Announcement PDF INVESTOR PRESENTATION A U G U S T 2 0 2 3 ― ASX:VTM ― ­ DISCLAIMER Not a disclosure documentThe purpose of this presentation is to provide general information about the Company only. This presentation is not a disclosure document for the purpose of Chapter 6D of the Corporations Act 2001 (Cth) (Corporations Act) and does not purport to include the information required of such a disclosure document. It has not been lodged with or approved by any regulatory authority, such as the Australian Securities and Investments Commission or the Australian Securities Exchange. NO OTHER MATERIAL AUTHORISED RELIANCE ON PRESENTATION The Company has not authorised any person to give any information or make any representation in connection with any proposed offer of securities. A prospective investor cannot rely upon any information or representations not contained in this presentation. A recipient of this presentation must make their own assessment of the matters contained herein and rely on their own investigations and judgment in making an investment in the Company. This presentation does not purport to contain all of the information a recipient of this presentation requires to make an informed decision whether to invest in the Company. Specifically, this presentation does not purport to contain all the information that investors and their professional advisers would reasonably require to make an informed assessment of the Company’s assets and liabilities, financial position and performance, profits, losses and prospects. NATURE OF MINERAL EXPLORATION RISKS This presentation does not purport to be all-inclusive or to contain all the information that you or any other party may require to evaluate the prospects of the Company. The mineral tenements of the Company as described in this presentation are at various stages of exploration, and potential investors should understand that mineral exploration and development are high-risk undertakings. No New Information or DataThis document contains exploration results and historic exploration results as originally reported in fuller context in Victory Metals Ltd ASX Announcements as published on the Company’s website. Victory confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements. In the case of Mineral Resource estimates, Ore Reserve estimates, production targets and forecast financial information derived from the production targets, all material assumptions and technical parameters underpinning the estimates, production targets and forecast financial information derived from the production targets contained in the relevant market announcement continue to apply and have not materially changed in the knowledge of Victory. The recent Company ASX new releases referred to in this presentation include: Some of the tenements are in the application stage only and there is no guarantee the applications will be granted by the responsible minister or governmental decision maker having jurisdiction. There can be no assurance that exploration of the tenements, or any other tenements that may be acquired in the future, will result in the discovery of an economic ore deposit. Even if an apparently viable deposit is identified, there is no guarantee that it can be economically exploited. • FORWARD-LOOKING STATEMENTS “NORTH STANMORE INITIAL MINERAL RESOURCE ESTIMATE” dated 2nd August 2023 • “FOLLOW UP METALLURGICAL TESTWORK PROVIDES EXCELLENT RARE EARTH MAGNET METAL RECOVERIES” dated 13th June 2023 • “RC DRILLING ASSAYS COMPLETED WITH HIGH CONTENT OF HEAVY REE” dated 15 May 2023 • “EXCEPTIONAL RECOVERIES OF CRITICAL HEAVY RARE EARTH ELEMENTS” dated 1 May 2023 • ”RC Drilling Confirms HREE Mineralisation” dated 17 April 2023 • “VICTORY EXPANDS RARE EARTH ELEMENT EXPLORATION AREA” dated 6 April 2023 • “Rare Earth Element Footprint