Syrah Resources : March Quarterly Activities Report Presentation

Q1 2022 Quarterly Activities Report

27 April 2022

Shaun Verner - Managing Director & CEO

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Important Notice and Disclaimer

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

Certain statements contained in this presentation, including information as to the future financial or operating performance of Syrah Resources Limited (Syrah) and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of estimates and assumptions that, whilst considered reasonable by Syrah, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, Statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital expenditures, ore reserves and mineral resources and anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Syrah disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise. The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule"

and other similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

Syrah has prepared this presentation based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in the presentation. To the maximum extent permitted by law, Syrah, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation Materials or its contents or otherwise arising in connection with it.

Syrah's Value Proposition

Electric Vehicles require graphite

• ● Electric Vehicle ("EV") adoption is gaining momentum

• ● Anodes in lithium-ion batteries used in EVs are made of graphite

Graphite is a strategic critical mineral

• ● Global anode supply chain is currently 100% reliant on China

• ● Graphite is designated as a strategic critical mineral in USA, EU, Japan & Australia

Balama Graphite Operation: A Tier 1 asset

• ● Long life (>50 years1) and high grade (16% TGC2)

• ● Largest integrated natural graphite mine and processing operation globally

• ● Significant vanadium resource at Balama is a valuable option3

Vertical Integration in USA

• ● Balama vertically integrated with AAM4 facility at Vidalia, USA

• ● Large scale ex-Asia AAM supply option that is ESG verifiable

• 1. Life of mine based on current 107Mt Graphite Ore Reserves being depleted at 2Mt throughput per annum. Refer to 2021 Annual Report released to ASX

  24 March 2022 for Reserves as at 31 December 2021. All material assumptions underpinning the Reserves and Resource statement in this presentation continue to apply, other than as updated in subsequent ASX releases.

• 2. TGC = Total graphitic carbon.

• 3. Scoping study on potential to refine vanadium as per ASX release 30 July 2014.

• 4. AAM = Active anode material.

Syrah's vision is to be the world's leading supplier of superior quality graphite and anode material products, working closely with customers and the supply chain to add value in battery and industrial markets

Syrah's Positive ESG Profile

• ✓ ISO:45001 and ISO:14001 certification at Balama

• ✓ ISO:9001 certification at Vidalia

• ✓ Vidalia expansion project being developed in line with best practice health, safety and environmental standards

• ✓ Critical Risk Management Framework embedded across the Group

• ✓ Sustainability frameworks guided by:

  • • Global Reporting Initiative (GRI)

  • • United Nations Sustainable Development Goals (SDGs)

  • • International Council on Mining and Metals (ICMM)

  • • Initiative for Responsible Mining Assurance (IRMA)

• ✓ Robust Community Development and Stakeholder Engagement Strategy

• ✓ Lower carbon emissions footprint (life cycle) of natural versus synthetic graphite

• ✓ Independent life cycle assessment (LCA) completed

• ✓ Implementing initiatives to lower carbon footprint further

✓ Fully integrated by Syrah from mine to customer ✓ Vidalia products will have a single chain of custody back to the source

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Q1 2022: Highlights

• • Total Recordable Injury Frequency Rate ("TRIFR") of 0.9 for Balama and 0.0 for Vidalia at quarter end

• • Strong momentum in EV sales and penetration, a key leading indicator for natural graphite and active anode material ("AAM") demand growth

• • Global EV sales grew 80% in Q1 2022, versus Q1 2021, to ~2.0 million units1

• • Significant commitments made to further expanding EV sales and battery manufacturing capacity in the USA

• • China domestic fines price increased through Q1 2022 with robust anode demand and Chinese supply disruptions

• • Higher Balama production and sales enabled by Pemba breakbulk shipments supplementing Nacala container shipments

• • Produced 46kt natural graphite at 76% recovery with 35kt sold and shipped

• • Product quality consistent with previous quarters with stable grade, and higher recovery relative to historical quarters with an equivalent production rate

• • Balama C1 cash costs (FOB Nacala/Pemba) of US$464/t

• • Weighted average sales price increased to US$573/t (CIF), with very strong incremental demand and higher new contract prices

• • First 10kt spot breakbulk shipment from Pemba port arrived in China in March 2022 and two spot breakbulk shipments scheduled for Q2 2022

• • More than 90kt of natural graphite sales orders for Q2 2022 and into H2 2022

• • First mover in establishing an independent, vertically integrated ex-Asia supply chain for AAM driving commercial and technical interactions

• • Final investment decision ("FID") for initial expansion of Vidalia AAM facility to 11.25ktpa AAM production capacity ("VidaliaInitial Expansion") approved by Syrah Board2

• • Detailed engineering for the Vidalia Initial Expansion project more than 60% completed and construction advancing within schedule and budget

• • 11.25ktpa AAM Vidalia facility targeted to start production in Q3 2023

• • BFS on the expansion of Vidalia's production capacity to at least 45ktpa AAM, inclusive of 11.25ktpa AAM, to be completed in 2022

• • Offered a Conditional Commitment3 from the US Department of Energy ("DOE") for up to US$107m loan4 to fund the Vidalia Initial Expansion5

• • Completed A$250m institutional placement and pro rata accelerated non-renounceable entitlement offer ("Equity Raising") to fully fund the Vidalia Initial Expansion project and strengthen balance sheet6

• • Quarter end cash balance of US$205m

• 1. Source: MarkLines. March 2022 includes Syrah's estimate for EV sales (~1k total) in selected countries.

• 2. Refer ASX release 7 February 2022.

• 3. A Conditional Commitment is offered by DOE prior to issuing a loan and indicates that DOE expects to support the Vidalia Initial Expansion project, subject to the satisfaction of certain conditions including fulfilling remaining legal, contractual, and financial requirements.

• 4. Includes capitalised interest costs. Approximately US$104m in advances from the DOE loan is proposed to be available to fund eligible costs of the Vidalia Initial Expansion project.

• 5. Refer ASX release 19 April 2022.

• 6. Refer ASX releases 9 February 2022 and 3 March 2022.

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