Announcement PDF VRX SILICA Silica Sand Essential to World Growth AGM November 2024 Important Information Disclaimer This document has been prepared by VRX Silica Limited. The information contained in this document is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The information contained in this document is not investment or financial product advice and is not intended to be used as the basis for making an investment decision In preparing and providing this document, VRX has not considered the objectives, investment profile, financial position or needs of any particular recipient Mineral exploration is subject to significant risk. There is no guarantee of exploration success, and even if exploration success is achieved, there is no guarantee that development of any mineral deposit will be economically viable VRX strongly suggests that investors consult a financial advisor prior to making an investment decision. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation To the maximum extent permitted by law, none of VRX, its related bodies corporate, or their shareholders, directors, officers, employees, contractors, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this document. This document may include “forward looking statements” within the meaning of securities laws of applicable jurisdictions Forward looking statements can generally be identified by the use of the words “anticipate“, believe”,“ expect”,“ project”,“ forecast”,“ estimate”,“ likely”,“ intend”,“ should”,“ could”,“ may”,“ target”,“ plan”,“ guideline”,“ and other similar expressions Indications of, and guidance on, revenue models, pricing, earnings and financial position and performance are also forward looking statements. Such forward looking statements are not guarantees of future pricing, performance and events, and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of VRX, its related bodies corporate, and their directors, officers, employees, contractors, agents and advisors, that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based In particular, potential revenue opportunities and guideline pricing models set out in this document are based on certain assumptions which may in time prove to be false, inaccurate or incorrect Readers are cautioned not to place undue reliance on forward looking statements and VRX assumes no obligation to update such information. This document is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities in any jurisdiction, and neither this presentation nor anything contained in it forms the basis of any contract or commitment. Without limiting the foregoing, this document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States The securities of VRX have not been, and will not be, registered under the US Securities Act of 1933 as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. Compliance Statement The information in this document that relates to the estimation and reporting of the Mineral Resources and Ore Reserves for the Company’s silica sand projects and metallurgical testwork is extracted from releases to ASX on 28 August 2019 and 11 November 2022 (Arrowsmith North) , 17 September 2019 (Arrowsmith Central), 9 May 2023 (Arrowsmith Brand), 18 October 2019 (Muchea) and 18 August 2022 (Boyatup). The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. Silica Sand: The Second-most Consumed Material on Earth 3 The world is facing a global sand supply crisis 4 World Class Silica Sand Projects Project development pipeline to ensure disciplined, staged development of worldclass assets ❑ Five very large scale, high grade and low impurity silica sand projects each project capable of independent operation to supply processed material to diverse markets ❑ Simple, low impact mining and processing ❑ Access to established infrastructure (logistics, power, water and gas) – rail lines to port run adjacent to all project tenements – gas pipelines run adjacent to each of the project areas ❑ Scale of projects provides long-term opportunity for silica sand export and potential glass manufacturing and downstream industries in Western Australia ❑ Grant of geothermal permit in the Mid West and JV with Steam Resources provides alternative energy solution 5 Market Outlook Asian glass making production increasing 5-6% per year (~8 - 10Mtpa Growth) VRX