gemc corporate presentation pre-ipo dec. 2016

GLOBALENERGYMETALSCORP.”PoweredbyCobalt–DrivenbyDemand”

Pre-IPORoadShowDecember2016(TSXV:GEMC)

FORWARDLOOKINGSTATEMENTSThe informa:on contained on this presenta:on is provided solely for the reader's generalknowledge. The informa:on is not intended to be a comprehensive review of all maIers anddevelopments concerning Global Energy Metals Corp. All informa:on is offered on a "bestinten:ons"basis.Nosecuri:escommissionorotherregulatoryauthority inCanadaoranyothercountry or jurisdic:on has in any way passed upon this informa:on and no representa:on orwarrantyismadebyGlobalEnergyMetalsCorp.tothateffect.GlobalEnergyMetalsCorp.isnotresponsible for the content of sites that can be reached through links on this site. Thispresenta:onmayinclude"forwardlookingstatements".Allstatements,otherthanstatementsofhistorical fact, included herein, including without limita:on, statements regarding explora:onresults,futureplansandobjec:vesofGlobalEnergyMetalsCorp.areforwardlookingstatementsthatinvolverisksanduncertain:es.Therecanbenoassurancethatsuchstatementswillprovetobeaccurateandactualresultsandfutureeventscoulddiffermateriallyfromthosean:cipatedinsuchstatements.

GlobalEnergyMetalsCorp.doesnotmakeanyrepresenta:ons,warran:esorguarantees,expressor implied, regarding the accuracy, completeness, :meliness, non-infringement, ormerchantability or fitness for a par:cular purpose or use of any informa:on contained in thispresenta:onorofanyinforma:onavailableonwebsitesthatareaccessiblebylinksfoundonthissite.Furthermore,theinforma:oninnowayshouldbeconstruedorinterpretedas,orasapartof, an offering or solicita:on of securi:es. Investors are advised to discuss all of their stockpurchaseswitharegisteredsecuri:esbrokerorpersonalfinanceprofessionalprior to inves:ng.Noobliga:on,responsibilityorliabilityshallbeincurredbyGlobalEnergyMetalsCorp.oranyofitsofficers,directors,employeesoragentsforanylossordamagewhatsoever,whetherincidental,special,indirect,consequen:al,puni:ve,exemplary,orforlostprofitsinconnec:onwith,causedbyorarisingfromanydelays,inaccuracies,errorsoromissionsinorinfringementby,orfromanyuseof,orrelianceonsuchinforma:onavailableonthiswebsite,thelinkstoothersitescontainedinthispresenta:onnoranyinforma:onavailableonsuchsites. 2

GLOBALENERGYMETALSCORP.

•  Demand for baIery, storage and power deliverysystemswillcon:nuetodrivedeficitsinsupplyofkeybaIerymetals–lithium,cobalt,graphite,vanadium.

•  Global Energy Metals Corp. (“GEMC”) has beenfounded on carefully forged rela:onships with themajorbaIerycomponentproducers.

•  GEMCisuniquelyposi:onedto iden:fy,acquireandadvanceprojectsandothersourcesofsupplyforendusers.

THEOPPORTUNITY–ANEWCOBALTANDBATTERYMINERALSSUPPLIER

3


•  94% of cobalt mined is as a byproduct of nickel andcopper

•  65% of the world’s supply mined in conflict-strickenDemocra:cRepublicofCongo(DRC)

•  80% of China’s cobalt being sourced from the DRC’scopperopera:ons

•  Chinalockingupthesupplychain•  BaIerycomponentmakersshowinganinterestinlockinginpricesandvolumeandneeddiversifica:onandsecurityofsupply

•  Thereareveryfew“primarycobalt”projects•  Aworld-leader supplier of cobaltmust aggregate supplyfromvarioussourcesincludingprojects,streams&okake

THECOBALTSUPPLYPROBLEM-THEBIGGESTBATTERYCHALLENGE

4


•  GEMC has layered onto its corecommercial rela:onships within thesupply chain the strongest execu:onteam in baIery metals projectexplora:on,developmentandsupplychainresearchandanalysis.

•  With Werner Lake Cobalt Project asits founda:on,GEMC’sstrategy is toaggregate cobalt supply for our endusers.

•  Enormous poten:al to grow into asignificantcobaltsupplierintheshortterm.

THEGEMCSTRATEGY–AGGREGATOR&SUPPLIER

5

$4Mmarketcap

26.9Missued&outstanding

$0.15pre-IPOfinancing

11.7Mwarrants

$1.6Mfundsraised

2.66Mop:ons

36.1%insiderownership

41.3Mfullydiluted


SECTOROPPORTUNITY-MOMENTUM

“Globaldemand forprimaryandsecondarybaIeries is forecast to rise7.7percentperyearto$120billionin2019.”TheFreedoniaGroup

“Howthe industrydealswithanexpectedsurge indemandwillbecri:caloverthecomingyears. Weexpectthistobeginin2016andit is likely to intensify in 2017/18,with limited new supply on themarket and baIery producers increasing their consump:on.”AndrewMiller,BenchmarkMinerals

“In addi:on to Tesla, there are at least a dozen baIerymanufacturers with numerous others rushing to join and capturegrowing market share. It is clear that security of supply of rawmaterials–cobalt,lithium,nickelandgraphite–willbeamajorissuegoingforward.”ChrisBerry,HouseMountainPartners

6


•  Investors are searching for opportuni:es with a highly experiencedmanagementteamswhounderstandthesupplychain.

•  Our 100% owned Werner Lake Cobalt project is the most advancedCanadianprimarycobaltprojects.

•  AdvancingWernerLakeasafounda:onandsecuringaddi:onalsourcesofsupplyandprojectsthroughournetworkwillbethenextsteps.

•  Pre-IPO funding closed, GEMC has commenced an immediate workprogram.

•  GEMC is currentlynegoUaUnganumberofprojectandother supplyopportuniUes.

