2022

ANNUAL REPORT
COMPANY PROFILE
ABOUT ALTECH CHEMICALS LTD ASX: ATC / FRA: A3Y SILUMINA ANODESTM BATTERY MATERIALS PROJECT
Altech has licenced its proprietary high purity alumina coating technology to 75%
CERENERGY® BATTERIES PROJECT owned subsidiary Altech Industries Germany GmbH (AIG), which has commenced a
Altech Chemicals Ltd is a specialty battery technology company that has a joint venture definitive feasibility study for the development of a 10,000tpa silicon/graphite alumina
TM
agreement with world leading German battery institute Fraunhofer IKTS (“IKTS”) to coating plant in the state of Saxony, Germany to supply its Silumina Anodes product
commercialise the revolutionary CERENERGY® Sodium Alumina Solid State (SAS) to the burgeoning European electric vehicle market.
®
Battery. CERENERGY batteries are the game-changing alternative to lithium-ion This Company recently announced its game changing technology of incorporating high-
batteries. CERENERGY® batteries are fire and explosion-proof; have a life span of capacity silicon into lithium-ion batteries. Through in house R&D, the Company has
more than 15 years and operate in extreme cold and desert climates. The battery cracked the “silicon code” and successfully achieved a 30% higher energy battery with
technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper- improved cyclability or battery life. Higher density batteries result in smaller, lighter
free, eliminating exposure to critical metal price rises and supply chain concerns. batteries and substantially less greenhouse gases, and is the future for the EV market.
®
The joint venture is commercialising its CERENERGY battery, with plans to construct a The Company's proprietary silicon graphite product is registered as Silumina AnodesTM.
100MWh production facility on Altech's land in Saxony, Germany. The facility intends to The Company is in the race to get its patented technology to market, and recently
produce CERENERGY® battery modules to provide grid storage solutions to the announced the results of a preliminary feasibility study (PFS) for the construction of a
TM
market. 10,000tpa Silumina Anodes material plant at AIG's 14-hectare industrial site within the
Schwarze Pumpe Industrial Park in Saxony, Germany. The European graphite and
silicon feedstock supply partners for this plant will be SGL Carbon and Ferroglobe. The
project has also received green accreditation from the independent Norwegian Centre
of International Climate and Environmental Research (CICERO). To support the
development, AIG has commenced construction of a pilot plant adjacent to the
TM
proposed project site to allow the qualification process for its Silumina Anodes
product. AIG has executed NDAs with two German automakers as well as a European
based battery company.

A LT E C H

cerenergy ®

“ALTECH IS UNDERGOING A TRANSITION TO BE A BATTERY ENERGY COMPANY

Silumina An des TM

TO MEET A BATTERY STORAGE FUTURE” - IGGY TAN CEO

HPA PRODUCTION PROJECT
Altech is also aiming to become a supplier of 99.99% (4N) high purity alumina (Al2O3)
through the construction and operation of a 4,500tpa high purity alumina (HPA)
processing plant at Johor, Malaysia, and has finalised Stage 1 and Stage 2 construction
of its HPA plant. Feedstock for the plant will be sourced from the Company's 100%-
owned near surface kaolin deposit at Meckering, Western Australia and shipped to
Malaysia. The HPA project is significantly de-risked with a bankable feasibility study
completed, senior lender project finance from German government owned KfW IPEX-
Bank approved, and a German EPC contractor appointed – with initial construction
works at the site completed. In addition to the senior debt, conservative (bank case)
cash flow modelling of the HPA plant shows a pre-tax net present value of USD
505.6million at a discount rate of 7.5%. The project generates annual average net free
cash of ~USD76million at full production. Altech is in the stages of project finance with a
potential raising of US$100m of secondary debt via the listed green bond market. In
addition, US$100m of project equity is being sought through potential project joint Altech's Malaysian Project Planning Co-ordinator Noorhafida Redzuan
venture partners.
 OUR VISION
MEETING A
BATTERY STORAGE
FUTURE AS THE
WORLD TRANSITIONS TO
THE ELECTRIFICATION OF
ENERGY SOLUTIONS
CHAIRMAN’S REPORT
Dear fellow Altech Shareholders, In addition, work continues at the dedicated research and development
laboratory in Western Australia, with Phase 2 R&D work striving to attain
On 14 September 2022, Altech announced that it had executed a Joint Venture TM
Silumina Anodes battery capacity retention beyond the current 30%.
Shareholders' Agreement with world-leading German battery institute
®
Fraunhofer IKTS (“IKTS”) to commercialize IKTS' revolutionary CERENERGY The Company also remains focused on securing the debt and equity funding
Sodium Alumina Solid State (SAS) Battery. Altech, inclusive of associated entity that will enable it to bring about project financial close and continue with the
Altech Advanced Materials AG, is the majority owner at 75% of the JV company, construction of its proposed high-purity alumina plant in Johor, Malaysia,
which will commercialize a 100 MWh project to be constructed on Altech's land beyond the completed Stage 1 and Stage 2 early works, and to enable the
®
in Schwarze Pumpe, Germany. The SAS CERENERGY battery uses common Group to construct the associated kaolin mine and loading facility at Meckering,
table salt and alumina ceramic solid-state technology. Western Australia.
Altech believes that Sodium Alumina Solid State (SAS) CERENERGY® batteries I would like to thank all shareholders for their support during the year. I would
are a game-changing grid storage alternative to lithium-ion batteries. also like to extend my gratitude to Managing Director Mr Iggy Tan, as well as the
®
CERENERGY batteries are fire and explosion-proof, have a life span of more Altech team in Australia, Germany and Malaysia, for their effort and commitment
than 15 years and operate in extreme cold and desert climates. The battery shown throughout the year.
technology uses table salt and nickel - is lithium-free; cobalt-free; graphite-free;
and copper-free, eliminating exposure to critical metal price rises and supply
chain concerns.
Altech has what it believes to be a significant opportunity for the Company, with
continued development and commercialisation of the Silumina AnodesTM Battery
Materials Project in Saxony, Germany. To this extent, Altech will continue with Luke Atkins
the construction of the pilot plant to produce 120kg per day of Silumina Non-Executive Chairman
TM
Anodes for distribution to potential customers, with the aim being to secure
an offtake agreement.
In conjunction with this, and with the results achieved from the outstanding
Preliminary Feasibility Study for the full-scale plant to produce 10,000tpa of
TM
Silumina Anodes , Altech will progress with the commercialisation of the
project. Altech is currently preparing a Definitive Feasibility Study that will
provide additional assurance over the project.
BOARD OF DIRECTORS
LUKE ATKINS
LLB - Non-Executive Chairman
A highly qualified mining executive and lawyer by profession, Mr Atkins has had extensive experience in capital raisings and has held a number of executive and non-
executive directorships of private and publicly listed companies including a number of mining and exploration companies.
Mr Atkins is the co-founder of ASX-listed Australian Silica Quartz Group Limited (formerly Bauxite Resources Limited) (ASX: ASQ) and is currently the company's non-
executive director. Mr Atkins brings to the board extensive experience in the areas of mining, exploration and corporate governance.

IGNATIUS (IGGY) TAN

B.Sc. MBA, GAICD - Managing Director
Mr Tan is a highly experienced mining and chemical executive with a number of significant achievements in commercial mining projects such as capital raisings, funding,
construction, start-ups and operations. Mr Tan has over 30 years chemical and mining experience and has been an executive director of a number of ASX-listed companies.
He holds a Master of Business Administration from the University of Southern Cross, a Bachelor of Science from the University of Western Australia and is a Graduate of the
Australian Institute of Company Directors. Mr Tan previously held managing director positions at ASX-listed Kogi Iron Limited (ASX: KFE) and Galaxy Resources Limited
(ASX: GXY).

PETER BAILEY
Independent Non-Executive Director
Mr Peter Bailey is a highly experienced and qualified engineer with over 40 years experience in the mining and industrial chemical production industry. He was previously chief
executive officer at Sherwin Alumina, an alumina refinery located in Texas, USA. Prior to Sherwin, in 1998 Mr Bailey was president of Alcoa Worldwide Chemical's industrial
chemicals department. He was responsible for managing the company's 13 alumina plants that were located in eight countries, with combined annual revenue of approximately
US$700 million.
In 1996, Mr Bailey was president of Alcoa Bauxite and Alumina and was responsible for eight (8) alumina plants outside of Australia. He was also chairman of the Alcoa Bauxite
joint venture in Guinea, Africa.

DANIEL TENARDI
Non-Executive Director
Mr Tenardi is a highly experienced global resource executive with over 40 years experience in the mining and processing sectors. During his extensive career, Mr Tenardi
spent 13 years at Alcoa's alumina refinery in Kwinana as well as at the company's bauxite mines in the Darling Ranges of Western Australia. Mr Tenardi was the founding
managing director of Bauxite Resources Limited (since renamed Australian Silica Quartz Limited) (ASX: ASQ) where he led the rapid growth of the company from its initial
exploration phase, expansion of land holdings, to the commencement of trial shipments of ore. Mr Tenardi was most recently a non-executive independent director of
Australian iron ore producer, Grange Resources Limited (ASX: GRR).
TUNKU YAACOB KHYRA
B.Sc (Hons), CA - Non-Executive Director
Tunku Yaacob Khyra is the executive chairman of the Melewar Khyra Group of Companies (Melewar), a Malaysian-based diversified financial and industrial services group.
He is the major owner and shareholder of Melewar and sits on the boards of Khyra Legacy Berhad, Mycron Steel Berhad, MAA Group Berhad, Melewar Industrial Group
Berhad, Ithmaar Bank B.S.C. (listed on Bahrain Stock Exchange) and several other private companies. Tunku Yaacob graduated with a Bachelor of Science (Hons) Degree
in Economics and Accounting from City University, London. An accountant by training, he is a Fellow of the Institute of Chartered Accountants in England and Wales and a
member of the Malaysian Institute of Accountants.

UWE AHRENS
Alternate Non-Executive Director (for Tunku Yaacob Khyra)
Mr Uwe Ahrens is executive director of Melewar Industrial Group Berhad and managing director of Melewar Integrated Engineering Sdn Bhd. He also sits on the board of
several other private limited companies. Mr Ahrens holds Masters degrees in both Mechanical Engineering and Business Administration from the Technical University
Darmstadt, Germany. Upon graduation, Mr Ahrens joined the international engineering and industrial plant supplier, KOCH Transporttechnik GmbH in Germany, now
belonging to FLSmidth Group, where he held a senior management position for 12 years, working predominantly in Germany, USA and South Africa. Mr Ahrens is the
alternate non-executive director for Tunku Yaacob Khyra.

HANSJOERG PLAGGEMARS
Non-Executive Director
Mr Plaggemars was previously a member of the board of Delphi Unternehmensberatung AG and Deutsche Balaton AG (Altech major shareholder) and currently acts as their
representative. Mr Plaggemars is based in Heidelberg, Germany and is an experienced company director and manager. He studied business administration at the University
of Bamberg from 1990 to 1995. Mr Plaggemars has been a management consultant since June 2017 and is a board member of various companies within the scope of
projects. Mr Plaggemars is currently a member of the management board of Frankfurt Stock Exchange listed Altech Advanced Materials AG. Mr Plaggemars also currently
serves as a non-executive director at ASX listed Geopacific Resources Limited, Wiluna Mining Corporation, Gascoyne Resources Limited, PNX Metals Limited,
South Harz Potash Limited, Kin Mining Limited and Azure Minerals Limited.
MANAGING DIRECTOR’S REVIEW OF OPERATIONS
SUMMARY
It is with pleasure that I provide a review of the Company's operations. 3. Finalising the Preliminary Feasibility Study, with outstanding economics, for
the full-scale plant to produce 10,000tpa of Silumina AnodesTM in Saxony,
This year enabled Altech to aggressively move forward with its patented Germany. Altech acquired an ~14Ha industrial site in Saxony, Germany that
Silumina AnodesTM technology, as well as progressing with securing bond and is an ideal location for the full-scale plant.
equity project finance for its HPA production plant in Malaysia.
4. Continuing the process of securing the green bond and project level equity
In addition to this, Altech announced that it had executed a Joint Venture to finance the remaining construction for the Johor, Malaysia high-purity
Shareholders' Agreement with world-leading German battery institute alumina production plant.
®
Fraunhofer IKTS (“IKTS”) to commercialize IKTS' revolutionary CERENERGY
Sodium Alumina Solid State (SAS) Battery. Altech, inclusive of associated entity
Altech Advanced Materials AG, will be the majority owner at 75% of the JV
company, which will commercialize a 100 MWh project to be constructed on
®
Altech's land in Schwarze Pumpe, Germany. The SAS CERENERGY battery
uses common table salt and ceramic solid-state technology.
The principal activities of the Company during the financial year were:
Iggy Tan
1. Achievement of game changing proprietary technology by cracking the
TM
“silicon barrier” and producing the Silumina Anodes lithium-ion battery Managing Director and Chief Executive Officer
anode material with 30% higher energy retention and capacity than
conventional graphite only anodes.
2. Commencement of construction by Küttner GmbH & Co on the Silumina
AnodesTM pilot plant that will produce 120kg per day (~37,000 kg per year) of
TM
the Silumina Anodes product for product qualification with end users, that
will assist in securing an offtake agreement for the full-scale plant.
 ® The joint venture partners have elected to develop a 100 MWh SAS battery plant
CERENERGY SODIUM ALUMINA SOLID STATE (Train 1) on Altech's site in Saxony, Germany. The target market for this project will
specifically focus on the grid (stationary) energy storage market which is expected
BATTERY PROJECT to grow by 28% CAGR (Compound Annual Growth Rate) in the coming decades.
The global grid energy storage market is expected to grow from USD 4.4 billion in 2022
to USD 15.1 billion by 2027. Or further out, the market is expected to grow from
SAS CERENERGY® BATTERIES 20 GW in 2020 to over 3,000 GW by 2050. Altech believes that SAS batteries can
Altech believes that Sodium Alumina Solid State (SAS) CERENERGY® batteries are the provide high security, at low acquisition and operating costs, for the stationary energy
game-changing grid storage alternative to lithium-ion batteries. CERENERGY® batteries storage market.
are fire and explosion-proof, have a life span of more than 15 years and operate in IKTS has estimated that the total cost of production for CERENERGY® batteries will be
extreme cold and desert climates. The battery technology uses table salt and nickel - is 40%-50% cheaper than lithium-ion batteries.
lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical
metal price rises and supply chain concerns. The joint venture partners have commenced the planning process for the Bankable
Feasibility Study required for the commercialisation process. Once the Train 1 (100
For more information on the advantages of CERENERGY® batteries watch the following MWh) plant is built and operating, the longer-term vision for the joint venture is to
YouTube video https://youtu.be/UBwxxgEJHvo construct additional trains or a Gigawatt battery facility.
The SAS technology has been developed by Fraunhofer IKTS over the last eight years
and has revolutionized previous technology, allowing higher energy capacity and lower CHALLENGES WITH LITHIUM-ION BATTERIES
production costs. SAS-type batteries, in terms of capacity, have already been
successfully tested in stationary battery modules. The IKTS SAS batteries are in the Fire and Explosion Issues
final phase of product testing and ready to commercialise. IKTS has spent in the region
of EUR 35 million on research & development and operates a EUR 25 million pilot plant One of the significant drawbacks of lithium-ion batteries is the risk of thermal runaway,
in Hermsdorf, Germany. The final CERENERGY® battery packs are specially designed fire, and explosion which have been largely in the news recently. Today's lithium-ion
for the grid storage market and have been undergoing extensive performance testing in battery contains flammable liquid electrolyte and plastic separators which is the major
Germany. These modules are designed to fit in racks housed in sea containers that can contributing problem to fire risk. Thermal runaway is a chain reaction within a battery
be deployed for grid storage. cell that can be very difficult to stop once it has started. It occurs when the temperature
inside a battery reaches the point that causes a chemical reaction (producing oxygen)
IKTS has been looking for an entrepreneurial partner that has German land available, to occur inside the battery. It is often caused by overheating, physical damage,
has access to funding, is a builder of projects, has battery background, and has and overcharging.
technology in alumina used in ceramics. Altech fitted the criteria, and the Joint Venture
Shareholders' Agreement was executed. Altech group will own 75% of the project
with IKTS 25% free carried. The intellectual property will be licensed exclusively to the
joint venture.
Narrow Operating Temperature Range Lithium prices have spiked sky-high
The other drawback of lithium-ion batteries is that they are required to operate in a Price of battery-grade lithium carbonate per metric ton in U.S. dollars
relatively narrow temperature range which is between +15°C to +35°C. At lower 70000
temperatures, the liquid electrolyte in the battery becomes more viscous which slows
the lithium transfer and reactions. A lithium battery at 0°C will reduce a typical battery
capacity down to 70%. At higher temperatures, the battery is prone to overheating and
requires external cooling to maintain battery efficiency. This makes the application of
lithium-ion batteries in cold and desert climates extremely challenging.
10000
Lithium-ion Battery Lifespan
2010 2022
Thirdly, the life of lithium-ion batteries is still limited to between 7-10 years depending Source: US Geological Survey
on applications. Lithium ions degrade with each charge and discharge cycle. This
deterioration is often due to detrimental side reactions, dendrite growth, and the
breakdown of anode and cathode structures. This degradation is much faster when the Cobalt Supply Chain and Ethical Concerns
battery is operated outside the ideal temperature range. For electric vehicles (EVs),
manufacturers will guarantee a battery for around 8 years when the capacity of the Cobalt is key for boosting energy density and battery life in lithium-ion batteries
battery drops below 70%. For grid storage batteries, a life span of 7-10 years can be because it keeps the cathode’s layered structure stable during lithium migration and
expected. There is still an expectation in the market for a longer battery life span which battery operation. Cobalt is considered the highest material supply chain risk for electric
will help lower the overall long-term unit storage costs in grid storage. vehicles (EVs) in the short and medium term. EV batteries can have up to 20 kg of
cobalt in every 100 kilowatt-hours KWh) pack. The Democratic Republic of Congo
Lithium Costs and Availability (DRC) produces about 70 percent of global cobalt and the LIB industry is exposed to
precarious supply chain issues. Stories of the harsh and dangerous working
The global market for the alkali metal lithium is growing rapidly. The price of lithium,
conditions, child labour, and human rights abuses in the DRC have caused ethical
which is the most critical component of a lithium-ion battery, has risen six-fold since the
concerns about cobalt supply.
start of the year. Lithium prices have spiked sky high, putting upward pressure on the
production costs associated with lithium-ion batteries. The production of lithium is Graphite Geo-political Risk
concentrated in four countries, namely Australia, Chile, China, and Argentina.
There is a real concern that there aren't enough mines and production capacity being Graphite is thus considered indispensable to the global shift towards electric vehicles. It
developed to meet the forecast demand for both EVs as well as the stationary energy is also the largest component in lithium-ion batteries by weight, with each battery
storage market. containing 20-30% graphite. But due to losses in the manufacturing process, it takes 30
times more graphite than lithium to make the batteries. The graphite deficit has started
as demand for EV battery anode ingredient exceeds supply, resulting in price
increases. Today, China produces 90% of the world’s graphite anode material which
represents a concerning geo-political risk to the industry.
Copper Crunch
Copper is mainly used as the current collector on the anode part of a lithium-ion battery.
Copper is looming as the biggest worry, with the biggest driver of scarcity being the
energy transition and increased EV demand. A recent report (Future of Copper) notes:
“The 2050 climate objectives will not be achieved without a significant ramp-up in
copper production in the near and medium term, which will be very challenging.” An
electric vehicle battery requires 2.5 times more copper than a standard ICE vehicle.
The report notes that there simply aren't enough copper mines being built or expanded
to provide all the copper needed to produce the 27 million EVs that S&P Global has
forecast to be sold annually by 2030. Copper could rival oil as a national energy
security concern for some countries.

