Announcement PDF ASX Code: IPT June 17th, 2025 CORPORATE RELEASE LAKE HOPE HPA PRE-FEASIBILITY STUDY AND MAIDEN ORE RESERVE • • • • • • Very strong economic metrics and low-cost production: NPV10 A$1.165 billion (with no by-product revenue) Capex A$259 million Opex US$5,860 per tonne excluding by-product credit Potential Opex of <US$4,500 with by-product credit Maiden Probable and Proved Ore Reserve of: 1.7 Mt at 26% Al2O3 for 450,000 tonnes of contained Al2O3. Election to proceed to an 80% interest in Playa One Pty Ltd providing Impact with 80% ownership in the Lake Hope resource and intellectual property. Definitive Feasibility Study to commence with construction of pilot plant and investigation into the integration of Lake Hope with the HiPurA process. Impact Minerals Limited (ASX:IPT) is pleased to announce the positive results of a Preliminary Feasibility Study (PFS) for the Company’s Lake Hope High Purity Alumina (HPA) Project, located 500 km southeast of Perth in the Tier 1 mining jurisdiction of Western Australia. The PFS results align with those of the Scoping Study on the project released to the ASX on November 9th 2023. The PFS highlights the project's exceptionally strong economics and outlines a pathway for Lake Hope to become a global supplier of low-cost, low-carbon HPA, benefiting both the local Ngadju Aboriginal Native title holders and the broader community. The robust economics stem from the unique characteristics of the Lake Hope deposit, which facilitate cost-effective mining and processing. The PFS confirms that, to the best of Impact's knowledge based on published data, the Lake Hope project could be among the lowest-cost producers of HPA globally, potentially by a significant margin of at least 30%. Given these strong fundamentals, Impact will issue 120 million shares, escrowed for 12 months, to exercise its option to acquire an 80% interest in Playa One Pty Ltd, which owns the Lake Hope assets and intellectual property, including two patents for metallurgical processes (ASX Release March 21st 2023). Work will now commence on a Definitive Feasibility Study (DFS), which will include the construction of a pilot plant to produce HPA samples at scale for discussions on offtake agreements. The pilot plant project, currently underway, will be part-funded by the recent federal government grant awarded to Impact Minerals in collaboration with CPC Engineering and Edith Cowan University (ASX Release October 22nd 2024). In addition, as part of these studies, Impact will focus on the potential integration of the Lake Hope ore and its associated metallurgical processes with the assets and intellectual property related to the HiPurA process, which were recently acquired through Impact’s 50% share in Alluminous Pty Ltd (ASX Release April 23rd 2025). As the acquisition occurred near the end of the PFS, the study only pertains to Lake Hope as a stand-alone project and does not consider integration with HiPurA. Impact believes the HiPurA acquisition will accelerate the Company’s entry into the HPA market by several years, potentially enhancing the economics of the combined projects. Lake Hope PFS Summary ASX:IPT | ABN 52 119 062 261 2 Impact Minerals’ Managing Director, Dr Mike Jones, said, “The Lake Hope PFS clearly demonstrates that Impact Minerals is now on the cusp of delivering a significant, low-cost and highly scalable HPA project. In just over two short years since acquiring the rights to the project, we have proven that Lake Hope’s unique natural feedstock, combined with a straight-forward flowsheet, offers one of the most capital-efficient and environmentally responsible pathways to high-purity alumina production globally. The Project’s strong margins, minimal carbon footprint, and ability to deliver 4N product without critical reagents or complex processing provides us with a clear competitive advantage as the HPA market enters a phase of rapid growth.” “Importantly, the PFS positions Lake Hope to potentially be the upstream foundation of our vertically integrated HPA business. Through our recent acquisition of a 50% interest in Alluminous Pty Ltd and the HiPurA® downstream processing technology we are now accelerating plans to seamlessly integrate Lake Hope feedstock with HiPurA’s potentially modular HPA production capacity. This unique model offers Impact the flexibility to scale production in line with market demand and customer qualification, while minimising capital intensity and de-risking the path to early revenues.” “With the PFS now complete, our next steps are clear: we will advance the detailed engineering required to bring Lake Hope into production, which will revolve around our exciting federal government co-funded membrane research project now underway in conjunction with Edith Cowan University and CPC Engineering. We believe very significant improvements to our flow sheet will emerge from that work. We will also progress approvals and initiate off-take discussions. At the same time, we will help fund and rapidly develop the HiPurA® modular production pathway to establish near-term capacity and position Impact as a differentiated, vertically integrated supplier of high-purity alumina to the global market. The opportunities in front of us are significant and today marks a major milestone in what is shaping up to be an exciting