GEMC:TAKINGADVANTAGEOFTHISDISCONNECT

7


8

FOUNDATIONPROJECT:CANADA’SONLYADVANCEDPRIMARYCOBALTPROJECT•  GEMC’Sfounda:onprojectconsistsofthehistoricWernerLakeandWernerLakeWestcobalt-

copper-goldmines•  TheprojectlieswithintheWernerLakeBelt,thatalsohoststhehistoricGordonLakecopper-

nickelmine•  ThepresentdayprojecthoststhetwoformercobaltproducersandseveralotheraIrac:ve

explora:ontargets•  TheWernerLakeMineproduced146,386lbsofcobaltfrom1940to1944•  TheWernerLakeWestMineproducedapproximately10,000tonnesofcobaltorebetween1996

and1997underthedirec:onofCanmineResourcesCorpora:on•  Significantopportunitytoincreaseexis:ngresourcewithplannedexplora:onandextension

programTonnes Cobalt(%) Copper(%) Gold(opt)

ProvenReserves* 140,031 0.47 0.26 0.008

ProbableReserves* 40,829 0.25 0.43 0.030

Total* 180,860 0.42 0.30 0.013

IndicatedResources* 51,456 0.13 0.20 0.003

InferredResources* 869,378 0.29 0.28 0.011*Thehistoricalresourcees:matesatWernerLakearenotbeingtreatedasamineralreserveormineralresource.Keyassump:ons,parameters,andmethodsusedtopreparethehistoricales:matesarenotknown.Aqualifiedpersonhasnotdonesufficientworktoclassifythehistoricales:mateasamineralresourceormineralreserve.Addi:onaldrillingandtes:ngisrequiredtodetermineacurrentclassifica:onasamineralresourceormineralreserve.TheCompanyisnottrea:ngthehistoricalinforma:onasacurrentmineralresourceormineralreserveandthereaderiscau:onedtonotrelyuponthisdata.


9

WERNERLAKEBELTLOCATION

LakeWinnipeg

Lake of theWoods

WinnipegLac du Bonnet

Kenora

ONTARIOMANITOBAMINNESOTA

WERNER LAKE PROJECTCaribouFalls GrassyNarrows

10 10 20 30 40 50020 KILOMETRES

Minaki

Canadian Pacific Railway

Canadian Pacific RailwayCanadian National Railway

12

71

315

1

Werner Lake ProjectKenora Mining District, NW OntarioGlobalEnergyMetals


10

WERNERLAKEBELTPHASEI&IIDRILLRESULTS

Completed:•  1.21%cobaltover12.30metres•  High-gradeinterceptofover12%cobaltover0.90metres•  High-gradeinterceptsassociatedwithanomalousCu,NiandAuvalues•  Over12%CoreturnedinholeWL10-004showingazoneofmorethan5%

sulphidesinperido:tewithpor:onsthatcarryfrom5to45%sulphides•  Discoveryofhighgradeeasternextensionof800metresfromWernerLake

cobaltdeposit•  7,565mofdrillingin31holesoverthewinterandspringof2009-2010NextSteps:•  UpdateandcompleteaNI43-101compliantresourcees:ma:on•  Conductmetallurgicaltestworkthatwoulddeterminetheprojectsviabilityto

procurebaIerygradecobaltchemicals


11


Granitoid Rocks (undivided)

Mafic Gneiss & ultramafic-mafic intrusions

Metasedimentary migmatite assemblage

Werner-Rex Lake Fault

Magmatic Ni-Cu-Cr-PGE deposits

Co-Cu and Co skarnoid deposits

Remobilised sulphide deposits

Werner Lake Mine

Gordon Lake Mine

Norpax

Deposit

East Werner

Lake

km

40

Location of Mineral Deposits in the Werner Lake Belt

Proposed Airborne Geophysics Survey

Eastern Shallows AREA OF PROPOSED AIRBORNE GEOPHYSICS

GlobalEnergyMetals


12


Metasedimentary RocksGranitoid IntrusionsTonalite-Trondhjemite-Granodiorite IntrusionsUltramafic RocksMigmatitesAmphibolite & Alteration

RoadsCo-Cu-Au MineralisationFault

km 2500Limit of Mapping

Limit of Mapping

Werner Lake ProjectSimplified Geology, Mine Sites and Showings

Werner Lake West Old Mine SiteEast Zone

GlobalEnergyMetals


13


*Thehistoricalresourcees:matesatWernerLakearenotbeingtreatedasamineralreserveormineralresource. Keyassump:ons,parameters,andmethodsusedtopreparethehistoricales:matesarenotknown.Aqualifiedpersonhasnotdonesufficientworktoclassifythehistoricales:mateasamineralresourceormineralreserve.Addi:onal drilling and tes:ng is required to determine a current classifica:on as amineral resource ormineral reserve. The Company is not trea:ng the historicalinforma:onasacurrentmineralresourceormineralreserveandthereaderiscau:onedtonotrelyuponthisdata.

350 m

150 m

50 m

Werner Lake Idealised Longitudinal Section

(Looking North)

200m

250 m

West East

Surface

Werner West ZoneOld Mine Site

Historic Resource Area

Recent Drill Hole10-019

0.028, 0.5073.3

0.120, 0.5601.4

0.05, 0.460.80

1.21, 0.2212.3

09-001

10-005

09-002

10-00410-003

10-006

10-00810-012

10-007

10-01910-02310-020

10-011

10-00910-010

10-028

10-018

10-021

10-025 10-027

10-030

10-026

10-032

10-024

10-022

10-013 10-017 10-01510-016

10-02910-033

10-031B

10-0140.14, 0.38

3.1

0.124, 4.3461.2

0.04, 0.201.9

0.012, 0.3230.4

0.102, 0.2662,4

0.10, 0.374.3

0.011, 0.3820.9

0.053, 0.1591.2

0.122, 0.2410.9

0.377, 0.1351.6

NSRNSR

NSR

0.011, 0.4311.3

0.020, 0.2340.9

NSR

0.025, 2.434.9

0.289, 0.0964.7

0.288, 0.1561.1

NSR

NSRNSR

0.279, 0.0852.7

0.039, 0.4221.4

0.007, 0.1421.0

0.017, 0.2743.0

0.196, 0.1452.8

NSR% Co, % Cum

GlobalEnergyMetals


•  Wehaveiden:fiedaspecifictargetlistofprojectsandsupplyopportuni:estobepursuedaggressivelyoverthenext18to24months.

•  The target list includes long-life deposits and high quality mines, as well asstreamingandokakeopportuni:es.

