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TELLUS HOLDINGS LTD

The Proposed Chandler Facility

Central Australia Regional Mining Seminar Alice Springs

Duncan van der Merwe, MD

March 27th , 2017

TC-5-30-20-15

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Safety and qualityTellus’ strategy is safety first and we maintain internationally recognised management systems

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Tellus Holdings Ltd overview

Vision• In the business of creating economic, social

and environmental value from hazardous waste, clay and salt

• Public unlisted infrastructure development company

Established “Utility Style” business

• Tellus' business model follows world's best practice techniques operating in Europe & N. America.

• Dual use facilities – mine commodity under mining act, store equipment, archives & waste under environmental act

WA Gov.’s IWDF(ClayVault 50/50 JV) Sandy Ridge(WA)

National warehouses(Toll) Chandler(NT)

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Proven low risk business model

150 projects worldwide

Europe a leader in underground salt storage –Germany 20 mines

Tellus business model and technology is proven international best practice

EU Waste Acceptance Criteria (2003/33/EC)

“….in salt mines, the salt isconsidered to provide totalcontainment”.

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Over the last 6 months, Tellus has achieved significant technical and commercial progress

2012 – 2014 5 year (3+2) contract to operate the IWDF

SR and CH Scoping Study completed

Continued engagement with community and Gov.

Commenced 39 t pilot kaolin pilot(Perth)

Commenced wet salt processing pilot (US)

Commenced dry salt processing pilot (Germany)

Major Project Status for CH. granted by NT Gov.

2015 – 2017 Independent value engineering reviews

SR Interim Bankable Feasibility Study

CH PFS Update completed

Continued Gov. and local community engagement

Lodged SR Draft Public Environment Review(PER)

Lodged CH Draft EIS (Feb 2017)

Toll logistics - 8 storage and transfer stations

Hundreds of millions of dollars of signed MOUs with majorcustomers

Indicative debt term sheet for SandyRidge

Indicative A$120 million debt financing MOU mostly forChandler

1. IWDF = Intractable Waste Disposal Facility, 2. SR = Sandy Ridge, 3. CH = Chandler, PFS = Pre-feasibility Study, BFS = Bankable Feasibility Study

2009 – 2011 Incorporation ofTellus

IWDF(1) / SR(2) Concept Study completed

Site selection studies: 5 salt beds (CH(3)) and 1 kaolin bed (SR) across Australia (IAEAguidelines)

Started engagement with local communities

History of Tellus

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Transport - Toll “Hub and Spoke”

Tellus has signed a national Logistics Services and Infrastructure Agreement with Toll

Commercial • Tellus has signed an overarching collaboration agreement and a binding Services and Infrastructure Agreement

Collaboration

• Early Contractor Involvement (ECI) • Transport to-and-from site and on-site support services • Port and Facility Logistics Infrastructure Services • Joint Marketing Services

National footprint

• Toll to supply 8 warehouses – existing licenced and operating dangerous goods & haz. waste handling facilities

• Using a hub and spoke logistical model

Joint Marketing

• Major current supplier to Tellus’ target customer base, which provides significant visibility into the market

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ClayVault WA (JV)

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Sandy RidgeAfter 11 years of operations

Waste Inspection Building

Low Level Rad. Materials Store

Weighbridge

Admin office and Inspection Gate

Container Yard

Kaolin Process Plant and Store

Kaolin Ore Stockpile

Services Area (fuel, power, water,

maintenance)

Technology Park (future)

Accommodation Village (1.8km)

Water Ponds and Wash-down

Water Supply (12km)

Active Mine Pit

Active Waste Cell 1st Cell being Rehabilitated

Closed Cells (monitoring phase)

After 11 years of operations

Unique assets: Waste permanently isolated in ~ 70 million year old clay bedGeology: Clay bed is ~ 6m deep under impermeable caprock, average ~ 14m thick, ~20km wide and ~ 160km long Aquifer and climate: No aquifer and in an arid area Infrastructure: 7.6 km from existing IWDF site

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Sandy Ridge

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Sandy Ridge

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Chandler - Introduction

3.2 km

1.5 km

Unique assets: Waste permanently isolated in a ~ 500 million year old salt bed Geology: Salt bed ~ 800m deep, ~ 250m thick, ~ 18km wide, salt bed (length unknown) Aquifer and climate: No aquifers have passed through the salt bed over the last ~ 500 million years. Located in an arid area.Infrastructure: Next to Central Australian railway line

0.8 km

1.8 km

860 m downcast (salt production shaft) 820 m upcast shaft (ventilation)5,760 m decline (waste and ventilation)

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Chandler - Proposal need, alternative and benefits - saltSalt demand

Asia consumes 42% of global salt demand. Demand for salt is growing at 3-5 % p.a. Australia produces 13.2 Mt salt p.a. and the largest external supplier

of salt to Asia. Main supply via evaporative solar ponds – effected by extreme

weather events

The salt problem

Asian market concerned about reliable supply of salt. Expected 6 Mt shortfall of salt by 2018. To meet this demand, 47K ha of new solar evaporative facilities

would be required.

