 31 May 2021. Sales revenue from the Nova Operation at A$189M was lower than the previous quarter primarily due to lower nickel and copper concentrate sales volumes, as guided.

Net profit after tax (NPAT) for the Quarter was A$46M. The prior quarter NPAT of A$453M included both results from the Tropicana Operation as well as a post-tax gain on the sale of the Operation of A$385M.

On 30 June 2021, IGO announced the completion of the transformative transaction to form a corporate joint venture between IGO and Tianqi Lithium Corporation (Tianqi) over its Australian lithium assets, which include a 51% stake in the world-class Greenbushes Lithium Mine (Greenbushes) (a joint venture with global lithium company Albemarle Corporation (Albemarle), who hold 49%), and the 100% owned and operated Kwinana Lithium Hydroxide Refinery (Kwinana Refinery).

The interim name for the corporate joint venture is Tianqi Lithium Energy Australia (TLEA). The parties intend to rename the entity in the coming quarters.

The acquisition of the Silver Knight nickel-copper-cobalt sulphide deposit from the Creasy Group and the formation of a new exploration joint venture surrounding Silver Knight was completed in October 2021.

Unaudited Net Profit after Tax for the Quarter of A$46M includes a A$13M contribution from TLEA. Refer the Lithium JV (TLEA) section in this report for further details. IGO also made a A$16M capital contribution to TLEA to part-fund ongoing commissioning and rectification activity at the Kwinana Refinery.

IGO's 24.99% attributable share of Greenbushes production for the Quarter comprised 57,114t of chemical- grade spodumene concentrate and 9,779t of technical-grade spodumene concentrate. First lithium hydroxide was produced at the Kwinana Refinery during the Quarter, with commissioning continuing.

Total cash (and net cash) at the end of September 2021 was A$552M, an increase of A$24M during the Quarter. The Group also has undrawn debt facilities available of A$450M.

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QUARTERLY REPORT

Key financial metrics for the Company compared to the previous quarter are summarised in the table below:

	Units	4Q21	1Q22	QoQ
Financials
Sales Revenue	A$M	266.2	189.2	(29%)
Underlying EBITDA	A$M	139.5	97.4	(30%)
Share of Net Profit of Lithium JV	A$M	NA	13.2	NA
Profit After Tax	A$M	452.6	45.9	(90%)
Net Cash from Operating Activities	A$M	133.3	131.0	(2%)
Underlying Free Cash Flow	A$M	114.3	111.2	(3%)
Cash & Net Cash	A$M	528.5	552.3	5%

SAFETY, SUSTAINABILITY & GOVERNANCE

Safety

There were no material safety incidents across IGO's managed activities during the Quarter, with a 12-month rolling total reportable injury frequency per million hours worked (TRepIF) of 11.3 as at 30 September 2021 (compared to 13.2 as at 30 June 2021).

Environment

There were no material environmental incidents across IGO's managed activities during the Quarter.

Community

There were no material community issues arising from IGO's managed activities during the Quarter. IGO continues to support our host communities and various charities through our Corporate Giving program.

Heritage & Land Access

During the Quarter, IGO continued to engage with Traditional Owners and relevant stakeholders to ensure the continued protection of cultural heritage and discuss collaboration opportunities. This has included consultations with Native Title holders and Traditional Owners to progress negotiations on land access and heritage agreements over IGO's exploration tenure. In addition, IGO is progressing land access discussions with the Ngadju Native Title Aboriginal Corporation in relation to the Mining Lease Application for the recently acquired Silver Knight deposit.

LITHIUM JOINT VENTURE (TLEA)

On 30 June 2021, IGO completed the transaction to form a new lithium joint venture, TLEA, with Tianqi over its Australian lithium assets, with IGO owning 49% of the shares in TLEA and Tianqi owning the balance of 51%. We expect to rename TLEA in the coming quarters to better represent the interests of both parties for this entity, which is the exclusive vehicle for lithium investments outside of China for IGO and Tianqi.

TLEA will initially focus on the existing upstream and downstream lithium assets located in Western Australia, which comprise a 51% stake in Greenbushes and a 100% interest in the Kwinana Refinery.

As a non-controlling shareholder in TLEA, IGO recognises its share of Net Profit after Tax of TLEA in its consolidated financials. IGO's unaudited share of Net Profit after Tax from TLEA for 1Q22 was A$13M. IGO made cash contributions to TLEA of A$16M during the Quarter by way of equity contributions which were matched on a pro-rata basis by Tianqi.

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QUARTERLY REPORT

Given higher spodumene pricing, IGO does not expect any further capital contributions to TLEA in FY22 beyond the A$16M made in the Quarter. Previously IGO had guided to approximately A$50M of capital contributions to TLEA in FY22.

Greenbushes Mine

Open pit lithium mine located in the southwest of WA: IGO 24.99% indirect.

