Queensland Pacific Metals Ltd. announced that it has entered into a non-binding MOU with global leading technology, science and engineering firm KBR, Inc. QPM's strategy has been to deliver a Feasibility Study that is bankable and de-risks the TECH Project in the eyes of financiers. Working with globally recognised vendors for key equipment is a key component of this strategy. Successful nitric acid recycling at nameplate rates (>98%), is part of the strong project economics for the TECH Project.

KBR is the global leader in supplying this technology and equipment through its Plinke and Weatherly brands. The key terms of the MOU are as follows: KBR and QPM agree to form a project team that will ensure that technology and equipment is designed and constructed to meet the requirements of the TECH Project; The Parties agree to work together to identify the shortest pathway to commercial operation; Subject to successful testwork, engineering and negotiation, the Parties will enter into a commercial agreement where QPM will purchase equipment from KBR and KBR will provide Performance Guarantees over its technology and equipment; QPM will sole-source this technology and equipment from KBR and will not undertake competitive tender; KBR acknowledges that being a major supplier to QPM and the TECH Project is of strategic benefit, given the anticipated demand growth for nickel and the successful commercialisation of the DNi Process being a game changer for successful and sustainable nickel laterite processing; and As part of its ongoing discussions with financiers, QPM understands that obtaining Performance Guarantees on major equipment will assist obtaining credit approval. A testwork program is being undertaken in conjunction with KBR which further enables the optimization of the flow sheet of the TECH project.

Allowing time for this testwork to be undertaken has unfortunately resulted in a delay to the expected completion of the Feasibility Study. Whilst QPM was originally targeting mid 2022 calendar year, it is now anticipating completion by late Third Quarter /early Fourth Quarter 2022 calendar year. However, the benefits of this partnership with KBR outweigh the impacts of the delay.