The alternatives

Continue with the status quo?

The solution

Extensive investigations have proven millions of tonnes of salt exist in the Chandler Formation.

Mining Chandler Formation could be scaled up to meet Asian demand.

Existing infrastructure is in place and has capacity.

Cyclone map of Australia

Chandler - Proposal need, alternative and benefits - waste

Market size -volume(Mt)

• ~ 53.5 Mt total waste generated~10.3% (5.5 Mtpa) haz.• ~ 900 Mt legacywaste

Market size value(A$)(2)

• ~ $14.2 billion(2) Australian waste market• ~ $2.4 billion(4) existing / reported hazardous waste market• ~ 50,000 + jobs, growth sector, recession proof

Sustainability • Australia is one of the highest producers of hazardous waste on a per capitabasis

• Waste is growing at 6x population growth

Volume of haz. waste across Australia

Waste treatment and disposal options

Landfill (Disposal), 35%

Treatment, 33%

Reuse / Recycling, 24%

Storage, 5%

Sent Overseas, Energy2% Recovery, 1%

Situation: Recover

vs protect

• Regulators and community recognize that med-high hazardous waste should be permanently isolated(ESM)

• Valuable materials should be recovered (circular economy)

• Growth in forecast & legacy waste volumes & complexity• Lack of affordable and environmentally acceptable

infrastructure for difficult to manage wastes• Lack of recycling and recovery solutions (circular economy)• Regulatory & community demands increasing

Problem:

Demand↑

Supply↓

• Can store, recover or permanently isolatewaste• Simple to use, cost effective, global best practicesolutions• Remove customer’s contingent liability

Tellussolution

Tyres, abattoir effluent, grease trap, sewage, clinical wastes

are not targeted by Tellus

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Chandler - The ESM & circular economy solution Tellus’ proposed Chandler Facility can meet environmentally sound management solutions and recover waste for future use

“Applying Environmentally Sound Management principles may result in a lower option in the hierarchy being chosen but result in a better overall environmental outcome” UK Government - DEFRA

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Chandler - Waste acceptance – chem wasteTellus bringing “world’s best practice” solutions for a difficult to manage problem

Sandy Ridge - wastes accepted and excluded

Chemical waste (NEPM Schedule A List 1: Waste categories) Yes

Naturally occurring radioactive waste (“NORM”) - LLW level Yes

Low level radioactive waste (LLW) Yes

Intermediate (ILW) & High level radioactive waste (HLW) No

Chandler - wastes accepted and excluded

Chemical waste (NEPM Schedule A List 1: Waste categories) Yes

Naturally occurring radioactive waste (“NORM”) – Exemption Level Yes

Nuclear Waste (enriched uranium & plutonium) - LLW, ILW, HLW No

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Chandler - How did we find it & why salt?

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Chandler - Proposal location

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Chandler - Introduction

Category Detail

Location• ~ 120 km south of Alice Springs• ~ 25 km south west from Titjikala

Business

• Dual revenue:• Salt sales (domestic and export)• Equipment and archive storage• Waste storage, recovery & permanent isolation

Capacity

• Salt: Life of project average: ~723 k tpa salt sales)• Waste resource: 400 k tpa waste licence (life of project

average: 340 k t

Life of Project

• 25 years rolling operational terms• Potential project life is multi-generational

Facility

• Underground, room and pillar design

• Continuous miner• Room size: 250 mL, 15 m W, 6 m H

Jobs• Construction: 270 (720 peak build – incl. indirects)• Production: 150 -180 FTE

CAPEX • A$676M (nominal, including finance)

OPEX • $81M (LOP average)

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Chandler - Surface infrastructure design

Container wash down

Container Transfer Yard

Mine development Spoil Stockpiles

Temporary Salt Stockpile

Topsoil Stockpile

Portal entrance

Solar Hybrid Power Station

Admin Building

Technology Park

Shafts for air and egress

General Stores and Maintenance Facilities

Sediment basin

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Chandler - Surface infrastructure design

