ANC-Presentations-Full-18-10_Neat

CONFERENCE PROCEEDINGS





Wood Mackenzie Poseidon Nickel Ltd

Western Areas Ltd First Quantum Minerals Ltd
BHP Nickel West Azure Minerals Ltd

IGO Ltd Impact Minerals Ltd

Legend Mining Ltd Widgie Nickel Ltd

Chalice Mining Ltd Auroch Minerals Ltd
Mincor Resources Ltd Ardea Resources Ltd

Centaurus Metals Ltd Lunnon Metals Ltd

Blackstone Minerals Ltd Caspin Resources Ltd
Panoramic Resources Ltd NickelSearch Ltd

St George Mining Ltd Cannon Resources Ltd

WA producers gear-up for the EV-olution

Paydirt Australian Nickel Conference – 5 October 2021

Angela Durrant – Senior Research Manager




































Trusted Intelligence woodmac.com

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Nickel prices supported by projected demand for nickel in EVs

Prices have climbed since April, supporting share prices for many WA nickel miners



Ni, Cu, Cu, Al prices, Mar 2020 – Sep 2021 ASX Share prices, Mar 2020 – Sep 2021

240 Cobalt 600

Nickel
220 550 IGO
Aluminium
500 WSA
Copper
Index: 23March 2020=100 180 Index: 23 March 2020=100 400 PAN
200
MCR
450
POS
350
160
300
140
250
120
200
150
100
100
80
50





Source: Wood Mackenzie, LME 2

woodmac.com





















Batteries and EVs























3

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Nickel consumption by first use

Stainless remains the main first use of nickel, although its share falls to 53% by 2040, as

battery precursors for EVs and energy storage become increasingly important.

Global nickel demand by first use, 2020 and 2040






2% 2%
3% 2% 2%
2% 5% Stainless
6% Stainless
NF Alloys NF Alloys
7%
Battery precursors Battery precursors
2020 2040
9% Plating 30% 4.9Mt Plating
2.4Mt 53%
Alloy Steel Alloy Steel

71% Foundry Foundry
Other 6%
Other










Source: Wood Mackenzie 4

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Annual passenger car EV sales >49 million in 2040, making up 62% of

total passenger car sales. High-Ni Li-ion types will dominate EV batteries

EV sales increasing strongly as governments and car makers push harder for electrification.


Passenger car (PC) EV sales forecast, 2020 - 2040 Battery chemistry mix, 2015 - 2040


80 LCO LFP NCA NMC (111)
PC HEV PC PHEV PC BEV
NMC (532) NMC (622) NMC (811) Other
70 100%

90%
60
Vehicle sales (millions) 50 % Total GWh 80%
70%

60%
40
50%
30
40%
30%
20
20%
10
10%
0 0%
2020 2021 2025 2030 2035 2040 2015 2020 2025 2030 2035 2040


Source: Wood Mackenzie Battery Raw Materials Service 5

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Global demand for nickel sulphate in batteries

China dominates both supply and demand of NiSO . Demand excedes supply by 2025.
4
Demand CAGR 2020-2025 = 22% 2025-2030 = 14%.

Nickel demand in battery precursors Global nickel sulphate balance

1000
1200 Ni in EV
900 North America 1000 Ni in plating Need for investment in new
Ni in precursors for EV/ESS (kt) 700 Japan Nickel (kt) 800 Additional 100 kt matte
sulphate capacity from
Europe
800
2025
Other
South Korea
Ni in Sulphate production
600
China
500
600
supply from Indonesia
from end 2021
400
400
300
200

100
0 200
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030




Source: Wood Mackenzie 6

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Nickel in chemicals production

Dominated by China with growing importance of Europe in mid- to long-term.

Indonesia and Australia emerging producers.