The Ideal Battery?

Based on the above challenges facing lithium-ion batteries and the increasing prices of
the critical materials and metals used in these batteries, the industry has been
searching for a battery technology that resolves these problems. A battery that is fire
and explosion proof, has a lifespan of more than 15 years, and operates in cold and
desert climates. A battery technology where it is lithium free, cobalt free, graphite free
and finally copper free, which limits the exposure to critical materials prices rises and
®
supply chain concerns. Altech believes that SAS CERENERGY batteries resolve some
of the biggest problems and challenges facing lithium-ion batteries today. SAS
®
CERENERGY batteries are not designed to replace the successful lithium-ion
batteries, but provide an ideal alternative for the stationary storage market.
 SAS Batteries are Fire and Explosion Proof SAS Battery Life Span

>15 YEARS LIFE ü

SAS batteries are totally fire and explosion proof and are not prone to thermal Unlike lithium-ion batteries, there is no sodium ion degradation with each
FIRE PROOF ü

runaway - one of the biggest advantages over lithium-ion batteries. Firstly, SAS charge and discharge. There is no first cycle loss, no detrimental side
batteries do not contain flammable liquid electrolyte or plastic separators; the reactions, no dendrite growth, or breakdown of anode and cathode structures.
electrolyte is a solid inflammable ceramic tube that allows sodium ions to The absence of liquid electrolyte replaced with solid ceramic means there is
transfer through it. Secondly, the battery, due to its chemistry does not contain virtually no sodium deterioration in the battery. The life span of an SAS battery
oxides nor generate oxygen at the cathode like a lithium-ion battery does is beyond 15 years. In a recent study by ITP Renewables, the SAS type battery
during thermal runaway. Being a much safer battery, it is ideal in indoor did not show any deterioration in estimated state of health in the first 700 cycles
industrial and commercial energy storage installations. The battery is totally of testing, compared with the normal deterioration in LFP and NMC lithium-ion
safe and does not react with water and is highly sought after for sensitive batteries. SAS type batteries have been reported with lifetimes of over 2,000
environments e.g. areas subject to flooding, where lithium-ion batteries are cycles and twenty years has been demonstrated with full-sized batteries, and
banned from these applications. over 4,500 cycles and fifteen years with 10 and 20-cell modules.

Large Operating Temperature Range -

LARGE TEMP RANGE ü

Cold and Desert climates

SAS batteries can operate efficiently between minus 20°C to +60 °C range and
guarantee high performances and durability regardless of the ambient
temperature. Because the SAS battery has no liquid electrolyte (instead solid
ceramic electrolyte), ambient temperature does not adversely affect the
performance of the battery. In addition, the SAS batteries are internally high
temperature batteries (operates at 270-350°C) but are fully insulated so the
external of the battery module is at touch temperature. The core temperature of
the battery is self-sustaining and does not require cooling like lithium-ion
batteries. They are ideal grid energy storage for cold and desert climates which
is the main disadvantage of the lithium-ion batteries. For this reason, the SAS
battery has its own specific market without any competition from lithium-ion.
 Lithium Free Battery
LITHIUM FREE ü

SAS batteries do not contain lithium but use sodium ions from common table
salt. In fact, the cathode consists of common salt (sodium chloride) and nickel.
Sodium is the next reactive alkali metal on the periodic table under lithium (Li is
-3.05 V whilst Na is -2.7 V) and is equally ideal for energy storage in batteries.
Salt is not a critical element, is many times cheaper than lithium and is readily
available everywhere. SAS technology is different from sodium-ion batteries or
sodium sulphur batteries. SAS batteries are not exposed to rising lithium prices
and potential supply constraints of lithium globally.

Cobalt Supply Chain and Ethical Concerns

COPPER FREE ü

No cobalt is used in an SAS battery. As mentioned previously, the cathode

consists of salt and nickel in a sodium aluminium chloride medium. Due to the
chemistry of the battery, there is no requirement for a cathode layered structure
like lithium-ion batteries so there is no requirement for cobalt. SAS batteries
have no exposure to cobalt's ethical or supply chain issues. SAS batteries have
excellent specific energy of 110-130 Wh/kg compared to LFP lithium-ion battery
of 90-160 Wh/kg.

Graphite and Copper Supply Risks

GRAPHITE/COPPER FREEü

The other unique feature of the SAS battery is that it does not contain any
graphite or copper in the anode side of the battery. In fact, there is no anode in
the SAS battery. The anode only forms during the charging process as a
molten sodium film between the steel electrode and outer edge of the ceramic
electrolyte. Similarly, the molten sodium anode dissolves during the discharging
process of the battery. Instead of copper as the negative collector in the lithium-
ion battery, a steel canister acts as the negative electrode in a SAS battery. The
SAS battery is graphite-free and copper-free.
 ®
WHAT IS A CERENERGY BATTERY?
A CERENERGY® battery consists of a ceramic tube (conductive to sodium ions but
insulator for electrons) with a positive terminal in the center of it. The solid ceramic tube
(solid state technology) performs the same function as a liquid electrolyte in a lithium-
ion battery, allowing sodium ions to transfer through it. IKTS has developed solid-state
technology to produce these large solid ceramic tubes with micro-structures that allow
fast sodium ion transfer. The ceramic tube is filled with cathode granules consisting of
common table salt and nickel. To ensure contact between the solid cathode granules
and the ceramic electrolyte tube, the tube is flooded with a sodium aluminium chloride
medium.
The ceramic tube is housed in a steel canister which acts as the negative terminal. The
positive and negative terminal tabs are installed at the top of the cell for electrons
transfer and connection to other cells. The technology highlights for CERENERGY®
batteries are high specific energy; excellent performance and cycle life in harsh
operating environments; ultra-long battery life span and low environmental impact.

Negative Terminal - + Positive Terminal

Ceramic Electrolyte

Cathode Salt & Nickel

Cell Canister
 There are several deployments of battery energy storage systems for large-scale grid
GRID STORAGE MARKET applications. One example is the Hornsdale Power Reserve, a 100 MW/129 MWh
lithium-ion battery installation, the largest lithium-ion grid storage in the world, which
Grid energy storage (also called large-scale energy storage) is a collection of methods has been in operation in South Australia since December 2017. The Hornsdale Power
used for energy storage on a large scale within an electrical power grid. Electrical Reserve provides two distinct services; energy arbitrage; and contingency spinning
energy is stored during times when electricity is plentiful and inexpensive (especially reserve. The facility can bid 30 MW and 119 MWh of its capacity directly into the market
from intermittent power sources such as renewable electricity from wind power, tidal for energy arbitrage, while the rest is withheld for maintaining grid frequency during
power, and solar power) or when demand is low, and later returned to the grid when unexpected outages until other, slower generators can be brought online (AEMO 2018).
demand is high, and electricity prices tend to be higher. Developments in battery In 2017, after a large coal plant tripped offline unexpectedly, the Hornsdale Power
storage have enabled commercially viable projects to store energy during peak reserve was able to inject several megawatts of power into the grid within milliseconds,
production and release it during peak demand, and for use when production arresting the fall in grid frequency until a gas generator could respond. By arresting the
unexpectedly falls giving time for slower responding resources to be brought online. fall in frequency, the facility was able to prevent a likely cascading blackout.
Altech's CERENERGY® batteries are targeted to supply this grid energy storage
market which is expected to grow by a 28% compound annual growth rate in the
coming decades. The global grid energy storage market is expected to grow from USD
4.4 billion in 2022 to USD 15.1 billion by 2027. Or further out, growth is expected from
20 GW in 2020 to over 3,000 GW by 2050.
 TM After almost 12 months of challenging work, Altech “cracked the silicon barrier” and
SILUMINA ANODES PROJECT successfully produced and tested a series of lithium-ion battery anode materials that
have ~30% higher retention capacity compared to conventional lithium-ion battery
The Silumina AnodesTM project involves combining silicon and graphite, and then anodes. To achieve its breakthrough, Altech successfully combined silicon particles that
coating this composite product with a nanometre layer of high-purity alumina, for had been treated with its innovative proprietary technology, with regular battery grade
inclusion in lithium battery anodes to increase lithium battery capacity. Altech advanced graphite, to produce a lithium-ion battery electrode containing a composite graphite /
this technology during the year and has now progressed with commercialisation of the silicon anode. When energised, these materials held 30% more capacity compared to
product. conventional graphite only anode material. The materials were then subjected to a
Achievement of game changing proprietary technology by cracking the “silicon series of tests over a period of time, including charge and discharge cycling. The
barrier” previously unresolved obstacles for using silicon in lithium-ion battery anodes, which
were: silicon particle swelling; prohibitive first-cycle-capacity-loss of up to 50%; and
Altech established a dedicated research and development laboratory in Perth, Australia, rapid battery degradation, appears to be improved significantly during the laboratory
TM
and has produced the Silumina Anodes lithium-ion battery anode material with 30% testing of Altech's composite graphite/silicon batteries.
higher energy retention and capacity than conventional graphite only anodes.
Altech continues to work on increasing the battery capacity, with phase two R&D
Extending the application of the graphite coating technology to the coating of silicon striving to attain capacity retention beyond the current 30%.
particles is a significant breakthrough for Altech, especially in the context of a recent
public statement by US electric vehicle manufacturer Tesla, that its aim is to increase
the amount of silicon in its batteries to achieve step-change improvements in battery
energy density and life. Silicon has a significant advantage over graphite for use in
lithium-ion battery anodes in that it has ten times the theoretical energy capacity
100% Coat
compared to graphite. However, limitations for silicon use include particle volume ed S
Silic i Gr a p
expansion of up to 300% when energised, a large “first cycle lithium loss” and capacity on hite

Capacity
fade. The expansion on lithiation leads to silicon fracture and subsequent delamination +G
rap
of the anode from the copper collector. Particle size reduction of silicon down to 150 80% hi
te
nm overcomes this expansion problem, however, this is costly and uneconomical.

Extended Life of Battery

60%
Number of Cycles

Theoretical increased energy density & extra battery life

Altech's Perth, Australia based research and development staff in the laboratory
 TM
SILUMINA ANODES PROJECT PILOT PLANT CONSTRUCTION
TM
Altech has now moved to commercialise its Silumina Anodes project in Saxony,
Germany, and has executed an Engineering, Procurement and Construction Contract
Silumina An des
TM

with Küttner GmbH & Co to build a Silumina AnodesTM pilot plant that will produce 120kg
per day (~37,000 kg per year) of the Silumina AnodesTM product for product qualification
with end users, to assist in securing an offtake agreement.
The pilot plant will also provide optimised inputs for the full-scale 10,000tpa commercial
plant design, and will produce customer samples for testing and qualification.
The pilot plant is being installed in the Dock3 facility adjacent to Altech's designated
~14Ha industrial site at the Schwarze Pumpe Industrial Park in Saxony, Germany.
Altech has secured approximately 300m2 of floorspace within the Dock3 where the pilot
plant will be located. Also, an on-site analytical laboratory is planned for the pilot plant.
The laboratory will allow for the rapid assessment of pilot plant product purity and
monitor physical parameters which will enable changes in processing parameters and
operational setpoints to be modified quickly, as required. The Dock3 space is already
connected to all required utilities and includes office space for the project and
operations team.
Küttner is a German-based industrial plant engineering and EPC contractor, with strong
experience in design, procurement, project and construction management and plant
commissioning across a range of industries. They have previously completed
metallurgical plant, water and off-gas treatment projects in Germany. Küttner bringing
valuable local knowledge to the execution of the project.
A strategic partnership has also been entered into with world class German battery
research and development institute Fraunhofer IKTS for Silumina AnodesTM
qualification. The independent performance testing and qualification of the Silumina
AnodesTM product by Fraunhofer IKTS will fast track and assist with early market entry.
Altech is well funded to complete the pilot plant. The pilot plant is estimated to cost
A$7.177 million, of which A$5.382 million will be funded by Altech (75% owner) and
A$1.794 million will be funded by Altech Advanced Materials AG (25% owner).

MD Iggy Tan of Altech signing the construction contract with Jan Meier-Kortwig, MD of Kuttner
SILUMINA ANODESTM FULL SCALE PLANT DEVELOPMENT
Whilst the pilot plant is being constructed, Altech continues to move forward with the
development of its full-scale plant to be constructed in Germany to produce Silumina
TM
Anodes .
An outstanding Preliminary Feasibility Study (“PFS”) for a full-scale plant to produce
TM
10,000tpa of Silumina Anodes was completed during the year. The PFS included a
low capital cost of US$95 million, a pre-tax Net Present Value of US$507 million and an
attractive Internal Rate of Return (IRR) of 40%. A summary of the key financial metrics
within the PFS is set out in the table below.

US Per Annum
Annual Production 10,000 tonnes
Exchange Rate 0.83 EUR/USD
Project Capex 95 million Altech's General Manager (Operations & Marketing) Dr. Jingyuan Liu,
research assistant Penny Pang, and director Hansjorg Plaggemars.
Opex p.a. 122 million
NPV 507 million
The battery materials coating plant project was awarded the “Medium Green” rating
Discount Rate 8.0 % from the independent Centre of International Climate and Environmental Research
Payback (real) 3.1 years (CICERO), based on the project achieving an environmentally sustainable design, as
well as lower CO2 emissions of between ~19% and ~52%. This positive project
IRR 40 %
evaluation, formally termed a “Green Bond Second Opinion”, confirms that the project
Revenue p.a. 185 million would be suitable for future green bond financing.
EBITDA p.a. 63 million CICERO were engaged by Altech as part of its PFS to conduct the independent
evaluation of the proposed battery materials coating plant. The plant is being designed
with a specific focus on minimising environmental impact, and in accordance with
Altech has acquired an ~14Ha industrial site in Saxony, Germany, to house a full-scale prevailing German, European and International environmental standards.
plant for its Silumina AnodesTM project. Altech believes that the site is the ideal location
for a 10,000tpa HPA battery materials coating plant, as it is strategically located to
supply the European lithium-ion battery and EV markets.
In determining the overall project framework rating of “Medium Green”, CICERO Altech has secured feedstock supplies from world leading European suppliers of high-
assessed the proposed governance procedures and transparency as “Good” and quality materials, being SGL Carbon for graphite and Ferroglobe for silicon. During the
confirmed that the project aligns with all green bond principles. In assessing the recent crisis in Europe forcing supply chain pressures and rising energy prices, it has
proposed plant design and coating process, CICERO noted “The plant has near zero demonstrated the importance of European material supply for European battery and EV
Scope 1 and 2 emissions as the plant's processes, including steam generation, are fully makers. The manufacturing supply risks are becoming increasingly evident, and more
electrified, and it will use renewable electricity sourced from on- site solar panels and focus will be placed on European supply.
renewable energy certificates”.
Following the official opening of the Company's battery materials site, Altech initiated its
CICERO's independent assessment of Altech's proposed battery materials coating European development strategy. During the year, Altech commenced working with
plant, and its suitability for possible future green bond financing, is an important various Saxony State authorities to gain an improved understanding of the
inclusion for the current preliminary feasibility study – and certainly adds credibility to administrative, legislative as well as financial support that may be available for the
this proposed project. future potential development of the full-scale HPA battery materials coating plant in
Saxony.
During the year, Altech also executed a Non-Disclosure Agreement with two German
automakers and one European battery maker.

