WA Kaolin : Commissioning Stage 1 and Accelerating Stage 2 Presentation

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Commissioning Stage 1 &

Accelerating Stage 2 Production

Investor Summary

February 2022

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Important Notice and Disclaimer

• This presentation has been prepared by WA Kaolin Ltd (WAK). This document contains background information about WAK current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport be all inclusive or complete nor does it contain all the information that a prospective investor may require in evaluating a possible investment in WAK or its assets.
• Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.
• This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction. This document is not a prospectus and does not contain all of the information which would be required to be disclosed in a prospectus. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.
• This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek their own professional, legal, tax, business and/or financial advice when deciding if an investment is appropriate.
• All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. Recipients of this presentation who decide to invest in WAK do so at their own risk.
• To the fullest extent permitted by law, WAK and its related bodies corporate, its directors, officers, employees and representatives (including its agents and advisers), disclaim all liability, take no

responsibility for any part of this presentation, or for any errors in or omissions from this presentation arising out of negligence or otherwise and do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts, conclusions or other representations contained in this presentation.

• This presentation may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on WAK's current expectations, estimates and assumptions about the industry in which WAK operates, and beliefs and assumptions regarding WAK's future performance. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "potential" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of WAK. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law, WAK does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.
• The Mineral Resources, Ore Reserves and production targets referred to in this presentation were previously reported in the Prospectus dated 11 October 2020 and released to the ASX on 24 November 2020 and the Definitive Feasibility Study announcements released on 24 November 2020. WA Kaolin confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and that all material assumptions and technical parameters underpinning the estimates, production targets or forecast financial information derived from a production target continue to apply and have not materially changed.

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Production to Emerge into a Strong Demand Environment

• Installation and pre-commissioning of Stage 1 processing plant at Wickepin Kaolin Project, WA is on time and on budget
• All process equipment is fabricated and on site and installation due for completion by the end of Q1 2022
• First production on track for Q2 CY22; production to commence at 25 tonne per hour nameplate capacity and steadily increase to ~200,000 tonnes per annum (tpa) rate by the end of CY2022
• Kwinana proof of concept plant has continued operating with kaolin shipments seeding and developing markets with Stage 1 capable of being sold out and new potential clients continuing to emerge
• Stage 2 was contemplated as $13.6m to be funded out of cash flow, anticipate some cost inflation of circa $2.4m
• WA Kaolin has secured a shareholder loan of $5m to replace the working capital spent in advance on Stage 2 and is raising $7m of new equity to add Stage 2 infrastructure and further market development initiatives
• Due to this strong customer demand, elements of Stage 2 Capex (~$4m) have been brought forward into the current construction phase to take advantage of cost savings and to shorten lead-time to implement the next increase of production capacity from 200,000 to 400,000 tonnes per annum

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Corporate Overview

Corporate Structure

Shares on Issue	282,821,885
Market Capitalisation	$56.6m
@ 20c p/share
Unlisted Options (various)	167,232,813
Performance Rights	27,500,000
Cash as at 31/12/2021	$1.9m
Borrowings as at 31/12/2021	$21.4m

Substantial Shareholders

Top 30 Shareholders	74.0%
Owners & Board	38.4%
No. of Shareholders	1,412

12 Month Price Graph

Price (A$)				Volume (m)
0.28				8
0.26				7
0.24				6
0.22				5
			4
0.20
			3
0.18				2
0.16				1
0.14				0
Feb-21	May-21	Aug-21	Nov-21	Feb-22
		Volume	Price

Top 5 Shareholders

Silver Tropic Pty Ltd	17.64%
Scientific Management	17.27%
Associates(Victoria) Pty Ltd
Mr. Kenneth Joseph Hall	8.73%
Century Horse Limited	3.31%
Boneyard Investments Pty Ltd	2.48%

onlyFreight Market is Driving Kaolin Prices

Demand

 Global Kaolin demand continues growth in line with forecast at CAGR1 3.5%  The delivered price of kaolin is increasing strongly as shipping costs escalate

 The explosive international freight market (particularly US/EU into Asia) has delivered a

competitive advantage for WA Kaolin resulting in unprecedented demand for WAK K99 products globally

Allocation

 WAK currently in process of allocating remaining annual capacity to ensure key customers

	can secure world class supply
useExport Contracts
	Execution of export contracts with all existing customers at significantly higher CIF prices
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	Recent trades of premium grade Kaolin to customers were contracted at a CIF price

exceeding expectations

 For existing customers who trade FOB, no drop in demand has been experienced despite increasing container shipping prices

1 Compound Annual Growth Rate

5