Global nickel sulphate production Nickel sulphate by feed source, %

600 100%
China
Indonesia 90%
500 South Korea
Australia 80%
Europe
Ni in chemicals (kt) 300 60%
70%
400
Other
50%

40%
200
30%
Sulphide
20% From laterite ore sources
100 Recycle
10%
Dissolution
0 0%
2011 2013 2015 2017 2019 2021 2023 2025 2011 2013 2015 2017 2019 2021 2023 2025


Source: Wood Mackenzie 7

Nickel market fundamentals

Paydirt Nickel Conference – 5 October 2021 woodmac.com
The outlook for nickel

Nickel market currently very tight with exchange stocks at two-year lows. Prices are now

expected to stay buoyant over 2022, before small surpluses emerge in 2023 and 2024.

Global nickel supply-demand balance, kt Ni Implied cumulative stock days and nickel price


400 25
250 Implied stock days Price (US$/t, real)
350
200 20
300
150 250 15
Contained Ni (kt) 50 Stock days 200 10 Price US$/lb, real
100




150
0
-50 100
5
-100 50

-150 0 0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030





Source: Wood Mackenzie 9

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Global stainless – up 14% in 2021 but slows over longer term


CAGR 2021-2025 = 3.8% 2025-2030 = 1.2%



Chinese stainless production mix Global stainless melt production by region


45000 300 series 200 series 85%
400 series Austenitic ratio 80 USA
40000 Europe
70 Asia ex-China
35000 80% China
World
30000 60
75% 50
Output (kt) 20000 70% Austenitic ratio Stainless production (Mt) 40
25000



30
15000
10000 65% 20

5000 10

0 60% 0
2015 2017 2019 2021 2023 2025 2027 2029 2015 2017 2019 2021 2023 2025 2027 2029



Source: Wood Mackenzie 10

Paydirt Nickel Conference – 5 October 2021 woodmac.com
China stainless – leveraged to NPI


China’s FeNi import requirement to decrease by 20% in 2021, but will start increasing again
from 2022 onwards as more Indonesian ore previously meant for NPI is converted to matte.


Nickel use by type in Chinese stainless steel

2000 Scrap Chinese NPI Indonesian NPI Imported FeNi 35%
1800 Class 1 % Class 1 % scrap
30%
1600

1400 25%
1200 20%
kt nickel 1000 15% % scrap / class 1



800

600 10%
400
5%
200

0 0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025


Source: Wood Mackenzie 11

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Global nickel production – near term

NPI driving near-term production increases, both at the mine and smelter/refinery level.

Global mine production up almost 17% in 2021 – primarily in Indonesia for domestic smelters.


Global mine production, 2019 - 2025 Global refined production, 2019 - 2025


30% Global Laterite Sulphide 35% Global Ferro-Nickel NPI

25% 30%

25%
20% 20%
Year-on-year change 10% Year-on-year change 15%
15%



10%
5%
5%
0%
0%
-5%
-5%
-10%
-10% 19 20 21 22 23 24 25
19 20 21 22 23 24 25

Source: Wood Mackenzie 12

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Indonesian nickel-in-NPI production will reach 1.1 Mt by 2024


While rapid expansion started in 2020 at Tsingshan (IMIP), Virtue Dragon (VDNi), Weda
Bay (IWIP) and Jinchuan, the switch to matte will see NPI remain at the these levels


Operating Projects

Suspended in 2019

Central Omega

Fajar Bhakti
(Zhenshi Gebe)
Megah Surya Pertiwi
(Harita) SIlkroad/Xinhai









Huadi Nickel
Century Metalindo Bintang Smelter

Indoferro






Source: Wood Mackenzie 13

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Indonesian NPI will feed its own stainless industry

Delong-Obsidian currently ramping up to 2.0-2.5 Mt/a – all billet for long products.

Tsingshan operating well above capacity, at 4 Mtpa – mostly slab for flat products.

