for personal use only - asx...2018/07/04 · based on the closing share price of dst company...

PROTEAN ENERGY LIMITED (ASX: POW)JULY 2018 | INVESTOR PRESENTATION 1

A VERTICALLY INTEGRATED VANADIUM COMPANY

VANADIUM RESOURCES & BATTERY TECHNOLOGY DEVELOPER

INVESTOR PRESENTATIONFor

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DISCLAIMER

Disclaimer

Certain statements contained in this presentation may constitute forward looking statements. Such forward-looking statements involve a number of

known and unknown risks, uncertainties and other factors which may cause the actual results, performance of achievements of Protean Energy

Limited (the Company) to be materially different from actual future results and achievements expressed or implied by such forward-looking

statements. Investors are cautioned not to place undue reliance on these forward-looking statements. The information contained herein has been

prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or to participate in

any trading strategy or to enter into any transaction.

Minerals Exploration in South Korea

This presentation may describe Measured, Indicated and/or Inferred Resources. Inferred Resources have a greater amount of uncertainty as to their

existence and greater uncertainty as to their economic feasibility. It cannot be assumed that all or any part of any Inferred Resource will ever be

upgraded to a higher category. The potential quantity and grade of the Daejon Uranium Project Conceptual Exploration Targets is conceptual in

nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination

of a Mineral Resource.

Exploration is an inherently risky proposition and investors are advised that most exploration projects fail to identify economic resources. The

Company has at present not confirmed the economic viability of any resources at the project. The Company plans further drilling programmes and

studies with the objective of confirmation of any deposits and ultimately completing a feasibility study to demonstrate the economics of the

resources.

Competent Person Statement

The information contained in this ASX release relating to exploration results and Mineral Resources has been compiled by Mr Kahan Cervoj of Optiro

Ltd. Mr Cervoj is a member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is 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

2004 and 2012 editions of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Cervoj consents

to the inclusion in the report of the matters based on his information in the form and context in which it appears. Additionally, Mr Cervoj confirms that

the entity is not aware of any new information or data that materially affects the information contained in the ASX releases referred to in this report.

Research and Development

There are many risks inherent in the development of technology of products like the V-KOR range of batteries, particularly as these products are in

the pre-commercial stage of development. The development of the V-KOR ESS can be delayed or fail to demonstrate any benefit, or research may

cease to be viable for a range of scientific or commercial reasons

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TABLE OF CONTENTS

1 Protean Energy Overview 4

3a V-KOR Vanadium Battery Technology 15

3b V-KOR Perth Trial 23

3c VRFB and Energy Storage Market 27

2 Korean Vanadium Projects 8

4 Appendix 34For

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1. Company Overview

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VANADIUM RESOURCES & BATTERY TECHNOLOGY

Stonehenge Korea Inc

Developing world-class vanadium and

uranium projects in South Korea

KORID Energy Ltd (Korea)

Vanadium battery and energy storage

development company

Daejon, Miwon & Gwesan

Vanadium and uranium projects

in South Korea

Protean Energy Limited (ASX: POW) is a vertically integrated, vanadium resource and battery

development company. The Company is focused on advancing its South Korean vanadium mineral

projects and the commercialisation of its vanadium battery and energy storage technology.

V-KOR Technology

Proprietary vanadium redox flow battery

energy storage technology

Protean 50% Protean 50%

100% 100%

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CORPORATE OVERVIEW

Market Capitalisation and Enterprise Value1,2

Ordinary shares on issue Number 304,312,341

Share price (26 June 18) A$/share 0.031

Market Capitalisation A$m $9.43m

Cash (as at 31 Mar 18)3 A$m $3.1m

Listed Securities (DST: Korean listed)4 A$m ~$1.9m

Enterprise Value A$m $4.4m

Share Price / Volume History (A$; millions)

Board of Directors

Name Position

Bevan Tarratt Non-Executive Chairman

Wayne Loxton Technical Director

Young Yu Non-Executive Director

Dave Wheeler Non-Executive Director

Notes:

1. Excludes 8,082,662 Performance Rights subject to vesting and 8,202,796 Unlisted Options.

2. Excludes 47,000,000 adviser options and 38,000,000 options issued to the Directors of the Company. As per the Notice of General Meeting dated 5 April 2018.

