Technology Metals Australia : STRENGTHENING OF VANADIUM ELECTROLYTE TECHNOLOGY PARTNERSHIP

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ASX Announcement

21 January 2022

ACN: 612 531 389

1. 08 6489 1600

1. 08 6489 1601

1. [e-mail]
   Suite 9, 330 Churchill Avenue, Subiaco WA 6008 www.tmtlimited.com.au

Directors

Michael Fry:

Chairman

Ian Prentice:

Managing Director

Jacqueline Murray:

Director

Sonu Cheema:

Director and Company Secretary

Issued Capital

203,661,390 ("TMT") Fully Paid Ordinary Shares

20,513,167 - Unquoted Options - various exercise prices and dates

3,650,000 Performance Rights

ASX Code: TMT

FRA Code: TN6

STRENGTHENING OF VANADIUM ELECTROLYTE TECHNOLOGY PARTNERSHIP

MOU WITH GLOBAL VANADIUM ELECTROLYTE LEADER LE SYSTEM EXPANDED AND EXTENDED

TMT and LE System, a leading Japanese VRFB R&D company, have mutually agreed to expand and extend the vanadium electrolyte Memorandum of Understanding (MOU)1.

Scope to build Australia's first fully integrated vanadium electrolyte plant utilising vanadium from TMT's Murchison Technology Metals Project, a key commercial advantage.

Investigating development of vanadium electrolyte production capacity in Australia utilising LE System's proprietary technology.

Feasibility Study (FS) to be prepared jointly with technical support provided by LE System.

Vanadium electrolyte is the key component in vanadium redox flow batteries (VRFBs).

The Board of Technology Metals Australia Limited (ASX: TMT)

(Technology Metals, TMT or the Company) is pleased to announce

that it has mutually agreed with LE System Co., Ltd (LES) of Fukuoka, Japan, 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 licencing agreement.

LE System Chief Executive Officer Junichi Sato commented:

"With the utility energy storage solutions market expanding very rapidly, we recognise the importance of broadening our regional vanadium electrolyte production capacity.

We have known TMT for some time and LE System are very pleased to be partnering with such a high quality Australian company to support its downstream processing initiatives".

Managing Director Ian Prentice commented:

"We view the downstream processing opportunities for vanadium from the MTMP as important for both the future demand of vanadium but also as key to addressing climate change.

TMT plans to build Australia's first fully integrated mine to battery vanadium electrolyte plant working with an exceptional global partner, LE System, a leader in the VRFB industry."

1 - ASX Announcement dated 15 March 2021 - MOU Signed with Japanese VRFB Electrolyte Company

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Extension to Memorandum of Understanding

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 licencing 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 Licencing 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 our 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. TMT would like to thank the Government of Western Australia for its ongoing assistance, consistent with the Lead Agency Support in place for the development of the MTMP.

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 Licencing Agreement and an offtake agreement to supply vanadium products to LES during the term of the MOU.

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Figure 1: LE System's Recently Commissioned Namie, Fukushima, Commercial Scale Vanadium Electrolyte Plant

ABOUT LE SYSTEM CO., LTD.

LE System Co., Ltd. is one of Japan's leading research and development companies for Vanadium Redox Flow Batteries (VRFB) and is on track to become a leading supplier of electrolytes to VRFB manufacturers. Established in 2011, the company is the top electrolyte supplier in Japan and is located in Fukuoka. LE System enjoys strong relationships with the Japanese government and key Japanese enterprises throughout Japan. LE System supports the construction of next-generation energy systems that store and efficiently use electricity to transform the global energy market.

LES commissioned its start of the art commercial scale vanadium electrolyte plant utilising its proprietary technology in Namie, Fukushima Prefecture, Japan, in October 2021. The plant has a production capacity of approximately 5,000m3 of vanadium electrolyte per annum, equivalent to approximately 100MWh of energy storage capacity.

