Alliance Nickel Limited

Highlights:

• Export Finance Australia (EFA) provides a conditional and non-binding Letter of Support towards providing financing for the NiWest Nickel-Cobalt Project.
• Subject to EFA Board Approval, the Letter of Support may be converted into a binding agreement following due diligence, sufficient and acceptable lender support and other customary financing terms.
• Discussions advancing with a second Export Credit Agency (ECA) for support in relation to major capital and supply contracts.
• Debt funding process well underway led by Alliance’s adviser, Blackbird Commodity Partners.

Highlights:

• Tranche 2 new equity proceeds of A$2.3 million expected in September 2023
• Completion will increase Stellantis’ total equity investment in Alliance (at A$0.18 per share) to A$15 million

Highlights:

• Entered into a binding offtake agreement and share subscription agreement with Stellantis N.V. (Stellantis) in relation to future offtake from the NiWest Nickel Cobalt Project.
• Tranche 1 of Strategic Placement (the Placement) completed with Stellantis subscribing for A$15 million in new equity for 70.6 million shares at a subscription price of A$0.18 per share representing a 90% premium to the 30 day VWAP trading at that time.
• Engagement continues with a range of other Tier 1 OEM and EV battery supply chain manufacturers regarding potential future offtake and strategic investment(s).
• Blackbird Partners (Blackbird) appointed as financial advisor to assist with Alliance’s project financing strategy for the NiWest Nickel Cobalt Project.
• The Company is considering a range of debt financing options, including traditional bank debt, government debt, strategic partner financing and export credit agency funding.
• Key Definitive Feasibility Study (DFS) work programs progressing to plan and on budget with expected delivery of the NiWest DFS in Q4 2023.
• Geotechnical assessment drilling completed for the Mt Kilkenny mine pit as well as planned infrastructure construction sites around the refinery, heap leach pads and evaporation ponds.
• Infill drilling at Mt Kilkenny completed with results being used to define final mine pit designs and defining additional Ore Reserve tonnage.
• Water Search drilling commenced, looking for ground water at the Mt Kilkenny site and on other licenced areas.
• Six tonnes of NiWest ore shipped to SGS in Canada for pilot plant processing into premium battery grade product as part of the offtake customer qualification process.
• A metallurgical testwork program commenced, to assess the Acid Digestion Variability of the NiWest ores to further refine the operating costs associated with Heap Leaching activities.
• Strong interest from mining contractors regards contracting of the NiWest mining operations. A Request for Quotation (RFQ) process was undertaken to determine the DFS mining costs, which included a site visit to the NiWest tenements.
• Discussions continue to advance with rail logistics providers Qube and Aurizon, for the import and transport of sulphur through the Port of Esperance.

Highlights:

• Arrowhead is updating its coverage on Alliance Nickel with a fair value bracket of AUD 0.7 to AUD 1.1 bracket (share price on June 12, 2023: AUD 0.094) based on the discounted cash flow (DCF) method.
• In May 2023, Alliance Nickel signed a binding offtake agreement with Stellantis, a leading player in the electric vehicle market, for 40% of the supply of nickel and cobalt sulfates from its NiWest project for the first five years of production.
• Additionally, Alliance will receive AUD 15.0 mn from Stellantis under the share subscription agreement, of which AUD 12.7 mn has already been received as the first tranche of the share placement for 70.6 mn shares. The second tranche of AUD 2.3 mn for 12.73 mn shares, subject to Australian Foreign Investment Review Board approval, is expected in Q3 2023. The funding from the share placement will be deployed toward the completion of the NiWest Definitive Feasibility Study (DFS) and engineering design works.
• Earlier this year, AXN had also signed a non-binding agreement for the future offtake of battery-grade Nickel and cobalt sulfate and project financing with VinES, a subsidiary of Vingroup focused on technology and industry, services, and social enterprise. Partnering with global companies in the nickel and cobalt battery technology space will enable Alliance to establish itself as a key supplier in these markets.
• The company has commenced a six-week infill aircore drill program, along with diamond drill program, at Mt Kilkenny to support future reserve conversion. The samples from the drilling will be transported to Perth for testwork, and the results will be received in Q4 2023.
• Alliance appointed Mr. David Edwards as the company’s Chief Financial Officer and company secretary in May of this year. Mr. Edwards is a Chartered Accountant with over 30 years of experience in corporate strategy and financing and is expected to help develop and implement the financing strategy for the NiWest Project.
• AXN is working with several engineering partners to complete the DFS, which is progressing well and is on track for completion in Q4 2023.

Highlights:

• As part of the offtake customer qualification process, six tonnes of NiWest ore shipped to SGS in Canada for pilot plant processing into premium battery grade product
• Contractor pricing for determining DFS mining costs progressing well and follows recent site visits by shortlisted mining contractors
• Discussions advancing with rail logistics providers Qube and Aurizon, for the import and transport of sulphur through the Port of Esperance
• DFS work programs progressing to plan and budget with study manager Ausenco expected to deliver DFS in Q4 2023
• Geotechnical assessment drilling completed for the Mt Kilkenny mine pit as well as planned infrastructure construction sites around the refinery, heap leach pads and evaporation ponds
• Infill drilling at Mt Kilkenny completed with results being used to define final mine pit designs as well as adding additional Ore Reserve tonnage
• Calcrete drilling completed at Sturt Meadows and will result in an update to previous calcrete JORC Resource

Highlights:

• Mr. David Edwards has been appointed as the Company Secretary of Alliance Nickel Ltd (ASX: AXN) following the resignation of Mr. Mark Pitts, effective May 18, 2023. Mr. Edwards also serves as Alliance’s Chief Financial Officer.
• The Alliance Board expresses gratitude to Mr. Mark Pitts and Endeavour Corporate for their valuable contributions to the company over many years.

Highlights:

• Experienced financial adviser, Blackbird Commodity Partners appointed to support Alliance’s financing strategy for the NiWest Nickel-Cobalt Project
• Appointment follows the recently completed binding offtake agreement and equity investment by leading global automaker Stellantis N.V.
• The key milestone to secure project financing is the release of the NiWest definitive feasibility study expected in Q4 2023

Highlights:

• Receipt of Tranche 1 funds follows execution of a Binding Offtake Agreement for approximately 40% of future annual forecast NiWest nickel and cobalt sulphate production for an initial term of 5 years
• Strategic placement is in two tranches for total of A$15 million giving Stellantis an 11.5% shareholding in Alliance and the right to nominate one director to the Alliance Board
• Tranche 2 funds of $2.3 Million, subject to FIRB approval, are expected in the June quarter 2023

Highlights:

• An advanced asset of scale in a first-class mining region
  • Mine life of +25 years
  • High-grade Resource on granted Mining Leases
• Ore properties deliver a competitive advantage to nickel laterite peers
  • Heap leach processing confirmed by extensive metallurgical testwork
  • Delivers a significant reduction in up-front capital relative to HPAL
• Stellantis partnership transforms project development potential
  • Highest quality offtake partner
  • Cornerstone equity investment and Alliance Board representation
• NiWest DFS on track for completion by the end of 2023
  • Leveraging existing regional power, water, road and rail infrastructure
  • Targeting the start of construction in 2024

Highlights:

• Binding offtake agreement of battery-grade nickel and cobalt sulphate from the NiWest project in Western Australia
• Offtake agreement for approximately 40% of forecast annual production for an initial term of five years
• Stellantis purchases €9.2 million (AUD 15 million) in new equity in Alliance Nickel, giving it an 11.5% shareholding
• Agreement strengthens Stellantis’ value chain for electric vehicle battery production that supports Dare Forward 2030 strategic plan targets