3. Comprising cash as at 31 March 2018 of A$2.79 million and R&D tax rebate receivable of A$324,229.

4. Based on the closing share price of DST Company Limited (KOSDAQ: 033430) on 26 June 2018 and KRW:AUD exchange rate of 825.81.

Source: Bloomberg as at 26 June 2018, Company Announcements.

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VERTICALLY INTEGRATED VANADIUM COMPANY

▪ Vertically integrated strategy with downstream vanadium resources and

an advanced vanadium redox flow battery technology ✓

▪ POW mineral assets are unique sediment hosted vanadium deposits

▪ Potentially suited to produce the high-purity vanadium pentoxide (V2O5)

for emerging vanadium redox flow battery technology✓

▪ Updated Interim Mineral Resource Estimate in Q2 2018

▪ Interim Resource estimate calculated over 40% of the strike length with an

updated MRE expected Q3 2018 over the entire strike length

▪ Combined Inferred and Indicated Vanadium Mineral Resource Estimate

(JORC 2012) of 37.1 Mt @ 3,000ppm V2O5 and 120ppm U3O8 defined for

a total of 248 Mlbs V2O5 and 10 Mlbs U3O8.

▪ Additional primary uranium resource of 12.4 Mt @ 240ppm U3O8 defined

✓

▪ First Australian commercial V-KOR vanadium battery deployment being

tested in a micro-grid setting ✓

▪ Vanadium pentoxide price up >175% in the last 12 months

▪ Best performing battery metal across CY2017 ✓

▪ Cash on hand of ~A$3.1m and ~A$1.9m in listed securities ✓

Vertically integrated

vanadium company

Sediment hosted

vanadium deposits

Significant Resource

expansion potential

Vanadium redox flow

battery technology

Surging vanadium price

Well funded6

5

4

3

2

1

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3. Korean Vanadium Projects

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SOUTH KOREAN VANADIUM PROJECTS

Potential world-class sediment hosted vanadium and uranium projects.

▪ Protean Energy, via its 50% interest in

Stonehenge Korea Ltd (SHK) is advancing

a suite of vanadium projects in Korea

▪ Daejon (22.8km2) is our flagship asset with

further exploration ground held at Miwon

(16.6km2) and Gwesan (24.8km2)

▪ Daejon is a sediment hosted shale

vanadium project which has the potential

to produce high purity vanadium pentoxide

(V2O5)

▪ Approximately 5% of vanadium mineral

occurrences are sediment hosted and

95% are magnetite hosted (as discovered

in Western Australia, South Africa etc.)

Protean Energy’s South Korean Vanadium Projects

Daejon Project

248 mlbs V2O5

Miwon Project

Gwesan Project

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DAEJON PROJECT (50% INTEREST)

Daejon project strike length of 8.3km with the current Interim Mineral Resource Estimate covering

40% of the known mineralised host rock strike length.

Daejon Project Area

▪ Daejon is a unique sediment hosted

shale/slate bed vanadium deposit which

has the potential to produce high purity

vanadium pentoxide (V2O5)

▪ Significant uranium credit associated

with the deposit

▪ Access to 36,000m (>220 holes) of

historical untested drill core. Drilled by

the Korean Government in the 1970s

and early 1980s

▪ Historical drill core was not

systematically assayed for vanadium.