Confirmed” dated 13 March 2023 ASX:VTM This announcement contains “forward-looking statements”. All statements other than those of historical facts included in this announcement are forward looking statements. Where a company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forwardlooking statements re subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicialoutcomes. Neither company undertakes any obligation to release publicly any revisions to any “forward-looking” statement. NOT A RECOMMENDATION OR FINANCIAL ADVICE The information in this presentation is not a recommendation to subscribe for securities in the Company and does not constitute financial advice. Any person who intends to subscribe for securities must conduct their own investigations, assessment and analysis of the Company and its operations and prospects and must base their investment decision solely on those investigations and that assessment and analysis. Prospective investors should consult their own legal, accounting and financial advisers about an investment in the Company. COMPETENT PERSON STATEMENT Professor Ken CollersonStatements contained in this report relating to exploration results, scientific evaluation, and potential, are based on information compiled and evaluated by Professor Ken Collerson. Professor Collerson, BSc (Hons.), PhD is Principal of KDC Geo Consulting, and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), membership number #100125. He is a geochemist and geologist membership number #100125. He is a is a geochemist/geologist with sufficient relevant experience in relation to rare earth element geochemistry, critical metal mineralisation and REE systematics given in Core metallurgical data summaries being reported on, to qualify as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral resources and Ore reserves (JORC Code 2012). Professor Collerson consents to the use of this information in this report in the form and context in which it appears. www.victorymetalsaustralia.com AUSTRALIA’S LARGEST 130,000 TONNES VERY HIGH PERCENTAGES Heavy Rare Earth (HREO) of Total Rare Earth of valuable and critical enriched ionic/regolith Oxide (TREO) from 18% REE Dysprosium (Dy) clay deposit of the drilled area and Terbium (Tb) @ 3.6% 250 MT JORC RESOURCE A$102,000 PER TONNE 77.7% COMBINED Inferred Mineral BASKET PRICE METALLURGICAL RECOVERY Resource Estimate Victory hosts a premium of magnet metals basket of REE with an NdPr+DyTb estimated basket A$102 per kg WHY VICTORY METALS NORTH STANMORE RARE EARTH ELEMENT PROJECT ASX:VTM www.victorymetalsaustralia.com North Stanmore is Infill drill program LOW LEACH TIMES 100% OWNED with to COMMENCE IN with economic acid outstanding logistical and SEPTEMBER 2023 consumption and location advantages to increase grade, low levels of gangue size and confidence in materials and impurities VERY LOW CONTENTS OF RADIOACTIVE ELEMENTS the MRE and to facilitate a scoping study Beneficiation test Uranium (and Thorium) work shows rare earth assists with the element feed grades economics of the project CAN BE INCREASED UP TO 148% CONTINUED... ASX:VTM www.victorymetalsaustralia.com INITIAL MINERAL RESOURCE ESTIMATE NORTH STANMORE Initial Inferred Mineral Resource of 250Mt at 520ppm MRE area is only 18% of Exploration Target Area Exploration Target 700Mt to 1,100Mt 130,000t of contained Total Rare Earth Oxide (TREO) Substantial (33%) heavy rare earth oxide (HREO/TREO) 54% critical metals as identified by the US Government 2022 Drill assays averaging 828ppm of TREO (400ppm cut off) ASX:VTM Nort h St a nmore t enement pa cka ge a nd pending t enement s, wit h t he MR E a nd explora t ion t a rget a rea s highlight ed. www.victorymetalsaustralia.com ――― NOT ALL RARE EARTH ELEMENTS ARE RARE, LIGHT RARE EARTHS CERIUM AND LANTHANUM ARE LOW VALUE AND IN