QEM LimitedInitial Public Offering Roadshow
Disclaimer
Key Figures
Tonnes @ 0.34% V2O5
1.7bV2O5 In High Grade Intercepts
0.74%Benefication Upgrade
2.5x
Over Up to Up to
Project Overview
Julia Creek Transport Stage 1 Complete
Project Overview
Uses OfVanadium
Applications
Of Vanadium
STEEL MANUFACTURING
ENERGY STORAGE
AUTOMOTIVE
AEROSPACE
Vanadium Outlook
Source: Bloomberg
VanadiumComparables
How do we compare?
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Comparable Projects
Inferred Resource (Mt) (LHS) V2O5% (RHS)
($965.3m) ($32.1m) ($103.8m) ($75.0m) ($351.9m) ($20.0m) ($105.4m)
Data current 12/07/2018, Collated by QEM Management
CapitalStructure
Market Cap
Alignment
LiquidWell Priced
Well-priced given size, quality
& location relative to peers.
Existing Shareholders 55M 55%~50M, 24 Month
Escrow
Conversion of Notes 10M 10% 24 Month Escrow
Conversion of Notes 10M 10%5M, Escrowed 12
Months
IPO Investors 25M 25% No Escrow
Board of Directors
John Foley Daniel Harris David Fitch Ben Cooper
KeyInvestmentConsiderations
World Class Resource
Global Vanadium Deficit
Attractive Relative Valuation
Attractive IPO
Who To Contact
David Fitch
Executive Director
0400 631 608
Vested Equities
Lead Manager
1300 980 849
13
Appendix
Additional Information
Appendix AResource Details
Julia Creek Project The Julia Creek Project provides opportunity for a world class vanadium & oil shale mine
Key Facts
• Julia Creek Project is comprised of 3
exploration permits EPM25662,
EPM24681 and EPM26429 (See Source A).
• 100% Ownership.
• Advanced stage for a private company.
• Close to all infrastructure and services.
Method
• Given the resources are located very
close to the surface – QEM intends to
pursue development of a standard
open cut mining method.
Resource
• 2018 Upgrade of total JORC Inferred
resource by 35% to 1,700 million
tonnes;
• V2O5 @ 0.34% and oil content 64l/t.
Table 1. Tenement Overview
Tenement Commence Date Expiry Date Area Km2
Minimum
Expenditure
Commitment
EPM25662 23/01/15 23/01/20 134.54 $647,470
EPM25681 6/03/15 06/03/20 6.41 $254,500
EPM26429 16/03/17 16/03/22 35.24 $318,000
Julia Creek Mineral Resource OverviewThe Julia Creek Project contains an Inferred
Mineral Resource of 1,700 Mt @ 0.34% 𝑽𝟐𝑶𝟓
Total
Resource
ClassStrat Unit Mass (Mt)
Average
Thickness
(m)
Insitu
Density
(gm/cc)
V2O5
(wt%)
Cu
(ppm)
Mo
(ppm)Ni (ppm)
Zn
(ppm)
Inferred
CQL 811 3.39 2.12 0.38 242 247 226 1329
OSU 454 1.77 2.10 0.31 241 146 193 1221
OSL 445 1.81 2.13 0.29 223 127 170 1098
Total 1700 2.12 0.34 237 190 203 1241
Total
Resource
Class
Strat
UnitMass (Mt)
Average
Thickness
(m)
Total
Moisture
wt%
Oil Yield
(L/tonne)
Oil Yield
LT0M
MMBarrels
(insitu-PIIP)MMBarrels 3C
Contingent
CQL 811 3.39 8 62 63 298 268
OSU 454 1.77 10 72 74 191 172
OSL 445 1.81 10 63 65 165 149
Total 1700 9 64 67 654 589
Summary of Mineral Resources as at 31 May 2018
Note: The total resource tonnage reported is rounded to reflect the relative uncertainty in the estimate and component horizons may not sum
correctly.
Summary of Contingent Oil Shale Resources as at 31 May 2018
Notes:
The estimate uses a minimum cut-off oil yield of 40 L/tonne, rounded down to nearest million tonnes.
The total resource tonnage reported is rounded to reflect the relative uncertainty in the estimate and component horizons may not sum correctly.