•  Thesetargetprojectsaregenerally latestage,nearproduc:on, inproduc:on,or with a defined resource that can be rapidly advanced over the next fewyearsthroughtechnicalandcommercialpartnershipwithoff-takegroups.

•  Earlierstageexplora:onprojectswithgoodpoten:alforlargescaleresourcesarealsobeingconsidered.

•  GEMC is considering full buyouts, equity interests or controlling posi:ons intargetedprojectsdependingonthesitua:on.

•  We will also evaluate streaming opportuni:es in rela:on to stable, reliablesuppliesofby-productcobalt.

•  AshortlistoftheseprojectsisavailableunderNDA/CA

SECTOROPPORTUNITY–TARGETLIST

14


•  Theenergystoragerevolu:onispropellinghighdemandforthekeybaIerymaterials.

•  Duetothecon:nueddownturninthecommoditysector,thereareuniqueopportuni:estoacquireabankofbaIerymaterialsandprojectsfarbelowvalue.

•  BaIery giants are scaling up lithium-ion baIery produc:on with“megafactories” and are ac:vely acquiring rawmaterials through okakeagreements.

•  Experiencedteam,okakerela:onshipsandunderstandingofsupplychainarekeyingredientsforsuccess.

AUNIQUEMOMENTINTIME

15


•  One of the most experienced cobalt and baIery metals teams in NorthAmerica

•  FoundedbyexpertsinenergyandbaIerymetalsindustryandsupplychainwhoareshapingthesector’sfuture

•  Management and Advisors with understanding of supply chain, cri:calmetallurgicalissues,projectanalysisandprojectfinance

•  Interna:onalandAsianfocused

TEAM-BATTERYMETALSMARKETEXPERIENCE

16


THETEAM-EXECUTIVEMANAGEMENT

17

BACKGROUND&EXPERIENCE

ErinChuYerExecu&veChairperson&

Director

•  Leaderinunderstanding,advancingcobaltprojects;interna:onalminingandbusinessexperienceinCentralAsia,ChinaandRussia.

•  Exper:seinmanagement,finance,M&A,strategyandopera:onsandinvolvementwithChinesebaIerymanufacturerswithinnova:veokakeandfinancemechanisms.

•  Government•  ChairoftheCanadianEurasianBusinessAssocia:onandDirectorMacDonaldLaurierIns:tute.•  HonouraryConsul(BC)toRussianFedera:on•  DirectorofKhotInfrastructureHoldingsLtd.,aCSElistedinfrastructurecompany,andformer

directorofNioCorpDevelopmentInc.,aTSXlistedminingcompany;formermanagerwithPlatniumGroupMetals,MagSilver,WestTimminsMining.

•  Ms.ChuIerwasrecognizedwitha2011BusinessinVancouver“Top40Under40”achievementaward.

MitchellSmithPresident&CEO

•  Accomplishedexecu:veandbusinessdevelopmentprofessionalwithdeepexperienceandprovensuccessdevelopingandexecu:ngoncorporatestrategies,marke:ngrela:onshipsandmaximizingbusinessopportuni:esforlong-termengagementandstrategicrela:onships.

•  Profoundunderstandingofthenaturalresourcessector,capitalmarketsandcurrentmarkettrendspar:cularlywithinthebaIerymetalsspace.

•  PriortobeingappointedPresident&CEOofGlobalEnergyMetals,Mr.Smithheldincreasinglyseniorposi:onswithpreviouscompaniesincludingGlobalCobaltCorp,Interna:onalBarytexResourcesandPetaquillaCopperLtd.

PaulSarjeantVPProjects&Director

•  Mr.Sarjeant,P.Geo,hasextensiveexplora:on,projectevalua:onandacquisi:onexperiencebothinCanadaandinterna:onallyandhasdevelopedasolidbackgroundincompanymanagementthroughvariousexecu:vemanagementposi:onswithseveralpubliclytradedjuniorresourcecompanies.

•  Mr.SarjeantbeganhiscareerwithEchoBayMinesLtd.asaprojectgeologistworkingonprojectsintheNWT,Archeangreenstonebelts,LupinMineperipheralproject,andskarnproper:esinBCandEcuador.

•  HewasappointedSeniorGeologist,Interna:onalExplora:onGroup,responsibleforprojectevalua:onoutsideofNorthAmerica,includingpreciousandbasemetalsprojectsinSouthAmerica,EastAfrica,SouthEastAsia,Russia,Mongolia,Australia,NewZealandandEurope.


THETEAM–DIRECTORS

18


RayCastelliDirector

•  Mr.CastelliwasappointedCEOofWeatherhaven,oneoftheworld'sleadingmanufacturersofredeployablecampsandsheltersystems,inJanuary2008.

•  WeatherhavenhasgrowntobecomeakeysuppliertotheCanadian,US,AustralianandNATOarmedforces,numerousresourceexplora:oncompaniesaswellastheUnitedNa:onsandotherdisasterandhumanitarianreliefagencies.

•  Mr.Castelliwasco-founderandSeniorVicePresidentofQuadrem,aDallas-basedglobalsupplychainande-procurementcompany,serving19oftheworld'slargestnaturalresourcecompanies,includingRioTinto,BHPBilliton,AlcanandInco.Hisrolewastobuildtheglobalorganiza:onandproductsetforthise-businesspioneer.

•  Mr.CastellijoinedAlcanin1995followingbusinessschoolinEurope.HewaspromotedtoAlcan'sMontrealheadquartersin1997asDirectorofStrategicPlanning.

GastonReymenantsDirector

•  Mr.Reymenantshasheldadis:nguishedcareerinmining,smel:ng,refiningandmetaltradingspansoverfortyyears,duringwhich,hewasalsoresponsibleforthefinancingofseveraloff-takeprojectsinAustralia,ChinaandtheAmericas.

•  Hehasservedover20yearswithFalconbridgeInterna:onalinvariousmanagerialposi:onsandwaspartofthejointventurewithNorilskKombinat.

•  Mr.ReymenantswasthemanagingdirectorofKolaInterna:onalMurmansk,andhelddirectorand/orseniormanagerialposi:onswithseveralcompanieswithcobaltassetsincludingBajaMining,PolymetMiningandKCM.