Target Market - Float, Container, Solar Panel, and; Metal Casting/Foundry for Automobile Parts Glassmaking silica sand demand by region* Use 4% Spec 5% Float (Plate) Glass 8% 47% 16% VRX’s Target Market Market in Growth in Asia Asia 99.5% SiO2 60 - 65Mt 5% - 6% Container Glass 99.5% SiO2 70 - 75Mt 5% - 6% Cover Glass (Solar Panels) 99.95% SiO2 & Low Fe 10 - 12Mt +30% Smart Glass (Ultra Clear) 99.97% SiO2 & Low Fe 1 - 2Mt 5% - 6% Specialist Glass (Thin Screen) 99.97% SiO2 500 - 600kt +10% 20% Asia Pacific Western Europe Africa/Middle East North America Eastern Europe Central and South America *Source: Freedonia estimate 6 WA Leading Silica Sand Projects Arrowsmith North (100%) • High-grade with exceptional financial metrics • Close proximity to port and rail infrastructure • Glass making and foundry products • Potential +100 year mine life: - JORC Proved and Probable Reserve of - 221Mt @ 99.5% SiO2 • Updated BFS completed March 2024 • Environmental and mining approvals expected Q1 2025 • Final offtakes and financing to follow Muchea (100%) • Very high-grade product with outstanding financial metrics Kwinana Port • Well located to key port and rail infrastructure • Specialist solar panel glass products • Potential +100 year mine life: - JORC Indicated and Inferred Resource - 208Mt @ 99.6% SiO2 • BFS completed Oct 2019 7 Exploration Arrowsmith North Silica Sand Project Project Site Vegetation Kwongan Heath Loose sand/shallow root systems suitable for VDT 8 Arrowsmith North Near-term development opportunity for a world-class silica sand project ❑ Production expected to commence 8-12 months following final environmental approvals ❑ 221Mt Ore Reserve @99.5% SiO2 (100-year production) (See Reserve Table) ❑ Grade controlled Proved Ore Reserve 9.2Mt for first 6 years of production ❑ Tailored 2Mtpa processing plant with patented process circuit, revised capital estimate and DFS completed ❑ Access to established infrastructure – ❑ Unused rail line (from Eneabba to Geraldton) runs adjacent to project tenements ❑ Water from Yarragadee North deep aquifer ❑ Access by adjacent Brand Highway ❑ Hybrid gas and solar power supply 9 Updated BFS (March 2024) Arrowsmith North Updated BFS Results ❑ Demonstrates robust financial metrics for a World-class silica sand project ❑ 221Mt Ore Reserve @99.5% SiO2 (100-year production) ❑ Ungeared NPV10 of $167m based on 25 years mining of a +100 year Resource ❑ Proved and Probable Ore Reserve of 221Mt @ 99.5% SiO2 ❑ Four products for international foundry and glassmaking industries 10 Environmental and Mining Approvals ❑ Confirmation by Commonwealth Department of Agriculture, Water and the Environment of accredited State assessment under the EPBC Act ❑ State Department of Water and Environmental Regulation and Environmental Protection Authority (EPA) require a PER assessment ❑ Environmental Review Document (ERD) lodged in April 2022 and amended June 2022 and again February 2023 and published June 2023 ❑ ERD Public Environmental Review period ended July 2023 and EPA provided Summary of Submissions September 2023 ❑ VRX lodged initial Response to Submissions (RtS) October 2023 for assessment by EPA published November 2024 following year-long consultation process with EPA ❑ Mining Proposal and Works Approval assessed and approval subject to EPA ❑ Final environmental and other approvals expected Q1 2025 11 Responsible Mining – the VRX Way A made-for-purpose mining method designed around continuous rehabilitation ❑ VRX has developed a unique and progressive mining method for its silica sand projects ❑ The Vegetation Direct Transfer (VDT) method provides a rapid and comprehensive regeneration of mined areas based on continuous rehabilitation as mining progresses ❑ Removes a 400mm-deep sod with topsoil containing the vast majority of native flora and invertebrate fauna remaining intact ❑ Root structures in the loose sand are relatively shallow at 200-300mm in depth ❑ Approval granted for VDT trials at Muchea to test the practicalities of method in various vegetation types ❑ Modified loader bucket required for VDT fabricated and ready for use 12 Environmental Approvals: Changes to Proposal Original Revised ❑ Approved amendments since referral ❑ Mine development envelopes reduced from >1,000ha to 353ha ❑ Clearing reduced from 412.2ha to 