Impact Minerals (IPT) Investor Update summary

Rights issue and funding update

• Renounceable rights issue offers two new shares for every seven owned at AUD 0.006 per share, plus one free listed option (exercise price AUD 0.015, 2.5-year expiry) for every two shares subscribed, aiming to raise AUD 5.2 million and closing on March 21, 2025.

• Major shareholder, a German family office, has subscribed for their full 17% entitlement, with strong overall shareholder response.

• New shares will begin trading on March 31, 2025, and options will be listed with a new code.

• Funds will be used to complete the Lake Hope pre-feasibility study, commence pilot plant construction, advance exploration at Arkun and Broken Hill, and cover offer costs.

• Additional funding includes a CRC-P grant and EIS grant for exploration and pilot plant development.

Lake Hope project progress and strategy

• Pre-feasibility study (PFS) completion delayed due to additional test work and contractor quotes; now targeted for April.

• Mining lease application lodged; positive initial engagement and heritage clearance granted by Ngadju First Nations group.

• Simple, low-cost mining and processing model, aiming for 10,000 tons per annum of HPA, with pilot and microplant construction underway, supported by a AUD 2.87 million federal grant and collaboration with CPC Engineering and Edith Cowan University.

• 10–15 year starter pit planned, with drilling indicating high alumina grades up to 32.4%.

• Project located in Western Australia, a Tier 1 jurisdiction.

Market outlook and growth plans

• HPA demand driven by LED, lithium-ion batteries, and semiconductors, with a supply deficit expected by 2026-2027 and forecast through 2030.

• Benchmark competitor Alpha HPA is building a 10,000 tpa plant, has secured a major semiconductor offtake, and targets higher average prices.

• Project scoping study used a price of $22,000/ton, while Alpha HPA targets $30,000/ton, indicating potential for higher revenue.

• Forward plan includes PFS completion, pilot and demo plant design, product development, and offtake agreements through 2026.

• Aims to be a low-cost, disruptive HPA producer, leveraging unique deposit and innovative processing.