IperionX Letter to Shareholders - Seite 2

A summary of our most significant achievements in 2023:

Building our Titanium Metal Commercial Facility in Virginia

We executed and expanded on our initial plans, announced in September 2022 by Virginia Governor Glenn Youngkin, to build the world’s largest recycled titanium metal powder facility in South Boston, Virginia. In April 2023, we detailed our plans to build 1,000+ metric tonnes per annum of titanium metal production capacity in a 50,000 sq. ft. building within the Southern Virginia Technology Park (SVTP), located at 1080 Confroy Dr. (the “1080 Building”), which is now expected to reach full capacity by 2026. In November 2023, we bolstered our presence at the SVTP with a second 15,000 sq. ft. building located at 1092 Confroy Drive (the “1092 Building”), which is expected to be commissioned in the second quarter of 2024, and will utilize the titanium powder produced in the 1080 Building to:

(1) use our forging technologies (HSPT) to produce traditional titanium mill products (plate, bar, wire, etc.) and near net shape titanium products; and

(2) apply additive manufacturing to produce complex 3D printed titanium products.

Together, our 1080 & 1092 Buildings are expected to create an innovative titanium metal manufacturing campus, demonstrate the commercial scalability of our HAMR and HSPT technologies, and showcase how we plan to revolutionize the titanium value chain in a manner reminiscent of Bessemer’s historic achievement.

Breakthrough Large Scale Commercial Test Runs of the HAMR Process

The HAMR process represents a revolutionary shift in titanium refinement and production. While the science is complex, we view its application as relatively straightforward as it uses conventional, off-the-shelf, low-cost furnace technology that we have already de-risked through comprehensive testwork in 2023. At our leading European furnace supplier, the IperionX team completed two successful furnace hot test runs which scaled the batch size by a factor of 10x, from ~40kg to over 400kg, while reducing cycle time by over 70%, surpassing the core assumptions that underpinned our engineering studies for the Virginia production facility. In light of these successful results, we are now advancing detailed engineering studies for our planned expansion in Virginia, which we believe has significant potential to deliver higher titanium productivity at materially lower costs.