Investor Presentation 27 th May 2020 1 Disclaimer This - - PowerPoint PPT Presentation

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Investor Presentation – 27th May 2020

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This presentation by Medallion Resources Ltd. (“the Corporation”) is for informational purposes only and does not constitute a solicitation or offer to sell securities. This presentation contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include, without limitation, statements based on current expectations or other assumptions that involve a number of risks and uncertainties. Forward-looking statements and information are not guarantees of future performance of the Corporation. Forward-looking information is subject to risks and uncertainties that may cause actual results, and the Corporation’s plans and objectives to differ materially from those expressed in the forward-looking

• information. Such risks and uncertainties are detailed in the Corporation’s public filings available on
• SEDAR. Actual results and future events could differ materially from those anticipated in forward-

looking information. These, and all subsequent written and oral forward-looking statements are based

• n estimates and opinions of management on the dates that they are made and expressly are qualified

in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information, should circumstances or management’s estimates or opinions change.

Disclaimer

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25,000 1,025,000 2,025,000 3,025,000 4,025,000 $0.020 $0.060 $0.100 $0.140 $0.180 $0.220 $0.260 5/27/19 7/26/19 9/24/19 11/23/19 1/22/20 3/22/20 5/21/20

Company Overview TSX.V: M DL / OTCQX : M LLOF

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I nvestment Overview

• Rare earth elements are a key to emerging low carbon and defense technologies
• “The Secret Ingredients of Everything” (National Geographic)
• “The Oil of the 21st Century” (Forbes)
• The world is entering a historic period of resource nationalism, trade conflict, domestic

protection just as REE-heavy technology demand is accelerating

• The US is under-represented in the REE supply chain. Only one part-Chinese owned miner in US

that sends all material to China for finishing

• >80% of the REE supply suitable for high strength permanent magnets is from China
• Strong DoE and DoD interest and funding to develop near term industrially relevant REE supply
• Medallion is developing a lower Cap-Ex, scalable and repeatable REE business model
• Medallion technology targets feedstock rich in “NdPr” – the essential ingredient for lightweight

and powerful rare-earth magnets

• Medallion technology is low risk – based on technology used in the REE industry today

Medallion owns and develops proprietary technology to extract rare earth elements from an abundant by-product feedstock. This technology can first be applied entirely within the US, delivering the near-term foundation of a secure non-Chinese REE supply chain.

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Mark Saxon, BSc, Grad Dip - President & CEO. 30 years of experience, past 20 in public companies with a decade of experience in rare earth elements and other critical materials. Lead the company in the discovery

• f the Norra Karr REE project in Sweden.

Donald M Lay, BSc - Advisor, Director. 20+ years of international experience in public and private venture-capital and project funding. Developed business and raised capital in technology and ag-bio processing fields. A number of successful investor exits. Kurt Forrester, PhD - Metallurgist. Chartered Chemical Engineer (CEng MIChemE) and Chartered Professional Metallurgist (MAusIMM CP(Metallurgy)). 15+ years as engineering consultant mining - process development, feasibility and EPCM. Expertise on commodities including precious metals, REEs and industrial minerals. David Shaw, PhD, PGeo - Director. Consulting Geologist, Director of First Majestic Silver (NYSE: AG), First Mining Finance (TSXV:FF), Great Quest Metals Ltd (TSXV:GQ), 30+ years in global exploration and mining finance.

The M edallion Team

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25% share 6% CAGR 15% share

Rare Earth Element Demand

Nd Pr Dy Tb

Rare Earth Elements (“REE”) are a set of metals essential for emerging technologies and defense. They are the “salt and pepper” of industry delivering specific and unique functions that are difficult to substitute. Each REE has different properties and end markets.

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La (Lanthanum), Nd (Neodymium), Dy (Dysprosium), Tb (Terbium), Ce (Cerium), Sm (Samarium), Pr (Praseodymium), Eu (Europium), Y (Yttrium), and Gd (Gadolinium)

Rare Earth Element Applications

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Rare Earth Element Supply in 2020

ORE CONCENTRATE MIXED OXIDE PURE OXIDE MAGNET COMPONENT PRODUCT METAL ALLOY CHINA - 80% 85% AUSTRALIA (MYANMAR, VIETNAM BRAZIL, US) JAPAN, KOREA, GERMANY, UK 90%

Due to multi-decade investment, REE supply is dominated by Chinese

• interest. Disruption/constriction at any point disrupts the entire value chain

for all customers except Chinese due to the integration of the supply chain.