299.1ha ❑ Relocation of infrastructure to within the mine area ❑ Redesign of access route and haulage method (rail to road) ❑ Reduction in onsite power generation 13 Environmental Approvals: Terrestrial Fauna Carnaby’s Cockatoo (Endangered) ❑ Clearing 299.1 ha of foraging habitat. Avoided roosts or breeding sites ❑ Extent of clearing reduced significantly from original Proposal ❑ Impact is 0.5% of foraging habitat within 12 km, Cumulative <3% ❑ Access track designed to minimise vehicle strike risk (speed limited and shortest, safest route) 14 Environmental Approvals: Social Surroundings ❑ Entire site has been surveyed for Aboriginal Heritage – no sites found within current Development Envelope ❑ One registered Aboriginal Heritage site near the Proposal – Development Envelope amended to avoid boundary ❑ Arrowsmith Lake avoided – not a registered Aboriginal Heritage site ❑ VRX to consult with YSRC regarding monitors during clearing and undertaking rehabilitation at the Project site and offset site ❑ Develop a Cultural Heritage Management Plan in consultation with YSRC 15 Environmental Approvals: Offset Sites ❑ Offsets proposed to counterbalance the medium-term loss of 299.1 ha of Carnaby’s Cockatoo (CC) foraging habitat ❑ Two vegetated lots proposed ❑ Contain 958.2 ha of Excellent quality CC foraging habitat ❑ Area to be revegetated within previously cleared portion ❑ Provides connectivity to conservation estate and native vegetation 16 Environmental Approvals: Avoidance and Minimisation of Impacts ❑ Reduce Development Envelopes from to avoid Priority Flora and Aboriginal Heritage site ❑ Reduced impact to Carnaby’s Cockatoo foraging habitat ❑ “Gold Standard” VDT rehabilitation method proposed – slow, progressive clearing and direct replacement of topsoil sods ❑ Area fully surveyed (10 m spacing) for Sandplain Duck-orchid – no records found ❑ Weed and dieback hygiene controls ❑ All mining above water table ❑ No chemical processing 17 Environmental Approvals: Priority Flora ❑ 7 species recorded within Development Envelope, of which 5 will have >5% local records disturbed ❑ Development Envelope revised to keep impacts to local records <21% ❑ Proposal impacts to regional records all <6.1% ❑ Cumulative losses of all species <8% other than Comesperma rhadinocarpum (P3) – 17.6% ❑ Only 10 Comesperma rhadinocarpum individuals to be disturbed ❑ 16 other recorded populations – no counts available therefore percentage loss is conservative (assumed 1 individual per record) 18 Muchea Silica Sand Project Site Vegetation: Banksia Woodland Low grasses and sedges suitable for VDT VRX Silica 19 Muchea Large scale, world class high-grade and low impurity silica sand project ❑Production to follow Arrowsmith North subject to EPA approval ❑Utilise VDT and duplicate plant ❑Access to established infrastructure ❑Underutilised railway connects to Kwinana (100km) ❑Grid power ❑Water from Yaragadee deep aquifer ❑Adjacent to Brand Highway ❑Granted Mining Lease and Miscellaneous Licences for access ❑Significant metallurgical testwork +99.9% SiO2 - <100ppm Fe2O3 after processing (highgrade, low impurity) 20 Muchea Downstream processing capabilities ❑Critical Minerals Prospectus – VRX Muchea project is included in the 2024 Critical Minerals Prospectus published by Austrade (now online) ❑Raw material for premium ultra-clear cover glass production for solar panels ❑Potential for production of solar panels in Western Australia ❑Potential for production of silica flour for LCDs and other applications ❑IAF Grant - VRX has received a grant from the Western Australian Innovation Attraction Fund to investigate the production of silica flour: ❑1 tonne sample successfully tested by specialist laboratory in Germany ❑Samples despatched to potential buyers ❑Significant interest in products capable of production 21 Processing Flowsheet Simplified wet processing, multiple products, no dust, 2mtpa processing plant at each site Processing Plant Design ▪ Arrowsmith North, Arrowsmith Central and Muchea to each have 2 Mtpa processing capacity ▪ No toxic reagents required 22 Processing Plant Design No dust No toxic chemicals Sustainability, Environment, Social and Governance (ESG) VRX is delivering on its ESG responsibilities aligned to the UN’s Sustainable Development Goals CLEAN ENERGY ECONOMIC GROWTH