✓ Interim JORC 2012 Mineral Resource upgrade received Q2

2018

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INTERIM VANADIUM RESOURCE ESTIMATE

INTERIM MINERAL RESOURCE ESTIMATE CALCULATED OVER 40% OF THE KNOWN DAEJON

VANADIUM/URANIUM STRIKE LENGTH

V2O5 Resource with U3O8 by-product U3O8 Resource

Category Tonnes (Mt) V2O5 Grade (%)Contained V2O5

(Mlbs)

U3O8 Grade

(ppm)

Contained

U3O8

(Mlbs)

Tonnes

(Mt)

U3O8

Grade

(ppm)

Contained

U3O8

(Mlbs)

Indicated

Resources3.4 0.35% 27 150 1.1 0

Inferred

Resources33.7 0.30% 221 120 8.9 12.4 240 6.6

Total 37.1 0.30% 248 120 10.0 12.4 240 6.6

Notes:

1. These estimates were prepared and first disclosed under the JORC Code (2012).

2. The vanadium resource is estimated with a 0.2% V2O5 cut-off with no cut-off grade applied to the uranium by-product. In addition to the vanadium

resource a uranium resource has been defined where the two are not coincident, this uranium resource has a 200ppm U3O8 cut-off applied to it

3. Method for calcinating vanadium-containing stone coal ash, CN 200910100872, 2009

Vanadium Mineral Resource Estimate @ 0.20% V2O5 cutoff (with no U3O8 cutoff applied) and additional uranium resource at 200ppm

U3O8 cut-off1,2

Upcoming testwork will focus on beneficiation using the proprietary Chinese LSCRO, magnetic and flotation methods which are

successfully being used on Chinese stone coal deposits and achieving an average upgrade of 300%3

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DAEJON: PHASE 2 DRILL CORE STUDY

The KIGAM core analysis work program consists of data collection from the historical KIGAM core.

Stage 1 of the program has been completed, enabling the estimation of the interim mineral resource

pXRF testing historical KIGAM Daejon drill core in KoreaDetails Stage 1 Stage 2

Number of high priority

drill holes tested72 19

Mineralised core tested 2,511 m 910 m

Stage CompleteCommenced Q2

2018

Outcome of program

Completion of Stage

1 has enabled the

company to estimate

an interim Mineral

Resource estimation

of vanadium

Completion of Stage

2 will enable the

company to update

the vanadium and

uranium Mineral

Resource over the

entire 8,300m of

estimated

mineralisation strike

length

Mineral Resource

(JORC-Code 2012

Compliant) upgrades

Interim upgrade

completed June 2018

Further upgrade

expected by Q3 2018

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NEWLY IDENTIFIED HORIZON AT DAEJON

Modelling has identified an additional black shale horizon that potentially could host additional

vanadium mineralisation at Daejon project.

Additional mineralised shale horizon identified within geological modelling program ▪ A 3D geological modelling

program of the Daejon

Vanadium project completed as

a precursor to the Mineral

Resource estimation

▪ During the remodelling process

an additional black shale horizon

was identified from the existing

geological data which is

expected to host additional

vanadium mineralization

▪ A Mineral Resource estimate

over approximately the

remaining 60% of the known

8.3km strike length will

commence following the

completion of the Stage 2 p-XRF

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DAEJON: UPCOMING NEWS FLOW

Significant upcoming news flow following extensive historical core study work program.

Details Stage Timing

Approval by KIGAM to conduct pXRF assaying on historical core ✓ January 2018

Positive correlation between new pXRF assays and 2013 wet assays is confirmed ✓ January 2018

Commencement of KIGAM core pXRF testing program ✓ Commenced January 2018

Protean commence metallurgical test work targeting high purity vanadium pentoxide