Altech's German Chief Operating Officer Carsten Baumeister. director Tunku Yaacob Khyra and director Uwe Ahrens
 Whilst headwinds in the current equity and financial markets are challenging,
JOHOR HPA PROJECT management remains committed to the project finance process, and for a positive
project finance outcome.
Altech continues to work with London based structuring agent Bedford Row Capital Plc
(Bedford Row) and Perth based Bluemount Capital (WA) Pty Ltd (Bluemount), to In relation to the Australian kaolin deposits held by Altech, it was pleasing to discover
finalise its green bond offering. Project financial, legal, environmental, social & halloysite at the Kerrigan kaolin deposit. Halloysite nanotubes could replace carbon
governance (ESG) due diligence has successfully concluded, and legal counsel from nanotubes in high-tech applications. In addition, a recent drilling program yielded fresh
various jurisdictions have also completed their respective reviews of documentation. An kaolin resource data at Kerrigan tenement, which increase the deposit to an Inferred
initial bond offering “reach out” phase to potential subscribers has been completed, and Resource of 125 million tonnes of kaolin. This represents a 47% increase in the kaolin
more than 80 groups registered interest to receive the offering documents. Access to tonnage compared to previous estimates.
the project data room has been provided to a number of these groups for detailed due In Malaysia, the HPA plant site within the Tanjung Langsat Industrial Complex
diligence and potential subscriber due diligence is ongoing. Detailed presentations and remains in sound condition. Regular site maintenance work is undertaken and
individual discussions are being scheduled on request, and these are expected to permanent site security is in place. The already constructed maintenance workshop,
continue for some time. electrical substation and storm water management infrastructure remain in as-
Altech is aiming to raise US$144m from the bond issue (Series 2021-F3 Notes), constructed condition.
of which US$100m will be used as secondary debt for construction of its
Johor HPA plant, with the balance of US$44m to service bond interest during the HPA
plant's construction phase. The bonds would be issued by Sustainable Capital Plc, a CAPITAL RAISING
company incorporated in United Kingdom as a dedicated green bond issuance
During the year, the Company raised $10.3 million from a share placement combined
platform. In parallel with the bond offering, Altech is continuing with its endeavours to
with a share purchase plan. This has allowed for the next stage of Altech's battery
secure commitments for a project equity investment of US$100M. US Based global
materials development, including the funding of the pilot plant, land purchase in
investment bank DelMorgan & Co. has advanced several leads and potential investors
Germany for the full-scale plant, and finalisation of the Preliminary Feasibility Study for
in relation to this. Presentations by Altech and detailed discussions with interested
the Silumina AnodesTM full-scale plant.
parties are ongoing.
In addition to this, the Company received total additional combined funds of $2.1 million
Managing director Iggy Tan, accompanied by executive management, completed a visit
as a result of the Company's largest shareholder, Deutsche Balaton Aktiengesellschaft
to Germany during the year. The visit included a meeting with German government
converting 15,000,000 listed options with an expiry date of 31 May 2022 and
owned KfW IPEX-Bank, during which the bank was briefed on the status of Altech's
conversion price of $0.08 each, as well as another significant shareholder, Delphi
secondary project finance initiatives – the US$144m green bond offer and the
Unternehmensberatung Aktiengesellschaft, converting 11,519,296 listed options. Altech
US$100m project level equity funding initiative. KfW IPEX-Bank confirmed its continued
was delighted with the support shown by the Company's significant shareholders.
support for the project, and its commitment to the senior loan facility of US$190m.
Importantly, Euler Hermes, the German government export credit agency, has renewed
the US$170m export credit cover (guaranteed) for the KfW IPEX Bank senior loan
facility. Both KfW IPEX-Bank and Euler Hermes acknowledged the headwinds facing
NEW WEBSITE
project finance close from disruptions caused by the pandemic in the last few years as Altech has delivered on a new website. Shareholders and interested parties are invited
well as the current market uncertainty exacerbated by the Ukraine crisis in Europe. to access the web site at www.altechchemicals.com
CORPORATE INFORMATION
COMPETENT PERSONS STATEMENT
Altech Chemicals Limited The information in this report that relates to exploration results is based on information compiled by Jeff
ABN 45 125 301 206 Randell, a Competent Person, who is a Member of the Australian Institute of Geoscientists. Mr Randell is
a Senior Consultant of Geos Mining and has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration
DIRECTORS AUDITOR Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Randell consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
Luke Atkins Chairman Moore Australia Audit (WA)
Ignatius Tan Managing Director Level 15, Exchange Tower, FORWARD-LOOKING STATEMENTS
Daniel Tenardi Non-executive Director 2 The Esplanade, This announcement contains forward-looking statements which are identified by words such as
Perth, Western Australia, 6000 'anticipates', 'forecasts', 'may', 'will', 'could', 'believes', 'estimates', 'targets', 'expects', 'plan' or 'intends'
Peter Bailey Non-executive Director and other similar words that involve risks and uncertainties. Indications of, and guidelines or outlook on,
Tunku Yaacob Khyra Non-executive Director future earnings, distributions or financial position or performance and targets, estimates and assumptions
Uwe Ahrens Alternate Director SHARE REGISTRY in respect of production, prices, operating costs, results, capital expenditures, reserves and resources
Automic Registry Services are also forward- looking statements. These statements are based on an assessment of present
Hansjoerg Plaggemars Non-executive Director economic and operating conditions, and on a number of assumptions and estimates regarding future
Level 2, 267 St Georges Terrace events and actions that, while considered reasonable as at the date of this announcement and are
CHIEF FINANCIAL OFFICER & Perth WA 6000 expected to take place, are inherently subject to significant technical, business, economic, competitive,
Telephone: 1300 288 664 political and social uncertainties and contingencies. Such forward-looking statements are not guarantees
COMPANY SECRETARY of future performance and involve known and unknown risks, uncertainties, assumptions and other
Martin Stein (Int): +61 2 9698 5414 important factors, many of which are beyond the control of the Company, the directors and management.
Facsimile: +61 2 8583 3040 We cannot and do not give any assurance that the results, performance or achievements expressed or
implied by the forward-looking statements contained in this announcement will actually occur and
REGISTERED OFFICE & readers are cautioned not to place undue reliance on these forward-looking statements. These forward-
PRINCIPAL PLACE OF BUSINESS STOCK EXCHANGE LISTING looking statements are subject to various risk factors that could cause actual events or results to differ
Suite 8, 295 Rokeby Road, The Company is listed on the materially from the events or results estimated, expressed or anticipated in these statements.
Subiaco, Western Australia 6008 Australian Securities Exchange
The Green Bonds referred to this report is indicative in nature; are non- binding; and contain the general
Limited (ASX) and its terms of a proposed transaction. Any issuance is contingent upon all internal approvals of the Company
Phone: +618 6168 1555 shares are also quoted on the and structuring agent as well as the completion of detailed due diligence (including but not limited to
Frankfurt Stock Exchange legal and technical due diligence) and legally binding documentation. There is no certainty that the
(Börse Frankfurt) (FWB) Green Bonds will be approved or a transaction concluded based on what is contemplated in this report.
Email: [email protected] The Company makes no representations or warranties whatsoever as to the outcome of the Green
Website: www.altechchemicals.com Bonds process.
Home Exchange: Perth
ASX Code: ATC
Frankfurt Stock Exchange:
FWB Code: A3Y
Altech Chemicals
Limited

www.altechchemicals.com
 ABN 45 125 301 206

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022
CONTENTS PAGE

DIRECTORS’ REPORT 1

AUDITOR’S INDEPENDENCE DECLARATION 16

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 17

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 18

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 19

CONSOLIDATED STATEMENT OF CASH FLOWS 20

NOTES TO THE FINANCIAL STATEMENTS 21

DIRECTORS’ DECLARATION 47

INDEPENDENT AUDITOR’S REPORT 48

CORPORATE DIRECTORY

DIRECTORS AUDITOR

Luke Atkins Chairman Moore Australia Audit (WA)

Ignatius Tan Managing Director Level 15, Exchange Tower
Daniel Tenardi Non-Executive Director 2 The Esplanade
Peter Bailey Non-Executive Director Perth, WA 6000
Tunku Yaacob Khyra Non-Executive Director
Hansjoerg Plaggemars Non-Executive Director
Uwe Ahrens Alternate Director SHARE REGISTRY
(for Tunku Yaacob Khyra)
Automic Pty Ltd
Level 5, 191 St Georges Terrace
COMPANY SECRETARIES Perth, WA 6000
Telephone: 1300 288 664
Martin Stein +61 2 9698 5414
Shane Volk

STOCK EXCHANGE LISTING

REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS
Securities of the Company are quoted on the Australian
Suite 8, 295 Rokeby Road, Securities Exchange Limited (ASX) and its shares are also
Subiaco, Western Australia, 6008 quoted on the Frankfurt Stock Exchange (Börse Frankfurt)
(FWB)
Phone: +61 8 6168 1555
Email: [email protected] Home Exchange: Perth
Website: www.altechchemicals.com ASX Code: ATC (shares)

FWB Code: A3Y

 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

The directors present their report, together with the financial statements of the Group, being the Company and its controlled entities, for
the financial year ended 30 June 2022.

DIRECTORS
The names and details of the directors of Altech Chemicals Limited during the financial year and until the date of this report are:

Ignatius (Iggy) Tan B.Sc, MBA, GAICD

Managing Director
Appointed: 25 August 2014

Mr Tan is a highly experienced mining and chemical executive with a number of significant achievements in commercial mining projects
such as capital raisings, funding, construction, start-ups and operations. Mr Tan has over 30 years chemical and mining experience and
been an executive director of a number of ASX-listed companies. He holds a Master of Business Administration from the University of
Southern Cross, a Bachelor of Science from the University of Western Australia and is a Graduate of the Australian Institute of Company
Directors.

Mr Tan became the Company's Managing Director in August 2014. Having been involved in the commissioning and start-up of seven
resource projects in Australia and overseas, including high purity technology projects, Mr Tan is an accomplished project builder and
developer. Mr Tan previously held Managing Director positions at ASX listed Kogi Iron Limited (ASX: KFE) (23-08-2013 to 1-05-2014)
and Galaxy Resources Limited (ASX: GXY) (11-11-2011 to 11-06-2013).

Luke Frederick Atkins LLB

Non-Executive Chairman
Appointed: 8 May 2007

A highly qualified mining executive and a lawyer by profession, Mr Atkins has had extensive experience in capital raisings and has held a
number of executive and non-executive directorships of private and publicly listed companies including a number of mining and exploration
companies.

Mr Atkins is the co-founder and is currently a Non-Executive Director of ASX-listed Australian Silica Quartz Group Limited (formally Bauxite
Resources Limited) (ASX: ASQ). Mr Atkins brings to the board extensive experience in the areas of mining, exploration and corporate
governance.

Peter Bailey
Independent Non-Executive Director
Appointed: 8 June 2012

Mr Bailey is a highly experienced and qualified engineer with over 40 years of experience in the mining and industrial chemical production
industry. Mr Bailey spent the majority of his career in the alumina chemicals and alumina refining industries. He was previously chief
executive officer at Sherwin Alumina, an alumina refinery located in Texas, USA.

Prior to Sherwin, in 1998 Mr Bailey was president of Alcoa Worldwide Chemicals’ industrial chemicals department. He was responsible
for managing the company’s 13 alumina plants that were located in eight countries, with combined annual revenue of approximately
US$700 million. In 1996, Mr Bailey was president of Alcoa Bauxite and Alumina and was responsible for 8 alumina plants outside of
Australia. He was also the Chairman of the Alcoa Bauxite joint venture in Guinea, Africa. He has a solid business network throughout the
global alumina industry. Mr Bailey has not held any other listed company directorships in the past 3 years.

Daniel Lewis Tenardi

Non-Executive Director
Appointed: 17 September 2009

Mr Tenardi is a highly experienced global resource executive with over 40 years of experience in the mining and processing sectors.
During his extensive career, Mr Tenardi spent 13 years at Alcoa’s alumina refinery in Kwinana as well as the company’s bauxite mines in
the Darling Ranges of Western Australia.

Mr Tenardi was the founding Managing Director of Bauxite Resources Limited (since renamed Australian Silica Quartz Group Limited
(ASX: ASQ)), where he led the rapid growth of the company from its initial exploration phase, expansion of land holdings, to the
commencement of trial shipments of ore and securing supportive strategic partnerships with key Chinese investors. Having built strong
networks with industry leaders in the alumina sector, Mr Tenardi provides valuable alumina-specific industry experience. Mr Tenardi
previously served as a Non-Executive independent director of Australian iron ore producer, Grange Resources Limited (ASX: GRR), was
CEO of Ngarda Civil & Mining and has also held senior executive and operational roles at CITIC Pacific, Alcoa, Roche Mining and Rio
Tinto.

-1-
 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

Tunku Yaacob Khyra B.Sc (Hons), CA

Non-Executive Director
Appointed: 22 October 2015

Tunku Yaacob Khyra is the executive Chairman of the Melewar Khyra Group of Companies (Melewar), a Malaysian-based diversified
financial and industrial services group. He is the major owner and shareholder of Melewar and sits on the boards of Khyra Legacy Berhad,
Mycron Steel Berhad, MAA Group Berhad, Melewar Industrial Group Berhad, Ithmaar Bank B.S.C. (listed on Bahrain Stock Exchange)
and several other private companies.

Tunku Yaacob graduated with a Bachelor of Science (Hons) Degree in Economics and Accounting from City University, London. An
accountant by training, he is a Fellow of the Institute of Chartered Accountants in England & Wales and a member of the Malaysian
Institute of Accountants. He started his career as an Auditor with Price Waterhouse, London from 1982 to 1985 and subsequently joined
Price Waterhouse Kuala Lumpur from 1986 to 1987. He joined Malaysian Assurance Alliance Berhad in 1987 and retired as its Chief
Executive Officer in 1999. Tunku Yaacob has not held any other Australian listed company directorships in the last 3 years.

Hansjoerg Plaggemars
Non-Executive Director
Appointed: 19 August 2020

Mr Plaggemars was a previous member of the board of Delphi Unternehmensberatung AG and Deutsche Balaton AG (ATC major
shareholder) and currently acts as their representative. Mr Plaggemars is based in Heidelberg, Germany and is an experienced company
director and manager. He studied business administration at the University of Bamberg from 1990 to 1995.

Mr Plaggemars has been a management consultant since June 2017, and is a board member of various companies within the scope of
projects. Mr Plaggemars is currently a member of the management board of Frankfurt Stock Exchange listed Altech Advanced Materials
AG. Mr Plaggemars also currently serves as a non-executive director of ASX listed Devenport Resources Limited, Kin Mining Limited and
Azure Minerals Limited.

Uwe Ahrens
Alternate Non-Executive Director (for Tunku Yaacob Khyra)
Appointed: 22 October 2015

Mr Ahrens is executive director of Melewar Industrial Group Berhad and Managing Director of Melewar Integrated Engineering Sdn Bhd.
He also sits on the board of several other private limited companies. Mr Ahrens holds Masters degrees in both Mechanical Engineering
and Business Administration from the Technical University Darmstadt, Germany. Upon graduation, Mr Ahrens joined the international
engineering and industrial plant supplier, KOCH Transporttechnik GmbH in Germany, now belonging to FLSmidth Group, where he held
a senior management position for 12 years, working predominantly in Germany, USA and South Africa. Mr Ahrens has not held any other
Australian listed company directorships in the past 3 years. Mr Ahrens is the Alternate Non-Executive Director for Tunku Yaacob Khyra.

COMPANY SECRETARIES
Martin Stein Chartered Accountant, B. Bus, Chartered Secretary
Chief Financial Officer and Company Secretary
Appointed: Chief Financial Officer 1 November 2021 and Company Secretary 9 March 2022

Mr Stein is a finance and corporate executive with over 20 years’ of international experience. Mr Stein has held the positions of Chief
Financial Officer and Company Secretary in several ASX listed companies. In these roles, Mr Stein has been responsible for all aspects
of capital raising, financial management, shareholder liaison and corporate governance. Prior to this, Mr Stein held senior positions with
Anvil Mining Limited as well as with PwC at its London office. Whilst with PwC, Mr Stein provided corporate services for companies listed
on the LSE, NYSE and AIM, including Colgate-Palmolive, Sony, Heinz, DHL Express and Bosch.

Shane Volk B.Bus (Accounting), Grad Dip (Applied Corp. Gov.), AGIA
Company Secretary
Appointed: 12 November 2014

Mr Volk is an experienced company secretary and chief financial officer having served in these positions for numerous ASX listed
companies since 2007. His experience also includes senior management roles in the resources industry (gold and coal) in Indonesia,
Papua New Guinea and Australia, with a variety of international resources companies. Mr Volk is a member of the Governance Institute
of Australia and has in excess of 30 years of experience in the mining and resources industries.

-2-
 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

PRINCIPAL ACTIVITIES

The principal activities of the Group during the financial year were:

- Achievement of game changing proprietary technology by cracking the “silicon barrier” and producing the Silumina AnodesTM Lithium-
ion battery anode material with 30% higher energy retention and capacity than conventional graphite only anodes.
- Finalising the Preliminary Feasibility Study, with outstanding economics, for the Silumina AnodesTM Battery Materials Project to
produce 10,000tpa of Silumina AnodesTM in Saxony, Germany. Altech acquired an ~14Ha industrial site in Saxony, Germany that is
an ideal location for the full-scale plant.
- Commencement of construction by Küttner GmbH & Co to build a Silumina AnodesTM Pilot Plant in Germany that will produce 120kg
per day (~37,000 kg per year) of the Silumina AnodesTM product for product qualification with end users, that will assist in securing
an offtake agreement for the full-scale plant.
- Continuing the process of securing the remaining green bond and project level equity to finance the remaining construction for the
Johor, Malaysia high-purity alumina production plant.

FINANCIAL POSITION & RESULTS OF OPERATIONS

The financial results of the Group for the financial year ended 30 June 2022 are:

2022 2021
$ $
Cash and cash equivalents 10,912,939 6,728,978
Net Assets 97,537,643 88,926,622
Revenue 468,659 8,059,423∗
Net profit /(loss) after tax (5,802,429) 2,325,866
Profit / (Loss) per share (0.004) 0.002
Dividend - -
∗ Includes $7,941,108 in relation to the sale of 25% equity of Altech Industries Germany GmbH.

DIVIDENDS
No dividend has been paid since the end of the previous financial year and no dividend is recommended for the current year.

REVIEW OF OPERATIONS AND ACTIVITIES

The year ended 30 June 2022 enabled the Company to continue to successfully move forward with its patented Silumina AnodesTM
technology, as well as continuing to secure bond and equity project finance for its HPA production plant in Malaysia.

Silumina AnodesTM Project

In relation to the Silumina AnodesTM project, which involves combining silicon and graphite and coating this composite product with a
nanometre layer of high-purity alumina for inclusion in lithium battery anodes, Altech advanced this technology and achieved the following
results.

- Establishment of a dedicated Research and Development laboratory in Western Australia.

- Achievement of game changing proprietary technology by cracking the “silicon barrier” and producing the Silumina AnodesTM Lithium-
ion battery anode material with 30% higher energy retention and capacity than conventional graphite only anodes.
- Achievement of stable battery and sound cycling performance.
- Phase 2 R&D will strive to attain capacity retention beyond the current 30%.
- “Silumina AnodesTM” registered as name for Altech's composite anode material.
- Patent protection for Silumina AnodesTM battery materials technology in place.

