the next generation in proppants

PROPPANTS INVESTMENTPROPPANTS INVESTMENT FORUM

The next generation in proppantsSiegfried Koenig – Executive Chairman, LWP Technologies

GRANGE CITY HOTEL, CITY OF LONDON ● THURSDAY, 21 APR 2016www.ObjectiveCapitalConferences.com

LWP Technologies Limited (ASX:LWP) - Next-Generation Fly-Ash Based Proppants www.lwptech.com 1

MASTER'INVESTOR'PRESENTATION'''

22'APRIL'2016'


This%disclaimer%forms%part%of%and%is%incorporated%in%the%accompanying%material%%%The%informa4on%in%this%presenta4on%is%an%overview%and%does%not%include%all%informa4on%necessary%for%investment%decisions.%In%making%investment%decisions,%investors%should%rely%on%their%own%examina4on%of%LWP%Technologies%Limited,%(LWP)%or%consult%with%their%own%legal,%tax,%business%and/or%financial%advisors%in%connec4on%with%any%acquisi4on%of%securi4es.%%This%informa4on%has%been%prepared%in%good%faith%by%LWP.%However,%no%representa4on%or%warranty,%express%or%implied% is%made,% in% rela4on% to% the% accuracy%or% completeness%of% the% informa4on%provided% in% this% document%or% any%other% informa4on%by% LWP%otherwise%provided%to%the%recipients.%Whilst%every%care%has%been%taken%with%prepara4on%of%the%informa4on%contained%in%this%document,%no%responsibility%is%accepted%by%LWP% or% any% of% its% representa4ves,% directors,% partners,% employees% or% professional% advisers% for% any% informa4on% provided% in% this% document% or% otherwise%provided%to%the%recipients%or%for%any%ac4on%taken%by%the%recipients%on%the%basis%of%such%informa4on.%In%par4cular,%no%representa4on%or%warranty%is%given%as%to%the%accuracy,%likelihood%of%achievement%or%reasonableness%of%any%forecasts,%prospects%or%returns%contained%in%the%informa4on.%Such%forecasts,%prospects%or% returns%are%by% their%nature%subject% to%significant%uncertain4es%and%con4ngencies.%Each%recipient%of% the% informa4on%should%make% its%own% independent%assessment%of% the% informa4on%and%take% its%own% independent%professional%advice% in% rela4on%to% the% informa4on%and%any%ac4on%taken%on%the%basis%of% the%informa4on.%%%This%presenta4on%includes%forward%looking%statements%within%the%meaning%of%the%Corpora4ons%Act.%These%forward%looking%statements%may%be%iden4fied%by%words%such%as%�may,��will,%�expect,��intend,��an4cipate,��believe,��es4mate,��plan,��project,��could,��should,��would,��con4nue,��seek,��target,��guidance,��outlook,��forecast�%and%other%similar%words.%These%forward%looking%statements%are%based%on%LWP’s%current%objec4ves,%beliefs%and%expecta4ons,%and%they%are%subject%to%significant%risks%and%uncertain4es%that%may%cause%actual%results%and%financial%posi4on%and%4ming%of%certain%events%to%differ%materially%from%those%described%in%the%forward%looking%statements:%failure%of%a%proposed%transac4on%to%be%implemented;%the%challengers%of%cost%and%closing,%integra4ng,%restructuring%and%achieving%an4cipated%synergies;%the%ability%to%retain%key%employees;%and%other%economic,%business,%compe44ve,%and/or%regulatory%factors%affec4ng%the%business%of%LWP%generally,%including%those%set%forth%in%LWP’s%business%plan,%in%par4cular,%the%�Risk%Factors�%sec4on.%%Any%forward%looking%statements%speak%only%as%of%the%date%hereof%or%as%of%the%dates%indicated%in%the%statements.%LWP%assumes%no%obliga4on%to%publicly%update%or%supplement% any% forward% looking% statement% to% reflect% actual% results,% changes% in% assump4ons%or% changes% in%other% factors% affec4ng% these% forward% looking%statements%except%as%required%by%law.%

© LWP Technologies Limited


LWP Technologies (ASX: LWP) is an Australian oil & gas technology firm that has developed a next generation, flyash based, proppant for use in hydraulic fracturing of oil & gas wells globally.