• Chinese companies invest in REE projects globally with off-take agreements for

products early in the supply chain

• Control of critical raw materials in the up-stream delivers control of the down-

stream (massive businesses incl defense)

• Despite having natural resources, the US and Europe play no significant role in

production or processing of up-stream REE materials

• Industrial security requires raw material security. Multiple suppliers in down-

stream sector does not mitigate supply chain risks for US’s largest companies

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M omentum is Building in Sector

WASHINGTON ― The Pentagon has proposed legislation that aims to end reliance on China for rare earth minerals critical to the manufacturing of missiles and munitions, hypersonic weapons and radiation hardened electronics, by making targeted investments. The proposed legislation would raise spending caps under the Defense Production Act to enable government to spend up to $1.75 billion on rare earth elements in munitions and missiles and $350 million for microelectronics. It would also eliminate caps when it comes to hypersonic weapons. The proposal, obtained by Defense News, was offered earlier this month for inclusion in the annual defense policy bill Congress has been drafting. “To me, this is the biggest thing that has happened to rare earths in a decade,” Jeffrey Green, a defense industry consultant and advocate for government intervention on rare earth materials, said Monday. “The policy shift is the government is realizing they have to put serious bucks into this.”

https://www.defensenews.com/congress/2020/05/18/pentagon-legislation-aims-to-end-dependence-on-china-for-rare-earth-minerals/

The move to ensure supply chain security for US industry and defense has never been stronger. REE supply is becoming recognized in media and Departments of Defense and Energy as a key vulnerability.

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• NdPr is the essential raw material for high strength permanent magnets
• Lynas Corp (ASX: LYC) is the only significant NdPr producer outside China
• All new hard rock projects for NdPr are pre-development and unfunded. These require

substantial Cap-Ex ($250 million - $2B) and are at least 3-5 years away from production

• NdPr has no current substitute for high performance magnets. US does not produce NdPr or

high strength magnets

Source: UBS, USGS and public filings

NdPr – The Essential Feed for M agnets

mining project start up time At mid-2020 there are NO new projects funded for construction

20,000 tonne per annum NdPr shortfall in <5 years

11 Global REE Occurrences (USGS)

M edallion - Starting W ith the End in M ind

Medallion has focused its research and development on extracting NdPr from the mineral monazite. Monazite is one of two REE-rich minerals that supply today’s magnet industry. Medallion’s proprietary technology is particularly suited to monazite recovered from mineral sand mining.

• While there are many REE projects

globally, each have a unique set of minerals that require an individual flowsheet

• In contrast, monazite concentrated

from mineral sands is a homogeneous feedstock, that has allowed Medallion to develop a transferable processing technology

• Medallion has developed

proprietary processing expertise in monazite, typically the richest mineral in NdPr

Bastnasite REECO3F 70% REE 5-10% NdPr Monazite (REE,Th)PO4 65% REE 15-25% NdPr For NdPr

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Zircon Rutile Monazite

$ $

To stockpile

• r to China

GRAVITY SEP

M edallion – M onazite Enriched M ineral Sands

Mineral Sands enriched in Monazite (USGS)

Mineral sand deposits are collections of heavy minerals deposited by water. They are processed by some of the worlds largest mining companies to extract heavy minerals zircon, rutile or ilmenite. The heavy mineral monazite will be stockpiled or sold to China

• Mineral sand deposits are distributed across the globe, often in

coastal locations. Mining of these deposits is focused on value from

• ther minerals, not monazite, which is stockpiled as future resource
• r sold to China as a by-product.
• The Medallion process can gain value from this abundant feedstock

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M edallion – M onazite Enriched M ineral Sands

Southern USA

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• Monazite sand is typically 50-60% rare

earths

• Available today from heavy mineral sands

mines in Southeast US –

• Magnet metals make-up

– Neodymium 17 % – Praseodymium 5 % – Total 22% (80% of revenue)

• Material upgrading circuit being

implemented at mill – taking 20-40% monazite tailing to 90% pure feedstock

• Expected monazite feed:

– Currently 1,200 tpa – New Feed (2021) 1,800 tpa – Total 3,000 tpa

Rare Earths 50 – 60% Phosphate 25 – 35% Thorium 5 – 10%

Excellent NdPr Rich Feedstock

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The M edallion M onazite Process

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Proprietary enhanced “caustic crack” rare-earth extraction process

• Highly automated for low manpower

requirements and increased worker safety;

• Energy efficient design for low operating costs;
• Option for a zero liquid discharge plant to

provide additional flexibility on planning/permitting;

• Uses only “off-the-shelf” equipment which saves

costs — unique innovations on their application.

• Can be executed with 100% US feedstock,

chemicals and equipment

The M edallion M onazite Process

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The Path Ahead

• Completion of a location study to choose ideal
• perating location
• Engineering for pilot plant operation
• Techno-economic study to identify opportunities

for financial improvement Technical

• Finalise selection and relationships with

upstream and down stream partners in US

• Increase corporate profile within US DoD and DoE
• Seek international relationships with monazite

supplier and customers Commercial

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Medallion has built an industrially relevant, near term business model that enables the Company to execute on key partnerships within the US and global rare earth element supply chain

I nvestment Case

• Expertise and proprietary technology in monazite processing. Monazite is already a

key source of magnet metals NdPr globally

• Fast to market strategy by accessing by-product from mineral sand mining.

Opportunities both with US and elsewhere.

• Minimal technical risk – modern, efficient continuous metallurgical process utilizing

all material and a “no tailings” plant

• Potential to produce 2,000 tpa REO in US (global market: 150,000 tpa) very soon
• Very low capex – ~10-15% of hard-rock mining / processing
• Growth can be implement incrementally – modular design
• Near-term NdPr production from substantially de-risked business model

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For further information, please contact President & CEO Mr Mark Saxon

msaxon@medallionresources.com +61 421 492 614