•  Mr.Reymenants’wealthofknowledgeinthecobaltandindustrialmetalssectorswillproveanexcellentresourcetoGlobalEnergyMetals.

PeterReynoldsDirector

•  Mr.ReynoldshasbeenengagedbyEBRDtocarryoutreviewsofEBRD'sinvestmentsforseveralprojectsinMongolia,CentralAsiaandRussiaandwaspreviouslytheEBRD'snominatedDirectorontheBoardofIMHL.

•  Mr.Reynoldsholdsprofessionaldesigna:onswiththeAustralasianIns:tuteofMiningandMetallurgy,CanadianIns:tuteofMiningandtheAustralianIns:tuteofCompanyDirectors.

•  Hehasover45yearsexperienceinthemineralsindustry,withhigh-levelexperienceatvariousminesincludingbeingformerlyManagerofOpera:onsPlanning&MineProjects/ManagerMineBusinessImprovementforBHPBillitonatOlympicDam,ManagingDirectorofASXlistedMarlboroughResources,DirectorofASXlistedOutbackMetalsandmanagerofseveralofNormandyMining’sopera:ons.


THETEAM–PARTNERS

19


JamesGilbertPartner

•  Jimhas20+yearsofminingandmetalsinvestment,financingandtransac:onexper:se,acquiredinadvisory,execu:veleadershipandgovernancerolesinbothpublicly-listedandprivatecompanies.

•  Hisexperienceincludesthestructuring,nego:a:onandclosingofbaseandpreciousmetalsprojectfinancingtransac:ons,forsingleandmul:-sponsorprojectstotallingbillionsofdollars,aswellastheunderlyingjointventurearrangementsamongprojectsponsors--includingstrategicpartnersandokakers.

•  Hehasalsoexecutedcorporateandassetlevelmergersandacquisi:ontransac:onsinvolvingminingcompaniesandprojectsinNorthAmerica,La:nAmerica,EuropeandAfrica.

•  Jimhasheldseniorlevelposi:onswithFirstPointMineralsCorp.,MineraS.A,GeraldMetalsInc.andRothschild’sminingandmetalsinvestmentbankinggroup.

ChrisBerryPartner

•  Chrisisawell-knownwriter,speaker,andanalystwithafocusonenergymetalssupplychains,specializinginlithium,cobalt,andgraphite.•  Heistheco-authorofanewsleIerfocusedondiscoverycalledTheDisrup:veDiscoveriesJournal.•  Hewasamemberofagroup,whichco-foundedTheDiscoveryInves:ngScoreboard,aprogramdesignedtousecrowdsourcedinforma:ontorank

equi:esofvariousmarketcapitaliza:ons.•  Chrisspent15yearsworkingacrossvariousrolesinsalesandbrokerageonWallStreetbeforedevo:nghiseffortstowardsmacroeconomicandnatural

resourceanalysis.•  HeholdsanMBAinFinancewithaninterna:onalfocusfromFordhamUniversity,andaBAinInterna:onalStudiesfromTheVirginiaMilitaryIns:tute.

StromcrowCapitalJonHykawy&

TomChudnovskyPartner

•  StormcrowCapitalisaTorontobasedresearch,consul:ng,andcapitalmarketsfirm,whichfocusesheavilyonnicheindustrialmaterialsthatarecri:calinenergyandtechnologyapplica:ons.

•  TheprincipalsatStormcrowbringdeeptechnicalandmarketexper:seinlithium,cobalt,graphite,:n,andothers.•  Asformerseniormembersofvariousinvestmentbankingins:tu:ons,theprincipalsalsobringastrongprofessional,clientandstrategicnetwork,which

willbecri:calinhelpingGlobalEnergyMetalsachieveitslongtermobjec:ves.JonHykawy,PhD(Physics),MBA•  15+yearsofcapitalmarketsexperienceasSeniorAnalystorHeadofResearchatindependentTorontoinvestmentbanks•  ChalkRiverNuclearLaboratoryofAECL•  SudburyNeutrinoObservatoryTomChudnovsky•  10yearsofInvestmentBanking,Ins:tu:onalSales,andIns:tu:onalAgencyTradingexperience•  Tom'spastcapitalmarketsexperienceincludebeingVP,InvestmentBankingatByronCapitalMarkets,VP,Ins:tu:onalEquitySalesatByronCapital

Markets,Ins:tu:onalEquityTraderatBlackmontCapitalandIns:tu:onalEquityTraderatClarusSecuri:esInc.

NewTigersConsulUngWeiQianPartner

•  ExcellentChinesebaIerymarketsectorrela:onships.•  NewTigersConsul:ngLimitedandWeiQianhavenego:atedandexecutedokakeandfinancialarrangementsforvariousresourcefocusedgroups.•  WorkswithastrongnetworkofbaIerymetalscompaniesandprofessionalsinBeijing,GreaterShanghaiarea,Shenzhen,Australia,Canada,Irelandand

theUSA.•  Since1997,hehasprovidedinterna:onaltrade,businessandmarketstrategyhasbuiltareputa:onforoutstandingresultsacrossarangeofservices

speciallytailoredtoforeigninvestmentandcompanyforma:oninChina.


CONNECTWITHGEMC

CORPORATEOFFICETHESUNTOWER#1501–128WESTPENDERST.VANCOUVER|BC|V6B1R8+1(604)688-4219WWW.GLOBALENERGYMETALS.COM

CONTACTSMITCHELLSMITH–PRESIDENT&[email protected]–CHAIRPERSON,[email protected]

@EnergyMetals linkedin.com/in/globalenergymetals


THEOPPORTUNITY–BATTERYMETALSSUPPLY

Upstream Downstream

BaIerySupplyChainSchema:c

BaIeryMetalsProjects

•  Lithium• Cobalt

• Graphite

BaIeryComponentManufacturers

Cathodes

Anodes

SPECSSPECS

BaIeryProducers

KeyGEMCRela:onships

21


22

IT’SNOTJUSTLITHIUMINLI-IONBATTERIESFACT:Cobaltchemicalsareacri:calcomponentforrechargeablebaIeries•  TherechargeablebaIerymarketisexperiencingrapidgrowthduetothecon:nuedprolifera:onof

portableelectronicdevices.•  Inaddi:ontheemergenceofelectricvehiclesisan:cipatedtofurtherboostthedemandforcobaltin

baIeries•  BaIeryisthesinglelargestuseofcobaltaccoun:ngfor42%ofcobaltdemandandistheprimary

driverofthecobaltmarket

LITHIUMCOBALTBATTERIES:Advanced,HigherEnergyDensity,LighterLithiumCobaltOxide(LCO)