Rapid stainless ramp up to >5 Mtpa capacity Other stainless projects are slow in coming

6000 Tsingshan STS 1200 ➢ Other companies previously considering Indonesian

stainless:
Delong Obsidian
5000 STS 1000 ➢ Yusco (Taiwan) 3 Mtpa in 3 phases
Ni in NPI for
export ➢ PT Antam (Indonesia) 500 ktpa
4000 Ni use in stainless 800 ➢ Tang Eng (Taiwan) no specifics
Stainless (kt) 3000 600 Ni in NPI (kt) ➢ The Taiwanese government has also expressed an


no specifics
Duta Huadi (China)
➢
400
2000
interest in investing in Indonesia that could involve both
mills noted above and Walsin Lihwa.
1000 200 ➢ Lack of progress with these projects may be due to the
anti-dumping duties against Indonesian stainless set up

0 0 by many countries, including China and Europe.
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025




Source: Wood Mackenzie 14

Considerations for now and the future

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Recycling to provide 20% of new nickel units by 2040


End-of-life EV batteries will provide 100 kt secondary refined nickel by 2030, >700 kt by 2040.
New entrants are producing “black mass” smelter feeds.

Strong growth in scrap feed post-2030 ➢ Long-term nickel sulphate production flatlines after 2030,
due to a lack of visibility on new plant investment.
Secondary refined EV scrap
4500 Base case primary refined 20% ➢ Base case refined nickel output also declines in the long
% secondary term due to exhaustion of known mine reserves.
4000 18%
➢ Those declines will be offset by new nickel units from
3500 16% recycled batteries.
14% ➢ Spent EV batteries will supply one fifth of new nickel units
3000
Refined Ni (kt) 2500 10% % secondary ➢ Companies are already investing in this recovery stream.
by 2040 (assuming average battery life of 8 - 12 years).
12%
However, as most EVs sold to date remain on the road,
2000
current feeds are drawn from consumer electronics and
8%
1500
in the left-hand chart).
6% cell manufacturing scrap (neither of which are allowed for
1000 4% ➢ China already accounts for the bulk of spent battery
materials being processed and will remain the market
500 2% leader.

0 0% ➢ Support from governments and financial institutions in
2025 2030 2035 2040 Europe and North America will accelerate the pace of
recycling over the next decade.
Source: Wood Mackenzie 16

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Costs – Environmental, Social and Governance (ESG) and CO 2e

Energy intensive smelting NPI producers at the top of the CO 2e emissions curve, while the

large nickel sulphide miners produce emissions well below the weighted annual average.

2021 Carbon intensity emissions curve (Scope 1+2 only)


100




75 Soroako Weda Bay Tsingshan Morowali Virtue Dragon Delong
Emissions (t CO2e/t Nieq) 50 Sudbury Division Weighted Average Doniambo SLN - PT Vale - Shandong Xinhai











25

Vale - Norilsk Jinchuan

0
0 20 40 60 80 100
Production (cumulative centile)

Source: Wood Mackenzie, Emissions Benchmarking Tool (EBT - Nickel) 17

Paydirt Nickel Conference – 5 October 2021 woodmac.com
Costs – Environmental, Social and Governance (ESG) and CO 2e

Most Australian producers are closer to the bottom of the CO 2e emissions curve and sit well
below the weighted annual average.

2021 Carbon intensity emissions curve (Scope 1+2 only)

100





75
Emissions (t CO2e/t Nieq) 50 Weighted Average Mount Keith Savannah restart Flying Fox Murrin Murrin Ravensthorpe (FQM)










25





0 Nova-Bollinger Leinster
0 20 40 60 80 100
Production (cumulative centile)

Source: Wood Mackenzie, Emissions Benchmarking Tool (EBT - Nickel) 18

Paydirt Nickel Conference – 5 October 2021 woodmac.com
The long-term shortfall in supply

A long-term nickel price of ca. US$18,000/t ($8.15/lb, real) required to encourage investment

in projects to produce the 976 kt new supply (excl. probable projects) needed by 2040.

