Successful Implementation of AVL and TMT Merger

Australian Vanadium Limited (ASX:AVL) is pleased to announce the successful implementation of its merger with Technology Metals Australia Limited (ASX:TMT).

KEY HIGHLIGHTS

• The merger of Australian Vanadium Limited (ASX: AVL, the Company or AVL) and Technology Metals Australia Limited (TMT) has been successfully completed.
• The transaction consolidates two adjoining projects across one orebody, realising synergies through the advancement of a single integrated vanadium project.
• Work underway focussing on concentrate quality and coproduct optimisation to unlock reduced capital and operating costs and realise higher revenue, maximising project economics and shareholder value.

Dear AVL Shareholders

Today sees the successful implementation of the merger of AVL and TMT, with AVL acquiring all shares in TMT.¹ On behalf of the Board of Directors and Management Team of AVL, we would like to welcome the shareholders of TMT to AVL’s register. We firmly believe that the merger of AVL and TMT will unlock material benefits for all shareholders through the consolidation of adjoining projects on one contiguous orebody, to create one of the largest and most advanced vanadium development projects in the world.

Today AVL, a critical and battery metal company based in Western Australia, accelerates its journey to become a global leader in the vanadium supply chain. We are all now shareholders in one stronger company and we look forward to delivering the combined benefits to all our shareholders.

Since the announcement of the transaction in September,² AVL has been working diligently with the TMT team to integrate the two projects and to assess project enhancement opportunities and development strategies which can now be unlocked by the successful completion of the merger.

Wood Group has commenced work on an Optimised Feasibility Study (OFS). The first phase of the OFS, expected to be completed within the June quarter of 2024, will finalise trade off studies and inform the preferred project development pathway for the integrated project. We look forward to updating you on our progress as we advance the project to production.

Key actions include:

• optimisation of mining and processing schedules with a focus on maximising concentrate quality and coproduct outcomes, maximising revenue and unlocking opportunities to reduce capital and operating costs;
• rationalisation of plant and infrastructure to improve mine plan and capital cost; and
• sharing of stakeholder relationships, technical knowledge, infrastructure and operating practices.

AVL remains committed to its strategic objective of developing a low operating cost vanadium project and delivering value to our shareholders and stakeholders through a profitable operation. Our immediate priorities, beyond the integration work, centre on:

• finalising a combined mineral resource statement;
• finalising funding and offtake for the combined project;
• completing regulatory, environmental and permitting requirements; and
• working with stakeholders to create a positive impact in our communities.

As we define the ideal integrated project development pathway, we will continue to engage actively with the Traditional Owners of the land where we operate, the Yugunga-Nya People, to collaborate on opportunities to reduce impact on their country and maximise benefit to their people.

The transaction significantly increases the Company’s capital market profile and strategic investor appeal, delivering greater scale, improved liquidity and providing a stronger balance sheet to position us well for the next phase of development activities. AVL has a unique opportunity to leverage compelling market fundamentals and improved investor sentiment to provide significant improvement in our ability to raise equity, secure project financing and agree desirable offtake arrangements and strategic partnerships.

The Company will also continue to assess downstream opportunities. This includes pursuing growth initiatives in the vanadium flow battery (VFB) market through our wholly owned subsidiary, VSUN Energy Pty Ltd, and operating our recently constructed vanadium electrolyte manufacturing facility in Western Australia.³ AVL’s long-term aim remains the pursuit of a pit-to-battery strategy for vanadium, with our intent to manufacture vanadium electrolyte using vanadium oxide from our project, demonstrating our commitment to onshore downstream processing and value-addition, while providing a large proportion of local content which is unrivalled by other battery technologies. We see inevitable growth in the VFB market as becoming central to domestic demand for vanadium.

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