INDUSTRY INNOVATION SUSTAINABLE COMMUNITIES RESPONSIBLE PRODUCTION CLIMATE ACTION REHABILITATION PLAN Utilising reliable, renewable modern energy Enhancing economic and productive employment Building resilient infrastructure and fostering innovation Respecting heritage values Employing sustainable mining methods Reducing emissions from production Employing direct vegetation transfer as a unique rehabilitation method 24 Corporate Summary Capital Structure Share Price A$0.054* Ordinary Shares on Issue 628 million Options on Issue 92 million Market Capitalisation A$34 million* Cash A$1.8 million** Debt Nil Enterprise Value A$32.2 million Shareholders Board and Management 12% Top 20 Total 33% * Closing share price on ASX on 28 November 2024 ** Cash at 31 September 2024 25 Our Team Executive Board Person Role Experience Chairman Governance: over 30 years’ experience in investment, equity markets and managing public companies Bruce Maluish Managing Director Technical and finance: over 40 years’ experience in mining industry including previous roles as ASX MD and General Manager Peter Pawlowitsch NonExecutive Director Senior executive: finance and corporate roles David Welch NonExecutive Director Senior executive: responsible for strategy, business transformation and performance, commercial negotiations Paul Boyatzis Person Role Experience Ryan Baxter General Manager Production: 15 years’ experience in mining and construction with 10 years exporting silica sand David Reid Exploration Manager Technical: responsible for exploration and mineral processing Steven Papadopoulos Commercial Manager Legal and commercial: over 25 years’ experience as corporate lawyer and commercial advisor in resources and other industries Yoonil Kim Marketing Manager Marketing: 19 years’ experience selling silica sand in the Asian market 26 Right Time, Right Place Opportunity for WA to capture its economic advantages of abundant silica sand and domestic gas reserves to build world-class glass manufacturing and downstream processing industries ❑ Very long life, high-grade silica sand supply with combined 1.4 billion tonne Resource, 96% to 99.6% SiO2 grade ❑ Arrowsmith North environmental and other approvals expected Q1 2025 ❑ WA domestic gas reserves and burgeoning hydrogen projects in mid-west, with exposure to geothermal energy solutions ❑ Long term supply of essential raw materials and potential green energy for glass manufacturing (LNG gas/wind/solar/hydrogen) ❑ High-tech ultra-clear glass and HPQ production capability from Muchea ❑ Manufacturing of solar panels in WA for a huge and growing market in Australasia 27 Thank you Bruce Maluish Managing Director Ground Floor, 52 Kings Park Road West Perth WA 6005 Phone: 08 9226 3780 Email: info@vrxsilica.com.au Silica Sand Resources and Reserves Mineral Resources - as at 30/06/2024 Project Classification Indicated Muchea Inferred Total Measured Arrowsmith Indicated North Inferred Total Arrowsmith Inferred Brand Total Indicated Arrowsmith Inferred Central Total Inferred Boyatup Total Total Mineral Resource Mt SiO₂ % Al₂O₃ % 29 99.6 0.1 179 99.6 0.1 208 99.6 0.1 10 95.9 1.9 237 97.7 1.0 266 98.4 0.7 513 98.0 0.9 523 97.3 1.4 523 97.3 1.4 28.2 96.6 1.7 48.3 96.9 1.5 76.5 96.8 1.5 60 97.8 0.8 60 97.8 0.8 1,381 Million Tonnes Ore Reserves - as at 30/06/2024 Fe₂O₃ % TiO₂ % LOI % 0.03 0.02 0.02 0.7 0.4 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.2 0.2 0.1 0.1 0.1 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.2 0.2 0.2 0.7 0.5 0.4 0.4 0.6 0.6 0.7 0.7 0.7 0.9 0.9 Project Classification Product Mt SiO2 % Al2O3 Fe2O3 % % F80 10.2 99.9 0.02 0.008 Muchea Probable F80C 4.25 F150 4.25 99.8 0.07 0.015 Muchea Ore Reserve 18.7 Million Tonnes AFS20 0.8 99.5 0.25 0.07 AFS35 3.9 99.5 0.5 0.06 Proved AFS55 2.7 99.2 0.5 0.1 Local 1.8 Arrowsmith Proved Ore Reserve 9.2 Million Tonnes North AFS20 24.2 99.5 0.25 0.07 AFS35 102.5 99.5 0.5 0.06 Probable AFS55 51.1 99.2 0.5 0.1 Local 34.1 Probable Ore Reserve 212 Million Tonnes Arrowsmith North Ore Reserve 221 Million Tonnes CF400 4.2 99.6 0.25 0.04 C20 8.4 Arrowsmith Probable C40 4.2 Central High TiO2 2.2 <1% Arrowsmith Central Ore Reserve 18.9 Million Tonnes Total Ore Reserve 259 Million Tonnes TiO2 % LOI % 0.03 0.1 0.035 0.1 0.05 0.05 0.05 0.1 0.1 0.1 0.05 0.05 0.05 0.1 0.1 0.1 0.03 0.1 2% 29