60%CobaltbyWeight

10-20%CobaltbyWeight

9%CobaltbyWeight

BytheYear2020COBALTuseinbaIeryapplica:onsises:matedtobegreaterthanthecurrenten:reworldmarketforrefinedcobalt

LithiumNickelManganeseCobaltOxide(NMC)

LithiumNickelCobaltAluminumOxide(NCA)

22


23

BATTERYMARKETFUELINGDEMANDFORCOBALT

Lithium-IonBaYeries

Darton Commodities Ltd (January 2016) © 32 St Thomas Court, 39 Epsom Road, Guildford, Surrey GU1 3LA, UK

Tel: +44 (0) 1483 579825 Fax: +44 (0) 1483 514177

Vehicle electrification going mainstream... A short impression of just some of the car manufacturers building an xEV future. Recently introduced its full electric Model X and is targeting to reveal the new Model 3 in March 2016, with

production and introduction of the $35,000 model scheduled for 2017. Construction of Tesla's $5 billion Gigafactory is ahead of schedule. First ESS cell production for Tesla Energy products is scheduled for the end of 2016 and first vehicle cell production is now targeted for 2017. Tesla delivered 50,557 Model S cars in 2015 and is aiming to ramp production up to 500,000 cars by 2020 (for a more detailed description of Tesla's Gigafactory and the impact on cobalt we refer to the 2014-2015 version of the Cobalt Market Review).

Scheduled to bring 13 new EV models to market by 2020 and recently announced to invest a further US$4.5 billion to achieve its electrification targets.

Will be introducing four entirely new electric car models to the market starting 2017. At the same time it plans to introduce plug-in hybrid versions for most of the standard models already being in production.

In January 2016, VW's CEO confirmed a fundamental realignment of the group towards electric cars after its latest emission scandal, announcing that there will be at least 20 electric or plug-in hybrid vehicles in the VW Group's model range by 2020 (including Seat, Audi and Skoda).

Have embarked on a radical engineering overhaul which could see all future models from the 3-series upwards become all-wheel drive range extender electric cars, a technology already present in its recently introduced i3 and i8 models.

Is introducing the all electric Chevrolet Bolt in 2017. This car, which is considered to be the first true mass market electric car, will cost around $30,000 and have a 320 km range. Its battery can be charged to 80% in under an hour.

Will be adding plug-in hybrid vehicles across its entire model range. In addition it is developing a whole new line of electrified smaller cars and will build an all-electric car by 2019. The company expects 10% of its global sales to be electric by 2020.

Initially a producer of rechargeable batteries has rapidly developed its New Energy Vehicle and ESS business, becoming the world's largest manufacturer of (plug-in hybrid) electric vehicles by 2015. The company, backed by Warren Buffet's Berkshire Hathaway Inc. is looking to invest in a number of battery production plants which would bring its total capacity to around 34 GWh of ESS and vehicle batteries by 2020, in line with Tesla's intended capacity at its US$5 billion Gigafactory.

The Renault-Nissan alliance has committed around US $5.2 billion into its EV and battery development programs, aiming to become the global leader in zero-emission transportation. Until late 2015, when BYD took over in volume sales, the alliance was the world's largest electric vehicle manufacturer.

The Mitsubishi Outlander was Europe's top selling plug in car in 2015. The company is currently scheduled to launch another three new SUV models as PHEV and EV before 2020.

Is investing Φ1 billion on production facilities to produce its first all-electric sports car. At the same time is aiming to have plug-in hybrid versions of all its models available in the foreseeable future, including a plug-in hybrid of the 911 model which will hit the market by 2018.

The company, a symbol for all things V-12, confirmed it will launch an all-electric Rapide by the end of 2017 and the first plug-in hybrid model soon thereafter. Aston Martin's CEO recently stated that the entire industry will move to electricity as the diving costs of building electric cars coupled with ever increasing emission standards are quickly eroding the advantages of the traditional petrol engine.

Whilst not formally announced, it has become an 'open secret' that both Google and Apple are developing a full electric vehicle. It is believed that Apple is targeting a market introduction by 2019.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2015 2020

LIB Market by Cathode Type(in MT of cathode material)

LCO NMCNCA LMOLFP

> 69,300 MT

42,360 MT Co*

*Figure excludes approx 2,200 MT of Co used in NiMH and NiCd batteries. Source: Darton Commodities Ltd.

Co

: ~

60

%

Co

:~ 1

0-2

0%

Co

: ~

9%

Co

: 0

%

Co

: 0

%

0

100

200

300

400

2015 2020 2025

Rechargeable Battery Market

in GWh

Portable Electronics, Power Tools and E-bike Vehicle ElectrifcationEnergy Storage Systems

Source: Umicore Capital Markets Day, 2 September 2015

Demand –Batteries Really Matter

9

Source: Avicenne (2015)


24

COBALTSUPPLY&DEMANDBALANCE

Lithium-IonBaYeries

Darton Commodities Ltd (January 2016) © 37

St Thomas Court, 39 Epsom Road, Guildford, Surrey GU1 3LA, UK

Tel: +44 (0) 1483 579825 Fax: +44 (0) 1483 514177

3.0 Supply / Demand balance

- Demand growth (5.4%) outpaced supply growth (2.4%), reducing surplus output to approx. 2,000 MT or 2.1% of supply. - Supply / demand balance expected to move into deficit territory from 2016 onwards as net refined production declines. - A projected slowdown in demand is offset by a significantly bigger decline in refined cobalt supply during 2016. - Metal market balance to tighten in 2016 as metal output is scheduled to fall at least 11% from 2015, or 3,750 MT .