Greenbushes	Units1	4Q214	1Q22	FY22 Guidance5
Technical Grade Concentrate2	t	NA	39,130	Not provided
Chemical Grade Concentrate3	t	NA	228,548	Not provided
Cost of Goods Sold	A$/t	NA	310	Not provided

1. Tonnes (t) are reported as dry metric tonnes.
2. Technical grade spodumene concentrate production is from TGP with a range of spodumene concentrate grade produced to meet customer requirements.
3. Chemical Grade Concentrate production is from CGP1 and CGP2 on an SC6.0 basis (6% Li2O).
4. IGO completed its investment in TLEA on 30 June 2021 and therefore reporting has only commenced from the September 2021 quarter.
5. Greenbushes production and cost guidance has not been provided as CY22 budgets are not yet available.

There are three existing and operational concentrators at Greenbushes; the technical grade plant (TGP), and two chemical grade plants CGP1 and CGP2, with installed capacity of 1.34Mtpa of spodumene concentrate. Three further concentrators are planned, a tailings retreatment plant (TRP), which is part constructed, a third chemical grade plant CGP3, expected to start construction in 2022, and a fourth chemical grade plant CGP4, to be built after that. Ore is sourced from the one open pit mining operation.

Mining, processing and capital development activities were progressed to plan during the Quarter despite higher-than-normal rainfall. Materials activities and progress for the Quarter included:

• A total of 1.15 million bank cubic metres of material was mined, including 796kt of ore at an average grade of 2.45% Li2O.
• Total spodumene concentrate production of 267,678t was better than plan with 39,130t, 137,132t and 91,416t being contributed from TGP, CGP1 and CGP2 respectively.
• CGP2 commenced commissioning in May 2021 and was ramped up towards nameplate capacity during the Quarter. Ramp up and optimisation will continue in the December 2021 quarter.
• TRP is in construction and IGO expects practical completion and commissioning to commence in early 2022.
• Lycopodium was awarded the EPCM (Engineering, Procurement, and Construction Management) contract for CGP3 in the Quarter, and IGO expects construction to commence in 2022 and commissioning to commence in late 2024 / early 2025.
• Earthworks for a new mine services facility commenced. In parallel, permitting for the construction of a new tailings dam (TSF4) was progressed.

IGO refers investors to the detailed disclosure regarding Greenbushes provided in its ASX releases of 9 December 2020.

Kwinana Refinery

Fully automated battery grade lithium hydroxide refinery located in Kwinana, WA: IGO 49%.

The Kwinana Refinery comprises two trains each of which are expected to produce 24,000tpa of battery grade lithium hydroxide when at full production. Train I is fully constructed and in commissioning. Train II is partially constructed, with construction planned to recommence in 2022.

Commissioning and rectification work for Train I continued at the Kwinana Refinery during the Quarter with each of the process stages being hot commissioned on a batch basis culminating in the production of the first lithium hydroxide on 21 August 2021. Following this, a number of modifications were carried out to rectify issues identified during the initial commissioning. Commissioning operations recommenced in October 2021, initially on a batch basis and then transitioning to continuous operations. IGO expects commissioning and ramp-up will progress as follows:

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QUARTERLY REPORT

• Maintain continuous operations to progressively improve product quality, with the objective of achieving a saleable, premium-grade quality in the December 2021 quarter and a battery-grade quality at about 50% of nameplate by March 2022.
• Once a battery-grade quality is demonstrated, product qualification will commence. This process is expected to take up to six months.
• Ramp up towards nameplate capacity would then continue through CY22.

IGO understands Train II at the Kwinana Refinery is partly constructed with approximately 50% of capital expenditure incurred and approximately 20-30% of construction activity completed. Engineering studies and planning for the recommencement of construction on Train II, to commence in the December 2021 quarter will lead to an updated design incorporating learnings from Train I commissioning, and an updated capital cost estimate. IGO expects TLEA to reach a financial investment decision and recommence construction of Train II in 2022, with practical completion and commissioning expected for late 2024 / early 2025.

IGO refers investors to the detailed disclosure regarding the Kwinana Refinery provided in its ASX releases of 9 December 2020.

NOVA OPERATION

Underground nickel, copper, cobalt mine located on the Fraser Range, WA: IGO 100%.

Nova	Units	4Q21	1Q22	QoQ	FY22 Guidance1
Nickel in concentrate	t	7,887	6,889	(13%)	6,250 to 6,750
Copper in concentrate	t	3,538	3,023	(15%)	2,875 to 3,125
Cobalt in concentrate	t	285	253	(11%)	225 to 250
Cash cost (payable)	A$/Ib Ni	1.28	1.99	56%	2.00 to 2.40

1. Pro-rata YTD Guidance (FY22 guidance divided by four), where applicable.

Mining & Development

Underground development advanced totalled 517m for the Quarter with one development crew.

A total of 425kt (4Q21: 402kt) of ore was mined at average grades of 1.88% nickel and 0.77% copper in the

Quarter (4Q21: 2.22% and 0.94% respectively). The paste filling system continues to operate well and above nameplate capacity.

Processing & Production

As guided, Nova production was lower than the prior quarter due to expected lower feed grades and lower recoveries, with nickel, copper and cobalt production of 6,889t, 3,023t and 253t (4Q21: 7,887t, 3,538t and 285t), respectively.

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