(V2O5 ) precipitate (suitable for VRFB electrolyte) ✓ Commenced April 2018

Completion of Stage 1 of KIGAM pXRF test work ✓ May 2018

Commencement of Stage 2 pXRF test work ✓ Commenced May 2018

Vanadium Mineral Resource (JORC 2012) interim upgrade (post Stage 1) ✓ June 2018

Results from tests targeting high purity V2O5 precipitate ✓ July 2018

Vanadium and uranium Mineral Resource (JORC 2012) over the entire 8,300m of

estimated mineralisation strike length (post Stage 2) ✓ By Q3 2018

Commence vanadium off-take partner discussions ✓ H2 2018

Commence PFS on Daejon ✓ Q1 2019

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(3a) V-KOR Battery Technology

Image: Rongke Power’s factory that produces vanadium

redox-flow batteries destined for the world’s largest battery

site: a 200-megawatt, 800-megawatt-hour storage station

in China’s Liaoning province.

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VANADIUM REDOX FLOW BATTERY TECHNOLOGY

Protean (50%) and its Korean partner, DST Co Ltd (50%), own 100% of KORID Energy Ltd.

KORID is developing proprietary vanadium redox flow battery (VRFB) energy storage technology.

V-KOR Technology

Proprietary vanadium redox flow battery

energy storage technology

100%

DST Co Ltd

Korean Partner

50%50%

▪ Protean and DST, via KORID Energy, are

developing VRFB technology, known as V-KOR

▪ V-KOR is a commercial ready rechargeable

flow battery technology that stores energy for

longer and with a greater life expectancy than

existing battery solutions

▪ V-KOR systems are fully scalable with built

solutions from 2kW to 20MW and larger to suit

customer specific requirements

▪ V-KOR has been developed over the last ten

years and the technology is patent protected

▪ ~AUD$120,000 grant from a Korean

government agency, KETEP, utilised to fund the

V-KOR trial (25kw/100kWh) in Western

Australia

KORID Energy Ltd (Korea)

Vanadium battery and energy storage

development company

Ownership Structure of V-KOR Battery Technology

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KORID’S V-KOR VRFB

KORID’s VRFB technology is a modular "plug and play" containerised utility scale storage solution.

Composition of Korid Energy’s V-KOR VRFB

1. Electrolyte tanks

2. Cell stacks / membrane

3. Pumps and other balance of plant equipment

4. Power conversion system (including control system, communications,

inverter, electrical wiring, etc.)

5. Standard size shipping container

1

2

3

4

5

1

2

3

4

5

V-KOR

components

contained within a

standard 20ft

shipping container

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COMPOSITION OF STANDARD VRFB

VRFB use a circulating electrolyte solution of vanadium pentoxide to store the charge in tanks.

Source: Sumitomo website.

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HOW DOES VRFB TECHNOLOGY WORK?

VRFB use a circulating electrolyte solution of vanadium pentoxide to store the charge in tanks.

Energy is stored in

tanks as charged

vanadium liquid

electrolyte

When electrolyte has

released energy, it

must be recharged

Charges are

transferred across the

cell stacks/membrane

from one liquid to the

other, depending on

whether the battery is

storing or releasing

electricity

Sends electricity to grid when demand is

needed. Process is reversed and solar energy

or other energy sources (wind etc.) recharge

battery when demand is low

V-KOR cell stackV-KOR power

conditioning system

V-KOR Electrolyte tank (+VE) V-KOR Electrolyte tank (-VE)

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V-KOR STACK TECHNOLOGY

The V-KOR stack technology is aimed at improving battery performance and lowering manufacturing

costs compared to conventional VRFB technology.

▪ Each VRFB stack is made up of a series of multi cell frames

▪ Cell frames are stacked up in repeating series to form a number of cells within the overall battery stack

V-KOR 25kW class stack

Structure of V-KOR VRFB stack

V-KOR cell frame

▪ Four stack sizes of batteries

have been developed to date

by Korid including a 2.5kW,

5kW, 10kW and 25kW

▪ Developing and testing new

stack system up to 50kW

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▪ V-KOR has been developed over the past ten years and patents are granted to protect the design

▪ Four stack sizes of batteries have been developed to date including a 2.5kW, 5kW, 10kW and 25kW

▪ Technology is expected to drive the adoption of clean energy solutions

ADVANCED COMMERCIAL READY TECHNOLOGY

V-KOR: 3.6MW large scale grid battery concept V-KOR: off-grid battery concept

The V-KOR battery solutions are built to order for commercial, industrial and grid scale applications.