LES' shareholders include Innovation Network Corporation of Japan (INCJ), and TOA ELECTRIC INDUSTRIAL CO., LTD. INCJ was established in July 2009 with the aim of nurturing key industries via open innovation for the prosperity of future generations. INCJ is wholly owned by Japan Investment Corporation (JIC). JIC is owned by the Government of Japan and twenty-five leading Japanese corporations. It aims to address the growing demand for risk capital for long-term,large-scale growth investments with a governance structure conducive to quick and flexible investment decision making. TAO is a leading trading and manufacturing company established in 1947 with 34 offices in nine countries with strong global distribution capabilities. It focuses on electrical and electronic materials and parts, capital investment as well as advanced technology.

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ABOUT VANADIUM

Vanadium is a hard, silvery grey, ductile and malleable speciality metal with a resistance to corrosion, good structural strength and stability against alkalis, acids and salt water. The elemental metal is rarely found in nature. The main use of vanadium is in the steel industry where it is primarily used in metal alloys such as rebar and structural steel, high-speed tools, titanium alloys and aircraft. The addition of a small amount of vanadium can increase steel strength by up to 100% and reduces weight by up to 30%. Vanadium high-carbon steel alloys contain in the order of 0.15 to 0.25% vanadium while high-speed tool steels, used in surgical instruments and speciality tools, contain in the range of 1 to 5% vanadium content. Global economic growth and increased intensity of use of vanadium in steel in developing countries will drive near term growth in vanadium demand.

An emerging and very significant use for vanadium is the rapidly developing energy storage (battery) sector with the expanding use and increasing penetration of the vanadium redox flow batteries ("VRFB's"). VRFB's are a rechargeable flow battery that uses vanadium in different oxidation states to store energy, using the unique ability of vanadium to exist in solution in four different oxidation states. VRB's provide an efficient storage and re-supply solution for renewable energy - being able to time- shift large amounts of previously generated energy for later use - ideally suited to micro-grid to large scale energy storage solutions (grid stabilisation). Some of the unique advantages of VRFB's are:

• a lifespan of 20 years with very high cycle life (up to 20,000 cycles) and no capacity loss,
• rapid recharge and discharge,
• easily scalable into large MW applications,
• excellent long-term charge retention,
• improved safety (non-flammable) compared to Li-ion batteries, and
• can discharge to 100% with no damage.

Global economic growth and increased intensity of use of vanadium in steel in developing countries will drive near term growth in vanadium demand.

This announcement has been authorised by the Board of Technology Metals Australia Limited.

For, and on behalf of, the Board of the Company,

Ian Prentice

Managing Director

Technology Metals Australia Limited

- ENDS -

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About Technology Metals Australia Limited

Technology Metals Australia Limited (ASX: TMT) was incorporated on 20 May 2016 for the primary purpose of identifying exploration projects in Australia and overseas with the aim of discovering commercially significant mineral deposits. The Company's primary exploration focus has been on the Murchison Technology Metals Project located 40 km south east of Meekatharra in the mid-west region of Western Australia with the aim to develop this project to potentially supply high-quality V2O5 flake product to both the steel market and the emerging vanadium redox battery (VRFB) market.

The Project consists of eleven granted tenements and three applications divided between the Gabanintha Vanadium Project (12 tenements) and the Yarrabubba Project (2 tenements). Vanadium mineralisation is hosted by a north west - south east trending layered mafic igneous unit with a distinct magnetic signature. A key differentiation between Gabanintha and a number of other vanadium deposits is the consistent presence of the high-grade massive vanadium - titanium - magnetite basal unit, which results in an overall higher grade for the Murchison Technology Metals Project.

Figure 2: GVP and Yarrabubba Location and Tenure

Data from the Company's 2017, 2018 drilling programs, including 111 RC holes and 53 HQ and PQ diamond holes at the Gabanintha Project and 46 RC holes and 27 PQ sized diamond holes completed in late 2018 and 2020/21 at the Yarrabubba Project, has been used by independent geological consultants CSA Global to generate a global Inferred and Indicated Mineral Resource estimate, reported in accordance with the JORC Code 2012 edition, for the combined Projects. The Resource estimate confirms the position of the Murchison Technology Metals Project as one of the highest grade vanadium projects in the world.