Queensland Pacific Metals September 2022 Quarterly Report

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

• Feasibility study on track for Q4 release, aiming for November.
• TECH Project approvals in the final stages of process – on track to be obtained in Q4.
• Subsequent to quarter end, watershed investment and offtake agreement executed with General Motors.
• Offtake agreement incorporates both initial Stage 1 of the TECH Project and also Stage 2, demonstrating growth potential of QPM.
• Strong political engagement and endorsement from both Federal and State governments.

Investment and Offtake Agreement with General Motors

During the quarter, there was an extensive focus and allocation of resources from QPM towards the investment and offtake agreement with General Motors (the “Transaction”). This included facilitation of technical, commercial, legal and financial due diligence and negotiation of binding agreements.

As foreshadowed in the previous June 2022 Quarterly Report, QPM had been in discussions with numerous potential offtakers. Throughout these discussions, it became apparent to QPM that the optimum partner and nickel/cobalt offtaker for the TECH Project was General Motors. Subsequent to quarter end, QPM finalised and announced the Transaction (refer to ASX announcement 12 October 2022).

The Transaction with General Motors represents the start of a long term strategic collaboration between the two companies. Subject to making a further investment, General Motors will secure all uncontracted nickel and cobalt offtake from Stage 1 of the TECH Project and from a Stage 2 expansion.

Under the Transaction:

• General Motors has made a conditional investment commitment of up to US$69m (A$108m) by way of equity subscription for ordinary shares in QPM comprising:
  • Initial investment of US$20.1m at A$0.18 per share (Tranche 1 settled and Tranche 2 is subject to QPM shareholder approval) (“Initial Investment”); and
  • Subsequent investment of balance of equity commitment, subject to shareholding not exceeding 10%, when QPM undertakes an equity capital raising in conjunction with a Final

Investment Decision (“FID”) for construction of Stage 1 of the TECH Project (“FID Investment”).

• Upon undertaking the Initial Investment, General Motors secures an option to purchase all uncommitted nickel and cobalt production for the first 15 years of Stage 1 of the TECH project; and
• Upon undertaking the FID Investment, General Motors’ option extends to life of project for Stage 1 of the TECH Project and any Stage 2 expansion.

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