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ABILITY TO SCALE V-KOR TECHNOLOGY

Illustrative V-KOR system (25kw/100kWh) being utilised

via a solar PV

Illustrative V-KOR system (1MW/4MWh) being utilised via

a solar PV

An important attribute of VRFB systems is that their energy capacity is independent of the power

rating, allowing them to be designed for highly specific energy and power requirements and making

them well suited to applications with large energy capacity specifications.

▪ Whether in combination with solar PV, wind power or grid power – the vanadium redox flow energy storage

system aims to ensure uninterrupted power supply

“In China, vanadium-flow batteries are emerging as an

alternative to lithium-ion, according to Gary Yang, founder of

UniEnergy Technologies” Bloomberg (26 January 2018)

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(3b) V-KOR Perth Trial





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PERTH MICRO GRID INTEGRATION JUNE 2018

In June 2018 the Company deployed the 1st Australian V-KOR trial battery. The trial is scheduled to

run for 4 months with the round of testing focusing on a micro grid installation

▪ First phase testing of the 25kW (100kWh) V-KOR vanadium redox flow battery in a micro grid setting has

commenced. Micro grid integration between a 21kW solar PV system and a 21kW diesel generator

▪ The V-KOR trial battery consists of 2 electrolyte tanks, 2 battery stacks of 12.5kW, one 25kW inverter, associated

electrolyte pumps and a power management system. The battery is housed in a 20-foot container, oversized to allow

for ease of inspection during the trial period

KORID technicians overseeing

installation of the V-KOR battery at

the Perth test site

▪ Trial commenced at OzLinc Industries in O’Connor, Perth

▪ OzLinc is a supplier of pipe, fittings, flanges, valves and hosing to

the Australian marine, industrial and resources sectors

▪ The V-KOR demonstration battery will be charged by a 21kW

rooftop solar PV grid connected system

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MAJOR DEVELOPMENT MILESTONE ACHIEVED

A significant development milestone has been achieved on the V-KOR battery with 9 years of full daily

cycles being completed

No significant degradation in V-KOR battery performance during testing

V-KOR battery units tested by Korea Conformity Laboratories

The completion of this successful testing is considered to be representative of “in use” battery

performance and supports V-KOR’s progression towards initial commercialisation via customer orders

The V-KOR battery has been developed over the past five years with over US$3 million dollars invested

to date in research, development, testing and IP protection.

20kW solar PV integrated with 50kW V-KOR battery and the electricity grid in a field test site at Seosan-si

in Korea.

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V-KOR: UPCOMING NEWS FLOW

Significant upcoming news flow as a result of 1st V-KOR installation project in Western Australia.

Details Stage Timing

Completion of acquisition of 50% interest in KORID Energy Ltd ✓ March 2017

V-KOR secures ~AUD$120,000 in grant funding from the Korean government ✓ June 2017

Announced 1st V-KOR battery (25kW/100kWh) deployment in Western Australia ✓ April 2018

Installation of V-KOR battery in Western Australia ✓ May 2018

Trial to commence (battery trial terms) at OzLinc Industries in O’Connor, Perth,

Western Australia ✓ June 2018

V-KOR battery trial interim progress report ✓ H2 2018

Results of Western Australia V-KOR battery trial ✓ H2 2018For

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(3c) VRFB and Energy Storage Market





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VANADIUM REDOX FLOW BATTERIES

Vanadium redox flow batteries are fast becoming a preferred choice for suppliers and there are a

number of companies worldwide which are commercialising this technology.

