Announcement PDF DEVELOPING LARGE SCALE TIN DEPOSITS IN NSW – TO FEED GLOBAL ELECTRIFICATION MAY 2023 ASX: SKY DISCLAI ME R - IMPORTANT INFORMATI ON Disclaimer Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward looking information, including risks associated with investments in private and publicly listed companies such as the Company; risks associated with general economic conditions; the risk that further funding may be required but unavailable for the ongoing development of the Company’s projects or future acquisitions; changes in government regulations, policies or legislation; unforeseen expenses; fluctuations in commodity prices; fluctuation in exchange rates; litigation risk; restrictions on the repatriation of earnings by the Company’s subsidiaries; the inherent risks and dangers of mining exploration and operations in general; risk of continued negative operating cashflow; the possibility that required permits may not be obtained; environmental risks; uncertainty in the estimation of mineral resources and mineral reserves; general risks associated with the feasibility and development of each of the Company’s projects; foreign investment risks in Australia; changes in laws or regulations; future actions by government; breach of any of the contracts through which the Company holds property rights; defects in or challenges to the Company’s property interests; uninsured hazards; disruptions to the Company’s supplies or service providers; reliance on key personnel and retention of key employees. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management of the Company made in light of their experience and their perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things: the Company’s ability to carry on its future exploration, development and production activities, the timely receipt of required approvals, the price of gold, copper and base metals, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No Liability/Summary Information The Company has prepared the Presentation Materials 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 Materials. To the maximum extent permitted by law, the Company, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Commonwealth of Australia)) 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. Post 1989, exploration results detailed in this presentation have previously been reported to the ASX or in the independent geologist report contained in the Prospectus lodged on 18 April 2019. References to metal endowments are current to January 2017. Endowment = current resource plus production. Coordinate system on maps is MGA94 Zone55 unless otherwise stated. Competent Persons Statement The information in this report that relates to Exploration Results is based on information compiled by Mr. Oliver Davies, who is a Member of the Australasian Institute of Geoscientists. Mr. Oliver Davies is an employee of Sky Metals Ltd 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr. Davies consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Mineral Resource Estimate was prepared by Luke Burlet, who is a Member and Chartered Professional (Geology) of the Australasian Institute of Geoscientists. Luke Burlet is a Director of H & S Consultants 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 2012 Edition of the 2 ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Burlet consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. ASX: SKY SKY’S T E AM EXPERIENCED AND PROVEN MANAGEMENT NORMAN SECKOLD | Chairman RICHARD HILL | Non-Executive Director CAPITAL STRUCTURE 30+ years in the full-time management of natural resource companies. Past Chairman and Director of listed companies including Bolnisi Gold NL, Timberline Minerals Inc., Perseverance Corporation Ltd, Valdora Minerals NL, Palmarejo Silver, Kings Minerals NL, Mogul Mining NL and Gold Corp. Currently Chairman of Santana Minerals Ltd and Alpha HPA Ltd and Deputy Chairman of Nickel Industries Ltd. 25+ years experience in the mineral resources sector as a geologist and solicitor. Mr. Hill has a successful track record of guiding ASX listed mining companies from the exploration and discovery phase through to development in a range of commodities. These have included past roles as founding Director for Aurelia Metals Ltd, Strandline Resources Ltd and as Chairman of Genesis Minerals Ltd as well as current Chairman of New World Resources. Shares on issue Options & Performance Rights Share price (close 10 May 2023) Market capitalisation Cash (31 Mar 2023) Debt RIMAS KAIRAITIS | Non-Executive Director OLIVER DAVIES | CEO 25+ years experience in minerals exploration and resource development in gold, base metals and industrial minerals. In his most recent role, Mr. Kairaitis was founding Managing