Existing refined nickel supply falls behind demand from 2026


6000 Reserve exhaustion could
Existing supply
close 200 kt/a of capacity
5000 Probable projects New Ni supply needed from 2029-2034
Consumption 2025 as demand from EV
batteries accelerates 976 kt
4000
570 kt

kt
3000

Primary nickel supply
2000 boosted by battery

recycling, especially
1000 Covid-19 pandemic forces from 2035
lockdown and shuts off demand

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040



Source: Wood Mackenzie 19

woodmac.com
Angela Durrant


Senior Research Manager, Nickel Industry Costs



Biography Connect with Angela
Angela joined Wood Mackenzie in 2012 and is based in Sydney.
In her time at Wood Mackenzie Angela has worked on nickel, zinc and lead costs and nickel markets. She
is responsible for the Nickel Industry Cost Service which covers 96% of the world’s nickel production and
includes 168 nickel operations and projects.

Prior to joining Wood Mackenzie Angela worked at CRU as a Senior Consultant in the Special Steels and
Alloys Team. Angela also worked at Pasminco Ltd as a Project Metallurgist at the company’s Century Zinc
mine, as well as its Broken Hill, Cobar and Rosebery base metal mines, and its Newcastle Lead Smelter.
Angela graduated from Murdoch University in Perth, Western Australia, with a degree in Science [email protected]
(Extractive Metallurgy). She also holds a degree in Economics from Flinders University, Adelaide, South
Australia.

+61 2 7228 2015

woodmac.com
Contacts



Research Director - Nickel Markets Research Analyst - Nickel

Sean Mulshaw (Guildford, UK) Violet Li 李靖轩 (Shanghai, China)
T +44 1483 596637 T +86 21 6037 7327
E [email protected] E [email protected]


Principal Analyst - Nickel Markets

Adrian Gardner (Palm Coast, FL, USA)

T +1 386 864 0044
E [email protected]

Head of Nickel Research

Andrew Mitchell (Guildford, UK) Wood Mackenzie Client Helpdesk

T +44 1483 596610
E [email protected] E [email protected]

Americas +1 713 470 1700
Senior Research Manager Asia Pacific +65 6518 0888
Angela Durrant (Sydney, Australia) Europe +44 131 243 4477
T +61 282 248807
E [email protected]

21

woodmac.com
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22

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AUSTRALIAN NICKEL


CONFERENCE









“ It’s all about growth”





D AN LOU GH E R | 5 October 2021

AGENDA














CORPORATE NICKEL GROWTH EXPLORATION

MARKET

Disclaimer and forward looking statements






This presentation is being furnished to you solely for your information and for your use and may not be copied, reproduced or redistributed to any other person in any manner. You agree to keep the
contents of this presentation and these materials confidential. The information contained in this presentation does not constitute or form any part of any offer or invitation to purchase any securities
and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed
with any transaction.
The distribution of this presentation in jurisdictions outside Australia may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and
observe, any such restrictions. This is not for distribution or dissemination in the U.S.

The information contained in this presentation has been prepared by Western Areas Ltd. No representation or warranty, express or implied, is or will be made in or in relation to, and no
responsibility or liability is or will be accepted by Western Areas Ltd, employees or representatives as to the accuracy or completeness of this information or any other written or oral information
made available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed. No party has any obligation to notify opinion changes or if it becomes aware of any
inaccuracy in or omission from this presentation.All opinions and projections expressed in this presentation are given as ofthis date and are subject to change without notice.

