Neometals Ltd. announced the completion of an Association for the Advancement of Cost Engineering ("AACE") Class 3 Engineering Cost Study ("ECS") on the recovery of high-purity vanadium pentoxide ("V2O5") from high-grade vanadium-bearing steel by-product. The ECS was completed with assistance from leading Nordic engineering group Sweco Industry Oy ("Sweco"). As previously announced(see Neometals announcement titled "High-Grade Vanadium Recycling Agreement" dated 6thApril 2020),Neometals has the option to enter into a 50:50 incorporated joint venture ("JV") to develop a vanadium recovery project ("Vanadium Recovery Project" or "VRP1") with unlisted Australian mineral development company, Critical Metals Ltd. ("Critical").

The parties are jointly evaluating the feasibility of constructing a facility in Pori, Finland to process and recover high-purity V2O5 from vanadium-bearing steel making by-product ("Slag") generated by SSAB EMEA AB and SSAB Europe Oy (collectively "SSAB") in Scandinavia. The VRP1 offers a compelling business case which is underpinned by: access to very high-grade vanadium feedstocks without upstream mining costs and associated operating risks; potentially robust economics; processing flowsheet utilising conventional equipment at atmospheric pressure and mild temperatures with non-exotic materials of construction; and a very low or net zero greenhouse gas footprint given the absence of mining and a processing route sequestering CO2 into potentially saleable carbonate by-product. Neometals is encouraged by the outcomes of the ECS which confirms the potential for lowest quartile operating costs.

This aligns with prior outcomes from the historical Neometals pre-feasibility study ("PFS"), however the ECS has been completed to a ±15% level of accuracy compared to the previous -20% +25%. Capital and Operating cost estimates are denominated in USD dollars using an exchange rate of 1 Euro: 1.123 USD. Independent expert, Behre Dolbear Australia Pty Limited, completed a review of the ECS and confirmed that, in BDA's opinion, it qualifies as an AACE Class 3 study.

As part of the VRP1 evaluation activities, Neometals is in the process of finalising a feasibility study ("FS") which will include the findings from the ECS. The FS will be finalised upon execution of a binding agreement with SSAB which will include potential additional Slag volumes (up to approximately 300ktpa from what was previously 200ktpa in the PFS) as contemplated under a non-binding letter of intent ("NBLI") executed between Critical and SSAB on the 5thJuly 2022. The development scenario for this ECS is characterised by: greenfields development starting with a cleared industrial site at Tahkoluoto Port, Pori in Finland; plant with a throughput capacity of 300,000tpa of feed; feedstock comprising steel by-product Slag with a grade of 3.93% V2O5 (being the reference grade for pricing under the Slag Supply Agreement); and 73.2% average recovery of V2O5 from feed based on results from pilot plant.

The proprietary process flowsheet was developed by Neometals with assistance from an independent metallurgical laboratory. The process, for which provisional patents have been applied for in various jurisdictions, makes use of conventional equipment and unit operations, employing novel chemistry, operating at atmospheric pressure and moderate temperatures. The pregnant leach solution (PLS) is then separated from the solid leach residue.

Further purification of the vanadium solution is achieved by solvent extraction. Vanadium is then recovered as ammonium metavanadate (AMV) and converted to vanadium pentoxide (V2O5) using industry standard methods. For the purpose of cost estimation, Pori Finland is the selected location with plant offices, administration, ablutions facilities and a laboratory included in the scope.

The ECS includes tie-ins for water and electricity. Biogas and green power sources are also readily available for the project. Critical and the Port of Pori have executed a 20-hectare land lease agreement for the location of the VRP1 at theTahkoluotoPort, Pori in Finland.

The ECS capital cost estimate for the process plant and relevant infrastructure was developed to an AACE Class 3 level of accuracy of ±15% based on budget price estimates obtained from equipment suppliers and appropriate agreed factors.Table 2below presents the summary of the project capital costs. TheVanadium Recovery Project operating cost was estimated by major cost type and is considered an AACE Class 3 level estimate with a nominal accuracy level of ±15%. The estimated operating cost excluding royalties is on average USD 4.38/lb.

V2O5.