Director and CEO of Aurelia Metals (ASX: AMI), which he steered from a junior exploration company to a profitable NSW based gold and base metals producer. Mr. Kairaitis is also the Managing Director of Alpha HPA Limited. Geologist with SKY since listing in 2019. Previously in exploration and operational roles with Evolution Mining and Alkane Resources in NSW and Qld. Mr. Davies has worked closely on several successful NSW exploration projects including Evolution Mining’s significant expansion of the Lake Cowal gold resource and Alkane’s exploration success at Tomingley and Boda. 376.8M 39.4M ~$0.05 ~$18.8M ~$1.3M Nil BOARD AND MANAGEMENT EXPERT GUIDANCE | SKY’s Consultants Norm Seckold Richard Hill Rimas Kairaitis Richard Willson Oliver Davies Chairman Non-Executive Director Non-Executive Director Company Secretary Chief Executive Officer SHAREHOLDERS Aurelia Metals Board and Management Top 20 holders 6% 10% 50.0% Tallebung Metallurgy – Gunn Metallurgy, TOMRA Ore Sorting Solutions and ALS Burnie engaged to conduct metallurgical testwork. Tallebung Resource Estimation – H&S Consultants modelled and estimated the maiden Inferred MRE and Exploration Target and advising on upcoming drilling. Doradilla Tin and REE Metallurgy – ANSTO and UNSW conducting testwork utilising their expertise in hydrometallurgical processes and REE deposits. 3 ASX: SKY TIN MARKET Visible Global Tin Stockpiles TIN: THE FORGOTTEN ELECTRIFICATION METAL – GLOBAL SUPPLY CONSTRAINTS Inelastic tin price driven by irreplaceable demand in electronics sector and global electrification. Record low stockpiles – US strategic stockpile depleted, Chinese stockpiling is ongoing, currently less than 2-3 days tin supply stock on LME. Source: LME – 25 March 2023 Global Tin Supply by Country (tpa) Myanmar recently announced suspending tin mining – 4th largest supplier producing 10% of world tin supply. +30 year under investment in tin supply, metal shortages looking inevitable, growing tin price. Limited ethical and reliable sources. 4 ASX: SKY TALLEBUNG TIN PROJECT MAJOR HISTORIC TIN OPERATION • Tin discovered in the 1890s and mined into the mid-1980s. • Small shafts and open pits mined hardrock tin veins until large scale alluvial mining production in the 1960s-70s. • Infrastructure already in place from previous mining includes: • • Powerlines to Site. • Haul roads constructed to site. Large scale, hardrock tin deposit still in place and only minor selective mining historically. 5 ASX: SKY TALLEBUNG TIN PROJECT LARGE HARDROCK TIN RESOURCE • Maiden MRE completed, March 2023: 10.2 Mt @ 0.18% Tin for 18kt of contained Tin. • Initial Exploration Target estimate: 16 – 21 Mt @ 0.16 – 0.20% Tin • Tin mineralisation highly amenable to 3x upgrade using TOMRA Ore Sorting. • 1.6km strike of Exploration Target; +2km strike potential of tin mineralisation shown in gravity survey, showing significant growth potential. • MRE and Exploration Target open along strike and both up and down dip – only limited by drilling. • High impact resource expansion campaign imminent . Schematic Plan View - Tallebung Tin Mine 6 ASX: SKY TALLE B UN G TIN PROJECT Cassiterite Ore from Tallebung – Scale in mm TOMRA – GAME CHANGER Black Tin – cassiterite “nuggets” detected by ore sorter and accepted • TOMRA Ore Sorting more than triples grade. Host rock and quartz vein without tin are rejected by ore sorter • Grade increases from 0.18% Tin x 3 = over 0.5% Tin with +98% tin recovery Schematic of a TOMRA XRT Ore Sorter • +67% of mined mass rejected upfront. • Reduced mass means smaller, lower plant costs to produce the same quantity of saleable tin concentrate. Accepted Rejected 7 ASX: SKY TALLE B UN G TIN PROJECT TOMRA – PROVEN TECHNOLOGY • Renison Tin Mine, Australia’s largest operating tin mine, uses TOMRA ore sorters to increase tin grade and decrease mass for processing. • TOMRA Ore Sorters commissioned 5 years ago at Rension in 2018 and operate 24/7, all year round, processing a 1Mtpa ROM. • Sorting started with rejecting 10-15% of mass, increasing to 20-25% of mass after the first year of operation showed strong results. • Ore Sorting at Renison allows a mining rate of up to 1Mtpa while still using the existing 750ktpa plant. TOMRA Ore Sorters in operation at the Renison Tin Mine, Tas. 8 ASX: SKY TALLE B UN G TIN PROJECT EXCEPTIONAL, CONSISTENT TOMRA ORE SORTING RESULTS • TOMRA Ore Sorting first tested on drill chips, demonstrated: • Successful upgrading of 0.19% tin to 0.70% tin • +96% recovery of tin • 74% mass reduction. • Bulk testwork repeated these exceptional results, showing: • 0.29% tin upgraded to 0.89% tin • +98% recovery of tin from a 542kg bulk sample • 67% mass reduction. • Repeatability of TOMRA ore sorting results, combined with historic mining records and petrographic studies, all show consistent nature of coarse cassiterite-hosted tin at Tallebung. 