This document contains forward-looking statements including nickel production targets and cost estimates. These statements are based on assumptions and contingencies that are subject to
change without notice, and certain risks and uncertainties that could cause the performance or achievements of Western Areas Ltd to differ materially from the information set forth herein. Often,
but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and
“guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. Western
Areas Ltd undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances. Individuals should not place undue reliance on forward-looking
statements and are advised to make their own independentanalysis and determination with respect to the forecasted periods, which reflect WesternAreas Ltd’s view only as ofthe date hereof.
The information within this PowerPoint presentation was compiled by Western Areas management, but the information as it relates to exploration results, mineral resources or ore reserves was
prepared by Mr Graeme Gribbin, Mr Andre Wulfse or Mr Marco Orunesu-Preiata respectively. Mr Gribbin, Mr Wulfse and Mr Orunesu-Preiata are full time employees of Western Areas Ltd. Mr
Gribbin is a member of Australian Institute of Geoscientists (AIG). Mr Wulfse is a Fellow of Australian Institute of Mining and Metallurgy (AusIMM) and Mr Orunesu-Preiata is a member of Australian
Institute of Mining and Metallurgy (AusIMM) and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are
undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’(2012 JORC
Code). Mr Gribbin, Mr Wulfse and Mr Orunesu-Preiata consent to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.

This announcement is authorised for market release by WesternAreas Limited Managing Director and CEO, Daniel Lougher.
Western Areas Registered Office: L2, 2 Kings Park Road, West Perth, 6005, Australia







3

CORPORATE

Western Areas, are safe areas






























Days LTI free 12 month LTIFR moving average

3.0
Cosmic Boy
Concentrator 1,088 Sep-18

Exploration 1,075 Sep-18 2.0


Flying Fox 892 Mar-19
1.0
Spotted Quoll 523 Mar-20


Cosmos 425 Jul-20 0.0






5

Corporate overview










“The Company aims to High Quality


be a sustainable and ▪ Low Cash Cost

profitable, nickel ▪ High Grade Nickel Sulphide


focused, base metal No Debt


miner, building value ▪ $151.1m at bank 1


and scale while Strong Growth


maintaining financial ▪ Odysseus Mine & AM6

strength” ▪ New Morning

▪ Diggers South
▪ Mt Goode



Nickel Leverage


▪ Panoramic Resources (WSA 19.9%)








1. As at 30 June 2021 6

Environment Social Governance
















Environment Social Governance
▪ Zero Major environmental ▪ LTIFR reduction to 0.63 (Jun-20 ▪ Inaugural Modern Slavery
incidents 1.41) Statement published in March-
▪ Transparency & Disclosure (ESG ▪ Cultural Awareness Training 2021
report, CDP, transition to TCFD ▪ Maintain relationship with Tjiwarl ▪ Increased diversity of the Board
and SASB) Aboriginal Corporation and of Directors to 40% NED
▪ Published Climate Change commenced Mining Agreement ▪ Reviewed and updated key
Statement negotiations. policies such as Code of Conduct
▪ Third party verification of Scope ▪ Engagement with numerous & Whistleblower Policy
1 & 2 emissions other traditional owner groups. ▪ Comprehensive Risk
▪ Climate change integration of ▪ Teamed up with Performex WA to Management Program
risks and opportunities into provide employee Wellness
strategy Program
▪ Renewable power project for
Cosmos
▪ Sustainable Nickel story – low
carbon NSP















7

NICKEL MARKET

New Odysseus concentrate offtake – timing is good!






▪ Tender process commenced for the initial, uncontracted


Odysseus concentrate


▪ Strong market environment for sustainable, nickel sulphide

concentrates with OEM concerns on emerging nickel

deficits (ie BHP and Tesla Inc deal and recent MoU with


Japanese groups)


▪ Korea and Japan moving “faster” to consolidate future

offtake contracts. Potential to build new smelter and


hydrometallurgical plants


▪ We may see changes in traditional “smelter short term” to

LOM contracts, with improved commercial terms and


potential downstream benefits


▪ Majors active in Ni assets M & A








9

What we are seeing






▪ BHP/Tesla Inc announce partnership for nickel ▪ Tsingshan Iaterite to nickel matte conversion, this
product is needed, but what is the carbon footprint?
▪ Significant inbound battery producer interest,
targeting nickel offtake to feed production lines ▪ Jinchuan (largest nickel cathode producer in China)
increasing nickel sulphate volumes. Believed to be
▪ Strong growth in EV production and demand,

especially in Europe, with increasing Government investing in pre-cursor production lines
incentives globally





