Seafloor polymetallic nodule harvestingErika Ilves, Head of Strategy

Smart Mine Conference – June 26, 2019, London

DISRUPTIVE NEW SOURCE OF BATTERY METALS FOR THE GREEN TRANSITION

Smart Mine?

ü Abundant resourceü Bottom of the cost curveü Environmental & social impact

- Low carbon footprint- Zero waste or tailings- Zero deforestation- No dislocation of communities- Equitable development

Today: 5 million EVsout of 1.3 billion vehicles

2030: 125 million EVs

2047: 1 billion EVs

Trend towards more nickel intensive battery chemistries

Li-ion battery cathode compositionKg / KWh

We will need a lot of nickel and cobalt

75KWh EV battery with NMC 811 cathode chemistry contains:• 56 kg of Ni• 7.1 kg of Co• 6.6 kg of Mn

To electrify 1 billion ICE cars, the world would need:• 56 million tonnes of Ni• 7.1 million tonnes of Co• 6.6 million tonnes of Mn

EV manufacturers are worried about• Security of supply• Climate & environmental impact• Human rights• Price

7

75KWh Tesla Model 3 battery would generate• 13.2t of CO2 if

manufactured in Asia• 50% can be removed

with 100% renewable power

• The rest comes from production of raw materials

Li-ion battery triples CO2 emissions from manufacturing

A better way to supply EV batteries:Naturally occurring, polymetallic nodules sitting unattached on the deep ocean's abyssal plain.

It is the world’s largest undeveloped high-grade base-metal resource.

No child labor. No social displacement. No deforestation. No waste. No toxic tailings.

Polymetallic nodule

“NMC battery in a rock”

Ni

Mn Cu

Co

MexicoHawaii

(USA)

THE CLARION CLIPPERTON FRACTURE ZONE (CCZ)

Total CCZ resource estimate34 billion tonnes of nodules• 6 billion tonnes of manganese• 270 million tonnes of nickel• 234 million tonnes of copper• 46 million tonnes of cobalt

Enough to electrify 1 billion cars 4 times over

Source: Resource Estimates of the Clarion Clipperton Manganese Nodule Deposit, Morgan 1999

Marine preservation zones

DeepGreen’s Exploration areas

Nodule collection got started in the 1970s but halted due to lack of regulations

TIMLINE

UNCLOS entersinto force and

establishment of ISA

First explorationcontracts grantedto Government

Institutions

NORI granted75,000km2

Marawa granted75,000km2

exploration contract

Clarion Fracture Zone

Clipperton Fracture Zone

Hawaii(USA)

Mexico

NORI Area (74,830km2) & Marawa Area (74,990km2)

160

W̊15

0W̊

140

W̊13

0W̊

120

W̊110

W̊

1994 2001 2011 2015

NORI Area(74,830km2)

Marawa Area(74,990km2)

Area of particularenvironmentalinterest (APEI)

Map Showing the Location of the Nine Areas of Particular Environmental Interest, Established by the International Seabed Authority in the Clarion-Clipperton Zone.

0 250 500 1000

Kilometers

Resource harvesting in the CCZ is now regulated by the International Seabed Authority (ISA)

1994

UNCLOS entersinto force and

ISA is established

2001

First ExplorationContracts granted

to Government Institutions

2011

NORI Area rights acquired by

DeepGreen, sponsored by Nauru

2015

Marawa Arearights acquired by

DeepGreen, sponsored by Kiribati

2017

Draft Exploitation Regulations issued

by ISA

2020

Final Exploitation Regulations in

place, ISA open for Exploitation applications

DeepGreen is the only pure-play commercial player to hold two concessions in the CCZ

CRIMM/China Minmetals (China)COMRA (China)GSR/Deme (Belgium)CIIC & GSR/Deme (Cook Islands)Subsidiary of Lockheed Martin (UK)Subsidiary of Keppel (Singapore)Subsidiary of Nautilus (Tonga)JOGMEG consortium (Japan)BGR (Germany)IFREMER (France)Research institutes (South Korea)SC Yuzhmorgeologiya (Russia)IOM (Russia, Bulgaria, Slovakia, Poland, Czech, Cuba)

Other contractors

NORI Area (Nauru)

Marawa Area (Kiribati)