9 ASX: SKY TALLE B UN G TIN PROJECT SIMPLE METALLURGY – LOW-COST PROCESSING • Simple gravity circuit produces a desirable +60% tin concentrate for sale. • With TOMRA and DMS, only a quarter of mined mass require downstream processing with over +95% of the tin recovered in ore sorting upgrade. Cassiterite Ore from Tallebung – Scale in mm • Environmentally best practice, only water is need for the gravity concentration and no chemicals or water required for TOMRA Ore Sorting. • Significant reduction in CapEx and OpEx from ore sorting mass reduction and simple processing. • Dense Medium Separation (DMS) reduces fines mass by over 91% with +95% total recovery of tin. Simplified Schematic Processing Flowsheet 10 ASX: SKY TALLE B UN G TIN PROJECT RESOURCE GROWTH POTENTIAL AND SHALLOW HIGH-GRADE START UP • Gravity anomaly coincident with tin mineralisation extends well beyond current extent of drilling. • Shallow, at surface high-grade tin zone identified for fast payback potential at commencement of mining. Schematic Cross-Section of Shallow High-Grade Zone Plan View Aerial Image of the Tallebung Project 11 ASX: SKY TALLE B UN G TIN PROJECT UPCOMING DRILLING PROGRAM: INCREASING CONFIDENCE • Drilling program aimed to increase Inferred Resource and potential Indicated Resource categories. • Infill drilling will target areas for highest impact and under significant historic workings. • Resource extension drilling south along strike will target recent high-grade tin intercepted, including: TBRC042: 11m @ 0.81% Tin from 27m. • Diamond drilling planned for geotechnical studies and for further bulk ore sorting and metallurgical testwork across the deposit. • Resource geologists consulted to ensure the program delivers highest impact on resource. Plan View Aerial Image of the Tallebung Project 12 ASX: SKY TALLE B UN G TIN PROJECT NEXT STEPS Expand the maiden MRE and convert +20Mt Exploration Target. Drill high-grade tin zones and grow an Indicated Resource for Mine Scoping Studies. Bulk sampling across the deposit, growing confidence in low cost sorting upgrade and metallurgy. Release Mine Scoping Studies. Drone Photo of the Tallebung Tin Mining Field 13 ASX: SKY WORK PROGRA M UPCOMING WORK PROGRAM • Assess the mining economics at Tallebung once Indicated Resources have been defined. • Expand the Tallebung Resource and convert the Exploration Target into Resources. • Commence baseline environmental studies at Tallebung. • Assess Doradilla to host economic Tin and REE deposits. • Metallurgical testwork on Tin and REE extraction at Doradilla. Indicative Work Program Timeline FY2023 Project Activities Tallebung Resource Infill and Extension Drilling Program Tallebung Mine Concept Studies Tallebung Second Resource Estimate Tallebung Mine Scoping Studies Tallebung Baseline Environmental Studies Tallebung Resource Extension Drilling Program Q4 FY2024 Q1 Q2 14 DEVELOPING LARGE SCALE TIN DEPOSITS IN NSW – TO FEED GLOBAL ELECTRIFICATION ASX: SKY APPE NDIX : DORADILLA PROJECT DORADILLA – 16km MINERAL-POWERHOUSE SCHEMATIC LONG SECTION ASX: SKY APPE NDIX : DORADILLA PROJECT TIN AND REE POTENTIAL • Three tin deposits previously discovered in the 1970s, namely Doradilla, Midway and 3KEL, the 16km strike of these is named the ‘DMK’ Line. • SKY has discovered REE within the tin deposits in all three deposits on the ‘DMK’ Line. • Best mineralisation to date is at the Midway deposit, which is closest to the source of the mineralisation – the underlying Midway Granite. • REE Mineralisation is hosted in the +60m thick clays over the DMK Line. • TREO intercepts average over 20% Nd + Pr + Dy + Tb with some intercepts over 40% Nd + Pr + Dy + Tb, particularly high at Midway. 17 ASX: SKY APPE NDIX : DORADILLA PROJECT NEXT STEPS Further assaying of previous historic drilling for REE – 100s of holes drilled for tin along the DMK Line, SKY has only assayed 46 holes for REE so far. Drilling program planned to test Midway Granite targets and to infill between Midway-Doradilla. REE mineralisation characterisation to begin metallurgical testwork, ANSTO to commence metallurgical testing on samples and identify pathways to process the large tin resources. Cross-Section of AMW 10 hole at Midway. 18 ASX: SKY APPE NDIX : TIN MARKET TIN: THE FORGOTTEN ELECTRIFICATION METAL Inelastic tin price driven by irreplaceable demand in electronics sector 20-year 3M tin price (AUD/tonne) (source: LME). ASX: SKY APPE NDIX : TIN MARKET TIN: KEY TECHNOLOGY METAL Supply crunch driven by 30+ year under investment & growing demand for tin primarily within EVs, Renewable Energy and all electronic goods. Demand Increase with Emerging Technologies