There are no 1C or 2C Resources as the current points of observation (drill hole spacing) of the oil shale grade is insufficient to place reliable
confidence on both grade and thickness continuity required for 1C or 2C Resources.
Project Milestones QEM is well progressed, with Completed Stage 1 exploration and Scoping Study
Key Milestones
Year Description
2014 Initial techno-economic report completed
2015 Initial exploration complete with large JORC(2012) inferred resource target
identified.
Positive metallurgy showing viability of project using know processes for
V2O5 extraction
2016 Scoping Study for vanadium only completed
Initial financial modelling complete, showing strong potential for economic
viability
Positive test results using supercritical water for hydrocarbon production from
oil shale (ATSE Grant)
No Native Title Issues, the project was deemed self assessable for Native Title
2017 Project implementation Study & Process Design Report
Positive metallurgy & beneficiation testing
Acquisition of EPM 26429 – granted Feb 2017
Addition of Daniel Harris to team as Chief Advisor
MOU signed with Petroteq Energy Inc USA
2018 JORC (2012) Resource Upgrade to 1700Mt @ 0.34% V2O5
Daniel Harris joins Board of QEM as Non-Executive Director
Engagement with brokers for ASX Listing Q3 2018
2016 Scoping Study Highlights
✓ Large JORC resource of over 1.326 Mt
✓ Simple open pit design 16% site coverage
✓ All infrastructure within project area including; road, rail, water, gas,
telecommunications and fibre optic cable
✓ Strong Price growth forecast for all vanadium products
✓ Domestic oil supply shortage in Australia
✓ Government & Local support for developing Queensland industry
✓ Warrants next stage of exploration and development
Objectives for 2018-20192018: IPO slated for Q3 2018 to raise $5m.
2019: Stage 2 exploration and pre-feasability studies.
Stage 2 Explorations Pre-Feasibility Studies Capital markets
• Further 3000m of drilling:
• Upgrade resource from Inferred to
Indicated/Measured.
• Increase resource base with inclusion
of EPM26429.
• Landowner engagement &
compensation .
• Target $5M IPO 3Q18.• Advance metallurgical &
mineralogical test work.
• Advance research into processing
options & testing.
• Oil Shale testing at USA lab.
• On-site and off-site infrastructure
studies.
• Environmental monitoring & EIA
submission.
• Geotechnical and hydrological
assessments.
• Upgrade mine design & modelling.
• Preliminary Civil Engineering studies.
• Process engineering design.
Appendix BVanadium Overview
Vanadium Redox Batteries Strong worldwide focus on renewable energy storage is set to be a very strong driver of growth for vanadium.
Key Drivers Figure 6. Vanadium outperforms its nearest competitor lithium. Renewable energy storage is set to be strongest key growth driver.
Recent Growth Momentum
• Governments & businesses globally are heavily
investing in renewable energy & storage – sending
strong market signals.
• Massive upside case with continuing growth in steel
and focus upon renewable energy storage.
StrongProjections
• Global energy storage market is forecast to be US$50
billion by 2020 with vanadium redox batteries (VRBs)
expected to account for 34% or approximately
US$17 billion (Lux Research)
Competitive Advantage
• Higher levels of safety & stability.
• Proven, reliability, scalability & durability.
• Load levelling function, removing the need for
expensive gas peaker plants.
• Long term cost advantage over competitors
Vanadium Redox Batteries vs. Lithium Batteries
Number of Cycles
Low Self-discharge
Low Environmental Footprint
Highly Expandable
Generates Low Levels of Heat
Charges & Discharges Simultaneously
Can Release Energy Instantaneously
Suitable for Connection to Power Grid
Small Footprint
CAN BE COMPLETELY RECYCLED
Source: https://www.energyandcapital.com/articles/the-best-thing-since-lithium/1531
Vanadium – Aerospace IndustryAir transport is becoming more accessible to the global population.This is creating demand pressure for more aircraft and correspondingly, vanadium.
Figure 10. Increasing aircraft deliveries will increase demand for vanadium.
• Increased aircraft are required to service larger
addressable air-travel market.
• Both Boeing & Airbus both forecast annual global air
traffic growth between 2016 and 2035 of nearly 5%.