future for Impact Minerals and our shareholders.” SUMMARY OF THE PRE-FEASIBILITY STUDY Production Base • Potential to become a major producer of HPA with stand-alone steady-state production of 10,000 tonnes per annum following a two-year ramp-up. • Initial mine life of 33 years. • Conservative commodity price estimate of US$22,000 per tonne of HPA compared to recent forecasts of more than US$25,000 per tonne from 2026 onwards. • Ideally positioned to meet forecast growth in demand for HPA over the next decade. • For a stand-alone operation as per the PFS, Definitive Feasibility Study (DFS) completion and FID for a stand-alone operation are anticipated in H1 2028. • Integration studies with the HiPurA process and the potential for a modular scale-up in production to commence immediately, to accelerate to commercial production by several years (ASX Release April 25th 2025). Physical Parameters • JORC Mineral Resource Estimate (MRE) of 2.8 million tonnes at 25.1% Al2O3 for 700,000 tonnes of contained Al2O3 (alumina) (ASX Release November 19th, 2024). • Maiden JORC Proved and Probable Ore Reserve of 1.7 million tonnes at 26% Al2O3 for 450,000 tonnes of contained Al2O3, a resource to reserve conversion rate of 66%. ASX:IPT | ABN 52 119 062 261 3 Capital Costs and Operating Costs (+/-25%) • Pre-production capex A$259 million, including a contingency of $50 million. • Lowest quartile Life Of Mine Opex cash costs of US$5,860 (A$9,450) per tonne, excluding byproduct credits (Figure 1). • Key by-product of sulphate of potash (SOP) could reduce Opex to <US$4,500. SOP flowsheet and market research have only been completed to the Scoping Study level and are not considered in the financial model. Offers significant upside to current financial metrics in the DFS. • Potentially at least 30% lower than operating costs (net of by-product) estimated by Alpha HPA Ltd (ASX: A4N ASX Release March 26th 2025). Figure 1. HPA Industry operating cost curve. Existing OPEX Data sourced from market analyst reports and in-house research. Key Operating Dynamics • The low operating and capital costs compared to competitors stem from the unique characteristics of the clay deposit at Lake Hope, which features high-grade mineralisation at the surface that requires no on-site beneficiation (Figure 2) advantageous metallurgical process kinetics, and potential future SOP by-product credit with further testwork. • Ore to be mined at Lake Hope, and transported to Kwinana, Perth, for processing. • Mining to take place on a campaign basis with ore stockpiled across a three month period. Mining campaigns occur annually for the first three years before transitioning to every three years. • An average of 54,000 dry metric tonnes of ore is delivered annually to the process plant with year-round transport. • A potential site for a refinery has been identified in Kwinana with ready access to required reagents and potential buyers for by-products. ASX:IPT | ABN 52 119 062 261 4 Figure 2. Comparison of mining techniques between Lake Hope and conventional hard rock mining. Metallurgy • PFS flowsheet is based on the now-patented Playa One Low-Temperature Leach (LTL) hydrometallurgical process (Figure 3 and ASX Release February 27th, 2024). The Scoping Study was based on the patented Playa One sulphate process (ASX Releases November 9th 2023 and February 19th 2024). • The LTL process comprises two main hydrometallurgical stages: Stage 1, a potassium hydroxide pre-treatment of the raw ore, which produces a high-value Sulphate of Potash (SOP) crystalline by-product; and Stage 2, a solid residue that is leached in a hydrochloric acid circuit to produce aluminium chloro-hexahydrate (ACH). The ACH is then calcined to produce HPA. Stage 2 is a recognised route to HPA and is used by several other private manufacturers of HPA. • Alumina recovery is about 70%, with potential to significantly improve on this with further testwork. • Regeneration of the hydrochloric acid using “off-the-shelf” acid recovery equipment, is a key financial metric for the Opex. • There have been no detailed testwork studies on the production of the SOP, and all considerations are at a Scoping Study level. However, preliminary assays suggest the potential for a high-quality product. • The SOP circuit has been included in the CapEx estimates but potential revenue and contribution to the earnings have not been included in the financial modelling. • Significant improvements to the alumina recovery, acid regeneration, SOP production and waste liquid management are anticipated under the federally co-funded CRC-P research project into membranes in association with CPC Engineering and Edith Cowan University (ASX Release October 22nd, 2024). • CPC Engineering has designed an elegant refinery layout for a specific site in Kwinana that has ready access to reagents and potential buyers of by-product (Figure 4). ASX:IPT | ABN 52 119 062 261 5 Figure 3. Process Flowsheet for production of HPA. Figure 4. 