Queensland Pacific Metals June 2022 Quarterly Report

Queensland Pacific Metals Ltd (ASX:QPM) (“QPM” or “the Company”) is pleased to present a summary of activities from the June 2022 quarter.

Highlights

• Definitive Feasibility Study (“DFS”) remains on track for completion by revised timing of late Q3 / early Q4 for the 2022 calendar year.
• Key equipment suppliers engaged and undertaking engineering design around their respective areas of the TECH project.
• Memorandum of Understanding (“MOU”) signed with global engineering company KBR, Inc regarding supply of technology and critical equipment associated with nitric acid processing and recycling.
• Good progress made on testwork including production of magnesia from thermal decomposition pilot activities, very high percentage iron hematite production from iron hydrolysis tests and successful residue testwork for use as engineered landfill.
• Ore supply agreement executed with Société des Mines de la Tontouta (“SMT”), securing QPM’s ore supply requirements for the first phase of the TECH Project
• Advancing through due diligence and discussions with various potential customers for remaining nickel and cobalt offtake for the first phase of the TECH Project

Feasibility Update

The DFS progressed well throughout the quarter and remains on track for completion late Q3 / early Q4 in the current calendar year. With lead engineers Hatch, QPM has awarded or is in the process of awarding basic engineering design work to key equipment suppliers, with the view of progressing towards supply agreements containing performance guarantees for construction. This early involvement of key suppliers is a major part of QPM’s funding strategy for the TECH Project.

During the quarter, QPM also made good progress on further testwork which is supporting the DFS and design work of the various equipment suppliers.

Thermal Decomposition

In the previous quarter, QPM had commenced thermal decomposition pilot construction to confirm the selection of a fluid bed roaster for the thermal decomposition process. During the quarter, QPM completed the construction and in July completed the pilot program with the successful production of magnesia (MgO) from magnesium nitrate. The original DNi ProcessTM flowsheet considered the use of kilns to undertake thermal decomposition, however the specified unit would unlikely have been commercial given its relatively small size (requiring 60 of the largest units built). Only 1 -2 fluidised bed reactors are required. This pilot work confirms QPM’s equipment choice selection of fluid bed roaster for commercial scale.

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