Altech has now moved to commercialise the Silumina AnodesTM project in Saxony, Germany, and has achieved the following exciting
milestones in relation to the construction of a pilot plant for the product.

- Executing an Engineering, Procurement and Construction Contract with Küttner GmbH & Co to build the Silumina AnodesTM Pilot
Plant that will produce 120kg per day (~37,000 kg per year) of Silumina AnodesTM product for product qualification with end users,
that will assist in securing an offtake agreement.
- Pilot plant to provide optimised inputs for 10,000tpa commercial plant design, and produce customer samples for testing and
qualification.

-3-
 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

- Strategic partnership entered into with world class German battery research and development institute Fraunhofer IKTS for Silumina
AnodesTM qualification. The independent performance testing and qualification of Silumina AnodesTM product by Fraunhofer IKTS
will assist early market entry.
- Engaging and building relationships with Saxony State authorities for support.

Whilst the pilot plant is being constructed, Altech continues to move forward with the development of a full-scale plant to be constructed
in Germany to produce the Silumina AnodesTM product. Key achievements in this regard are outlined below.

- Outstanding Preliminary Feasibility Study for the Silumina AnodesTM Battery Materials Project to produce 10,000tpa of Silumina
AnodesTM, including a low capital cost of US$95 million, a pre-tax Net Present Value of US$507 million and an attractive Internal
Rate of Return (IRR) of 40%
- Acquisition of an ~14Ha industrial site in Saxony, Germany that is an ideal location for the full-scale plant.
- The battery materials coating plant project awarded “Medium Green” rating from the independent Centre of International Climate
and Environmental Research (CICERO), based on the project achieving an environmentally sustainable design as well as lower
CO2 emissions of between ~19% and ~52% possible.
- Security feedstock supplies from world leading European suppliers of high-quality materials, being SGL Carbon for graphite and
Ferroglobe for silicon.
- NDA executed with two German automakers and one European battery maker.

Johor HPA Project

Altech continues to mandate BlueMount Capital and Bedford Row Capital with the listed green bonds, targeting an offer of ~US$144m,
with the green bond offering reach out phase completed. More than 80 groups registered interest to receive the offering documentation.
The Company continues with detailed due diligence and data room reviews with potential investors.

In addition, Altech continues to mandate DelMorgan & Co. with the US$100m of project level equity, with the project equity process running
in parallel with the green bond offer.

The site for the production facility in Johor is currently on care and maintenance.

Capital Raised

During the year, the Company raised $10.3 million from a share placement combined with a share purchase plan. This has allowed for
the next stage of Altech’s battery materials development, including the funding of the pilot plant, land purchase in Germany for the full-
scale plant, and finalisation of the Preliminary Feasibility Study for the Silumina AnodesTM full-scale plant.

In addition to this, the Company received total combined funds of $2.1 million as a result of the Company’s largest shareholder, Deutsche
Balaton Aktiengesellschaft converting 15,000,000 listed options with an expiry date of 31 May 2022 and conversion price of $0.08 each,
as well as another significant shareholder, Delphi Unternehmensberatung Aktiengesellschaft, converting 11,519,296 listed options. Altech
was delighted with the support shown by the Company’s significant shareholders.

New Website

Altech has delivered on a new website. Shareholders and interested parties are invited to access the website at www.altechchemicals.com

Risk Management
Due to its size and scope of operations, the Group does not have a dedicated Risk Management Committee. Rather, the Company’s board
as a whole is responsible for the oversight of the Group’s risk management and control framework. Responsibility for control and risk
management is delegated to the appropriate level of management within the Group, with the Managing Director having ultimate
responsibility to the board for the risk management and control framework.

The Managing Director highlights areas of significant business risk and the board has arrangements in place whereby it monitors risk
management, including the periodic reporting to the board in respect of operations and the financial position of the Company.

The Company does not have a dedicated internal audit function, however it works closely with its external auditors and management for
the evaluation and continual improvement of the effectiveness of its risk management and internal control procedures. The Board has
established an Audit Committee.

EMPLOYEES
The Company had 11 permanent employees as at 30 June 2022 (2021: 9 permanent employees and 1 casual employee).

-4-
 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

In the opinion of the directors, there were no other significant changes in the state of affairs of the Group that occurred during the financial
year under review.

EVENTS SUBSEQUENT TO BALANCE DATE

On 14 September 2022, Altech announced that it had entered into a Joint Venture with Fraunhofer IKTS in relation to commercialisation
of a 100 MWh Sodium Alumina Solid State Battery Plant for grid storage.
Further, there has not arisen since the end of the financial year any other item, transaction or event of a material and unusual nature likely,
in the opinion of the directors of the Company to affect substantially the operations of the Group, the results of those operations or the
state of affairs of the Group in subsequent financial years.

OPTIONS OVER UNISSUED CAPITAL

Since 30 June 2021 and up until the date of this report the Company had not issued any new options (2021: 181,667,319 options with
an exercise price of $0.08 per option and an expiry date of 31 May 2022). As at 30 June 2022, 43,729,294 new ordinary shares have
been issued through the exercise of options.
There are no issues outstanding at the date of this report. Information in relation to this is available on both the ASX and Company
website.

PERFORMANCE RIGHTS OVER UNISSUED CAPITAL

As at the date of this report unissued ordinary shares of the Company subject to performance rights are:

Rights Exercise Rights Rights not Expiry

Performance Right Series
outstanding Price Vested Vested Date
Managing Director 5,000,000 Nil Nil 5,000,000 11/6/25
Managing Director 10,000,000 Nil Nil 10,000,000 29/11/26
Non-executive Directors 6,000,000 Nil Nil 6,000,000 26/11/25
Employees 200,000 Nil Nil 200,000 1/2/23
Employees 1,400,000 Nil Nil 1,400,000 4/8/23
Employees 1,700,000 Nil Nil 1,700,000 27/9/25
Employees 5,750,000 Nil Nil 5,750,000 31/1/29
Total 30,050,000 Nil 30,050,000

Details of performance rights issued to the directors and Key Management Personnel of the Company during the period of this report are
contained in the Remuneration Report.

The above performance rights represent unissued ordinary shares of the Company under option as at the date of this report. These
performance rights do not entitle the holder to participate in any share issue of the Company. The holders of performance rights are not
entitled to any voting rights until the performance rights are exercised into ordinary shares, which is only possible if the vesting conditions
attached to the performance rights have been attainted.

The names of all persons who currently hold performance rights granted are entered in a register kept by the Company pursuant to Section
168(1) of the Corporations Act 2001 and the register may be inspected free of charge.

CORPORATE STRUCTURE
Altech Chemicals Limited (ACN 125 301 206) is a Company limited by shares that was incorporated on 8 May 2007 and is domiciled in
Australia.

FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES

The Group has what it believes to be a significant opportunity for the Company, with continued development and commercialisation of the
Silumina AnodesTM Battery Materials Project in Saxony, Germany. To this extent, Altech will continue with the construction of the pilot
plant to produce 120kg per day of Silumina AnodesTM for distribution to potential customers, with the aim being to secure an offtake
agreement.

In conjunction with this, and with the results achieved from the outstanding Preliminary Feasibility Study for the full-scale plant to produce
10,000tpa of Silumina AnodesTM, Altech will progress with the commercialisation of the project. Altech intends to prepare a Definitive
Feasibility Study that will provide additional assurance over the project.

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 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

In addition, work continues at the dedicated research and development laboratory in Western Australia, with Phase 2 R&D work striving
to attain Silumina AnodesTM battery capacity retention beyond the current 30%.

The Company also remains focused on securing the debt and equity funding that will enable it to bring about project financial close and
continue with the construction of its proposed high-purity alumina plant in Johor, Malaysia, beyond the completed Stage 1 and Stage 2
early works, and to enable the Group to construct the associated kaolin mine and loading facility at Meckering, Western Australia.

Development Risk
The proposed mining, beneficiation and HPA plant construction and operation activities are all high-risk undertakings. The Company is on
a proposed development path and in 2015 completed a Bankable Feasibility Study (BFS) that determined the technical and commercial
viability for the construction and operation of a 4,000tpa high purity alumina (HPA) processing plant at Tanjung Langsat, Johor, Malaysia,
and an associated kaolin quarry and container loading facility at Meckering, Western Australia to provide feedstock for the HPA plant. The
BFS was updated in March 2016 and this update confirmed the technical and commercial viability of the project compared to the original
study. In October 2017, the Company published a Final Investment Decision study (FIDS) for the project based on an increased plant
output of 4,500tpa, and in February 2018 announced that it had executed definitive terms for a US$190 million senior project finance debt
facility with German government owned KfW IPEX-Bank. However, there is no certainty that the financing, mining, construction and
operation of the abovementioned operations and facilities will be able to proceed as envisaged, and if they do proceed as envisaged – that
the operations will function as expected in the FIDS (or any subsequent study update) and deliver the results that were foreshadowed.
Amongst other things, equity and additional debt financing at terms acceptable to the Company and the senior lender (KfW IPEX-Bank)
must be secured, capital cost and operating cost estimates and assumptions must be confirmed and various design, operational,
processing, supply chain, market, regulatory, industrial and development risks, amongst others, will need to be identified and successfully
managed to deliver the development and operating outcomes envisaged in the FIDS and any subsequent study updates. Inescapably, the
FIDS and subsequent study updates are detailed studies of what is possible based on a combination of detailed information on hand at
the time, and a series of professional judgements, assumptions and estimates at the time; inevitably situations and circumstances change,
judgements, assumptions and estimates are different from what actually transpires, debt and equity markets constantly change and as a
result actual outcomes will almost certainly vary from those contemplated in a FIDS and any subsequent study updates.

MINERAL RESOURCE STATEMENT AND MINERAL RESOURCE ORE RESERVE ESTIMATION GOVERNANCE STATEMENT
Altech Chemicals Limited ensures that its Mineral Resource and Ore Reserve estimates are subject to appropriate levels of governance
and internal controls. Mineral Resource and Ore Reserve estimation procedures are well established and are subject to periodic systematic
peer and technical review by competent and qualified professionals.

Altech reviews and reports its Mineral Resource and Ore Reserve estimates at a minimum on an annual basis and in accordance with the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code) 2012 Edition. The most
recent annual review for the year ended 30 June 2022 has not identified any material issues. The table below sets out the Mineral
Resources and Ore Reserves comparatives as at 30 June 2022 and 30 June 2021.

Meckering kaolin (aluminous clay) deposit

Mineral Resource estimate (JORC 2012) Mineral Resource estimate (JORC 2012)
as at 30 June 2022 as at 30 June 2021
In Fraction < 300µ In Fraction < 300µ
Tonnes Al2 O3 Fe2O3 TiO2 Yield Tonnes Al2 O3 Fe2O3 TiO2 Yield
Classification % % % % % % % %
Measured 1,500,000 30.0 1.01 0.62 69 1,500,000 30.0 1.01 0.62 69
Indicated 3,300,000 30.0 0.97 0.61 69 3,300,000 30.0 0.97 0.61 69
Inferred 7,900,000 29.1 1.0 0.63 69 7,900,000 29.1 1.0 0.63 69
Total Mineral Resources* 12,700,000 29.5 0.99 0.62 69 12,700,000 29.5 0.99 0.62 69
* rounded to the nearest one hundred thousand tonnes
Notes: 1. The minus 45 micron percentage was measured by wet screening
2. Brightness is the ISO brightness of the minus 45 micron material

Mineral Reserve estimate (JORC 2012) Mineral Reserve estimate (JORC 2012)
as at 30 June 2022 as at 30 June 2021
Al2 O3 Fe2O3 TiO2 K2O Yield Al2 O3 Fe2O3 TiO2 K2O Yield
Classification Tonnes % % % % % Tonnes % % % % %
Proven 454,000 30.1 0.9 0.6 0.5 69 454,000 30.1 0.9 0.6 0.5 69
Probable 770,000 30.0 0.9 0.6 0.4 71 770,000 30.0 0.9 0.6 0.4 71
Total Proven & Probable* 1,224,000 30.0 0.9 0.6 0.4 70 1,224,000 30.0 0.9 0.6 0.4 70

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 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

* rounded to the nearest one thousand tonnes

Competent Persons Statement – Meckering kaolin deposit Mineral Resource estimate
The information in this report that relates to Mineral Resources for the Company’s Meckering kaolin (aluminous clay) deposit is based on information compiled by Ms Sue
Border, who is a Fellow the AusIMM and of AIG and is a consultant to the Company and is employed by Geos Mining mineral consultants. Ms Border has sufficient experience
that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that she 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”. The information contained in this report pertaining
to the Mineral Resource estimate as at 30 June 2022 is extracted from the ASX announcement entitled “Altech updates kaolin resource for its Meckering Mining Lease”
dated 8 July 2016 and the ASX announcement entitled “Maiden Ore Reserve at Altech’s Meckering Kaolin Deposit” dated 11 October 2016. Both announcements are
available to view on the Company web site www.altechchemicals.com. The Company confirms that there are no material changes to the Company’s Mineral Resources
since its ASX announcement of 11 October 2016.

Competent Persons Statement – Meckering kaolin deposit Mineral Reserve estimate

The information in this report that relates to Mineral Reserves for the Company’s Meckering kaolin (aluminous clay) deposit is based on information compiled by Mr Carel
Moormann who is employed by Orelogy Consulting Pty Ltd as a Principal Consultant. Orelogy Consulting Pty Ltd is an independent mine planning consultancy based in
Perth, Western Australia. Orelogy was requested by Altech Chemicals Ltd to prepare a reserve estimate for the Meckering kaolin deposit to provide feedstock for high purity
alumina production. Mr Moormann is a Fellow of the Australasian Institute of Mining and Metallurgy and a Competent Person as defined by the 2012 JORC Code. Mr
Moorman has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 JORC Code. The information contained in this report pertaining to the Mineral Reserve estimate as at 30 June 2022 is extracted
from the ASX announcement entitled “Maiden Ore Reserve at Altech’s Meckering Kaolin Deposit” dated 11 October 2016. The announcement is available to view on the
Company web site www.altechchemicals.com. The Company confirms that there are no material changes to the Company’s Mineral Reserve estimate and the assumptions
underpinning the Mineral Reserve estimate since its ASX announcement of 11 October 2016.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The Company holds an exploration licence and a mining licence that regulate its exploration and future mining activities in Western
Australia. These licences include conditions and regulations with respect to the rehabilitation of areas disturbed during the course of its
exploration or future mining activities. So far as the directors are aware, there has been no known breach of the Company’s licence
conditions and all exploration activities comply with relevant environmental regulations.

DIRECTORS’ SHARE HOLDINGS, OPTION HOLDINGS AND PERFORMANCE RIGHTS HOLDINGS

As at the date of this report the directors’ interests in shares and unlisted options of the Company are as follows:
Interest in Interest in Listed Interest in Unlisted Interest in
Director
Ordinary Shares options Options Performance Rights
Ignatius Tan 7,817,000 - - 15,000,000
Luke Atkins 10,857,438 - - 1,000,000
Daniel Tenardi 5,594,915 - - 1,000,000
Peter Bailey 3,774,710 - - 1,000,000
Tunku Yaacob Khyra 135,034,675 - - 1,000,000
Uwe Ahrens 1,000,000 - - 1,000,000
Hansjoerg Plaggemars - - - 1,000,000

DIRECTORS’ MEETINGS
The number of meetings of the Company’s directors held in the period each director held office during the financial year and the numbers
of meetings attended by each director were:
Board of Director Meetings
Director Meetings Meetings held
Attended whilst a director
Luke Atkins 7 7
Ignatius Tan 7 7
Daniel Tenardi 7 7
Peter Bailey 6 7
Tunku Yaacob Khyra 1 7
Uwe Ahrens (alternate director) 7 7
Hansjoerg Plaggemars 7 7

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 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

REMUNERATION REPORT

Remuneration Committee
Recommendation 8.1 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th edition)
states that the board should establish a Remuneration Committee. The board has established a Remuneration Committee.

Use of Remuneration Consultants

The board did not engage a remuneration consultant to make any recommendations in relation to its remuneration policies for any of the
key management personnel for the Company during the financial year covered by this report.

Voting and comments made at the Company’s 2021 Annual General Meeting
The Company received 2,406,857 proxy votes (6.2%) against its 2021 remuneration report (from the 169,415,172 proxy votes received
and eligible to vote on the resolution) tabled at the 2021 Annual General Meeting. The Company did not receive any specific feedback at
the Annual General Meeting or throughout the year on its remuneration practices.

This report details the amount and nature of remuneration of each director of the Company and executive officers of the Company during
the year.

Overview of Remuneration Policy

The board of directors is responsible for determining and reviewing compensation arrangements for the directors and executive
management. The board remuneration policy is to ensure that remuneration properly reflects the relevant person’s duties and
responsibilities, and that the remuneration is competitive in attracting, retaining and motivating people of the highest quality. The board
believes that the best way to achieve this objective is to provide the non-executive directors, executive director and the executive
management with a remuneration package consisting of both fixed and variable components that together reflects the positions,
responsibilities, duties and personal performance. An equity based remuneration arrangement for the board and executive management
is in place. The remuneration policy is to provide a fixed remuneration component and a specific equity related component, with appropriate
vesting (performance) conditions. The board believes that this remuneration policy is appropriate given the stage of development of the
Company and the activities that it undertakes, and is appropriate in aligning director and executive objectives with shareholder and
business objectives.

The remuneration policy in regard to setting the terms and conditions for the non-executive directors has been developed by the board
taking into account market conditions and comparable salary levels for companies of a similar size and operating in similar sectors.

All remuneration paid to directors is valued at cost to the Company and expensed. Performance rights are valued using the Black-Scholes
methodology. In accordance with current accounting policy the value of these performance rights are expensed over the relevant vesting
period.

Non-Executive Directors
The board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and
responsibilities. The board determines payments to the non-executive directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that
can be paid to non-executive directors is subject to approval by shareholders at a General Meeting, and has been set not to exceed
$500,000 per annum. Actual remuneration paid to the Company’s non-executive directors is disclosed below. Cash remuneration fees
paid to non-executive directors are not linked to the performance of the Company. However, to align directors interests with shareholder
interests, the directors are encouraged to hold shares in the Company and the directors are awarded performance rights that are subject
to vesting conditions, with the approval of Shareholders.