3D view and side elevation view of the proposed process plant in Kwinana. ASX:IPT | ABN 52 119 062 261 6 ESG and Carbon footprint • Baseline environmental and heritage surveys were completed over Lake Hope, with no impediments to mining identified. • Power for the Kwinana refinery will be 70% renewable by 2040, subject to the West Australian state government fully implementing the Whole of System plan (WoSP). Impact Minerals will also investigate options to increase renewable energy supply opportunities to bring this online sooner. • Expected low-in-class CO2 emissions compared to incumbent producers (Scope 1 & 2), including Alpha HPA Ltd (Figure 5 and ASX Release June 19th 2024) Figure 5. Likely CO2 emissions for four different production methods for HPA: The incumbent alkoxide process; Alpha HPA Limited (ASX Release November 21st, 2023); Impact’s proposed Sulphate and Low-Temperature-Leach (LTL) processes; and AEM who produce modest quantities of HPA in Canada using hydroelectric power Key Approval Processes Going Forward • Impact has elected to move to 80% ownership of Playa One Pty Ltd, owner of the Lake Hope project and associated metallurgical patents and other intellectual property. Impact will issue 120 million shares which are escrowed for 12 months. • Mining Lease and Miscellaneous Licence applications lodged. • Initial discussions with the Norseman-based Ngadju people, traditional custodians of the land which includes Lake Hope, have been very encouraging. The financial model incorporates an estimate of the community’s financial benefits. • Further heritage and environmental surveys required around infrastructure and the miscellaneous licence to be completed as part of the DFS. • Further engagement with the Ngadju group planned for Q4 2025 and 2026. ASX:IPT | ABN 52 119 062 261 7 Strong Post-Tax Financial Returns • A conservative discount rate of 10% returns a post-tax NPV10 of A$1.165 billion, excluding any by-product income from the SOP. For comparison, the Scoping Study used an 8% discount rate for an NPV8 of A$1.334 billion. At a discount rate of 8%, the PFS NPV8 is A$1.525 billion, and at a discount rate of 12%, the NPV12 is $961 million. Neither of these results includes the significant benefits from the potential sale of SOP. • IRR of 47.5% • Capital payback of 2.2 years from first HPA production. • Average annual post-tax free operating cash flow (real) of about A$170 million. • Life of mine post-tax cash flows of discounted $5.148 billion • Financial (real) modelling does not include any by-product credit. Key Project Financial Metrics Parameter Units Outcome Average annual ore mining rate dmt 54,300 Life of mine (LOM) years 33 4N HPA Production (LOM) t 323,640 Average annual production of 4N HPA t 10,000 Revenue 4N HPA (excluding by-product credits) AUD $/ t 35,484 Revenue (LOM) AUD $M 11,484 Post-tax NPV10 (real) AUD $M $1,165.7 % 47.5% CapEx (including contingency and owner’s costs) AUD $M $259 Govt Royalties (LOM) AUD $M 287.1 Other Royalties (LOM) AUD $M 344.5 Corporate Tax (LOM) AUD $M 2,176 Payback Years 2.2 Average cash cost of production of 4N HPA per tonne over LOM – without by-product credit AUD $/t $9,453/US$5,860 EBITDA (LOM) AUD $M 7,786 Net profit (LOM) AUD $M 5,148 Post-tax IRR ASX:IPT | ABN 52 119 062 261 8 Key Assumptions Parameter Unit Assumption Time series used Time Annual Weighted Average Cost of Capital (Discount rate) % 10.0 Tax rate % 30 Royalties % 5.5 Critical Minerals Tax Offset (recently introduced Australian federal tax incentive) % 10% of OpEx for 10 years US / AUD $0.62 Exchange rate Sensitivities • The project economics are most sensitive to the HPA price, US:AUD foreign exchange rate and the metallurgical recoveries (Figure 6). • A +/-10% change in these three items together would result in an NPV10 range of between A$672 million and A$1.658 billion. This demonstrates the robust economics of the project. • Inclusion of by-product potash revenue stream increases the base case NPV10 by A$140 million to $1.305 billion. Figure 6. Project Sensitivities. (Note that the identical FX and recovery sensitivities are coincidental.) ASX:IPT | ABN 52 119 062 261 9 Resources and Reserves A summary of the Lake Hope JORC Mineral Resources and Reserves is set out below. Lake Hope Project Mineral Resources: ASX Release November 11th 2024. The Mineral Resources for the Lake Hope alumina deposits are reported using the mineral wireframe, with a partial per cent block volume adjustment and without a cut-off grade reflecting the mining method which will mine the entire deposit. Mineral Resources Million Tonnes Al2O3 % Category Contained Al2O3 t Measured 0.73 25.8 189,000 Indicated 1.88 25.0 471,000 Inferred 0.17 23.1 40,000 Total 2.79 Million Tonnes 25.1% 700,000 tonnes Lake Hope Project Ore Reserves: ASX Release June 17th 2025 Deposit Classification Reserves Tonnes West Lake Proved East Lake Total Al2O3 % Contained Al2O3 t 410,000 25.9 106,000 Probable 860,000 26.1 224,000 Sub-Total 1,270,000 26.1 330,000 Proved 200,000 25.9 53,000 Probable 260,000 25.5 66,000 Sub-Total 460,000 25.7 119,000 Proved 610,000 25.9 159,000 Probable 1,120,000 26.0 290,000 Total 1,730,000 26.0% 449,000 1) The Ore Reserves are a subset of the Mineral Resource 2) Tonnages are dry metric tonnes 3) Both tonnages and grades are reported inclusive of dilution; appropriate rounding has been applied, and rounding errors may occur 4) Total Al2O3 metal content represents insitu quantities without metallurgical recoveries applied 5) Mine designs target grades above 25% Al2O3%, however, no cut-off grade has been applied to the ore reserve estimate Marketing • Favourable market fundamentals with HPA added to the Australian