• This growth will bring about the need for construction
of 70,000 new aircraft (on order), valued at US$5.2
trillion.
Increase aircraft deliveries
Global Economics
Increasing vanadium in aircraft
• Latest aircraft models (Airbus A380 and A350XWB)
now require 20% more vanadium than that of older
aircraft models. 75-100+ tonnes required per aircraft.
• All Jet turbines are made of vanadium-titanium-
alluminium alloys.Source: Roskill 2017 Report
Information on this slide sourced from: “Airbus beats Boeing in order war” The Australian, Friday, July 15 2016
Vanadium – Automotive Industry The rise of vanadium in the automotive industry is driven throughi) changing preferences and ii) ‘light alloy’ benefits.
Changing preferences
• Changing consumer demands are driving the rise in electric cars
due to i) economic factors and ii) environmental concerns.
• Vanadium when combined with lithium creates a “supercharged
battery” – demand expected to increase with rise of electric cars.
‘Light Alloy’ benefits
• Due to vanadium’s characteristics of being a ‘light alloy’ – will
decrease cars weight and increase fuel efficiency.
• Projected by 2025 – 85% of all cars will incorporate vanadium
alloy.
Figure 8. Surging electric car demand will provide another application for vanadium.
Figure 9. Strong projections of 6.81% CAGR is seen as a steady growth driver in the automotive industry.
Source: Roskill 2016 Report
Source: Bloomberg
Market OverviewSupply squeeze: global vanadium consumption exceeded supply by ~9,700t in 2017
Price increased320% since Jan 2017DEMAND SUPPLY
The ~34% annual growth in the energy storage sector is expected to be a key vanadium demand driver
• Growth occurring in all sectors related to vanadium
consumption including: steel, energy storage,
chemicals, catalysts and recently ‘smart glass’ which
uses vanadium to control temperature and light
exposure
• Vanadium demand is primarily driven by the global
steel industry in the manufacturing of alloyed steel
and reinforcing steel or rebar
• The energy storage sector, where Vanadium Redox
Flow Batteries (“VRB’s”) are utilised, currently
accounts for 3% of vanadium consumption
Regulatory change in China is putting further pressure on vanadium supply worldwide
• Global production in 2017 was around 83,180t.
• Vanadium production is dominated by China (~44%)
followed by Russia (~10%) and South Africa (~10%)
• Large structural changes have occurred in the
vanadium industry over the past few years
• In China, key changes includes rebar to Grade 3,
closing of a large number of stone coal production due
to environmental concerns and restrictions on
importing slags
Market research firm Roskill (2016) predicts that by 2020 there will be a 45% increase in vanadium demand.
Information on this slide sourced from Vanitec Market Report; February 27th, 2018. Authored by Terry Perles: TTP Squared Inc. http://vanitec.org/
Market Supply-Demand trends Despite supply increases, a market
squeeze has arisen.
Supply increases
Supply has increased at ~10.3% CAGR
from 2012-2017Demand exceeded supply by ~9,700t
Failed to meet demand
Reference Roskill 2017
Strong Vanadium price growthVanadium was among the best performing commodities of 2016 & 2017.
During March quarter 2017, the V₂O₅ price increased to a range of USD$5.40/lb and USD$5.80/lb at 31 March.
By August 2017, the price increased to a range of USD $9.00/lb and USD$13.00/lb.
Todays price for 98% V₂O₅ is USD $18.60 in China & USD $18.45 Europe (Current 17 July 2018).
Best performing commodities of 2016Price of vanadium pentoxide 98% min China USD/lb – from October 13, 2006
Source material: Vanadium Price website, Palisade Global Research & Metal Bulletin reports throughout the year, compiled by QEM
Appendix CMarket Analysis
Market Analysis - ComparablesVanadium has outperformed other comparable resources, with momentum expected to continue.
Vanadium Supply & Demand Outperformed Rivals
• Vanadium price & demand has outperformed other
comparable resources including cobalt, lithium, nickel and
lithium.
• Projected market conditions will keep prices strong
Figure 11. Vanadium Production v Consumption.
• Increasing demand factors & lack of current supply
substantiate future projections and momentum in vanadium
is set to continue.
• Market deficit of ~ 9700t as of Jan 2018
Figure 12. Vanadium outshines other battery metals
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