Board fees (per year)

2022 2021
Chairman $95,000 $95,000
Other non-executive directors (excluding alternate director) $70,000 $70,000

The Chairman’s board fees are paid monthly, other non-executive director board fees are paid quarterly, in arrears. Mr Uwe Ahrens, the
alternate director for non-executive director Tunku Yaacob Khyra, has been paid a consulting fee of $5,000 per month for non-board
related services provided to the Company. These services are performed in Germany and Malaysia. He has also been paid a short term
incentive of $50,000 during the year.

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 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

REMUNERATION REPORT (continued)

Executive management
The remuneration of the executive management is stipulated in individual services agreements.

The Company aims to reward executives with a level of remuneration commensurate with their position and responsibilities within the
Company so as to:
● Reward executives for Company and individual performance against targets set by reference to appropriate benchmarks;
● Reward executives in line with the strategic goals and performance of the Company; and
● Ensure that total remuneration is competitive by market standards.

Structure
Remuneration consists of the following key elements:
● fixed remuneration;
● short term incentive scheme; and
● performance rights

Fixed remuneration
Fixed remuneration consists of a fixed monthly salary, which is set so as to provide a base level of remuneration that is both appropriate
to the position and is competitive in the market.

Remuneration packages for the staff that report directly to the Managing Director are based on the recommendation of the Managing
Director, subject to the approval of the board.

Short term incentive scheme

Executives and employees of the Company participate in a short-term incentive scheme that makes available an annual cash incentive
(bonus) to individuals based on the attainment of overall Company and group objectives, which are set annually. The scheme is structured
to encourage executives and employees to work as a team for the attainment of the Company’s overall objectives, as opposed to
prescriptive individual performance objectives. Under the scheme, executives and employees can be awarded a cash bonus of between
10% and 40% of individual annual base salary, depending upon their role in the Company.
The board, on the recommendation of the Managing Director, sets annual bonus objectives, and the board also on the recommendation
of the Managing Director, approves annual bonus awards. The board has complete discretion over the short-term incentive scheme.
During the year covered by this report short-term incentives were awarded by the board to executives for the attainment of pre-determined
milestones. Mr Tan was awarded an amount of $95,700, plus superannuation of 10.0% (2021: Nil ), while Mr Volk was awarded $63,036
plus superannuation of 10.0% (2021: Nil) and Mr Stein was awarded $7,700 plus superannuation of 10.0% (2021: Nil). The board does
not participate in the short term incentive scheme.

Performance rights
The board considers equity based incentive compensation to be an integral component of the Company’s remuneration platform enabling
it to offer market-competitive remuneration arrangements, the award of performance rights is intended to enable recipients to share in any
increase in the Company’s value (as measured by share price) beyond the date of allocation of the performance rights, provided the
specific performance conditions (milestones) are met.
The performance conditions that were chosen for the performance rights issued to the directors, executive management, employees and
key consultants of the Company are on the basis that the achievement of each milestone will represent a significant and challenging
performance outcome which will require the performance rights recipients to devote effort, time and skill above and beyond what would
normally be expected for their respective fixed compensation. The attainment of each vesting condition (milestone) is not certain, but if
achieved could be expected to see an increase in the value of the Company (as measured by share price), enabling the individuals to
participate in this increase in value. Each milestone is transparently measurable, with the vesting condition either achieved or not achieved,
with the achievement publicly announced to the ASX. The respective recipients must be employed or otherwise retained by the Company
at the time of vesting for the performance rights to vest, subject to a milestone being achieved.
During the financial year, 10,000,000 performance rights for Mr Iggy Tan were cancelled and 10,000,000 replacement performance rights
were issued to him. The issue of these performance rights were approved by the Board of Directors by way of resolution on 29 November
2021.
Further, 1,000,000 performance rights for Mr Shane Volk were cancelled and 1,000,000 replacement performance rights were awarded
to him. In addition, 1,000,000 new performance rights were also issued to Mr Martin Stein. The issue of these performance rights were
approved by the Board of Directors by way of resolution on 28 January 2022.
The objectives of the award of performance rights are to provide a remuneration mechanism, through share ownership, to motivate, retain
and reward the performance of employees, key consultants and Company directors. All performance rights vest based on pre-determined
vesting conditions.

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 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

REMUNERATION REPORT (continued)

No performance rights held by directors or key management personnel that were outstanding as at 30 June 2022 or awarded since that
date, have vested.

Details of remuneration
The following tables show details of the remuneration received by Altech Chemicals Limited key management personnel for the current
and previous financial year.
Post- Equity
Primary Compensation
Employment Compensation
Base Short Term Superannuation Performance
Total
2021/22 Salary/Fees Incentive Contributions Rights
$ $ $ $ $
Directors
I Tan – managing director 435,000 95,700 53,070 363,640 947,410
L Atkins – non-executive chairman 95,000 - 9,500 12,485 116,985
D Tenardi – non-executive 70,000 - 7,000 12,485 89,485
P Bailey – non-executive(i) 70,000 - - 12,485 82,485
Tunku Yaacob Khyra - non-executive 70,000 - - 12,485 82,485
U Ahrens - alternate director (ii) 65,000 50,000 - 12,485 127,485
H Plaggemars – non-executive 70,000 - - 12,485 82,485
Executives
M Stein – CFO & Company secretary 140,000 7,700 14,770 25,231 187,701
S Volk – Company secretary 84,095 63,036 14,713 25,231 187,075
TOTAL 1,099,095 216,436 99,053 489,012 1,903,596
(i) Directors’ fees were all paid to Waylen Bay Capital Pty Ltd.
(ii) Services were provided in Germany and Malaysia pursuant to a consultancy agreement with the Company, effective from 1 January 2019. The base salary includes
$5,000 which relates to services performed in prior year.
Note: The fair value of performance rights is estimated at each balance date taking into account, amongst other factors, the likelihood that the various tranches of
performance rights will vest to the respective participants by the vesting date. At 30 June 2022, in the case of all participants, it was deemed likely that the vesting
conditions pertaining to the respective tranches of performance rights would be achieved by the vesting dates and accordingly a pro-rata portion of the deemed value
of the rights has been expensed to the Profit and Loss account and accordingly has been disclosed as deemed income for each key management personnel.

Post- Equity
Primary Compensation
Employment Compensation
Base Short Term Superannuation Performance
Total
2020/21 Salary/Fees Incentive Contributions Rights
$ $ $ $ $
Directors
I Tan – managing director 435,000 - 41,325 89,672 565,997
L Atkins – non-executive chairman 95,000 - 9,025 21,265 125,290
D Tenardi – non-executive 70,000 - 6,650 21,265 97,915
P Bailey – non-executive(i) 70,000 - - 21,265 91,265
Tunku Yaacob Khyra - non-executive 70,000 - - 21,265 91,265
U Ahrens - alternate director (ii) 60,000 - - 21,265 81,265
H Plaggemars – non-executive 60,915 - - 21,265 82,180
Executives
S Volk – CFO & company secretary 259,840 - 24,685 - 284,525
TOTAL 1,120,755 - 81,685 217,262 1,419,702
(i) Directors’ fees were all paid to Waylen Bay Capital Pty Ltd.
(ii) Services were provided in Germany and Malaysia pursuant to a consultancy agreement with the Company, effective from 1 January 2019.
Note: The fair value of performance rights is estimated at each balance date taking into account, amongst other factors, the likelihood that the various tranches of
performance rights will vest to the respective participants by the vesting date. At 30 June 2022, in the case of all participants, it was deemed likely that the vesting
conditions pertaining to the respective tranches of performance rights would be achieved by the vesting dates and accordingly a pro-rata portion of the deemed value
of the rights has been expensed to the Profit and Loss account and accordingly has been disclosed as deemed income for each key management personnel.

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 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

REMUNERATION REPORT (continued)

The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration At risk remuneration
Name 2022 2021 2022 2021
Directors
I Tan – managing director 52% 84% 48% 16%
L Atkins – non-executive Chairman 89% 83% 11% 17%
D Tenardi – non-executive 86% 78% 14% 22%
P Bailey – non-executive 85% 77% 15% 23%
Tunku Yaacob Khyra - non-executive 85% 77% 15% 23%
U Ahrens - alternate director 51% 74% 49% 26%
H Plaggemars – non-executive 85% 74% 15% 26%
Executives
M Stein – CFO & company secretary 82% - 18% -
S Volk – CFO & company secretary 53% 100% 47% -

Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. The service
agreements specify the components of remuneration, benefits and notice periods. Participation in the STI and LTI plans is subject to the
board’s discretion. Other major provisions of the services agreements are set out below.
Name Term of agreement Base salary (including Termination payments **
and notice period * superannuation)
Ignatius Tan No fixed term $478,500 p.a. 6 months, plus 3 months if
Managing Director 6 months notice terminated because of a change
in control of the Company
Martin Stein No fixed term $231,000 p.a. 1 month, plus 3 months if
Chief Financial Officer & Joint Company 1 month notice terminated because of a change
Secretary in control of the Company
Shane Volk No fixed term $32,148 p.a. 1 month, plus 3 months if
Joint Company Secretary 1 month notice terminated because of a change
in control of the Company
Non-executive director service arrangements are detailed on the first page of the remuneration report.
* The notice period applies equally to either party
** Termination benefit is payable if the Company terminates employees with notice, and without cause (e.g. for reasons other than unsatisfactory performance or gross
misconduct).

Details of share based compensation

During the financial year, 10,000,000 performance rights for Mr Iggy Tan were cancelled and 10,000,000 replacement performance rights
were issued to him. The issue of these performance rights were approved by the Board of Directors by way of resolution on 29 November
2021. Further, 1,000,000 performance rights for Mr Shane Volk were cancelled and 1,000,000 replacement performance rights were
awarded to him. In addition, 1,000,000 new performance rights were also issued to Mr Martin Stein. The issue of these performance rights
were approved by the Board of Directors by way of resolution on 28 January 2022 (2021: 6,000,000 performance rights were issued to
non-executive directors).
Details of performance rights (subject to vesting conditions), awarded to directors and other key management personnel as part of
remuneration in current and prior periods and held as at 30 June 2022, are set out below:

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 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

REMUNERATION REPORT (continued)

Fair Value
No. of Vested &
Record at issue Un-vested at Final date
Name Performance Issue price Exercised at
Date date 30/06/22 for vesting
Rights 30/06/22
$
Directors
Mr Iggy Tan 12/6/18 5,000,000 nil 820,313 - 5,000,000 11/6/25
Mr Iggy Tan 29/11/21 10,000,000 nil 1,400,000 - 10,000,000 29/11/26
Mr Luke Atkins 27/11/20 1,000,000 nil 45,000 - 1,000,000 26/11/25
Mr Dan Tenardi 27/11/20 1,000,000 nil 45,000 - 1,000,000 26/11/25
Mr Peter Bailey 27/11/20 1,000,000 nil 45,000 - 1,000,000 26/11/25
Tunku Yaacob Khyra 27/11/20 1,000,000 nil 45,000 - 1,000,000 26/11/25
Mr Uwe Ahrens 27/11/20 1,000,000 nil 45,000 - 1,000,000 26/11/25
Mr H Plaggemars 27/11/20 1,000,000 nil 45,000 - 1,000,000 26/11/25
Executives
Mr Shane Volk 31/1/22 1,000,000 nil 120,000 - 1,000,000 31/1/29
Mr Martin Stein 31/1/22 1,000,000 nil 120,000 - 1,000,000 31/1/29

The assessed fair value of the performance rights at issue date to recipients is allocated equally over the period from the grant date to
vesting date, and the amount is included in the remuneration tables above. Fair values at issue date and at each subsequent reporting
date are determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the
impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the
risk-free rate for the term of the option.

Equity instruments held by key management personnel (KMP)

The tables below show the number of:
(i) shares in the Company;
(ii) options over ordinary shares in the Company (both listed and unlisted options); and
(iii) rights over ordinary shares in the Company
that were held during the financial year by the directors and key management personnel of the Company directly, indirectly or beneficially.

KMP Holdings of Ordinary Shares

Vested as
Balance at Acquired/(disposed) Other changes Balance at End
Remuneration
Beginning of year during year during year of Year
during year
30 June 2022
Directors
I Tan 7,817,000 - - - 7,817,000
L Atkins 10,857,438 - - - 10,857,438
D Tenardi 5,594,915 - - - 5,594,915
P Bailey 3,774,710 - - - 3,774,710
Tunku Yaacob Khyra 135,034,675 - - - 135,034,675
U Ahrens 1,000,000 - - - 1,000,000
H Plaggemars - - - - -
Executives
S Volk 1,307,727 - - - 1,307,727
M Stein - - - - -

Vested as
Balance at Acquired/(disposed) Other changes Balance at End
Remuneration
Beginning of year during year during year of Year
during year
30 June 2021
Directors
I Tan 7,817,000 - - - 7,817,000
L Atkins 10,357,438 - 500,000 - 10,857,438
D Tenardi 7,794,915 - (2,200,000) - 5,594,915
P Bailey 3,774,710 - - - 3,774,710
Tunku Yaacob Khyra 69,438,811 - 65,595,864 - 135,034,675
U Ahrens 1,000,000 - - - 1,000,000
H Plaggemars - - - - -
Executives
S Volk 1,307,727 - - - 1,307,727

- 12 -
 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

REMUNERATION REPORT (continued)

KMP Holdings of Performance Rights

Expired
Balance at Awarded or Vested and Unvested and
unexercised / Exercised Balance at
30 June 2022 beginning Acquired exercisable unexercisable
Cancelled during year end of Year
of year during year at year end at year end
during year
Directors

I Tan 15,000,000 10,000,000 (10,000,000) - 15,000,000 - 15,000,000

L Atkins 1,000,000 - - - 1,000,000 - 1,000,000
D Tenardi 1,000,000 - - - 1,000,000 - 1,000,000
P Bailey 1,000,000 - - - 1,000,000 - 1,000,000
Tunku Yaacob Khyra 1,000,000 - - - 1,000,000 - 1,000,000
U Ahrens 1,000,000 - - - 1,000,000 - 1,000,000
H Plaggemars 1,000,000 - - - 1,000,000 - 1,000,000
Executives
S Volk 1,000,000 1,000,000 (1,000,000) - 1,000,000 - 1,000,000
M Stein - 1,000,000 - - 1,000,000 - 1,000,000

Balance at Awarded or Expired Vested and Unvested and

Exercised Balance at
30 June 2021 beginning Acquired unexercised exercisable unexercisable
during year end of Year
of year during year during year at year end at year end
Directors
I Tan 15,000,000 - - - 15,000,000 - 15,000,000
L Atkins - 1,000,000 - - 1,000,000 - 1,000,000
D Tenardi - 1,000,000 - - 1,000,000 - 1,000,000
P Bailey - 1,000,000 - - 1,000,000 - 1,000,000
Tunku Yaacob Khyra 1,000,000 1,000,000 (1,000,000) - 1,000,000 - 1,000,000
U Ahrens 1,000,000 1,000,000 (1,000,000) - 1,000,000 - 1,000,000
H Plaggemars - 1,000,000 - - 1,000,000 1,000,000
Executives
S Volk 1,000,000 - - - 1,000,000 - 1,000,000

- 13 -
 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

REMUNERATION REPORT (continued)

KMP Holdings of Listed Options

Expired
Balance at Awarded or Vested and Unvested and
unexercised / Exercised Balance at
30 June 2022 beginning Acquired exercisable unexercisable
Cancelled during year end of Year
of year during year at year end at year end
during year
Directors
I Tan - - - - - - -
L Atkins 250,000 - (250,000) - - - -
D Tenardi - - - - - - -
P Bailey - - - - - - -
Tunku Yaacob Khyra 29,408,101 - (29,408,101) - - - -
U Ahrens - - - - - - -
H Plaggemars - - - - - - -
Executives
S Volk - - - - - - -
M Stein - - - - - - -

Balance at Awarded or Expired Vested and Unvested and

Exercised Balance at
30 June 2021 beginning Acquired unexercised exercisable unexercisable
during year end of Year
of year during year during year at year end at year end
Directors
I Tan - - - - - - -
L Atkins - 250,000 - - 250,000 250,000 -
D Tenardi - - - - - - -
P Bailey - - - - - - -
Tunku Yaacob Khyra - 29,408,101 - - 29,408,101 29,408,101 -
U Ahrens - - - - - - -
H Plaggemars - - - - - - -
Executives
S Volk - - - - - - -

This concludes the remuneration report, which has been audited

_________________________________________________________________________________________________________

- 14 -
 ALTECH CHEMICALS LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2022

INDEMNIFYING OFFICERS AND AUDITOR

During the year, the Company paid an insurance premium to insure certain officers of the Company. The officers of the Company
covered by the insurance policy include the directors and the company secretary named in this report.

The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or
criminal proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers
of the Company. The insurance policy does not contain details of the premium paid in respect of individual officers of the Company. The
insurers do not permit the premium amount paid by the Company for this insurance to be disclosed.

The Company has not provided any insurance for an auditor of the Company.

AUDITORS’ INDEPENDENCE DECLARATION

Section 370C of the Corporations Act 2001 requires the Group’s auditors Moore Australia Audit (WA), to provide the directors of the
Company with an Independence Declaration in relation to the audit of the financial report. This Independence Declaration is attached
on the following page.

NON-AUDIT SERVICES
There were no non-audit services provided by the external auditors during the year.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the
Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The
Company was not party to any such proceedings during the year.

CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the directors of the Company support and
have adhered to the principles of corporate governance for a Company of the current size. The Company’s corporate governance
statement is contained in the Annual Report.

Signed in accordance with a resolution of the directors.