ABUNDANT SUPPLY WITH A COMBINED PRICE OF $6.20kg USD ――― HEAVY RARE EARTHS DYSPROSIUM AND TERBIUM HAVE A COMBINED PRICE OF $2,704kg USD V I C T O R Y M E T A L S ――― BASKET PRICE ASSUMPTIONS NORTH STANMORE Basket Price US$/kg REO 100 80 60 40 20 0 VTM IXR $1AUD = $0.67USD - SOURCE: xe.com SOURCE: https://wcsecure.weblink.com.au/pdf/IXR/02645488.pdf SOURCE: https://wcsecure.weblink.com.au/pdf/MEI/02689203.pdf ASX:VTM MEI • • • SOURCE: https://www.statista.com/statistics/450164/global-reo-dysprosium-oxide-price-forecast/ SOURCE: https://www.statista.com/statistics/450163/global-reo-terbium-oxide-price-forecast/ SOURCE: https://www.statista.com/statistics/449838/forecast-average-rare-earth-oxide-prices-globally/ SOURCE: https://www.asianmetal.com/Erbium/ | SOURCE: https://www.argusmedia.com/metals-platform/priceindex 4 20 NdPr (%) DyTb (%) 3 2 10 1 0 3000 0 VTM IXR MEI Eraser Institute 2022 Investment Attractiveness Index (%) 1000 TREYO TREYO La La VTM IXR 0 La MEI Inferred Resource Mt 2000 400 200 0 IXR MEI 80 600 TREYO TREYO Resource (ppm) VTM 18% of Expl. Target VTM IXR MEI W.A. 60 Brazil 40 Africa 20 0 VTM IXR MEI R A D I O A C T I V I T Y U (%) COMPARISONS ARE BASED FROM MARKET LEADING PEERS IN THE RARE EARTH ELEMENT SECTOR WITH JORC MRE VTM IXR MEI VTM IXR MEI Th (ppm) PEER COMPARISONS VTM HOSTS INDUSTRY LOW LEVELS OF URANIUM AND THORIUM MARKET CAP SUMMARY: VTM: $17.39M IXR: $67M (60% PROJECT OWNERSHIP) MEI: $358M SOURCE: https://wcsecure.weblink.com.au/pdf/IXR/02653808.pdf | SOURCE: https://wcsecure.weblink.com.au/pdf/IXR/02645488.pdf | SOURCE: https://wcsecure.weblink.com.au/pdf/MEI/02689203.pdf | SOURCE: https://wcsecure.weblink.com.au/pdf/MEI/02660657.pdf SOURCE: As of 25th August - source asx.com ASX:VTM www.victorymetalsaustralia.com LOCATION PRIME LOCATION WITH WEATHER ADVANTAGES FOR MINING, EXPLORATION AND POWER GENERATION • North Stanmore situated alongside Great Northern Highway being one of Australia’s major arterial road networks connecting the Pilbara to the World ASX:VTM • Situated approximately 7.5km from Cue township and ~420km to Geraldton Port by sealed roads • Cue has a regional airport which is connected to major cities by a commercial airline • Westgold recently commissioned hybrid power station in Cue • VTM has no freehold land owners to deal with, land access or resettlement issues as 100% of North Stanmore is situated on Crown Land www.victorymetalsaustralia.com NORTH STANMORE METALLURGY • EXCEPTIONAL YIELDS of Heavy Rare Earth Elements up to 63.6% Lutetium (Lu), 60% Dysprosium (Dy) and 58% Terbium (Tb) • These high recoveries were achieved with LOW TEMPERATURE 50°C and SHORT LEACHING TIME of (4 hrs) • INCREASED MAGNET METALS NdPr + DyTb recoveries of 77.7% from follow up testwork using a sulphuric acid baking leach with low leach time (2 hrs) • Victory’s metallurgical approach uses ammonium sulphate and sulphuric acid that are SIGNIFICANTLY LESS EXPENSIVE and more READILY AVAILABLE than hydrochloric acid ASX:VTM www.victorymetalsaustralia.com GOLD CONCENTRATE ORE BENEFICIATION HAS POTENTIAL TO INCREASE GRADE FROM 520PPM TREE TO 1071PPM TREE SHALLOW OPEN CUT MINE Low-grade Coarse Ore ORE SLURRYING MICRON SCREENING ALLUVIAL GOLD GRAVITY PROCESSING Low-grade Waste Ore Returned to Mine Site Recycled Water High-grade Fine Ore CONCEPTUAL FLOWSHEET VICTORY METALS ASX:VTM WEAK ACID LEACHING FILTRATION Depleted Waste Ore Returned to Mine Site REE LIQUOR TO MIXED RARE EARTH CARBONATE PRODUCTION www.victorymetalsaustralia.com RARE EARTH ELEMENT RECOVERY PROFILES WEAK ACID LEACH VARIABILITY TESTING LOW ACID USE + LOW COST ACIDS + LOW LEACH TIMES + LOW RADIOACTIVITY + LOW IMPURITIES = EXCELLENT METALLURGY ASX:VTM www.victorymetalsaustralia.com RARE EARTH ELEMENT RECOVERY PROFILES PEER COMPARISON OF AVERAGE WEAK ACID LEACH HREE EXTRACTION 1 1 –As