DeepGreen

Box core sampling: consistent abundances

AUV camera imagery: continuous nodule pavements

We have completed three offshore survey campaigns

Cobalt

893M/THIGH GRADEPOLUMETALLIC MANGANESENODULES

Abundance

Total NORI Area

12.5 kg /m2

Resource1 900Mt

Nickel 1.30%

Manganese 29.2%

Copper 1.08%

Cobalt 0.18%

Cu Equiv2 7.2% / 49 Mt

N ICK E L MANGANESE COPP ER

Vale / Goro Nickel Project

Eramet / Moanda Mine

Taseko / Gibraltar Mine

Total NORI Area

Abundance 13.1 kg /m2

Resource (wet) 893Mt

Nickel 1.30%

Manganese 29.2%

Copper 1.08%

Cobalt 0.18%

Cu Equiv 6.5%

Comparable to three mines in one

Comparing to undeveloped land-based nickel deposits

0.0

7.7

2.2 1.2 1.23.2

1.1 1.3 1.30.8

19.51.3

4.4

2.8 2.40.0

1.0 0.1 0.10.1

19.5

9.0

6.6

4.0 3.6 3.22.1 1.4 1.4 0.9

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0

2

4

6

8

10

12

14

16

18

20

NO

RI

Dum

ont

Kalg

orlie

Nic

kel

Zebe

diel

a

Jaca

re

Gag

Isla

nd

Ram

u

Wel

lgre

en

Mou

nt K

eith

Barro

Alto

Nickel Equivalent G

rade (%)

Con

tain

ed N

icke

l Equ

ival

ent (

Mt)

InferredM&I (Inclusive)Grades

Assuming the following commodity prices: Cu $7,084/tn, Ni $19,926/tn, Au $1,250/oz, Ag $18/oz, Co $50,993/tn, Mn $4/tn, Mo $11/lb, Pt $1,200/oz, Pd $800/oz.Source: DeepGreen PEA April 2019, WoodMac, mining project/company websites

Scaling through partnerships

Resource Collection Shipping Processing Sales

Strategic partnerships

Convert Exploration Contracts for NORI and Marawa Areas into Exploitation Contracts

Acquire new high quality ground in CCZ and EEZs

Drive strong focus on ocean health to secure the social operating license

Pre-sell battery precursors directly to EV manufacturers and battery gigafactories

Build a consumer-facing brand to drive consumer preference for Green Metals

Engage well-capitalized strategic partners for test, design, build & operate offshore and onshore production systems. Maintain strong in-house system design capability to challenge partners to innovate

Discussions in progress with

several potential partners

Strategic partnership in place, a major

shareholder

Strategic partnership in place, a major

shareholder

Production vesselLength: 225mStation Keeping: DP2DWT – 79,000 TePOB: 120Power: 75 MWNodule Storage: 70,000 Te

Harvester vehicleL x B x D: 19 x 12 x 6 MWeight: 325 Te (Air)Weight: 46 Te (water)

Nodule collection

Zero waste processing

Crystallisation

Crystallisation

Expecting to produce at the bottom quartile of the nickel cost curve…

Nor

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ig Ir

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ncor

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ada

Jinc

huan

, Chi

naK

eivi

tsa,

Fin

land

World’s cumulative nickel production by miner, million tonnes

NORI AREA D–$3.11/lb

C1

cash

cos

t, $

/lb

…and at a fraction of CO2

0.46

0.11

1.02

0.22

Land ores Ocean nodulesCopper Cobalt Manganese Nickel

Electrifying 1 billion vehicles Gigatonnes of CO2e attributableto production of battery cathode metals1 and copper 2018-20472

1.6

0.4

-75%

1 Nickel, cobalt contained in metal sulphates; copper contained in copper cathode; manganese contained in FeMn. Allocation of CO2 based on economic value of contained metal. Mass-based allocations would include an allocation to 171Kt of fertilizer grade ammonium sulphate with very low economic value and lead to much lower values for key metals derived from ocean nodules.2 Taking into account ore grade degradation for land-based nickel and copper between now and 2047Source: Published academic papers on metal production from land ores; Company PEA April 2019; Comparative LCA analysis of producing metals from land ores vs. ocean nodules (using Ecoinvent database)

Driving consumer preference for Clean Metals together with EV manufacturers

THANK YOUFOR YOUR TIMEErika IlvesHead of Strategy & Business Developmenterika@deep.green