Iggy Tan
Managing Director
DATED at Perth this 21st day of September 2022

- 15 -
 ALTECH CHEMICALS LIMITED
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2022

30-Jun-22 30-Jun-21
Notes $ $

Revenue from ordinary activities

Interest Income 3(a) 227,104 117,619
R&D tax refunds 3(a) 241,555 -
Other income 3(a) - 7,941,804
Total Income 468,659 8,059,423

Expenses
Employee benefit expense (incorporating director fees) (2,201,945) (1,345,086)
Depreciation (328,891) (230,623)
Other expenses 3(b) (2,414,378) (3,094,837)
Share-based payments 16(e) (583,627) (242,436)
Share in profit / (loss) of associate - Altech Advanced Materials AG (328,979) (200,006)
Impairment - investment in associate (AAM AG) (119,051) (620,569)
Research and development (546,262) -
Interest expense (3,400) -
Forex gain / (loss) (9,919) -
Profit / (loss) before income tax expense (6,067,791) 2,325,866
Income tax benefit 265,362 -
Net profit / (loss) from continuing operations (5,802,429) 2,325,866

Other comprehensive profit / (loss)

Items that may be reclassified subsequently to profit and loss:
Exchange differences on translating foreign controlled entities 1,964,499 -
Total comprehensive profit / (loss), net of tax (3,837,930) 2,325,866

Profit / (loss) for the year attributable to:

Owners of the parent entity (5,729,919) 2,325,866
Non-controlling interest (72,510) -
Total profit / (loss) for the year, net of tax (5,802,429) 2,325,866

Total comprehensive profit / (loss) for the year attributable to:

Owners of the parent entity (3,765,420) 2,325,866
Non-controlling interest (72,510) -
Total comprehensive profit / (loss) loss for the year (3,837,930) 2,325,866

Earnings Per Share

Basic profit / (loss) per share ($ per share) 5 (0.004) 0.002
Diluted profit / (loss) loss per share ($ per share) 5 (0.004) 0.002

The above Consolidated statement of Profit and Loss and Other Comprehensive Income should be read
in conjunction with the accompanying notes.

- 17 -
 ALTECH CHEMICALS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022

(Restated)
30-Jun-22 30-Jun-21
Notes $ $
Current Assets
Cash and cash equivalents 6(a) 10,912,939 6,728,978
Trade and other receivables 7 502,908 246,918
Total Current Assets 11,415,847 6,975,896

Non-Current Assets
Property, plant and equipment 8 31,999,798 29,931,589
Right of Use Assets 9 5,950,181 6,195,810
Exploration and evaluation expenditure 10 782,659 604,821
Development expenditure 11 37,679,490 36,463,669
Investments in Associates 12 3,351,214 2,085,439
Other non-current receivable 13 7,208,984 7,509,881
Total Non-Current Assets 86,972,327 82,791,209
TOTAL ASSETS 98,388,174 89,767,105

Current Liabilities
Lease liabilities 55,394 30,878
Trade and other payables 14 412,222 427,089
Provisions 15 219,814 228,461
Total current liabilities 687,430 686,428

Non-Current Liabilities
Lease liabilities 34,532 53,352
Provisions 15 128,569 100,703
Total Non-Current Liabilities 163,102 154,055
TOTAL LIABILITIES 850,531 840,483

NET ASSETS 97,537,643 88,926,622

Equity
Contributed Equity 16 124,487,779 107,509,911
Reserves 17 3,726,868 8,889,821
Accumulated losses 19 (30,604,494) (27,473,110)
Non-controlling interests (72,510) -
TOTAL EQUITY 97,537,643 88,926,622

The above Consolidated Statement of Financial Position should be read

in conjunction with the accompanying notes.

- 18 -
 ALTECH CHEMICALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2022

Share- Foreign
based currency
Contributed Accumulated payment translation Other equity
Equity losses reserves reserves interests Total
$ $ $ $ $ $
At 1 July 2021 – as previously reported 107,509,911 (25,930,066) 7,346,777 - - 88,926,622
Prior period adjustment (refer Note 3) - (1,543,044) - 1,543,044 - -
At 1 July 2021 – restated 107,509,911 (27,473,110) 7,346,777 1,543,044 - 88,926,622
Profit / (Loss) after income tax for the year - (5,729,919) - - (72,510) (5,802,429)
Other comprehensive profit / (loss) for the
- - - 421,455 - 421,455
year (net of tax)
Total comprehensive profit / (loss) for
- (5,729,919) - 421,455 (72,510) (5,380,974)
the year

Transactions with owners in their

capacity as owners:
Issue of share capital (net of issue costs) 9,910,024 - - - - 9,910,024
Share based payments (issue of - -
- - 583,627 583,627
performance rights)
Exercise of options 3,498,344 - - - - 3,498,344
Conversion of performance rights to share - -
3,569,500 - (3,569,500) -
capital
Expiration of performance rights 2,598,534 (2,598,534) - - -
At 30 June 2022 124,487,779 (30,604,494) 1,762,369 1,964,499 (72,510) 97,537,643

Foreign
currency
Contributed Accumulated translation Other equity
Equity losses Reserves reserves interests Total
$ $ $ $ $ $
At 1 July 2020 89,707,030 (28,255,932) 7,104,340 - - 68,555,437
Profit / (Loss) after income tax for the year - 2,325,866 - - - 2,325,866
Total comprehensive profit (loss) for - -
- 2,325,866 - 2,325,866
the year

Transactions with owners in their

capacity as owners:
Issue of share capital (net of issue costs) 17,802,881 - - - - 17,802,881
Share based payments (net movement) - - 242,437 - - 242,437
At 30 June 2021 107,509,911 (25,930,066) 7,346,777 - - 88,926,622

The above Consolidated Statement of Changes in Equity should be read

in conjunction with the accompanying notes.

- 19 -
 ALTECH CHEMICALS LIMITED
CONSOLIDATED STATEMENT OF CASHFLOWS
For the year ended 30 June 2022

30-Jun-22 30-Jun-21
Notes $ $
Cash Flows from Operating Activities
Payments to suppliers, contractors and employees (5,286,968) (3,801,433)
R&D refund received 241,555 -
Interest received 227,104 117,619
Interest paid (3,400) -
Deposits Paid - (15,929)
Net cash flows used in operating activities 6(b) (4,821,709) (3,699,743)

Cash Flows from Investing Activities

Acquisition of plant and equipment (2,443,218) (95,515)
Payment for investment in Altech Advance Materials AG (1,713,805) (1,981,363)
Payments for development expenditure - (5,077,643)
Payments for exploration expenditure (177,838) (38,129)
Proceeds from sale of 25% of Altech Industries Germany Gmbh - 403,819
Net cash flows used in investing activities (4,334,862) (6,788,831)

Cash Flows from Financing Activities

Payments for KfW IPEX-Bank loan facility - (273,773)
Proceeds from issue of shares 10,331,348 16,658,272
Share issue costs (421,324) -
Proceeds from exercise of options 3,498,344 -
Lease repayment (principal) (56,998) -
Net cash flows from financing activities 13,351,370 16,384,499

Net increase /(decrease) in cash and cash equivalents 4,194,799 5,895,925

Cash and cash equivalents at the beginning of the financial year 6,728,978 833,053
Foreign exchange variance on cash (10,838) -
Cash and cash equivalents at the end of the financial year 6(a) 10,912,939 6,728,978

The above Consolidated Statement of Cash Flows should be read

in conjunction with the accompanying notes.

- 20 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

GENERAL INFORMATION
The financial statements cover Altech Chemicals Limited as a consolidated entity consisting of Altech Chemicals Limited and the entities it controlled
at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Altech Chemicals Limited’s functional and
presentation currency.

Altech Chemicals Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place
of business is:

Suite 8, 295 Rokeby Road

Subiaco
Western Australia 6008

The financial statements were authorised for issue, in accordance with the resolution of directors. The directors have the power to amend and reissue
the financial statements.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in preparing the financial report of the Company, Altech Chemicals Limited (“ATC” or “Company”), are stated
to assist in a general understanding of the financial report. These policies have been consistently applied to all the years presented, unless otherwise
indicated.

Altech Chemicals Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the official list of
the Australian Securities Exchange (ASX). The financial statements are presented in Australian dollars, which is the Group’s functional currency.

(a) Basis of Preparation

These general purpose financial statements have been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards
and Interpretations of the Australian Accounting Standards Board and International Financial Reporting Standards as issued by the International
Accounting Standards Board.

The financial report is presented in Australian dollars. The Group is a for-profit entity for financial reporting purposes under Australian Accounting
Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently
applied unless stated otherwise.

Except for cash flow information, the financial statements have been prepared on an accruals basis and are based on historical costs, modified,
where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

(b) Use of Estimates and Judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected.

(c) Income Tax

The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the income tax rate
adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and
their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or
liabilities are settled, based on those tax rates which are enacted. The relevant tax rates are applied to the cumulative amounts of deductible
and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising
from the initial recognition of an asset or a liability. No deferred asset or liability is recognised in relation to those temporary differences if they
arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit
or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts
will be available to utilise those temporary differences and losses.

Current and future tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

(d) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.
The following specific recognition criteria must also be met before revenue is recognised.

Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

- 21 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(e) Cash and Cash Equivalents

Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short term deposits with an original maturity of three
months or less.

For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined
above, which are readily convertible to cash on hand and which are used in the cash management function on a day-to-day basis.

(f) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and
impairment losses.

Property
Freehold land and buildings are recorded at cost of acquisition, less accumulated depreciation for buildings. If re-valued, increases in the carrying
amount arising on revaluation of land and buildings are credited to a revaluation surplus in equity. Decreases that offset previous increases of the
same asset are recognised against revaluation surplus directly in equity; all other decreases are recognised in profit or loss.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated
to the revalued amount of the asset.

Plant and Equipment

Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment.
In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down
immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the
impairment losses relate to a revalued asset. A formal assessment of the recoverable amount is made when impairment indicators are present
(refer to Note 1(q) for details of impairment).

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these
assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and
subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour, borrowing costs and an appropriate
proportion of fixed and variable overheads.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.

Land
Land is recorded at the total cost of acquisition. The value of land in Australia (Meckering) and in Germany (Saxony) is not amortised. Land in
Malaysia (Johor HPA plant site) is recorded at the total cost of acquisition and is amortised on a straight-line basis over the 30-year term of the
land lease.

The carrying amount of land is reviewed annually to ensure that it is not in excess of the recoverable amount from its disposal. In the event that
the carrying amount of any land is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated
recoverable amount and impairment losses are recognised either in profit or loss account or as a revaluation decrease if the impairment losses
relate to a revalued asset. A formal assessment of the recoverable amount is made when impairment indicators are present (refer to Note 1(q) for
details of impairment).

Leased Asset
The Company leases its research and development laboratory at Unit 2, 91 Leach Highway, Kewdale WA 6105. This lease has a 3 year term
(expiring 31 March 2024), and the Company has an option to renew the lease for an additional 3 year term. Lease payments are made monthly
and there is an annual 3% increase in the amount payable on the first and second anniversary of the lease. Variable outgoings are also paid to
the building body corporate on a monthly basis, and adjusted against actual outgoings expenses annually.

The Company’s wholly owned Malaysian subsidiary, Altech Chemicals Sdn Bhd leases an office space in Tanjung Langsat, Johor, Malaysia.
This lease has a 1 year term (expired 31 August 2022), and the Company has an option to renew the lease for an additional 1 year term.

The Company’s 75%-owned subsidiary, Altech Industries Germany GmbH leases an office space in Dock 3, Saxony, Germany. This lease has
a 5 year term (expiring 11 January 2026).

The Company accounts for all leases in accordance with the requirements specified in AASB 16, and has consequently recognised a Right of use
asset in the balance sheet as summarised in Note 9.

- 22 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(f) Property, Plant and Equipment (continued)

Depreciation
The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a
straight-line basis over the asset’s useful life to the consolidated group commencing from the time the asset is held ready for use. Leasehold
improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation Rate

Plant & equipment 33% to 66%

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit
or loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are
transferred to retained earnings.

(g) Employee Benefits

Short-term employee benefits
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination
benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the
related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected
to be paid when the obligation is settled.

The Group’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and
other payables in the statement of financial position. The Group’s obligations for employees’ annual leave and long service leave entitlements
are recognised as provisions in the statement of financial position.

Other long-term employee benefits

Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the
end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the
present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and
salary levels, durations of service and employee departures and are discounted at rates determined by reference to market yields at the end of
the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Any re-measurements for
changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods in which the changes
occur.

The Group’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except
where the Group does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which
case the obligations are presented as current provisions.

Share-based payment transactions

The Group currently operates a Performance Rights Plan and also awards Performance Rights to its directors outside of the plan but on the
same terms and conditions, which provides benefits to directors, consultants, executives and employees. The Group may also award
performance rights or other equity instruments outside of the performance rights plan to directors, consultants, executives and employees.

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date
at which they are granted. The fair value is determined by using the Black-Scholes model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no
impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. Any
underlying assumptions are detailed in Note 16(e).

The cost of equity-settled transactions is recognised as a share based payment expense in the profit and loss account with a corresponding
increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award,
the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense
is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation
benefit as at the date of modification.

If the non-vesting condition is within the control of Group or employee, the failure to satisfy the condition is treated as a cancellation. If the
condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award
is recognised over the remaining vesting period, unless the award is forfeited.

- 23 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(g) Employee Benefits (continued)

If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised
immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a
modification.

Where the Group grants equity instruments (i.e. fully paid ordinary shares, or options to acquire fully paid ordinary shares of the Group) to service
providers’ as consideration for services provided to the Group, the consideration is classified as a share-based payment transaction, and the fair
value of the equity instruments granted is measured at grant date by using a Black-Scholes valuation model. The value of equity securities (as
measured by the Black-Scholes model) is taken to the profit and loss account or the balance sheet as applicable, together with a corresponding
increase in equity.

(h) Exploration and Development Expenditure

Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are
only capitalised to the extent that they are expected to be recovered through the successful development of the area or where activities in the
area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which the decision to abandon the
area is made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate
of depletion of the economically recoverable reserves.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area.

Costs of site restoration are provided for over the life of the project from when exploration commences and are included in the costs of that stage.
Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation
of the site in accordance with local laws and regulations and clauses of the permits. Such costs have been determined using estimates of future
costs, current legal requirements and technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration, there is
uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have
been determined on the basis that the restoration will be completed within one year of abandoning the site.

(i) Research and Development

Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs are capitalised only when
technical feasibility studies identify that the project is expected to deliver future economic benefits and these benefits can be measured reliably.
Development costs have a finite life and are amortised on a systematic basis based on the future economic benefits over the useful life of the
project.

An intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the
following are demonstrated:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset;
and
• the ability to measure reliably the expenditure attributable to the intangible asset during its development.

Capitalised development costs will be amortised over their expected useful life once commercial sales commence.

(j) Going Concern

This report has been prepared on the going concern basis, which contemplates the continuation of normal business activity and the realisation
of assets and the settlement of liabilities in the normal course of business for a period of 12 months from the date of issuing the financial
statements.

The Group has incurred net cash inflows for the year ended 30 June 2022 of $4,194,799 (2021: $5,895,925). In addition, as at 30 June 2022,
the Group had net current assets of $10,463,053 (30 June 2021: $6,289,468) and cashflow forecasts indicate that it will have sufficient cash to
remain as a going concern for at least the next 12 months.

- 24 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(k) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of goods and services tax (“GST”), except where the amount of GST incurred
is not recoverable from the Australian Taxation Office (“ATO”). In these circumstances the GST is recognised as part of the cost of acquisition
of the asset or as part of an item of the expense. Receivables and payables are stated with the amount of GST included. GST incurred is claimed
from the ATO when a valid tax invoice is provided. The net amount of GST recoverable from, or payable to, the ATO is included as a current
asset or liability in the balance sheet.

The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are
classified as operating cash flows.

(l) Payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. The
amounts are unsecured and are usually paid within 30 days of recognition.

(m) Issued Capital

Contributed Equity
Issued capital is recognised as the fair value of the consideration received by the Group. Any transaction costs arising on the issue of ordinary
shares are recognised directly in equity as a reduction of the share proceeds received.

Earnings per Share

Basic earnings per share (“EPS”) are calculated based upon the net loss divided by the weighted average number of shares. Diluted EPS are
calculated as the net loss divided by the weighted average number of shares and dilutive potential shares.

(n) Leases
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a
corresponding lease liability is recognised by the Group where the Group is a lessee. However, all contracts that are classified as short-term
leases (lease with remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a
straight-line basis over the term of the lease.

Initially, the lease liability is measured at the present value of the lease payments still to be paid at the commencement date. The lease payments
are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses the incremental borrowing rate.

Lease payments included in the measurement of the lease liability are as follows:
• fixed lease payments less any lease incentives;
• variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
• the amount expected to be payable by the lessee under residual value guarantees;
• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
- lease payments under extension options if lessee is reasonably certain to exercise the options; and
- payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

Subsequently, the lease liability is measured by a reduction to the carrying amount of any payments made and an increase to reflect any interest
on the lease liability.

The right-of-use assets is an initial measurement of the corresponding lease liability less any incentives and initial direct costs. Subsequently,
the measurement is the cost less accumulated depreciation (and impairment if applicable).

Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the shortest.

Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group anticipates to exercise a
purchase option, the specific asset is depreciated over the useful life of the underlying asset.

(o) Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial
year.

(p) Financial risk management

The board of directors has overall responsibility for the establishment and oversight of the risk management framework, to identify and analyse
the risks faced by the Group. These risks include credit risk, liquidity risk and market risk from the use of financial instruments. The Group has
only limited use of financial instruments through its cash holdings being invested in short term interest bearing securities. The primary goal of
this strategy is to maximise returns while minimising risk through the use of accredited banks. Working capital is maintained at its highest level
possible and regularly reviewed by the full board.

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 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(q) Impairment of Assets

At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will
include the consideration of external and internal sources of information including dividends received from subsidiaries, associates or jointly
controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by
comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying
amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is
carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment
loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-
generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

(r) Critical accounting estimates and judgements

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are:

Share based payment transactions

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date
at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes option pricing model, using the assumptions
detailed in Note 16(e).

Exploration and evaluation assets

Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the Group’s accounting policy (refer Note
1(h)), requires estimates and assumptions as to future events and circumstances, in particular, whether successful development and commercial
exploitation, or alternatively sale, of the respective areas of interest will be achieved. The Group applies the principles of AASB 6 and recognises
exploration and evaluation assets when the rights of tenure of the area of interest are current, and the exploration and evaluation expenditures
incurred are expected to be recouped through successful development and exploitation of the area or where exploration activities have not
reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. If, after having capitalised the
expenditure under the Group’s accounting policy in Note 11, a judgment is made that recovery of the carrying amount is unlikely, an impairment
loss is recorded in profit or loss in accordance with the Group’s accounting policy in Note 1(h). The carrying amounts of exploration and evaluation
assets are set out in Note 1(h).

