Neometals Ltd. announced that it has entered into a memorandum of understanding ("MOU") with Chinese research organisation, the Institute of Multipurpose Utilization of Mineral Resources Chinese Academy of Geological Sciences ("IMUMR") to jointly advance development of the Company's Barrambie Titanium-Vanadium Project ("Barrambie"). The MOU will commence with evaluation activities (including a hydrometallurgical processing demonstration plant ("Demonstration Plant")) and outlines a potential pathway towards a 50:50 joint venture to advance the exploitation of the Barrambie Project ("JV"). Under the MOU, Neometals' current pilot test work program for the production of high-purity titanium and vanadium chemicals from the titanium-rich Eastern Band of Barrambie will continue with beneficiation occurring in Australia. Subject to IMUMR and the Company being satisfied with the pilot study results, and subject to a decision to proceed with the Demonstration Plant, mineral concentrate will be sent to China in the first half of 2020 for further processing. IMUMR will fund the Demonstration Plant at its extensive test work facilities in China and if the results from Demonstration Plant trials are satisfactory, the parties will jointly fund a Class 3 Engineering Cost Study ("ECS") to evaluate a mining and concentrating operation at Barrambie with subsequent downstream processing in China. Following completion of the ECS, the parties will review the ECS to determine whether to proceed to a FID and negotiate in good faith the terms of the 50:50 JV. This MOU is significant as the partnership sets the stage for value realisation at Barrambie and has the potential to reduce Neometals' development costs considerably. It should also be recognised that IMUMR has a Chinese national mandate that includes development of upstream supply chains for industries of strategic relevance to China. IMUMR will have the right (subject to Neometals approval) to assign its interests under the MOU to a commercial Chinese chemical processing partner. It is anticipated that test work and engineering studies will take approximately 18 months, leading to JV FID consideration around mid-2021.