Odysseus Production
FY23 Onward

























Source: Trafigura Research, SMM, CIAP – March 2020
Source: Trafigura Research, SMM



10

Battery market






▪ Battery producers currently dominated by China, Korea
and Japan


▪ USA starting to positioning for supply – Looking abroad

to find critical battery metals

▪ Technology change to NCM 811 which requires

higher quantity of nickel, gaining market momentum
























Source: Golden Dragon Capital Ltd











11

GROWTH

Nickel growth pipeline





Nickel Resources

Scoping / Pre-production
Pre-feasibility Feasibility Commissioning Producing 1,200
1,050
900
Diggers AM5 AM6 750
Flying
Fox 600
Massive
sulphide Odysseus Contained Nickel (kt) 450
300

Spotted 150
Mt Goode New Morning 0
Quoll

Resources

300


▪ Many projects in the
pipeline to drive nickel Forrestania Project Cosmos Project
production well into the
future 150
>100kt Ni Resource
▪ Ore Reserves have >50kt Ni Resource Contained Nickel (kt)
substantially increased
in FY19 with Odysseus 5-50kt Ni Resource
and in FY21 with the 0
addition of AM6
Reserves



13

Key resources






Area Resource (All JORC 2012) Measured Indicated Inferred Total
Tonnes Grade Ni % Tonnes Grade Ni % Tonnes Grade Ni % Tonnes Grade Ni % Ni Tonnes
Forrestania

Forrestania Area Spotted Quoll 1 672,396 6.4 146,678 5.0 819,074 6.1 50,367
Flying Fox High Grade 1 776,389 4.5 259,568 1.5 1,035,957 3.7 38,823
New Morning Massive Zone 1 340,126 3.3 78,067 3.9 418,193 3.4 14,249
JINCHUAN BHPB
Jinchuan
Total Key Forrestania Mineral Resource 1,788,911 5.0 ~13ktpa ~10ktpa 2.9 2,273,224 BHP 4.6 103,439
484,313
~10ktpa
Jan 2017 Jan 2017 ~10ktpa
Cosmos
2 years + 3 years
Cosmos Area Odysseus South 1 4,016,949 2.1 219,641 2.0 4,236,590 2.1 89,069
1 year ending
Odysseus North incl. Massive 1 3,199,049 2.8 350,148 5.7 3,549,197 3.1 110,083
option Jan 2023
AM6 2 2,648,508 2.5 116,416 1.7 2,764,924 2.4 67,362
AM5 1 895,815 2.6 31,376 6.6 927,191 2.8 25,717

Cosmos Area Sub Total 10,760,321 2.4 717,581 3.9 11,477,902 2.5 292,231
Mt Goode Area 1 13,563,000 0.8 27,363,000 0.6 12,009,000 0.5 52,935,000 0.6 326,943
Total Key Cosmos Mineral Resource 13,563,000 0.8 38,123,321 1.1 12,726,581 0.7 64,412,902 1.0 619,174


Total Key WSA Mineral Resource 13,563,000 0.8 39,912,232 1.3 13,210,894 0.8 66,686,126 1.1 722,613
Note: M ineral Resources are reported inclusive of Ore Reserves. Figures have been rounded and may not add up to totals.
Note: Key Resources table excludes Flying Fox and Lounge Lizard Disseminated Zones, New M orning Daybreak Disseminated Zones, Beautiful Sunday, Cosmic Boy Area and Diggers Area.
1 Please refer to Western Areas’ June 2021 Quarterly Activities Report released on 23 July 2021 at www.asx.com.au for detailed figures on Western Areas current Ore Reserve and Mineral Resource Statement. For further
details on JORC (2012) Table 1 details please refer to Western Areas’ 2020 Quarterly Activities Report released on 23 July 2021 at www.asx.com.au.
2 Please refer to Western Areas’ M aiden Ore Reserve for AM6 Boosts Cosmos Base Case released on 2 September 2020 at www.asx.com.au for further details on AM6 Ore Reserve and Mineral Resources including JORC
(2012) Table 1.
* Western Areas confirms that it is not aware of any new information or data that materially affects the information included inthese announcements and that all material assumptions and technical parameters underpinning
the estimates in the announcements continue to apply and have not materially changed. Western Areas confirms that the form and context in which the Competent Person's findings are presented have not been materially
modified from the original announcements.