Development expenditure and Malaysian HPA Plant (work in progress)

Judgment is applied by management in determining when development and other capital expenditure relating to the Malaysian HPA plant is
commercially viable and technically feasible. Any judgments may change as new information becomes available. If, after having commenced the
development activity, a judgment is made that the asset under development is impaired, the appropriate amount will be written off to the Statement
of Profit or Loss & Other Comprehensive Income. Whilst the current economic climate and the impacts of the COVID-19 pandemic in the medium
to longer term are still uncertain, impairment assessments are undertaken based on the best available current information.

(s) New and Amended Accounting Policies Adopted by the Group

The Group has considered the implications of new or amended Accounting Standards which have become applicable of the current financial
reporting period. There have been no new or amended accounting standards for the current financial reporting period.

(t) New Accounting Standards for Application in Future Periods

A number of new standards and amendments to standards have been issued and are effective for future accounting periods, however the Group
has not yet adopted these and does not expect any standard or amendment not yet effective, to have a significant impact on the financial
statements of the Group in future periods.

(u) Principles of Consolidation

The consolidated financial statements incorporate all of the assets, liabilities and results of the parent, Altech Chemicals Limited and all of the
subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided
in Note 28.

The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Company from the date on which
control is obtained by the Company. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany
transactions, balances and unrealised gains or losses on transactions between group entities are fully eliminated on consolidation. Accounting
policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by
the Company. Equity interests in a subsidiary not attributable, directly or indirectly, to the Company are presented as “non-controlling interests”.
The Company initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled to a proportionate
share of the subsidiary’s net assets on liquidation at either fair value or at the non-controlling interests’ proportionate share of the subsidiary’s
net assets. Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each component of other
comprehensive income. Non-controlling interests are shown separately within the equity section of the statement of financial position and
statement of comprehensive income.

- 26 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(v) Financial Instruments

Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For
financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is
classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted
prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component or if the
practical expedient was applied as specified in AASB 15.63.

Classification and subsequent measurement

Financial liabilities
Financial instruments are subsequently measured at:
– amortised cost; or
– fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
– a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies;
– held for trading; or
– initially designated as at fair value through profit or loss.

All other financial liabilities are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or
loss over the relevant period. The effective interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that
exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.

A financial liability is held for trading if:

– it is incurred for the purpose of repurchasing or repaying in the near term;
– part of a portfolio where there is an actual pattern of short-term profit taking; or
– a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in an effective hedging
relationship).

Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging
relationship are recognised in profit or loss.

The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other comprehensive income and are
not subsequently reclassified to profit or loss. Instead, they are transferred to retained earnings upon derecognition of the financial liability. If
taking the change in credit risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or losses should
be taken to profit or loss rather than other comprehensive income.

A financial liability cannot be reclassified.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs
because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument.

Financial guarantee contracts are initially measured at fair values (and if not designated as at fair value through profit or loss and do not arise
from a transfer of a financial asset) and subsequently measured at the higher of:
– the amount of loss allowance determined in accordance with AASB 9.3.25.3; and
– the amount initially recognised less the accumulative amount of income recognised in accordance with the revenue recognition policies.

Financial assets
Financial assets are subsequently measured at:
– amortised cost;
– fair value through other comprehensive income; or
– fair value through profit or loss.

Measurement is on the basis of two primary criteria:

– the contractual cash flow characteristics of the financial asset; and
– the business model for managing the financial assets.

A financial asset that meets the following conditions is subsequently measured at amortised cost:
– the financial asset is managed solely to collect contractual cash flows; and
– the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal
amount outstanding on specified dates.

- 27 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(v) Financial Instruments (continued)

A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income:
– the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal
amount outstanding on specified dates;
– the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the financial
asset.

By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive
income are subsequently measured at fair value through profit or loss.

The Group initially designates a financial instrument as measured at fair value through profit or loss if:
– it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as “accounting mismatch”) that would
otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases;
– it is in accordance with the documented risk management or investment strategy, and information about the groupings was documented
appropriately, so that the performance of the financial liability that was part of a group of financial liabilities or financial assets can be
managed and evaluated consistently on a fair value basis;

it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by the contract.

The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and
is irrevocable until the financial asset is derecognised.

Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent consideration recognised by an acquirer in a
business combination to which AASB 3:Business Combinations applies, the Group made an irrevocable election to measure any subsequent
changes in fair value of the equity instruments in other comprehensive income, while the dividend revenue received on underlying equity
instruments investment will still be recognised in profit or loss.

Regular way purchases and sales of financial assets are recognised and derecognised at settlement date in accordance with the Group's
accounting policy.

Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position.

Derecognition of financial liabilities

A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged, cancelled or expires). An exchange of
an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability is
treated as an extinguishment of the existing liability and recognition of a new financial liability.

The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-
cash assets transferred or liabilities assumed, is recognised in profit or loss.

Derecognition of financial assets

A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way that all
the risks and rewards of ownership are substantially transferred.

All of the following criteria need to be satisfied for derecognition of financial asset:
– the right to receive cash flows from the asset has expired or been transferred;
– all risk and rewards of ownership of the asset have been substantially transferred; and
– the Group no longer controls the asset (i.e. the Group has no practical ability to make a unilateral decision to sell the asset to a third party).

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the
consideration received and receivable is recognised in profit or loss.

On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative gain or loss previously
accumulated in the investment revaluation reserve is reclassified to profit or loss.

On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income, the
cumulative gain or loss previously accumulated in the investment revaluation reserve is not reclassified to profit or loss, but is transferred to
retained earnings.

Derivative financial instruments

The Group enters into various derivative financial instruments (i.e. foreign exchange forward contracts and interest rate swaps) to manage its
exposure to interest rate and foreign exchange rate risks.

Derivative financial instruments are initially and subsequently measured at fair value. All gains and losses subsequent to the initial recognition
are recognised in profit or loss.

- 28 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(v) Financial Instruments (continued)

Hedge accounting
At the inception of a hedge relationship, the Group identifies the appropriate risks to be managed by documenting the relationship between the
hedging instrument and the hedged item, along with risk management objectives and the strategy for undertaking various hedge transactions.

The Group documents whether the hedging instrument is effective in offsetting changes in fair values or cash flows of the hedged item attributable
to the hedged risk. That is, whether the hedging relationships meet all of the following hedge effective requirements:
– there is an economic relationship between the hedged item and the hedging instrument;
– the effect of credit risk does not dominate the value changes that result from that economic relationship; and
– the hedged ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually
hedges and the quantity of the hedging instrument that the Group uses to hedge the quantity of hedged item.

When the hedging relationship ceases to meet the hedging ratio requirement, the Group rebalances the hedge so that it meets the qualifying
criteria again.

Discontinuation of hedge is not voluntary and is only permitted if:

– the risk management objective has changed;
– there is no longer an economic relationship between the hedged item and the hedging instrument; or
– the credit risk is dominating the hedge relationship.

Qualifying items
Each eligible hedged item must be reliably measurable and will only be designated as a hedge item if it is made with a party which is not part of
the Group and is from one of the following categories:
– a recognised asset or liability (financial or non-financial);
– an unrecognised firm commitment (binding agreement with specified quantity, price and dates); or
– a highly probable forecast transaction.

Fair value hedges

At each reporting date, except when the hedging instrument hedges an equity instrument designated as at fair value through other comprehensive
income, the carrying amount of the qualifying hedge instruments will be adjusted for the fair value change and the attributable change is
recognised in profit or loss, at the same line as the hedged item.

When the hedged item is an equity instrument designated as at fair value through other comprehensive income, the hedging gain or loss remains
in other comprehensive income to match the hedging instrument.

Cash flow hedges

The effective portion of the changes in fair value of the hedging instrument is not recognised directly in profit and loss, but to the extent the
hedging relationship is effective, it is recognised in other comprehensive income and accumulated under the heading Cash Flow Hedging
Reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating to the ineffective
portion (balancing figure) is recognised immediately in profit or loss.

Hedge accounting on cash flow hedge instruments is discontinued prospectively when the hedge relationship no longer meets the qualifying
criteria. Amounts recognised in the cash flow hedging reserve that are related to the discontinued hedging instrument will immediately be
reclassified to profit or loss.

Preference shares
Preferred share capital is classified as equity if it is non-redeemable or redeemable only at the discretion of the Parent Entity, and any dividends
are discretionary. Dividends thereon are recognised as distributions within equity upon declaration by the directors. Preferred share capital is
classified as a liability if it is redeemable on a set date or at the option of the shareholders, or where the dividends are mandatory. Dividends
thereon are recognised as interest expense in profit or loss.

Compound financial instruments

Compound instruments (convertible preference shares) issued by the Group are classified as either financial liabilities or equity in accordance
with the substance of the arrangements. An option that is convertible and that will be settled by the exchange of a fixed amount of cash or another
financial asset for a fixed number of the Group’s own equity instruments will be classified as equity.

The fair value of the liability component is estimated on date of issue. This is done by using the prevailing market interest rate of the same kind
of instrument. This amount is recognised using the effective interest method as a liability at amortised cost until conversion or the end of life of
the instrument.

The equity portion is calculated by deducting the liability amount from the fair value of the instrument as a whole. The equity portion is not
remeasured after initial recognition. Equity will remain as such until the option is exercised. When the option is exercised a corresponding amount
will be transferred to share capital. If the option lapses without the option being exercised the balance in equity will be recognised in profit or loss.

Costs of the transaction of the issue of convertible instruments are proportionally allocated to the equity and liability. Transaction costs in regards
to the liability are included in the carrying amount of the liability and are amortised over its life using the effective interest method. Transaction
cost in equity is directly recognised in equity.

- 29 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(v) Financial Instruments (continued)

Impairment
The Group recognises a loss allowance for expected credit losses on:
– financial assets that are measured at amortised cost or fair value through other comprehensive income;
– lease receivables;
– contract assets (e.g. amounts due from customers under construction contracts);
– loan commitments that are not measured at fair value through profit or loss; and
– financial guarantee contracts that are not measured at fair value through profit or loss.

Loss allowance is not recognised for:

– financial assets measured at fair value through profit or loss; or
– equity instruments measured at fair value through other comprehensive income.

Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the
difference between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the original effective
interest rate of the financial instrument.

The Group uses the following approaches to impairment, as applicable under AASB 9: Financial Instruments:
– the general approach
– the simplified approach
– the purchased or originated credit impaired approach; and
– low credit risk operational simplification.

General approach
Under the general approach, at each reporting period, the Group assesses whether the financial instruments are credit-impaired, and if:
– the credit risk of the financial instrument has increased significantly since initial recognition, the Group measures the loss allowance of the
financial instruments at an amount equal to the lifetime expected credit losses; or
– there is no significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial instrument
at an amount equal to 12-month expected credit losses.

Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires the recognition of
lifetime expected credit loss at all times. This approach is applicable to:
– trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue from Contracts with Customers
and which do not contain a significant financing component; and
– lease receivables.

In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration various data to get to an
expected credit loss (i.e. diversity of customer base, appropriate groupings of historical loss experience, etc.).
Purchased or originated credit-impaired approach

For a financial asset that is considered credit-impaired (not on acquisition or origination), the Group measures any change in its lifetime expected
credit loss as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the
financial asset’s original effective interest rate. Any adjustment is recognised in profit or loss as an impairment gain or loss.

Evidence of credit impairment includes:

– significant financial difficulty of the issuer or borrower;
– a breach of contract (e.g. default or past due event);
– a lender granting to the borrower a concession, due to the borrower's financial difficulty, that the lender would not otherwise consider;
– high probability that the borrower will enter bankruptcy or other financial reorganisation; and
– the disappearance of an active market for the financial asset because of financial difficulties.

Low credit risk operational simplification approach

If a financial asset is determined to have low credit risk at the initial reporting date, the Group assumes that the credit risk has not increased
significantly since initial recognition and accordingly it can continue to recognise a loss allowance of 12-month expected credit loss.

In order to make such a determination that the financial asset has low credit risk, the Group applies its internal credit risk ratings or other
methodologies using a globally comparable definition of low credit risk.

A financial asset is considered to have low credit risk if:

– there is a low risk of default by the borrower;
– the borrower has strong capacity to meet its contractual cash flow obligations in the near term;
– adverse changes in economic and business conditions in the longer term may, but not necessarily will, reduce the ability of the borrower
to fulfil its contractual cash flow obligations.

A financial asset is not considered to carry low credit risk merely due to existence of collateral, or because a borrower has a risk of default lower
than the risk inherent in the financial assets, or lower than the credit risk of the jurisdiction in which it operates.

- 30 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

(v) Financial Instruments (continued)

Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the statement of profit or loss
and other comprehensive income.

The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.

Assets measured at fair value through other comprehensive income are recognised at fair value, with changes in fair value recognised in other
comprehensive income. Amounts in relation to change in credit risk are transferred from other comprehensive income to profit or loss at every
reporting period.

For financial assets that are unrecognised (e.g. loan commitments yet to be drawn, financial guarantees), a provision for loss allowance is created
in the statement of financial position to recognise the loss allowance.

(w) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. When the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is
presented in profit or loss net of any reimbursement.

Provisions are measured at management’s best estimate of the expenditure required to settle the present obligation at the reporting date.

(x) Foreign Currency

Functional and presentation currency
Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollars,
which is the Company’s functional and presentation currency.

Transactions and Balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at year-end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate
to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation.

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional
currency different from the presentation currency are translated into the presentation currency as follows:
• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of
financial position;
• income and expenses for each consolidated statement of profit and loss and other comprehensive income are translated at average
exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the dates of the transactions); and
• all resulting exchange differences are recognised in other comprehensive income. On consolidation, exchange differences arising from
the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such
investments, are recognised in other comprehensive income.

When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are
reclassified to profit or loss, as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign operation
are treated as assets and liabilities of the foreign operation and translated at the closing rate.

Foreign exchange gains and losses that relate to borrowings are presented in the consolidated statement of profit and loss and other
comprehensive income, within finance costs. All other foreign exchange gains and losses are presented in the consolidated statement of profit
and loss and other comprehensive income on a net basis within other income or other expenses.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value
was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For
example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognised in
profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified as available-for-
sale financial assets are recognised in other comprehensive income.

- 31 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

2. Restatement of comparatives

Errors were made in the 30 June 2021 financial statements in relation to treatment of leased assets. With effect from 1 July 2020, the consolidated
entity has retrospectively applied AASB 16 – Leases. Under this policy, assets subject to lease are now treated as right-of-use assets and depreciated
over their respective useful lives. The change in this policy has resulted in changes in the carrying value of property, plant and equipment and right-
of-use assets.
In addition, errors were made in relation to treatment of foreign currency translation reserves. With effect from 1 July 2020, foreign currency translation
of functional currency to presentation currency are taken to reserves instead of accumulated losses.

Adjustments made to the consolidated statement of financial position:

Reported (Restated)
30-Jun-21 Adjustment 30-Jun-21
$ $ $
Current Assets
Cash and cash equivalents 6,728,978 - 6,728,978
ade and other receivables 246,918 - 246,918
Total Current Assets 6,975,896 - 6,975,896

Non-Current Assets
Property, plant and equipment 36,039,267 (6,107,678) 29,931,589
Right-of-use assets 88,132 6,107,678 6,195,810
Exploration and evaluation expenditure 604,821 - 604,821
Development expenditure 36,463,669 - 36,463,669
Investments in Associates 2,085,439 - 2,085,439
Other non-current receivable 7,509,881 - 7,509,881
Total Non-Current Assets 82,791,209 - 82,791,209
TOTAL ASSETS 89,767,105 - 89,767,105

Current Liabilities
Lease liabilities 30,878 - 30,878
Trade and other payables 427,089 - 427,089
Provisions 228,461 - 228,461
Total current liabilities 686,428 - 686,428

Non-Current Liabilities
Lease liabilities 53,352 - 53,352
Provisions 100,703 - 100,703
Total Non-Current Liabilities 154,055 - 154,055
TOTAL LIABILITIES 840,483 - 840,483

NET ASSETS 88,926,622 - 88,926,622

Equity
Contributed Equity 107,509,911 - 107,509,911
Reserves 7,346,777 1,543,044 8,889,821
Accumulated losses (25,930,066) (1,543,044) (27,473,110)
TOTAL EQUITY 88,926,622 - 88,926,622

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 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

3. Loss for the year includes the following specific income and
30-Jun-22 30-Jun-21
expenses
$ $
(a) Revenue
Interest income 227,104 117,619
Sale of 25% equity of Altech Industries Germany GmbH - 7,941,108
R&D tax refund 241,555 -
Other Income - 696
468,659 8,059,423
(b) Other expenses
Accounting and audit fees (55,180) (50,268)
ASX and share registry fees (121,903) (74,759)
Corporate & consulting (836,490) (1,095,422)
Insurance expense (276,927) (255,015)
Occupancy (166,277) (123,054)
Legal fees (174,618) (127,256)
Investor relations and marketing (477,796) (218,669)
Office & administration (305,188) (258,943)
Foreign exchange translation - (891,451)
(2,414,378) (3,094,837)

- 33 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

4. Income Tax 30-Jun-22 30-Jun-21

Income tax expense $ $
Current income tax benefit / (expense) 265,362 -
Deferred income tax expense - -
Total income tax expense 265,362 -
Tax reconciliation
Accounting profit (loss) before tax from continuing operations (6,067,791) 2,325,866
At statutory tax rate of 25% (1,516,948) 650,249
Adjustment for:
Non-assessable income - (2,064,688)
R&D spend 136,565 82,973
R&D tax offset 265,362 -
Share based payments to employees - 63,033
Other non-deductible expenses 1,182,934 812,665
Deferred tax assets not recognised 484,417 430,278
Tax rate differential 628 25,490
Recoupment of prior year tax losses not previously brought to account (287,597) -
265,362 -
Deferred tax assets
Provisions, accruals and other 68,645 241,168
Tax losses 677,013 560,318
745,659 801,486
Offset by deferred tax liabilities (745,659) (801,486)
- -
Deferred tax liabilities
Capitalised mineral exploration and evaluation expenditure (96,794) (103,684)
Development expenditure (648,865) (697,802)
(745,659) (801,486)
Offset by deferred tax assets 745,659 801,486
- -
Deferred tax assets not recognised
Tax losses 2,017,465 1,594,407
2,017,465 1,594,407