KEY'FINANCIALS'ASX%TICKER:%%LWP%%HIGH%LIQUIDITY%

MARKET%CAPITALISATION:%$12%MILLION%CASH%:%$5%MILLION%

NO%DEBT%

$3.5%MILLION%BRISBANE%PLANT:%FULLY%PAID%FOR%R&D%TAX%GRANTS%DUE:%%$600,000%Q2%2016%$700,000%Q3%2016%$1%Million%Q4,%2016%

SHARES%ON%ISSUE:%3.92%Bn.%%


KEY MILESTONES MARCH 2015: Reverse merger completed MARCH: ' 'Acquired%100%%ownership%of%flyash%proppant%technology%%

MAY: % %Target%$400,000%capital%raising%and%SPP%raised%$4.0%million%

MAY: ' 'Pilot%plant%construc4on%completed%on%4me%and%on%budget%

JUNE: ' 'Engaged%EAS%Advisors%as%US%Corporate%advisor%

JULY: ' 'Target%raising%4%million,%raised%$6.6%million%@%1.0%to%1.1%cents/share%JULY: % %Entered%into%60/40%Hallmark%JV%to%acquire%12,000%tpa%factory%in%Pune,%India%

AUGUST:' 'Brisbane%pilot%plant%commissioned%

DECEMBER: 'Proppants%sent%to%US%Expert%laboratories%for%tes4ng%

JANUARY: %Outstanding%Expert%test%results%received%

JANUARY: %US%CEO%appointed%FEBRUARY: 'Interna4onal%promo4on%commenced'

ONGOING:' 'Discussions%with%several%par4es%for%addi4onal%commercializa4on%and% % % %%%%%%%%%%%%%%%%%% %mone4za4on%opportuni4es.%Produc4on%of%proppants%at%pilot%plant%tes4ng%flyash%proppants%% %from%various%sources.%


How%much%longer%will%countries%with%a%low%oil%produc4on%cost,%but%a%high%social%cost%con4nue%to%bear%the%pain%of%low%oil%prices?%

0

50

100

150

200

250

300

Tota

l C

ost P

er B

arre

l $U

SD

World'Oil'Producers'–'ProducHon'Costs'

Countries of Production Cost of Production $USD Social Cost of Oil $USD Current World Oil Price $USD

Sources:%Knoema%&%CNBC%


CERAMIC'PROPPANT'MARKET'OUTLOOK'•  Will%Global%shale%oil%&%gas%be%an%integral%part%of%global%energy%needs%in%the%future?%

•  Will%the%US%retain%its%energy%security%and%not%revert%to%being%%a%major%oil%importer?%

•  Will%other%countries%con4nue%to%exploit%their%oil%and%gas%resources?%

•  Will% the% oil% and% gas% industry% con4nue% to% seek% the% lowest% cost% /% highest% quality%proppants%to%maximize%yield?%

•  Will%the%es4mated%5,000%US%wells%that%have%already%been%drilled,%but%not%completed%[so%the%E&P%companies%don’t%lose%their%land]%get%fracced%some4me%in%the%future?%

'

Conclusion:''Future%prospects%for%the%proppant%market%and%LWP’s%proppants%in%par4cular,%are%excellent.%

%


Source:%IEA%

RIG'COUNT'HAS'DECREASED,'HOWEVER'OUTPUT'PER'RIG'IS'UP'SIGNIFICANTLY,'AND'INCREASING'


HISTORICAL'PROPPANT'ANNUAL'MARKET

Total Proppant Market Ceramic Proppant Market

Courtesy,%Proptester%Kelrick%


Source: Marketresearchstore January 2016


LWP’s%Flyash%Proppants%will%become%the%dominant%Ceramic%Proppant%and%the%Standard%for%the%Industry.%

LWP’S'VISION'


CERAMIC'PROPPANTS'Current'Market'

Uses%bauxite%or%kaolin%clay%to%make%proppants%

LWP'recycles'fly'ash'