reported in Makuutu DFS -Appendix 3, 20 March 2023 | 2 –As reported in MEI ASX Release 20 December 2022 ASX:VTM VICTORY EXTRACTED LOW LEVELS OF IMPURITIES Fe/Al DURING RECOVERY 2 SOURCE: https://wcsecure.weblink.com.au/pdf/IXR/02645488.pdf | SOURCE: https://wcsecure.weblink.com.au/pdf/MEI/02614652.pdf www.victorymetalsaustralia.com RARE EARTH ELEMENTS CRITICAL USES F35 Jets Nuclear Reactors Semiconductors Wind Turbines Electric vehicles Lasers RARE EARTH ELEMENTS SIX VALUABLE AND CRITICAL RARE EARTH ELEMENTS 69 59 Tm 60 Pr Thulium 66 71 Nd Dy Praseodymium Neodymium 65 Lu Dysprosium Tb Lutetium Terbium Critical Uses Critical Uses Critical Uses Critical Uses Critical Uses Critical Uses • Lasers • Electric Vehicle • Electric Vehicle • Electric Vehicle • F35 Jet • Xray • Xray • Wind Turbine • Wind Turbine • Wind Turbine • Xray Machine • • Semiconductor • Nuclear Reactor • MRI High Temp Fuel Cells • Semiconductor • Defense Laser • Electric Vehicle • Wind Turbine • Semiconductor ASX:VTM www.victorymetalsaustralia.com THE IMPORTANCE OF RARE EARTH ELEMENTS FOR DEFENSE INDUSTRIES SOURCE: https://www.airandspaceforces.com/article/rare-earth-uncertainty/ ASX:VTM www. v i c t o r ym et al sau st r al i a. c o m GEOPOLITICAL TENSIONS & RARE EARTH ELEMENT OUTLOOK SOURCE: www.innovationnewsnetwork.com/critical-minerals-supply-chain-deal-struck-between-uk-and-australia/31489/#:~:text=The%20UK%20and%20Australian%20Governments,to%20achieve%20their%20climate%20obligations. | SOURCE: https://edition.cnn.com/2022/09/07/politics/f-35-deliveries-halted/index.html SOURCE: https://www.mediastatements.wa.gov.au/Pages/McGowan/2023/04/40-million-dollar-critical-minerals-investment-to-support-shift-to-net-zero.aspx | SOURCE: https://www.reuters.com/markets/us/australias-lynas-secures-120-mln-pentagon-contract-us-rare-earths-facility-2022-06-14/ ASX:VTM www.victorymetalsaustralia.com 2023/24 DEVELOPMENT PLAN ― Scoping Study VICTORY METALS ― ― ― ― ― Infill drilling to increase JORC MRE grade, scale and confidence ― Exploration 7km North of MRE area ― Produce MREC (mixed rare earth carbonate) ― ― Ongoing metallurgy and beneficiation studies ― Offtake and JV discussions and negotiations ― INVESTMENT HIGHLIGHTS » AUSTRALIA’S LARGEST Heavy Rare Earth enriched Deposit with a premium mix of REE » HIGH METALLURGY RECOVERIES of valuable and critical Heavy Rare Earth Elements » SIGNIFICANT UPSIDE with further exploration to commence 7km north of MRE area » 100% OWNED adjacent to one of Australia’s major arterial networks the Great Northern Highway » Infill MRE drill program to COMMENCE IN SEPTEMBER 2023 to increase grade, size and confidence » Initial MRE 250MT AND 130,000T of TREO ASX:VTM » Well Funded with $3.25M CASH IN BANK and low burn rate » PROVEN LOW COST RECOVERY process with Gold and Scandium credits www.victorymetalsaustralia.com COMPANY OVERVIEW Board of Directors and Technical Capital Structure As at 25/08/2023 Brendan Clark Chief Executive Officer and Executive Director Current Share Price $0.215 Trevor Matthews Non-Executive Chairman Market Capitalisation $17.4m James Bahen Non-Executive Director & Company Secretary Shares On Issue 80,899,656 Robbie Featherby Joint Company Secretary Professor Ken Collerson Technical Advisor Options, performance rights and Performance shares on issue 18,370,305 Michael Busbridge Chief Geologist Top 20% ownership 41.1 % Board and founders 28.3% ASX:VTM www.victorymetalsaustralia.com CONTACT INFORMATION REGIONAL TENEMENT MAP t: +61 08 6555 2950 e: info@victorymetalsaustralia.com w: www.victorymetalsaustralia.com a: Suite 1, 295 Rokeby Rd, Subiaco WA 6008 BRENDAN CLARK CEO AND EXECUTIVE DIRECTOR e: b.clark@victorymetalsaustralia.com JANE MORGAN INVESTOR AND MEDIA RELATIONS e: jm@janemorganmanagement.com.au ASX:VTM THE FUTURE OF AUSTRALIAN RARE EARTHS THANK YOU