Ioneer : APPLIED ANALYTICS REPORT – Economic and Community Impacts of the Rhyolite Ridge Project

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APPLIEDANALYSIS.COM

April 10, 2020

Ms. Rebecca A. Sawyer

Director, Environmental Affairs and Community Relations ioneer USA Corporation

290 Gentry Way

Reno, NV 89502

RE: Economic and Community Impacts of the Rhyolite Ridge Lithium-Boron Project

Dear Ms. Sawyer:

In accordance with your request, Applied Analysis ("AA") is pleased to submit this reported titled Economic and Community Impacts of the Rhyolite Ridge Lithium-BoronProject. AA was retained by ioneer USA Corporation ("ioneer" or the "Company") to review and analyze the economic, fiscal and social impacts associated with its proposed Rhyolite Ridge development project in Esmeralda County, Nevada ("Rhyolite Ridge" or "the project"). This summary report outlines the salient findings and conclusions of our review and analysis.

This report was designed by AA in response to your request. However, we make no representations as to the adequacy of these procedures for all your purposes. Generally speaking, our findings and estimates are as of our last date of fieldwork (April 10, 2020) and utilize the most recent data available. The information provided in this summary, and the conclusions reached herein, are based on the findings of our research and our knowledge of the market as of the date of this report. Our report contains economic, financial and other predominant market data. This information was collected from publicly available reports, our internal databases and various third parties, including the Company. The data were assembled by AA. While we have no reason to doubt its accuracy, the information collected was not subjected to any auditing or review procedures by AA; therefore, we can offer no representations or assurances as to its completeness.

This report is an executive summary. It is intended to provide an overview of the analyses conducted and a summary of our salient findings. If you reproduce this report, it must be done so in its entirety. We welcome the opportunity to discuss this report with you at any time. Should you have any questions, please contact Jeremy Aguero or Brian Gordon at [phone].

Sincerely,

Applied Analysis

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Table of Contents

Section	Page
Summary of Findings	3
Project and Company Background	15
Methodology	18
Economic Impacts of Construction	22
Economic Impacts of Recurring Operations	29
Fiscal Impacts of Construction	37
Fiscal Impacts of Recurring Operations	39
Social Impacts of the Project	53
Intended Use, Limitations and Considerations	57
About the Author	58

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SUMMARY OF

FINDINGS

Summary of Findings

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Rhyolite Ridge Will Be Important for Nevada and Esmeralda County

• Rhyolite Ridge is a large, shallow lithium-boron deposit located close to existing infrastructure in the southern portion of the state of Nevada in Esmeralda County.
• Completed in October 2018, the Rhyolite Ridge Pre-Feasibility Study confirmed the project's strong potential to become a cost-competitive, major producer of lithium carbonate and boric acid.
• Given the pre-development stage of Rhyolite Ridge, the size, scale and life of the project is evolving; this analysis estimates the impacts of the project under a range of potential scenarios.
• The initial capital investment is expected to range from $600 million to $900 million over a two-year development cycle (2021 to 2022), and the operations range as follows (starting in 2023):
• • Low Case: Approximately $250 million in annual revenue (subject to commodity pricing) with an estimated 250 employees;
  • Median Case: Reflects the midpoint of the low and high cases; and
  • High Case: An estimated $600 million in annual revenue with upwards of 400 employees.
• In addition to the range of scenarios presented, the life of the project is expected to range from a minimum of 26 years to a maximum of 60 years; the timeline is ultimately driven by the resources of Rhyolite Ridge. As such, there are low case operational impacts in this analysis that assume the minimum operating performance during the shortest time horizon (26 years) and longest timeline (60 years); and there are also high case operational impacts that assume maximum performance across both the minimum project length (26 years) and maximum lifespan (60 years).

Note: All economic and fiscal impact amounts are stated in current year (2020) dollars.