LWP%recycles%the%abundantly%available%byqproduct%of%coal%fired%power%plants,%oren%close%to%shale%oil%and%gas%reserves%

Benefits'of'using'flyash'to'make'proppants'

•  % ≈%40%%stronger%than%kaolin%clay%%

•  % ≈%40%%lighter%than%bauxite%

•  % Reduced%deployment%costs%

•  % Low%(or%no)%transporta4on%and%logis4cs%costs%

•  % High%margin%poten4al%due%to%Low%manufacturing%costs%


ConducHvity'

14K%30/50%LWP%ceramic%proppants%crushed%at%15K%

Conduc4vity%con4nues%arer%crushing%at%high%pressure,%albeit%reduced%


ConducHvity'

6K%30/50%Northern%White%sand%crushed%at%7K%%

Conduc4vity%considerably%reduced%


COMPETING'AS'THE'LOWXCOST'PRODUCER'TransportaHon'and'LogisHcs'

%%%%%%%Transport%and%logis4cs%are%major%cost%factors%of%proppants%

%%%%%%Proppants%are%oren%transported%thousands%of%kilometers%from%factory%to%consumers%

Benefits'of'using'flyash'to'make'proppants'

%%%%%%%Fly%ash%is%abundantly%available%near%many%shale%oil%and%gas%resources%%

%%%%%%Factories%can%poten4ally%be%located%at%those%power%plants%

%%%%%%That%means%Low%(or%no)%transporta4on%and%logis4cs%costs%

%%%%%%Low%manufacturing%costs%contributed%by:%•  Low%feedstock%costs%%•  Low%feedstock%prepara4on%costs%

•  Low%energy%costs%

OPPORTUNITY:%ability%to%compete%on%price%with%mined%frac%sand%


LWP’s disruptive technology challenges existing market dynamics THE' ABOVE' ESTIMATES' ARE' PRELIMINARY' AND' BASED' ON' CERTAIN' ASSUMPTIONS' AND' PROJECTIONS'MADE' ON' BEHALF' OF' THE' COMPANY' IN' GOOD' FAITH.' ' THEY' ARE' GIVEN' HERE' FOR'ILLUSTRATIVE'PURPOSES'AND'ARE'NOT'TO'BE'RELIED'UPON'FOR'ANY'PURPOSE.'WHILE' THE'COMPANY’S'MANAGEMENT'CONSIDERS'THEM'REASONABLE,' THESE' ESTIMATES'ARE' SUBJECT' TO'SIGNIFICANT'BUSINESS,'ECONOMIC'AND'COMPETITIVE'UNCERTAINTIES'AND'CONTINGENCIES.'ACCORDINGLY,'NO'ASSURANCE'CAN'BE'GIVEN'THAT'THESE'ESTIMATES'CAN'OR'WILL'BE'REALIZED,'AND'THE'COMPANY’S'ACTUAL'PERFORMANCE'MAY'VARY'FROM'THE'ESTIMATES'AND'SUCH'VARIATIONS'MAY'BE'MATERIAL.'NO'REPRESENTATION,'WARRANTY'OR'GUARANTEE'OF'ANY'NATURE'IS'BEING'GIVEN'BY'OR'ON'BEHALF'OF'THE'COMPANY'REGARDING'ITS'FUTURE'PERFORMANCE'OR'FINANCIAL'RESULTS.%


US$'1.59'million''''''''''''''''''''''''''''''''US$'1.16'million'


PROJECT'PORTFOLIO'Brisbane'Pilot'Plant'

•  Located%in%Brisbane,%Eastern%Australia%

•  Produc4on%capacity:%3,000%tons/year%

•  Construc4on%completed%May%2015,%commissioning%completed%August%2015%

•  Produc4on%of%fly%ash%proppants%commenced%scale%up%manufacture%Q3%2015%%


HALLMARK'JOINT'VENTURE'

Pune

•  LWP%has%entered%into%a%jointqventure%(“JV”)%with%Hallmark%Minerals%Pvt%Ltd%to%produce%LWP%flyash%proppants.%