Maryvale Hills

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Chandler – Access via decline and vertical shaft

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Chandler - Apirnta facility (Apirnta means salt)

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Chandler - feasibility study team -supporting EIS

Tellus has followed a best practice approach in designing and evaluating the Chandler Project

Australian experts International experts

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Chandler - Underground - dry packaged emplacement (UK)

Multiple packages taken underground and placed into secure permanent isolation location

Containers opened in sealed storage room

Containers being driven to disposal areaContainers received 200m below ground

APC bags “pyramid stacked” Monitoring of underground atmosphere

Transit containers moved into mine shaft

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Chandler - Hydraulic backfilling options

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Chandler – Multi-barrier safety case (dom. & inter. peer review)

Combination of engineered and geological barriers provide permeant isolation

High integrity sealing systems

Multi barrier isolation system

Salt backfill and creep

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Chandler – Multi-barrier safety case (dom. & inter. peer review)

Salt creepWaste Acceptance Criteria Sealing strategy

Geotechnical analysis Operational performance FEP analysis Post closure performance analysis

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Approvals pathway

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Chandler - How to have your say EIS public review period runs for 6 weeks (until 31 March 2017). Your comments and

submissions are welcome (submissions via NT EPA website).

Community consultation is ongoing in March and, if approved, through the life of the Project.

Key Contacts – Tellus

Duncan van der MerweGroup Managing Director: +61 2 8257 3395

: info@tellusholdings.com

Richie Phillips GM HSEC and Compliance: +61 2 8257 3395

: : info@tellusholdings.com

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Chandler - Approvals pathway

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Chandler - What approvals are needed? Commonwealth Environment Protection and Biodiversity

Conservation Act 1999 (EPBC Act).

Commonwealth Native Title Act.

NT Environmental Assessment Act (EA Act).

NT Mining Management Act (MM Act).

NT Mineral Titles Act and access agreements.

NT Waste Management Pollution Control Act. (WMPC Act).

NT Water Act.

Environment Protection Approval and Licences.

Vegetation clearance permits.

AAPA certificate.

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Tellus supports training, local jobs and business, investment and regional development in regional Central Australia

Chandler - Community engagement in the NT

Create local jobs for Traditional Owners Support local communities (Titjikala Tidy Town)

Support education programs - CDU Support local indigenous programs Site visits for Traditional Owners

Supporting local businesses

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Chandler - Consultation activitiesMethods of engagement

Face to face meetings. Workshops. Presentations – e.g. Major Projects Working

Group. Interviews. Community information sessions. Site visits with key stakeholders. Telephone and email communications. Media releases. Website updates.

14%

17%

12%

10%14%

11%

14%

5%3%

DRAFT EIS CONSULTATION TO DATEFlora & fauna Jobs & training Transport of waste

Waste materials Cultural heritage Human health

Groundwater Surface water Other

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Chandler - Economic and social risk assessment Economic modelling over25 years

Three regions– the local, the NT and Australia

CAPEX ~$676 M (including indirects)

36% in NT (37% local region $216 M)

OPEX ~ $81 M pa

52% in NT (32% local region $26 M pa)

Ave. of $144 M pa over LOP to the GSP of the NT

A Social Impact Management Plan has been drafted for the Proposal.

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Chandler - Gov’t Policies that align with Chandler

Jobs - Local & Indigenous

Training and Skills

Royalties and Taxes Jobs – Women and Youth

Community Investment

Waste Infrastructure ContractingLocal and Indigenous

Innovation

Diversifying the Economy

Asian Trade

Government Environmental and Haz. Waste PoliciesGovernment Social and Economic Policies

Product Stewardship Reg’sWaste oil, asbestos, e-waste, tyres, batteries, mercury, medicines

Sustainability

Environmental Protection Reg’sMinimise adverse impacts on environment and human health and meeting national and international obligations

Haz. Chem. (OHS Reg’s) Reduce OHS risk in the workplace

Transport of Dangerous Goods Reg’sPrevents accidents and promotes safe transport

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Chandler - Working with Tellus

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Bankable contracts: Tier I Primary contract (overarching contract) and Tier II Secondary contract (sub contracts)

A bankable contract is a contract with a risk allocation between the Contractor and the Project Company that satisfies the Lenders.

Lenders focus on the ability (or more particularly the lack thereof) of the Contractor to claim additional costs and/or extensions of time as well as the security provided by the Contractor for its performance.

