Technology Metals Australia Limited announced that it has mutually agreed with LE System Co., Ltd. (LES) to extend and expand the MOU executed in March 2021. The expanded MOU provides the framework for TMT and LES to jointly undertake a Feasibility Study into the development of vanadium electrolyte production capacity in Australia, utilising vanadium product from the Murchison Technology Metals Project (MTMP) and LES' proprietary vanadium electrolyte technology. LES will provide technical support and collaboration under a technology Licensing agreement.

On 15 March 2021, the Company announced that it had entered into a MOU for the potential use of LE System's VRFB electrolyte technology for the development of a new VRFB industry in Australia using vanadium produced from the MTMP. The parties have now agreed to extend and expand the scope of the MOU to jointly prepare a Feasibility Study on the development of vanadium electrolyte production capacity in Australia, with technical support to be provided by LES, to the best of its ability, under a proposed technical support and technology Licensing agreement (Licencing Agreement). The Feasibility Study will focus on the operating, capital and permitting factors associated with the development of vanadium electrolyte production capacity, the application of LES' proprietary vanadium electrolyte technology to the premium purity vanadium to be sourced from the MTMP as well as assessing suitable locations for multiple vanadium electrolyte plants proximal to proposed large scale renewable energy production centres designed to service the major population centres of Australia.

TMT aims to be the first fully integrated mine to battery vanadium electrolyte producer in Australia. This process will provide TMT with access to LES' proprietary processing technology and knowhow, based on intellectual capital accumulated over a decade or more, under the proposed Licensing Agreement. This will include support in sample analysis, flow sheet design, associated R&D and technology collaboration regarding the development of Australian based vanadium electrolyte production capacity.

The work to be undertaken by TMT and LES has scope to establish a significant downstream value add industry designed to target the rapidly emerging stationary storage battery market opportunities in Australia and support the growth of deployment of VRFB's in region. This will further enhance the significant economic and social benefits for the Mid-West region of Western Australia, the State and the Nation that the development of MTMP is expected to generate over a long period of time. In addition, the parties will continue to explore opportunities to apply LES' proprietary processing technology to the extraction of vanadium from MTMP waste streams. Successful application of this technology to the MTMP waste streams would provide LES with access to a low cost stable supply of vanadium products and provide TMT with potential environmental management benefits, supporting the Company's key objectives of sustainability and environmental responsibility.

The parties are also continuing to progress discussions to develop a vanadium supply plan (offtake) to assist LES in meeting its forecast demand for electrolyte production to support its participation in the global VRFB market. The Western Australian Governments Japan based representative of the Department of Jobs, Tourism, Science and Innovation has continued to support the development of TMT's relationship with LES. The MoU is effective until 30 June 2022, unless the parties mutually agree to formally terminate or extend the term, with the parties seeking to finalise a binding Licensing Agreement and an offtake agreement to supply vanadium products to LES during the term of the MOU.