The annual surplus of refined cobalt production has trended lower for a third consecutive year, dropping to a five year low in

2015 at approximately 2,000 MT. Several years of production surpluses have contributed to a meaningful stock accumulation

of primarily chemical grades of cobalt, mostly held in China. Restrictions in mined cobalt availability and consequently raw

material supply is likely to curtail refined production growth during the 2016-2018 period which, together with weaker market

conditions, is likely to lead to significant destocking in the Chinese market. With no significant 'new' cobalt bearing mining

projects expected to bring on additional supply before 2018 / 2019, the market is likely to experience a sustained period of

production deficit whereby market demand is likely to outstrip refined production. However, accumulated stocks of both

refining feed materials and refined downstream products and the subsequent destocking thereof would suggest that the

impact of a tightening market may not become apparent until later in the year.

Cobalt - Supply / Demand Balance (2007-2017)

Source: Darton Commodities Ltd. estimates

It should be noted that the forecast for 2016 and beyond is based on the rather pessimistic projection that the rate of

demand growth will continue to see a significant slowdown during 2016, dropping to its lowest level since the crisis year of

2009. At 2.8% it assumes that demand growth from the battery sector drops to less than half the level seen in 2015, with

5.0%

4.1%

-2.1%

12.1%

5.9% 7.0%

5.0%

7.6%

5.4%

2.8%5.7%

6.5%

0.0%

5.8% 6.2%

30.3%

2.3%

-0.5%

8.0%

5.5%

2.4%

-2.2%

5.2%

3.1%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

90,000

95,000

100,000

105,000

110,000

2007 2008 2009 2010 2011 2012 2013 2014 2015(E) 2016(F) 2017(F) 2018(F)MT of Co

Refined Cobalt Supply

Refined Cobalt Demand

S/D Balance

Year-on-year demand growth

Year-on-year supply growth

2007-2015 CAGR:Demand: 5.6%

Supply: 6.7%

2014-2018 CAGR:Demand: 5.5%

Supply: 2.8%


25

COBALTSUPPLYBYPRODUCTTYPE-2015

Lithium-IonBaYeries



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Cobalt metal and coarse cobalt powder producers: • Chambishi Metals (Zambia) - cobalt cathode production declined an estimated 31% as the company lost over 900 MT of

cobalt metal output during the April to June 2015 period. Chambishi closed its metals refinery for three months due to a

shortage in sulphide concentrate feed from its primary supply source, Boss Mining in the DRC. Feed supply issues

continued to impact operations during the balance of the year, reducing its average monthly output well below the

levels seen in previous years.

• Glencore Nikkelverk (Norway) - a reduction in the processing of cobalt bearing third party feed caused cobalt cathode

production at Glencore's Kristiansand based refinery to drop an estimated 700 MT or 19%,

• Jiangsu KLK Cobalt Nickel Metal Co Ltd. (China) - continued to ramp up cobalt metal production during 2015 following

the restart of its metal production in August 2014. Output grew to 1,400 MT, up from 500 MT produced in 2014.

• Sumitomo Metal Mining (Japan) - production at the Niihama refinery increased by more than 500 MT and at 4,300 MT

was close to reaching plant capacity following a multi-year ramp-up.

• Ambatovy (Madagascar) - continued ramp-up efforts at the Ambatovy refinery allowed the company to raise its cobalt

output by 13%, reaching a total of 3,460 MT for the year.

• Sherritt / ICCI (Canada) - a higher cobalt ratio in the mined ore pushed output up by an estimated 16% to 3,733 MT.

• CTT (Morocco) - improved operational performance at CTT's mine and refinery, combined with an increase in third party

tolling activities, helped to raise output by over 30%, reaching an estimated 1,850 MT for the year.

Cobalt Supply by Product Type - 2015 (E)

Source: Darton Commodities Ltd. estimates

0

10,000

20,000

30,000

40,000

50,000

60,000

53,040 MT

12,500 MT 9,500 MT

7,900 MT 6,460 MT

2,200 MT 1,200 MT- Sherritt- Minara- Ambattovy

- Xstrata- Jinchuan- Sumitomo- Jiangsu KLK - Sherritt

- Freeport- Minara, Implats,

Ambatovy

- Chambishi- Katanga- CTT- Tocantins

- Norilsk- Vale Inco

- Umicore- Freeport Co.- QNI- Eramet- China:

HuayouJinchuanKLK / GEM Yi Hao / Umicore TengyuanJiayuanHanruiKelixen+ others

Cut Co cathode supply:

Jinchuan: 3,500 MT Xstrata / Falco: 2,900 MTSumitomo: 4,300 MTJiangsu KLK: 1,400 MTYantai Cash: 400 MT Rubamin: -TOTAL: 12,500 MT

Broken Co cathode supply:

Chambishi: 3,400 MT Katanga: 2,900 MTCTT: 1,850 MTVotorantim: 1,350 MTKasese: -Mopani: -TOTAL: 9,500 MT

Co briquette supply:

Sherritt: 2,400 MTMinara: 2,500 MTAmbatovy: 3,300 MTTOTAL: 8,200 MT

Coarse Co powder supply:

Freeport: 4,500 MTSherritt: 1,400 MTMinara, Ambatovy+ Impala 560 MTTOTAL: 6,460 MT

Metric Tons

China share: 43,200 MT / 81%

- Sherritt- Minara- Ambattovy

- Xstrata- Jinchuan- Sumitomo- Jiangsu KLK - Sherritt

- Freeport- Minara, Implats,

Ambatovy

- Chambishi- Katanga- CTT- Tocantins

- Norilsk- Vale Inco

- Umicore- Freeport Co.- QNI- Eramet- China:

HuayouJinchuanKLK / GEM Yi Hao / Umicore TengyuanJiayuanHanruiKelixen+ others

Cut Co cathode supply:

Jinchuan: 3,500 MT Xstrata / Falco: 2,900 MTSumitomo: 4,300 MTJiangsu KLK: 1,400 MTYantai Cash: 400 MT Rubamin: -TOTAL: 12,500 MT

Broken Co cathode supply:

Chambishi: 3,000 MT Katanga: 2,900 MTCTT: 1,850 MTVotorantim: 1,350 MTKasese: -Mopani: -TOTAL: 9,100 MT

Co briquette supply:

Sherritt: 2,400 MTMinara: 2,500 MTAmbatovy: 3,300 MTTOTAL: 8,200 MT

Coarse Co powder supply:

Freeport: 4,500 MTSherritt: 1,400 MTMinara, Ambatovy+ Impala 560 MTTOTAL: 6,460 MT