The less comfortable the Lenders are with these provisions, the greater amount of equity support the Sponsors will have to provide.

In addition, Lenders will have to be satisfied as to the technical risk of the technology proposed and the delivery track record of the contractors.

Price is also a consideration, but that is usually considered separately to the bankability of the contract

Chandler - Bankable contracts?

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What do you need to do to work with Tellus?

Initial engagement is via registration with: Industry Capability Network (ICN) www.chandlersaltmine.icn.org.au or contact ICN NT 08 8922 9422ICN matches projects with potential suppliers

Tier I Primary contract – overarching contract and Tier II Secondary/ sub contracts

Category Business must demonstrate Evidence

Service Track record “deliver on spec, on time, within budget & value add”

Capacity Human resources (experience , A team vs B team, availability) /equipment /supplies

Qualifications (certificates, licences & tickets- current and appropriate)

Financial viability

Insurances -Public Liability, PI, Vehicle, Workers Comp., Damage to Property

Policies (Environ., Quality, OH&S, local content, supporting local people)

Safety management plan and systems

Price Competitive in market comparison, value for money

Terms Contractual terms are acceptable (risk management)

Companies need to demonstrate track record, capacity, price competitive and risk management

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Single point of responsibility (if any problems occur ProjectCo need only look to one party – The Contractor – To both fix the problem and provide compensation)

Fixed completion date

Fixed completion price

No or limited technology risk

Output guarantees

Liquidated damages for both delay and performance (15% -25% of contract value)

Security from the Contractor and/or its parent (bank guarantee 5-10% of contract value, Retention, i.e. withholding a percentage (usually 5%–10%), Advance payment guarantees)

Large caps on liability

Restrictions on the ability of Contractor to claim extensions of time and additional costs.

What do you need to do to work with Tellus?In assessing bankability, Tellus will look at a range of factors like:

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Examples of Local contracts already awarded

Category Service / equipment provided Local

Industrial real estate Shed/ office rental & utilities

Studies - environmental contractors & TO’s Field surveys

Station / Landholders Earthworks machinery, accommodation

Mining service providers Camp and equipment supply

Wholesale fuel distributors Diesel supply

Vehicle rental suppliers Vehicle rental

Freight providers Freight service

Geotechnical contractors Personnel

Camping & safety equipment suppliers Field equipment supply

Helicopter charter service providers Charter flights

Accommodation & food and beverage Hotels, taxis, catering, room hire

Tellus has a commitment to local employment, training and supply of equipment and services

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Chandler - Next steps

Feb 17 – Mar 31 2017 Chandler Draft EIS on public exhibition & Tellus

undertakes detailed public consultations. April 2016 -NT EPA provide Tellus with comments

on Draft EIS April onwards Tellus prepares supplement EIS

End of 2017 Ministerial Approval & Federal Gov Approval

Mid 2018 Completion of BFS, financial close & FID Late 2018 Construction begins Mid 2019 Apirnta Facility operational 2021 Chandler Facility operational

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Summary informationThis presentation (‘Presentation’) has been prepared by Tellus Holdings Ltd (ABN 97 138 119 829) (‘Tellus’) and is for information purposes only. This Presentation contains summary information about Tellus and its subsidiaries and their activities current as at the date of this Presentation.The information in this Presentation is of general background and does not purport to be complete or comprehensive, and does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with other periodic announcements on www.tellusholdings.com.au.

FutureperformanceThis Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements,opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions, and independent third party expertise. Such forward-looking statements,opinions, and estimates are not guarantees of future performance.

Not an offer and not investmentadviceThis presentation does not constitute an offer, invitation, or recommendation to subscribe for or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract orcommitment.

This presentation is not a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) and has not been lodged with the Australian Securities and Investment Commission (“ASIC”). The information provided in this presentation is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs. Those individual objectives, circumstances and needs should be considered, with professional advice, when deciding if an investment isappropriate.

Risks of investmentAn investment in Tellus shares is subject to investment and other known and unknown risks, some of which are beyond the control of Tellus. Tellus does not guarantee any particular rate of return or the performance of Tellus nor does it guarantee the repayment of capital from Tellus or any particular tax treatment. Information on key risks is contained at the end of this Presentation.

Not for distribution or release in the United StatesThis presentation has been prepared for publication in Australian and may not be distributed or released on United States.This presentation does not constitute an offer or shares for sale in the United States or in any other jurisdiction in which such an offer would be illegal.

Disclaimer