•  Produc4on%facility%is%located%in%Pune,%Maharashtra,%India.%

•  Capacity:%12,000%tons%per%annum.%

•  LWP%holds%a%60%%stake%in%the%JV,%Hallmark%40%.%

•  LWP%nego4ated%US$1%million%for%the%technology%license%for%the%State%of%Maharashtra%in%India,%plus%10%%of%gross%revenues%in%royal4es.%


BENEFITS'TO'LWP'OF'INDIAN'JOINT'VENTURE'

•  Early%costqeffec4ve%entry%to%proppants%market.%

•  LWP%proppant%produc4on%requires%15q30%minutes%sintering%4me%@%2300°F.%

•  Hallmark%bauxite%proppants%required%2%hours%sintering%4me%@%3200°F.%

•  Acquired%60%%interest%in%assets%with%replacement%value%of%US$15%million%for%US$2%million.%

•  Commercial%produc4on%allows%showcasing%LWP%technology%to%poten4al%licensees.%

•  Opportunity%to%automate%produc4on%to%24/7%opera4ons%to%produce%up%to%20,000%tons%annually.%


COMMERCIALISATION'AND'MONETISATION'OPPORTUNITIES'•  Secure% owake% agreements% for% Indian% JV% plant.% On% 20,000% tons/year% produc4on,%%

indicated%revenues%US$5.28%million,%EBITDA%US$3%million.%

•  License%LWP’s%technology%to%exis4ng%proppant%manufacturers%to%modify%exis4ng%plants.%Poten4al%prospects%in%USA%and%China.%

•  One%off%License%fee%=%$2.5%to%$5%million%depending%on%geographical%area.%PLUS%ongoing%royal4es%of%10%%of%revenue.%Indicated%annual%royalty,%100,000%tons/year%plant%=%US4.4%million/year.%

•  Partnerships% and/or% Joint% Venture% arrangements%with% interested% par4es% to% build% new%commercial% scale% plants% to% produce% LWP% proppants.% Poten4al% prospects% in% Australia,%Canada,%Middle%East,%US%and%Mexico.%

•  LWP%are%also%examining%opportuni4es%that%will%u4lise%our%strong%shareholder%base%and%cash%posi4on.%


LWP MANAGEMENT TEAM MANAGEMENT'TEAM%SIEGFRIED'KONIG' DR.'DAVID'HENSON' SEAN'CORBIN'

Chairman% Execu4ve%Director% Execu4ve%Director%&%Company%Secretary%

Entrepreneur%and%Ecopropp%CoqFounder.%30qyears%experience%in%business%management,%Successful%lis4ng%of%3%startqup%companies%on%ASX.%Global%rela4onships%in%capital%markets%&%public%company%sector.%%

Ecopropp%CoqFounder%based%in%Houston%TX,%former%CEO%of%Siemens%conceptual%engineering%services%&%project%manager%at%$3.8%Bn.%Gas%to%liquids%export%facility.%PhD%in%Chemical%Engineering.%%%

Sean%has%worked%as%an%execu4ve%at%CEO%and%CFO%level%in%a%wide%range%of%industries%in%various%stages%of%each%business.%%

%

JIM IRVINE BILL SCHOCH DR. RALPH ENDERLE %%NonqExecu4ve%Director% %%Chief%Financial%Officer% Chief%Scien4st%

Founder%and%President%of%%%%%%Fly%Ash%Direct%based%in%Cincinna4,%OH.%%Director%of%subsidiaries%LWP%LLC%&%Epropp%LLC%

Extensive%experience%in%accoun4ng,%tax,%audit%and%in%CFO%roles%in%listed%and%unlisted%companies.%%%

Principal%of%Drend%Solu4ons%which%provides%conceptual%designs%for%thermal%processing%and%associated%equipment%&%materials%development.%%


CONTACT''%SIEGFRIED'KONIG'CHAIRMAN,%LWP%TECHNOLOGIES%LIMITED%%MOBILE: ''+61%411%111%193%or%+61%424%048%888%US'CELL:' '+1%201%238%9080%EMAIL:'' '[email protected]%%

the next generation in proppants

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