IperionX Selects Virginia for America’s First 100% Recycled, Low Carbon Titanium Metal Facility - Seite 2

Further, the Halifax Industrial Development Authority (“Halifax IDA”) has proposed a construction allowance of US$4 million to upfit the site to meet the needs of the Titanium Demonstration Facility. The Halifax IDA would then provide a ten-year lease agreement to IperionX, with an estimated annual lease rate of just US$8.00 per square foot.

Final confirmation of the site selection and financial offer is subject to the negotiation and execution of a binding performance agreement between the Commonwealth of Virginia, the Virginia Economic Development Partnership and IperionX, anticipated to be finalized in the coming months. In order to receive all proposed financial incentives, IperionX will be required to invest approximately US$82 million in production related machinery and tools and create 108 jobs within a 36 month timeframe.

Titanium Demonstration Facility Overview

The Titanium Demonstration Facility will be the first titanium manufacturing plant in the U.S. utilizing 100% recycled titanium scrap as feedstock, and is a critical step in advancing IperionX’s ambition to re-shore an all-American source of low carbon titanium metal. Phase 1 of the Titanium Demonstration Facility is expected to have an initial production capacity of 125 tonnes per annum (“tpa”) of titanium metal powder in spherical or angular form. The current pricing for spherical titanium metal powders used in additive manufacturing applications today is approximately US$250 per kg.

The forecast capital cost to build the Phase 1 of the Titanium Demonstration Facility is US$20 million with an associated forecast operating cost of US$120kg. Development of the Titanium Demonstration Facility is anticipated to generate significant employment opportunities in the U.S., with a Phase 1 headcount estimate of 31 employees, estimated to scale to over 100 employees.

IperionX has commenced early design and engineering for a modular expansion of the Titanium Demonstration Facility to a commercial scale to meet potential market demand.

IperionX is assessing potential development funding pathways for Phase 1 of the Titanium Demonstration Facility, including both commercial and U.S. Government opportunities, such as funding through U.S. Federal budgets, U.S. Federal funding bills and specific U.S. Federal agency funding programs.