▪ Redox flow batteries are rechargeable batteries that

are charged and discharged by means of the

oxidation-reduction reaction of ions of vanadium or

the like

Advantage over other systems include:

✓ Scalability

✓ Lifespan of 20 years

✓ Immediate energy release

✓ Excellent charge retention (up to 1 year)

✓ Suitability for grid connection

✓ Ability to discharge 100% with no damage

✓ Key feature of using only one element in

electrolyte; V2O5

▪ This makes them useful for grid scale applications,

including grid balancing, and storing energy from

variable output sources, including wind turbines and

solar cells

Vanadium redox flow battery technology

Sumitomo 60MWh power generation and storage facility,

installed in Hokkaido, Japan

“The dominant form of energy storage is lithium-ion

technology, but there are advantages to vanadium-flow

batteries. They last longer and can be charged and discharged

repeatedly without any significant drop in performance”

Bloomberg (10 April 2018)

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THE BATTERY MARKET

Vanadium redox flow batteries have a number of advantages compared to existing and competing

battery technologies. VRFBs last longer and can be charged and discharged repeatedly without any

significant drop in performance.

Details (USD) Vanadium Redox Flow Zinc Bromine Flow Lithium-ion Lead Acid

Image

Upfront cost

(USD/kwh)$580-8202 $800 –875 $600 –1,1002 $100 – $2002

Lifetime cost

(USD/kWh LCOE)$0.25 - $0.453 $0.20 – $0.30 $0.15 – $0.75 $0.25 – $0.50

Storage capacity Unlimited4 Medium

3 – 10hrs

Short

1 – 4hrs

Medium-high

4 – 100hrs

Battery life span >20 years2 >10 years1 5-10 years 5-10 years

Cycle >10,000 1,000 – 10,0001 500 – 5,000 1,000 – 5,000

Depth of discharge 100% 100% 75% 50%

Safety Low risk Low risk Fire risk Low risk

Select battery technology comparisons

Notes:

1. ZBM2 expected stack life of 10 years / 40,000 kWh regardless of cycle depth.

Source: Redflow Limited (ASX: RFX) investor presentation.

2 Energy Exchange conference presentation, Pacific Northwest National Laboratory, August 1 2017

3 SA Energy Storage conference 2017, Mott MacDonald Africa (Pty) Ltd

4 Storage capacity is limited only by the volume of electrolyte

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VRFB VS LITHIUM-ION

Lithium-based batteries are well suited to consumer electronics and electric vehicles, their lifetimes

can be limited.

▪ VRFB technology can be fully discharged over an almost unlimited number of charge and discharge cycles

without degrading

▪ This is an important factor when matching the daily demands of utility-scale solar and wind power

generation

Source: www.vrbenergy.com

“I don’t think anyone

would dispute that it’s

(VRFB) superior to

lithium-ion in large-scale

grid applications”

Bloomberg

(25 January 2018)

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http://www.vrbenergy.com/


Source: Company Announcements.

LEADING TO MASSIVE DEPLOYMENTS OF VRFBs

Technical and economic fundamentals are leading to massive deployment of VRFBs, especially in

Asia - large scale VRFB projects being delivered in Japan and China.

Details Sumitomo’s 60MWh in Japan Rongke Power’s 800MWh in China Pu Neng’s 500MWh in China

Image

Location Hokkaido, Japan Dalian City, China Hubei province, China

Stage Commenced operations in 2015Approved by China National Energy

Administration in May 20163-phase project to be finished by 2020

Developer

Scale 60MWh (15MW for 4h) 800MWh (200MW)Phase 1: 12MWH (3MW)

Total Project: 500 MWH (100MW)

ApplicationStabilise the flow of wind and solar power on

the northern island of Hokkaido

Project will provide peak-shaving as well as

form another load center for the Dalian

peninsula, enhancing grid stabilisation

Project will serve as a critical peak power

plant, delivering reliability and emissions

reductions

These large VRFBs are part of China’s new National Development Plan’s “focus

includes 100MW-grade, vanadium redox flow battery energy storage stations”

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Source: Company Announcements.