critical minerals list in March 2022 and other countries. • Forecast compound annual growth rate of about 20% for the HPA and related products market over the next decade driven by expansion in the battery and LED sectors (Figure 7). • Customer engagement will commence on the commissioning of the proposed pilot plant. This may be accelerated with the commissioning of the HiPurA pilot plant (ASX Release April 23rd 2025). ASX:IPT | ABN 52 119 062 261 10 • Capabilities in end-product specification need to be developed over the next 24 months. Figure 7. HPA supply demand balance deficit from CRU Group Source: CRU via Alpha HPA Key Risks • Further test work must be undertaken to assess the variability in ore across the Lake Hope deposit. Throughout the PFS, the understanding of the deposition and mineralogy across the lakes has improved significantly. • No vendor equipment test work was undertaken during the PFS stage. This presents a risk of vendors quoting equipment that may not function properly and/or is sized incorrectly, potentially leading to cost and schedule impacts in later phases. Key areas of focus are: • Evaporators and Crystallisers; • Centrifuges and potentially high-speed separators; • Calciner; and • HCl distillation and recovery (membranes) • Suitability of scale muncher and conveyor systems for handling the specific properties of the evaporite, including its flowability, abrasiveness, and potential for clogging; and • Reagent recoveries and recycle process liquors via locked cycle testing during pilot-scale testing. • The impact of geopolitical uncertainty which is increasing globally. Fluctuation in raw material prices has not been incorporated into the estimates, although the project is relatively insensitive to variances in CapEx and Opex (Figure 6). Upside to the Preliminary Feasibility Study Outcomes The Company has also identified significant opportunities for improvement to the PFS estimates and proposed programmes of work which will be incorporated into the Definitive Feasibility Study (DFS) commencing immediately, including: ASX:IPT | ABN 52 119 062 261 11 • Value engineering opportunities to further optimise the mine plan, production profile and financial returns early in the life of the operation, above the PFS estimates. • Further test work to improve recoveries and process modifications. • A 12-month stockpile programme to evaluate the seasonal effects of weather on stockpile integrity, surface runoff, and ore slumping. • Output from the pilot facility may produce findings that offer significant positive benefits to the larger industrial-scale refinery design. These include plant operability, process optimisation and improved ore recoveries, acid recovery and waste acid management, and construction materials, specifically for the calciner. • Conduct all necessary in-house and vendor supply process tests to ensure that the process flowsheet is not overdesigned and that anticipated design parameters are met or exceeded to reduce the size, cost, and delivery times of the vendor equipment. • Investigate the energy balance within the flowsheet to help reduce energy costs. • Explore opportunities to create higher purity 4N5+ and 5N products through the pilot plant, which will enhance the economics of the Definitive Feasibility Study. • Integration with the HiPurA process. The Executive Summary from the full PFS report is attached. This ASX announcement was approved and authorised for release by the Board of Impact Minerals Limited. Dr Michael G Jones Managing Director Competent Persons Statements The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation prepared by Roland Gotthard, a consultant geologist to Impact Minerals Limited. Mr Gotthard is a Member of the Australasian Institute of Mining and Metallurgy, and he has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (The JORC Code). Mr Gotthard consents to the inclusion in this release of the matters based on the information in the form and context in which they appear. The data in this report that relates to Mineral Resource estimates is based on, and fairly represents, information and supporting documentation prepared by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear. The information in this report that relates to Metallurgical test work is based on, and fairly represents, information and supporting documentation prepared by Scott Phegan, a consultant chemical engineer to Impact Minerals Limited. Mr Phegan is a Member of the Australasian Institute of Mining and Metallurgy, and he has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (The JORC Code). Mr Phegan consents to the inclusion in this release of the matters based on the information in the form and context in which they appear. ASX:IPT | ABN 52 119 062 261 12 The information in this report that relates to the maiden Ore Reserves is based on, and fairly represents, information and supporting documentation prepared by Mr Joel van Anen, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr van Anen is a full-time employee of TME Mine Consulting and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr van Anen has no economic, financial or pecuniary interest in the Company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears Forward Looking Statements: This announcement contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘potential’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolve’ and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements referred to in the report and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the competent persons findings were presented have not been materially modified from the original announcements. Cautionary Statement The Pre-Feasibility Study (“PFS”) discussed herein has been undertaken to explore the technical and economic viability of the Lake Hope HPA Project. The Production Target and financial forecast presented in the PFS comprises 34% Measured Resources, 62% Indicated Resources and 4% Inferred Resources. The Production Target included in the PFS relating to the Project payback period of 2.2 years comprises 100% Measured and Indicated Resources. The inclusion of Inferred Resources within the financial forecast is not material to the project’s economic metrics. There is a low level of geological confidence associated with Inferred Mineral Resources, and there is no certainty that further exploration work will result in the conversion to Indicated Mineral Resources or that the production target itself will be realised. ASX:IPT | ABN 52 119 062 261 13 Table of Contents 1.1 Introduction .......................................................................................................................................... 18 1.2 Study Contributors ................................................................................................................................ 19 1.3 Study Objectives and Scope ................................................................................................................... 19 1.3.1 Study Objectives ........................................................................................................................................ 20 1.3.1.1 Geology Review (Impact and H&S)..................................................................................................... 20 1.3.1.2 Mining (TME) ...................................................................................................................................... 20 1.3.1.3 Process Engineering, Plant design and Estimating Services (CPC) ..................................................... 21 1.4 Ownership & Tenure ............................................................................................................................. 21 1.5 Project Description ................................................................................................................................ 23 1.5.1 Overview .................................................................................................................................................... 23 Figure 2. Location of the Lake Hope HPA Project. ..................................................................................... 23 1.5.3 Mining ....................................................................................................................................................... 24 1.5.4 Refinery ...................................................................................................................................................... 24 1.6 Environmental ....................................................................................................................................... 25 1.6.1 Environmental Studies ............................................................................................................................... 25 1.6.2 Native Title ..................................................................................................................................................... 25 1.6.3 Legislative framework .................................................................................................................................... 26 1.6.4 Closure Planning ........................................................................................................................................ 26 1.7 Geology, Mineral Resource and Ore Reserve Estimates .......................................................................... 26 1.7.1 Mineral Resource Estimate ........................................................................................................................ 26 1.7.1.1 Ore Reserve Statement ...................................................................................................................... 27 1.8 Mine Design and Production .................................................................................................................. 28 1.8.1 Mining Waste, Ore Loss and Dilution ........................................................................................................ 30 1.8.2 Infrastructure and Logistics ....................................................................................................................... 30 1.8.3 Fencing and security .................................................................................................................................. 31 1.8.4 Earthworks and drainage ........................................................................................................................... 31 1.8.6 Existing Services .................................................