Metric Tons

China share: 43,200 MT / 81%

2016 Forecast: Chambishi: 2,000 - 3,600 MTKatanaga: 0 MTCTT: 1,700 -1,900 MTVotorantim: 300 - 400 MT TOTAL: 4,000 - 5,900 MT

35-56 %


26

COBALTDEMANDBYENDUSE-2015

Lithium-IonBaYeries



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The OECD notes that its recent projections have been based on the assumption that China can achieve a balanced and smooth transition from industrial to services-based growth. However, Chinese industrial production growth has slowed more dramatically in 2015, falling to the weakest rate since 2008. The easing of total expenditure growth combined with declining export volumes has prompted concerns that the slowdown in China could be deeper and progressing more rapidly than initially thought. This has prompted steep corrections on Chinese stock markets and sharp reactions in financial markets worldwide. If Chinese domestic demand were to slow more than currently anticipated, the global repercussions could be significant and more severe than implied only by direct trade and financial links, considering the indirect confidence and sentiment effects this will have on financial and commodity markets. The OECD has calculated that a reduction of 2% in Chinese domestic demand growth could, exacerbated by global financial stresses, reduce global GDP growth by over 0.5% in the following two years. Furthermore, slower than anticipated demand growth will inevitably place additional downward pressure on global commodity demand and prices.

Cobalt Demand by End Use - 2015

(in MT by end-use + yoy change)

Source: Darton Commodities Ltd estimates.

49%

18%

8%

6%

5%

4%

4%

3%

3%

0% 10% 20% 30% 40% 50% 60%

Battery chemicals

Superalloys

Hardmetals

Ceramics / Pigments

Catalysts

Hard Facing

Tyres / Paint Driers

Magnets

Others

Nickel / cobalt based alloys- Aerospace- Land based turbines / IGT- Medical (prosthetics )- Others

Rechargeable batteries - Li Ion: LCO, NCM, NCA cathode- NiMH / NiCd: anode / cathode

Cobalt as binding material(in cemented carbides and diamond tools):- Cutting tools, mining, oil & gas drilling etc.

Cobalt salts as precursor for catalysts- Oxidation (PTA / PET production)- Hydrotreating / desulfurization(gas, oil refining, petrochemicals)

- Fischer Tropsch (GTL)

Pigment / decolouriser- ceramics, glas and colouring applications

Permanent magnets:- AlNiCo, SmCo, NdFeB, CoFe

Soaps and driers: - Drying agent in paint and ink - Rubber adhesion promotor

Various:- Electroplating- High speed steels- Agriculture / animal feed- Synthetic diamonds

Hardfacing alloys for wear solutions- Stellites, Triballoy etc.

2015 Refined Cobalt Demand (E)

90,150 MT

15.950 MT

5,150 MT

7,470 MT

3,500 MT

3,600 MT

4,800 MT

2,600 MT

2,700 MT

-3%

+ 3%

+ 1%

-8%

+ 3%

+2 %

+ 4%

-6%

+ 5.4%


27

GLOBALMINED&REFINEDCOBALTPRODUCTION

Lithium-IonBaYeries


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Chemaf Ltd. (Lubumbashi, DRC)

Output (MT): 2013:

1,170

2014:

2,006

2015 (E):

2,300

% change YOY:

+10%

2016 (E):

2,400-2,800

2015

developments:

A series of process and equipment improvements have continued to improve throughput, plant capacity and recoveries, resulting in an estimated 10% increase in cobalt output.

2016 outlook:

Chemaf is in the process of constructing a flotation concentrator and roaster which are expected to be operational by mid 2016. This investment will allow the processing of significant quantities of both sulfide ores and tailings from the Etoile mine and should eventually help Chemaf to increase cobalt output by an additional 3,000 MT.

Global Mined and Refined Cobalt Production Key cobalt ore and intermediate trade flows / 2015 estimates, in 1,000 MT per year)

Source: Darton Commodities Ltd estimates

Canada 2.8

5.8

Cuba 5.3

Brazil 0.9

1.3

Morocco 1.3

1.8

DRC 69.2

2.9

Philippines 4.5

New Caledonia 2.0

Australia 4.3

4.9

China 1.3

52.3

Japan

4.3

Norway

2.9

Finland

9.6 Russia 5.8

2.4

Zambia 1.6

3.4

Madagascar 3,6

3,5

Belgium

1.3

Mined Co production

Refined Co production

Nickel by-product

Copper by-product

Main ore / intermediate trade flows ( > 1.0 k tpa of Co contained)

Primary cobalt source

Papua NG 2.5

Keycobaltoreandintermediatetradeflows–2015es:matesin1,000MTperyear


28

HISTORICALCOBALTPRICES2007-2015

Lithium-IonBaYeries


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Source: Metal Bulletin

-$2.00

$2.00

$6.00

$10.00

$14.00

$18.00

$22.00

$26.00

$30.00

$34.00

$38.00

$42.00

$46.00

$50.00

$54.00

2007 2008 2009 2010 2011 2012 2013 2014 2015

US

$/lb

Historical Cobalt Prices 2007-2015(Metal Bulletin High / Low averages)

Difference Low Grade Cobalt High Grade Cobalt

LG Avg $36.01/lb

LG Avg$13.45/lb

LG Avg$16.43/lb

LG Avg$18.75/lbLG Avg

$15.96/lb

LG Avg$28.27/lb

LG Avg$12.75/lb

LG Avg$14.16/lb

LGL Avg$15.92/lb

LGL Avg$12.94/lb

LGL Avg$12.20/lb

LGL Avg$13.72/lb

LGL Avg$17.93/lb

LGL Avg$15.17/lb

LGL Avg$35.16/lb

LGL Avg$27.70/lb

LG Avg$12.99/lb

LGL Avg$12.52/lb

-$2.00

$2.00

$6.00

$10.00

$14.00

$18.00

$22.00

$26.00

$30.00

$34.00

$38.00

$42.00

$46.00

$50.00

$54.00

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US

$/lb

Historical Cobalt Prices 1997-2015(Metal Bulletin High / Low averages)

Difference Low Grade Cobalt High Grade Cobalt


SECTOROPPORTUNITY–SUPPLY/DEMAND

•  Lithium is currently enjoying a “hot”moment in the equitymarkets, butlongertermbaIerydrivendemandgoesbeyondlithium.