VRFB – SELECT MARKET PARTICIPANTS

Company KORID Energy UET Pu Neng Sumitomo Electric Rongke Power Bushveld Energy VSUN Energy

Image

K O R I D

Business

locationSouth Korea USA China Japan China South Africa Australia

Business

description

▪ Founded in 2012▪ Korea based VRFB

technology

developer and

manufacturer

▪ Founded in 2012▪ USA based VRFB

technology

developer and

manufacturer

▪ China based VRFB

technology

developer and

manufacturer▪ Chairman is Robert

Friedland

▪ Part of Sumitomo

group, one of the

largest general

trading companies

▪ Founded in 2008▪ China based VRFB

technology

developer and

manufacturer

▪ Subsidiary of

Bushveld Minerals

(AIM: BMN)▪ Focused on

delivering VRFB

solutions across

Africa

▪ Subsidiary of

Australian

Vanadium (ASX:

AVL)

Valuation

Owner of 50% of

KORID = Protean with

Mkt Cap of `A$10m

Private

>US$350m in funding

Private

>US$90m in funding

Sumitomo Electric

Mkt Cap of A$17bnPrivate

Bushveld Minerals

Mkt Cap of A$413m

Australian Vanadium

Mkt Cap of A$64m

Develop

VRFB

systems?✓ ✓ ✓ ✓ ✓

▪ Utilise other

manufacturers

systems

▪ Utilise other

manufacturers

systems

Projects

▪ Commercial ready

technology▪ Perth trial

commencing

Jun-18

▪ 88MW/350MWh of

systems deployed,

contracted or

ordered

▪ Developing 3

phase project in

Hubei 500MWh

(100MW)

▪ Large number of

installations dating

back to 2000

▪ Developing project

in Dalian City,

China (800MWh)

▪ Announced in

November 2017

first utility VRFB

deployment with

Eskom and IDC

(120Kw/450kWh)

▪ Installation and

operation of first

VRFB in Western

Australia during

Sep-16

Other

▪ V-KOR range of

batteries has been

developed over the

last ten years and

the technology is

protected by a

suite of patents

▪ Operate a

60,000 ft2

manufacturing

facility in USA,

scaling up to

produce 100

megawatts p.a.

▪ Secured

investment from

HPX in May-17▪ HPX is a fund led

by Robert Friedland

▪ 60MWh power

generation and

storage facility,

installed in

Hokkaido, Japan

▪ Strategic

partnership with

UET

▪ UET is producing

the VRFB for the

Eskom and IDC

project in South

Africa

▪ Successfully

installed electrolyte

pilot plant at UWA

during Jan-17

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GROWTH IN RENEWABLE ENERGY SECTOR

The global renewables sector is experiencing unprecedented growth due to sharp reductions in the

cost of wind and solar power generation and enhanced policy efforts by governments.

▪ For example, the cost of building utility-scale solar power plants has fallen by 50% in the past five years

▪ The International Energy Agency projects that renewables will remain the fastest-growing source of

electricity generation, with their share growing to 28% in 2021 from 23% in 2015

Levelised cost of electricity (US$m per megawatt)

Source: Bloomberg New Energy Finance.

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(4) Appendix





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VANADIUM PEERS

Source: Bloomberg as at 20 June 2018. Company announcements.

Protean is well placed for growth comparatively with listed vanadium peers.

