FYI Resources : HPA Strategy Overview

High Purity Alumina

July 2017 I www.fyiresources.com.au I ASX:FYI

What is HPA

• High purity alumina (HPA) is aluminum oxide (Al2O3) powder with a purity equal to or greater than 99.99%

• HPA has uniform fine particle characteristics and is very low

  in impurities

• HPA's properties include low-friction and high wear- resistance, hardness, thermal and electrical insulating ability, non-corrosive and broad chemical compatibility

• HPA is utilised extensively in applications such as:

  • light emitting diodes (LEDs)

  • semiconductor wafers

  • sapphire glass for smart phone, television screens and watch faces

  • high-strength ceramic tools

  • space and aeronautics industries

  • high tensile light weight fabrication applications

    HPA is a versatile material allowing a multitude of uses in new age industries

  • artificial gemstones (sapphires)

  • abrasives

  • fire-retardant insulation for electrical circuitry

  • battery technologies and energy storage

    FYI'S HPA Strategy

    • FYI's objective is to become one of the worlds leading producers and suppliers of the high value >99.99% HPA Al2O3

    • To address the growing global demand for next generation high performance materials requirements

    • FYI propose to own and control our entire HPA production chain from high quality feedstock through to owner operated processing, thus allowing FYI to meet the increasing quality and assurance demanded by market

    • To meet the market's challenges through conventional chemistry but via a non-traditional IP processing route

    • Our IP HPA process route will provide the following advantages over current conventional Al2O3 production, including:

    o substantially lower capex & opex = improved economics

    o control of product quality

    o greatly improved refining abilities

    o lower pressure & temperature

    o lower energy requirement

    o less waste

    o lower environmental impact

    FYI's HPA strategy is to develop

    a quality integrated business to address the forecast long term

    HPA shortfall

    HPA Market

• Historically a small market - no justification for innovation

• Consistent, low-growth demand previously; new applications have created demand and new market developments

• The current global 4N (99.99% Al) HPA market demand is ~26k tpa; this is expected to increase to ~48k tpa by 2025

• Anticipated CAGR for HPA market is ~10 -15%

• HPA is experiencing increasing demand due to its significance in

  today's high-performance electronic devices

• Major industry drivers include:

  • increasing environmental policies and awareness

  • phasing out of old and inefficient technologies (eg incandescent lighting)

  • burgeoning sustainable & clean technology industries (eg EPV

    batteries)

  • dramatic advances in technology and requirement for

Al purity pricing scale

Smelter Grade Alumina 99.5% Al

Smelter Grade Aluminum

99.9% Al

High Purity Alumina

99.9% Al

improved materials

o requirements for reliable and consistent availability of HPA

99.99% Al

99.999% Al