•  Of these, substan:al new sources of secure, long term supply will berequired tomeet 200%+ increases in demand for each of lithium, cobaltandgraphite–eachintheformofproductsmee:ngstrictspecifica:ons.

Year LCE(t) Co(t) NaturalCg(t) Mn(t) Ni(t)

All* BaIery BaIery BaIery BaIery

2015 193,750 53,403 55,194 34,546 15,394

2020 304,767 89,316 103,081 51,670 32,881

2025 399,760 120,660 156,312 58,871 54,595

CAGR%2015-2025 12.6% 8.5% 11.0% 5.5% 13.5%

Source:StormcrowCapitalLimited

ForecastDemandforBaIeryMetals

*Lithiumdemandshownincorporatesallpossibleapplica:onsandnotjustthatusedinbaIeries

29


30

THECOBALTMARKET–EXECUTIVESUMMARYRefinedcobaltproducUon2015/2016Globalrefinedcobaltoutputincreased2.0%in2015,reaching92,877MT.Outputofrefinedcobaltchemicalsandspecialtyproductsincreased5.8%from2014,cobaltmetaloutputwasup3.7%..During2016refinedcobaltoutputisforecasttodrop2%,drivenbyclosuresatVotoran:mandKatangaMining.Cobaltmetalsupplyisforecastedtodeclineby10.5%to30,050MT-thelowestlevelsince2010.Withminersfacingtheworstcommodityroutindecades,furtherproduc:oncutscanbeexpectedduring2016.MinedcobaltproducUon2015/2016Globalcobaltsupplyfromminingopera:onsincreasedanes:mated12%,reaching108,620MTofcobaltcontained.2016isforecasttodeclineby3,200-6,400MTduetoannouncedclosuresandreduc:onsinar:sanalmining.SupplyDevelopmentsintheDemocraUcRepublicofCongo(DRC)DRC'scobaltoutputincreased9%year-on-year,totalling69,200MTandrepresen:ng65%ofglobalminesupply.Produc:onofcrudecobalthydroxideincreasedanes:mated13%in2015,reaching40,500MT.Asubstan:alincreaseinar:sanalminingac:vityhasboostedavailabilityofcobaltheterogenite/concentrate.Despitesubstan:alreduc:oninproduc:onandexportsofBossMining,DRCconcentrateexportsincreasedby22%.AmnestyInterna:onal'sreportonar:sanalcobaltminingtoimpactdemandforandsupplyofheterogenitein2016.Lowcopperpricespresentameaningfuldownsiderisktoexis:ngandfutureDRCmininginvestments.SupplyDevelopmentsinChinaRefinedChinesecobaltproduc:onincreased9.0%in2015,reaching48,500MTor52%oftotalglobalsupply.Chineseimportsofcobaltrawmaterialsincreased30%yearonyear,fallingjustshortof60,000MT.Importsofcobaltintermediateswereupanes:mated41%,andcobaltconcentratesup36%from2014levels.Totalimportsfarexceededactualconsump:on,resul:nginasignificantinventoryaccumula:onofrefiningfeed.TheChineseStateReserveBureausourcedatotalof2,200MTofcobaltmetalfordeliveryQ42015-Q42016.

30


THECOBALTMARKET–EXECUTIVESUMMARYIncrementalSupplyin2016/NewProjectsNewrefinedproduc:onisexpectedtoreachthemarketfromNorilsk'scathodeplantandBoleoMininginMexico.Increasesareoffsetbysignificantreduc:onselsewhere,reducingrefinedmetaloutputnolessthan2,700-4,000MT.Non-refined/minedoutputincreaseswillbeoffsetbylargedeclinesatBossMiningandother,mainlyDRCopera:ons.GlobalCobaltDemandGlobalcobaltdemandgrowthrateslowedto5.4%in2015,withtotaldemandes:matedat90,150MT.TherechargeablebaIerymarketremainstheindustry'sgrowthdriver,withdemandfromthissectorup11.7%.BaIeryrelatedgrowthwasoffsetbyweakerdemandinotherandGDPsensi:veend-usegeographicmarkets.Demandgrowthfortradi:onalLCO1precursormaterialsdeclinedonslowingsmart-phoneandtabletsales.WeakerLCOgrowthisoff-setbyrapidlyincreasingdemandforNCM2materials,mainlydrivenbyautomo:vemarket.Automo:verelatedbaIerydemandrapidlygainingmomentum,Chinesesalesof'NewEnergyVehicles'up343%in2015.Refinersareshi}ingresourcesandcapacityfromLCOmaterialsproduc:ontoNCM-markettoincrease4-foldby2020.Superalloyrelateddemandup3%;strongeraerospacesalesoffsetbyweaksalestomining,oilandgassector.Bothairplaneandengineordersdroppedsignificantlyin2015yetalloydemands:llsupportedbyhigherbuildrates.Demandfromthehardmetalanddiamondtoolsectordeclinedduetoareneweddownturninkeyendusemarkets.Catalystdemandsufferedfromweakeroilprices,resul:ngindras:cdemandcutsforhydroprocessingcatalysts.Supply/DemandBalanceDemandgrowthoutpacedsupplygrowthin2015,reducingsurplusoutputtojustunder2,000MT,2.1%oftotalsupply.Marketbalanceexpectedtomoveintodeficitterritoryfrom2016onwardsasnetrefinedproduc:ondeclines.Significantstocksofrefiningfeedanddownstreamrefinedproductsmaydampenimpactofoutputshor~allonmarket.Themetalmarketisprojectedto:ghtenonlowerstocks,outputcutsandChina'sSRBstockpilingac:vity.MarketPricesTheMetalBulle:nLowGradelowaveragedUS$12.52/lb.in2015,down9%fromthepreviousyear.Downwardpricetrendsprevailedformuchoftheyear,withmarketmovingeventshavingliIleornoupwardimpact.Bearishcommoditysen:ment,producerdestockingandtradepressurepushedtheMBquotetoalowof$9.00/lb.Changingsupply-demanddynamicsarelikelytobringahigherdegreeofvola:litytomarketpricesin2016. 31


gemc corporate presentation pre-ipo dec. 2016

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