946

413

159112

10864

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Largo Bushveld Neometals TNG King River Aust Vanadium Tando VanadiumCorp TMT Prophecy Argex Protean

Market Capitalisation of Vanadium Peers (A$m)

Ticker TSX: LGO AIM: BMN ASX: NMT ASX: TNG ASX: KRC ASX: AVL ASX: TNO TSX: VRB ASX: TMT TSX: PCY TSX: RGX ASX: POW

Flagship assetMaracas

(100%)

Vametco

(59%) &

Mokopane

(64%)

Barrambie

(100%)

Mount Peake

(100%)

Speewah

(100%)

Gabanintha

(100%)SPD (74%)

Lac Doré

(100%)

Gabanintha

(100%)

Gibellini

(100%)

La Blache

(100%)

Daejon,

Gwesan,

Miwon (50%)

Sediment Hosted Deposit ✓

Country Brazil South Africa Australia Australia Australia Australia South Africa Canada Australia USA Canada Korea

Asset Stage Producing Producing Feasibility Feasibility Scoping Feasibility Exploration PEA Feasibility Feasibility PEA Exploration

Vertically Integrated? ✓ ✓ ✓

Market

Capitalisation

(A$m)

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VANADIUM MARKET

Protean intends to target the rapidly expanding markets for high-tech battery applications.

▪ Significant growth is expected in high-

tech chemical and alloy applications,

particularly:

▪ Vanadium Redox Flow Batteries

▪ Vanadium master alloys used in the

production of aerospace-grade

titanium alloys and high-strength

steels, (emergence of China’s

commercial jet industry)

▪ Require high purity V2O5, which is

limited in supply

▪ Main use of vanadium is in

specialty steel production in the

form of ferro vanadium (FeV)

▪ However, growth market is use in

hi-tech chemical applications (e.g.

VRFBs) and high strength

aerospace alloys

▪ Concentrated global supply with

China, South Africa and Russia

making up 90%

▪ Total supply in 2014 of 168,325kt

Global Supply (%) Consumption (%)

Source: Roskill 2014.

South Africa 20%

Russia 17%

Other

10%

China 53%

Specialty Steel

Production 91.0%

Non-ferrous

Alloys 4.5%

Chemical Applications 3.5%

Other 1.0%

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VANADIUM PRICE UP 137% IN THE LAST 12 MONTHS

Source: Bloomberg as at 20 May 2018. Asian Metal Inc.

V2O5 prices rose strongly in the past 12 months. Future demand is expected to rise due to supply

constraints, increased intensity in steel production and usage in energy storage, principally VRFB’s.

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Vanadium Pentoxide Flake (US$/lb) China 98% FOB

“Vanadium, mainly used in

steelmaking, can also be used in

industrial-scale batteries, which help

to even out daily peaks and troughs

from renewables such as wind

energy” Bloomberg

(25 January 2018)

“We think there’s revolution coming

in vanadium redox flow batteries…

You’ll have to get into the mining

business and produce ultra-pure

vanadium electrolyte for those

batteries on a massive scale”

Robert Friedland, May 2017For

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VANADIUM PRODUCTS

Vanadium is mainly produced either in the form of vanadium pentoxide or ferro-vanadium.

Details Vanadium Pentoxide Ferro-vanadium

Image

Chemical formula V2O5 FeV

Vanadium content 55%1 80%2

SourcesVanadium-bearing ores, vanadiferous slag, spent

catalysts, petroleum residues and power station ashVanadium pentoxide

Uses

Ferro-vanadium production, non-ferrous alloys

(aviation), chemical applications (batteries, catalysts,

pharmaceuticals, etc)

High strength steel

Pricing convention US$/lb V2O5 US$/kg V in FeV

Current spot price3 US$16.2/lb US$72.5/kg

Notes:

1. Based on a molecular weight for vanadium of 50.9415g/mol and oxygen of 15.9994g/mol and a vanadium pentoxide purity of 98%.

2. Based on FeV80, a product containing 80% vanadium.

3. www.vanadiumprice.com 27 June 2018

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http://www.vanadiumprice.com/


WWW.PROTEANENERGY.COM

LEVEL 1, 89 ST GEORGE’S TERRACE

PERTH, WA, 6000

[email protected]

+61 8 9481 2277For

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for personal use only - asx...2018/07/04 · based on the closing share price of dst company...

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