14

10yr production profile


















































Graph data source:
Forrestania production targets based on Spotted Quoll and Flying Fox ore reserves. Refer to “June 2021 Quarterly Report” announcement
Cosmos production targets based on Odysseus and AM6 ore reserves. Refer to “Strong Odysseus DFS results in Decision to Mine,” dated 22 October 2018 and “Maiden Ore Reserve at AM6 Boosts Odysseus Base Case,” dated 2 September 2020 announcements
Cosmos Mill upgraded to 1.1Mtpa from FY27 onwards




15

ODYSSEUS MINE DEVELOPMENT

Cosmos nickel operation





WESTERN AREAS’ SECOND OPERATIONAL HUB:


▪ Outstanding nickel address

▪ Total Ore Reserves of 211k tonnes of nickel

▪ Strategically located between Nickel West’s Leinster

and Mt Keith mines

▪ Established infrastructure





































17

Odysseus – a long life project with significant upside






▪ Odysseus - Long life, low cost project:


- Ore Reserve 8.1mt @ 2.0% for164kt nickel

- Mine life > 10 years


- Attractive AISC

- Average nickel in concentrate production 14.5ktpa from
FY24


▪ AM6 now a value add:


- Ore Reserve 2.1mt @ 2.2% for 47kt nickel


- Large 212kt of nickel in combined Ore Reserves,
increasing mine life and capital efficiency

- Feasibility very advanced


▪ Significant upside:


- 327kt nickel tonne resource at Mt Goode

- Record 22% Ni massive sulphide intersections in lenses
below Odysseus






18

Odysseus mine – underground development progress






▪ Pre-production Activities:



- First development ore intersected


- Back reaming of Leg 1,630m @ 5.7m D
complete


- Winder house construction well advanced


- Odysseus decline development advanced 3km,

now above the Odysseus orebodies


- Pre-production mine development capex
expenditure profile:


- FY22 – A$160m; FY23 – A$55m



- WSA is fully funded with cash and agreed debt
facilities













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Odysseus first development ore






▪ First development ore on L15 in Odysseus south orebody


▪ Potential for toll treatment
















































20

Odysseus hoisting shaft leg 1 raise bore breakthrough






▪ Completed length of 630m, 5.7m diam –
no issues



▪ Laser survey completed indicating that
shaft verticality is within the 200mm

tolerance


▪ LIDAR survey commenced (3-D hole)


▪ Leg 2 pilot drilling to commence early

November


▪ Shaft commissioning 2 nd Q CY23

























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Infrastructure works gaining momentum




































Headframe assets
at Cosmos ready
for installation


















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Infrastructure works gaining momentum




























































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Infrastructure works gaining momentum




























































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Why a hoisting shaft?







▪ Significant economical and environmental benefits
versus trucking

▪ Combined with renewable power = energy efficient

site, 85% reduction in CO 2

▪ Low, consistent opex and proven technology

▪ Cycle time: ~3 mins

▪ Save 1.5 ML diesel burnt pa (DPM)

▪ Remove 5 MW of heat generated from diesel

engines

3
▪ Remove minimum 200m /s of additional ventilation
requirement


Key Metrics:

▪ 5.7m diam. raise bore

▪ 4 guide ropes per conveyance
▪ 1.27Mtpa (ore and waste)

▪ 12 t skips
▪ 1 truck required to feed shaft

▪ 4.5 MW peak power



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