- 34 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

5. Earnings per share 30-Jun-22 30-Jun-21

$ $
Basic profit (loss) per share (0.004) 0.002
Diluted profit (loss) per share (0.004) 0.002

The weighted average number of ordinary shares used in the calculation of basic earnings per
share was:
Number Number
1,080,764,077 1,018,048,889

6. Cash and cash equivalents

(a) Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the Consolidated Statement
of Financial Position as follows:
30-Jun-22 30-Jun-21
$ $
Cash at bank and on hand 10,912,939 6,728,978

(b) Reconciliation of the loss from ordinary activities after income tax to the net cash flows used in operating activities:
30-Jun-22 30-Jun-21
$ $
Profit/(Loss) from ordinary activities after income tax (5,802,429) 2,325,866
Non-cash items:
- Depreciation expense (Operations) 328,891 230,623
- Foreign exchange gains / losses (200,699) -
- Share based payments 583,627 333,000
- Loss on disposal of assets - 464
- Impairment – investment in associate (AAM AG) 119,051 620,569
- Share in profit/(loss) of associate (AAM AG) 328,979 200,006
- Deferred Consideration Receivable - sale of 25% Altech Industries Germany GmbH - (7,537,290)
- Minority equity interest 72,510 -
Change in operating assets and liabilities:
- Increase / (decrease) in Operating trade and other payables (14,867) (192,196)
- (Increase) / decrease in Operating trade and other receivables (255,990) 228,709
- Increase / (decrease) in Operating provisions 19,218 90,506
Net cash outflows from Operating Activities (4,821,709) (3,699,743)

7. Trade and other receivables 30-Jun-22 30-Jun-21

$ $
CURRENT RECEIVABLES
Research and development tax rebate 265,362 -
Sundry debtors - 4,240
GST receivable 130,231 24,976
Deposits paid 30,383 24,754
Altech Advanced Materials AG 68,930 184,950
Other receivable 8,001 7,998
502,908 246,918

- 35 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

8. Property, Plant and Equipment

30-Jun-22 30-Jun-21
OFFICE EQUIPMENT $ $
At cost 281,816 260,646
Less: accumulated depreciation (211,866) (158,924)
Total office equipment 69,951 101,722

LAND (Restated)
At cost 3,578,359 1,575,497
Total land 3,578,359 1,575,497

PLANT AND EQUIPMENT

At cost 205,774 37,384
Less: accumulated depreciation (36,896) (11,527)
Total plant and equipment 168,879 25,857

MALAYSIAN HPA PLANT (work in progress)

At cost 27,367,758 28,228,513
Total Malaysian HPA Plant 27,367,758 28,228,513

GERMAN PILOT PLANT (work in progress)

At cost 814,852 -
Total German Pilot Plant 814,852 -

Total Property, Plant and Equipment 31,999,798 29,931,589

Reconciliation
Reconciliation of the carrying amounts for each class of plant and equipment are set out below:
30-Jun-22 30-Jun-21
OFFICE EQUIPMENT $ $
Carrying amount at the beginning of the year 101,722 66,499
Additions 21,171 54,534
Depreciation expense (profit & loss account) (52,942) (19,311)
Carrying amount at the end of the year 69,951 101,722

LAND (Restated)
Carrying amount at the beginning of the year 1,575,497 7,850,066
Additions 2,002,862 7,520
Less: amortisation - (174,411)
Adjustment (6,107,678)
Carrying amount at the end of the year 3,578,359 1,575,497

- 36 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

8. Property, Plant and Equipment (continued)

Reconciliation (continued) 30-Jun-22 30-Jun-21
$ $
PLANT AND EQUIPMENT
Carrying amount at the beginning of the year 25,857 7,050
Additions 168,390 25,652
Loss on Disposals - (116)
Less: depreciation (25,368) (6,729)
Carrying amount at the end of the year 168,879 25,857

MALAYSIAN HPA PLANT (work in progress)

Carrying amount at the beginning of the year 28,228,513 28,202,820
Additions - 25,693
Foreign currency translation (860,755) -
Carrying amount at the end of the year 27,367,758 28,228,513

GERMAN PILOT PLANT (work in progress)

Carrying amount at the beginning of the year - -
Additions 814,852 -
Less: depreciation - -
Carrying amount at the end of the year 814,852 -

(Restated)
9. Right-of-use Assets 30-Jun-22 30-Jun-21
$ $
At cost 6,854,271 142,933
Adjustment for restatement (refer note 2) - 6,107,678
Accumulated depreciation (904,090) (54,801)
Net carrying amount 5,950,181 6,195,810
Reconciliation
Reconciliation of the carrying amount of right-of-use assets at the beginning and end of year are set
out below:
Right-of-use assets
At beginning of the year net of accumulated depreciation 6,195,810 -
Adjustment for restatement (refer note 2) - 6,107,678
Application during the year (15,345) 142,933
Depreciation charge for the year (230,284) (54,801)
Net carrying amount at the end of the year 5,950,181 6,195,810

Lease liabilities are significantly lower in comparison to the carrying amount of the right-of-use assets as the lease of the land in Malaysia (Johor
HPA plant site) has been paid upfront in full.

10. Exploration and Evaluation expenditure 30-Jun-22 30-Jun-21

$ $
Carrying amount at the beginning of year 604,821 566,692
Exploration and evaluation expenditure incurred during the year (at cost) 177,838 38,129
Carrying amount at the end of the year 782,659 604,821

- 37 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

11. Development expenditure 30-Jun-22 30-Jun-21

$ $
Carrying amount at the beginning of the year 36,463,669 36,628,368
Development expenditure incurred during the year (at cost) including foreign exchange movements 1,215,821 (164,699)
Carrying amount at the end of the year 37,679,490 36,463,669

The Malaysian HPA plant is part way constructed, and is currently on care and maintenance. The Company requires further capital in order to
complete the plant. Should the Company not be successful in raising sufficient additional capital, the plant will not be constructed in full. Should
this occur, the carrying value shown will not be realised.

12. Investment in Associate (Altech Advanced Materials AG) 30-Jun-22 30-Jun-21

$ $
Carrying amount at the beginning of the period 2,085,439 2,891,365
Acquisition of shares in Altech Advanced Materials AG (AAM AG) 1,713,806 14,650
Share of associate’s loss for the period since acquisition (328,979) (200,006)
Impairment based on the market value of AAM AG shares at balance date (119,052) (620,570)
Carrying amount at the end of the year 3,351,214 2,085,439

Altech’s ownership in the associate increased from 17.7% as at 30 June 2021 to 27.1% as at 30 June 2022.

13. Other non-current receivables 30-Jun-22 30-Jun-21

$ $
Deferred consideration sale of 25% AIG to AAM AG 7,208,984 7,509,881

AAM AG has recently received shareholder approval to undertake a capital raising. Altech anticipates that the deferred consideration will be
received subject to a successful capital raising. Should AAM AG not be successful in raising capital and subsequently paying the deferred
consideration to Altech, the amount receivable may not be realised in full. In the event that this occurs, Altech has the contractual right to
receive back the 25% equity held by AAM AG in Altech Industries Germany GmbH.

14. Trade and other payables 30-Jun-22 30-Jun-21

$ $
CURRENT PAYABLES (Unsecured)
Trade creditors 289,623 209,008
Accrued expenses 48,102 51,991
Payroll Tax payable 6,255 5,982
Other creditors and accruals 68,242 160,108
Total trade and other payables 412,222 427,089

15. Provisions 30-Jun-22 30-Jun-21

$ $
CURRENT
Provision for annual leave 219,814 228,461
NON-CURRENT
Provision for long service leave 128,569 100,703
Total provisions 348,343 329,164

- 38 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

16. Contributed Equity

30-Jun-22 30-Jun-21
(a) Ordinary shares $ $
Contributed equity at the beginning of the period 107,509,911 89,707,030
Shares issued during the period 10,331,350 18,770,923
Options conversion 3,498,343 -
Transfer of historical share-based payment reserve to share capital 3,569,500 -
Transaction costs relating to shares issued (421,326) (968,042)
Contributed Equity at the end of the reporting period 124,487,779 107,509,911

Movements in ordinary share capital

30-Jun-22 30-Jun-21

Ordinary shares on issue at the beginning of reporting period 1,286,482,133 870,451,255

Shares issued during the period:
31-July-20 at $0.035 (Placement SMI Tranche 2) - 4,285,714
14-Aug-20 at $0.035 (Placement SMI Tranche 3) - 8,571,429
25-Sep-20 at $0.035 (Placement SMI Tranche 4) - 8,571,429
12-Oct-20 at $0.035 (Placement SMI Tranche 5) - 16,457,143
18-Dec-20 at $0.04 (Entitlement Offer) - 315,721,720
20-Jan-21 at $0.032 (Placement SMI Tranche 6) - 14,810,375
22-Jan-21 at $0.04 (Entitlement Offer Shortfall) - 47,613,068
12-Aug-21 at $0.08 (Exercise of options) 2,600 -
13-Oct-21 at $0.08 (Exercise of options) 466,722 -
20-Oct-21 at $0.08 (Exercise of options) 145,729 -
27-Oct-21 at $0.08 (Exercise of options) 52,231 -
4-Nov-21 at $0.08 (Exercise of options) 137,500 -
10-Nov-21 at $0.08 (Exercise of options) 463,419 -
16-Nov-21 at $0.08 (Exercise of options) 966,819 -
23-Nov-21 at $0.08 (Exercise of options) 153,844 -
30-Nov-21 at $0.08 (Exercise of options) 346,862 -
8-Dec-21 at $0.08 (Exercise of options) 59,440 -
9-Dec-21 at $0.107 (Placement) 75,964,556 -
15-Dec-21 at $0.08 (Exercise of options) 14,540 -
22-Dec-21 at $0.08 (Exercise of options) 120,445 -
23-Dec-21 at $0.107 (Share Purchase Plan) 20,589,886 -
4-Jan-22 at $0.08 (Exercise of options) 104,500 -
17-Jan-22 at $0.08 (Exercise of options) 93,612 -
24-Jan-22 at $0.08 (Exercise of options) 587,217 -
31-Jan-22 at $0.08 (Exercise of options) 3,789,506 -
14-Feb-22 at $0.08 (Exercise of options) 491,370 -
28-Feb-22 at $0.08 (Exercise of options) 240,529 -
14-Mar-22 at $0.08 (Exercise of options) 224,782 -
24-Mar-22 at $0.08 (Exercise of options) 202,800 -
31-Mar-22 at $0.08 (Exercise of options) 695,971 -
7-Apr-22 at $0.08 (Exercise of options) 671,926 -
21-Apr-22 at $0.08 (Exercise of options) 91,942 -
27-Apr-22 at $0.08 (Exercise of options) 625,530 -
3-May-22 at $0.08 (Exercise of options) 27,349,788 -
10-May-22 at $0.08 (Exercise of options) 2,698,777 -
17-May-22 at $0.08 (Exercise of options) 900,531 -
27-May-22 at $0.08 (Exercise of options) 667,420 -
2-Jun-22 at $0.08 (Exercise of options) 1,362,942 -
Ordinary shares on issue at the end of the reporting period 1,426,765,869 1,286,482,133

- 39 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

16. Contributed Equity (continued)

(b) Performance Rights

During the year, a total of 3,400,000 employees’ performance rights expired and were cancelled. The Company issued 5,750,000 performance
rights to certain employees pursuant to the Altech Chemicals Limited Performance Rights Plan ("the Plan"), part of which was replacement for
those that had expired. In addition, the Company issued 10,000,000 performance rights to the Managing Director to replace the same amount
that expired during the year. No performance rights vested during the year.

At 30 June 2022, the Company had the following unlisted performance rights on issue:
Performance rights - managing director (exercise price: nil) 15,000,000
Performance rights - employees & consultants (exercise price: nil) 9,050,000
Performance rights - non-executive directors (exercise price: nil) 6,000,000
Total performance rights on issue at 30 June 2022 30,050,000

At 30 June 2021, the Company had the following unlisted performance rights on issue:
Performance rights - managing director (exercise price: nil) 15,000,000
Performance rights - employee's & consultants (exercise price: nil) 6,700,000
Performance rights - non-executive directors (exercise price: nil) 6,000,000
Total performance rights on issue at 30 June 2021 27,700,000
Each performance right converts to one fully paid ordinary share of the Company and the conversion of each performance right is subject to
the holder attaining certain pre-determined vesting conditions.

(c) Listed Options

The Company did not issue any listed options during the reporting period (2021: 181,667,319 listed options issued as part of an entitlement
offer). At 30 June 2022, the Company did not have any listed options on issue (2021: 181,667,319).

(d) Unlisted Options

The Company did not issue any unlisted options during the reporting period (2021: nil). At 30 June 2022, the Company did not have any
unlisted options on issue (2021: nil).

(e) Share Based Payments

Performance Rights
During the year, the Company issued 10,000,000 performance rights to the Managing Director to replace the same amount that expired during
the year. The Company recorded a total share based payment expense of $363,640 in relation to these. The share based payments expense
relating to Non-Executive Directors totalled $74,908 (2021: $36,360).

In addition, a total of 3,400,000 employees’ performance rights expired and were cancelled during the year. The Company issued 5,750,000
performance rights to certain employees pursuant to the Altech Chemicals Limited performance rights plan, part of which was replacement for
those that had expired. A share-based payments expense associated with these, for $145,079 was recorded in the profit and loss account.

Fair Value of Performance Rights

The fair value of the performance rights awarded during the period at the award date was calculated using the Black Scholes pricing model that
took into account the term, the underlying value of the shares, the exercise price, the expected dividend yield, the impact of dilution and the
risk-free interest rate. Inputs used for each series granted included:

Performance Rights -
Valuation Assumptions
Variable Directors
Exercise price for the performance right $0.00
Market price for the shares at date of valuation / issue $0.12 - $0.14
Volatility of company share price 80.0%
Dividend yield 0%
Risk free rate 1.35%
Expiry from date of grant (number of years) 5.00
Number of Rights issued 15,750,000

- 40 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

16. Contributed Equity (continued)

The fair value of performance rights is estimated at the date of grant using a Black-Scholes valuation model taking into account the terms and
conditions upon which the performance rights were awarded, and the fair value of performance rights is re-assessed each balance date by
reference to the fair value of the performance rights at the time of award, adjusted for the probability of achieving the vesting conditions, which
may change from balance date to balance date and consequently impact the amount to be expensed via profit and loss account in future
periods.

Vesting of the performance rights are subject to the attainment of the applicable performance milestones.

Performance Rights Plan

The establishment of the Altech Chemicals Limited employee Performance Rights Plan (“Plan”) was approved by ordinary resolution at a General Meeting
of shareholders on 5 November 2014 and re-approved by shareholders in General Meetings on 12 June 2018 and 29 November 2021. All eligible
directors, executive officers, employees and consultants of Altech Chemicals Limited, who have been continuously employed by the Company are eligible
to participate in the Plan.

The Plan allows the Company to issue rights to eligible persons for nil consideration. The rights can be granted free of charge, vesting is subject to the
attainment of certain pre-determined conditions, and exercise is at a pre-determined fixed price calculated in accordance with the Plan.

The fair value of any performance rights issued by the Company during the reporting period is determined at the date of grant using a Black-Scholes
valuation model taking into account the terms and conditions upon which the performance rights are awarded. At each balance date the fair value of all
performance rights is re-assessed by reference to the fair value of the performance rights at the time of award, adjusting for the probability of achieving
the vesting conditions, which may change from balance sheet date and consequently impact the amount that is expensed or reversed in the profit and
loss account for the relevant reporting period.

During the year, the Company issued 10,000,000 performance rights to the Managing Director to replace the same amount that expired during the year.
In addition, a total of 3,400,000 employees’ performance rights expired and were cancelled during the year. The Company issued 5,750,000 performance
rights to certain employees (2021: 6,000,000 to non-executive directors) pursuant to the Plan, part of which was replacement for those that had expired.

17. Reserves (Restated)

30-Jun-22 30-Jun-21
$ $
Share based payments reserve 1,762,369 7,346,777
Foreign currency translation reserve 1,964,499 -
Carrying amount at the end of the year 3,726,868 7,346,777

Movements: (Restated)
30-Jun-22 30-Jun-21
$ $
Share based payments reserve
Balance at the beginning of the period 7,346,777 7,104,340
Fair value of performance rights issued 583,626 242,437
Transferred to contributed equity – conversion of performance rights to
share capital (3,569,500) -
Expiration of performance rights (2,598,534) -
Balance at end of year 1,762,369 7,346,777

Foreign currency translation reserve

Balance at the beginning of the period 1,543,044 -
Foreign exchange movements on translation of subsidiary financial
statements 421,455 1,543,044
Balance at end of year 1,964,499 1,543,044

- 41 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

18. Financial Instruments

The Company's activities expose it to a variety of financial risks and market risks. The Company's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company.

(a) Interest rate risk

The Company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market, interest rates
and the effective weighted average interest rates on those financial assets, is as follows:

Weighted
Average Funds Available at Fixed Assets/ (Liabilities)
Effective a Floating Interest Non Interest
Notes Interest Interest Rate Rate Bearing Total
2022 % $ $ $ $
Financial Assets
Cash and cash equivalents 6(a) 0.50% 10,912,939 - - 10,912,939
Trade and other receivables 7 - - 502,908 502,908
Other non-current receivables 13 - - 7,208,984 7,208,984
Total Financial Assets 10,912,939 - 7,711,892 18,624,831

Financial Liabilities
Trade and other payables 14 0.00% - - 412,222 412,222
Lease liabilities 89,926 89,926
Total Financial Liabilities - - 502,148 502,148

Net Financial Assets/(Liabilities) 10,912,939 - 6,944,380 17,857,319

Weighted
Average Funds Available at Fixed Assets/
Effective a Floating Interest (Liabilities) Non
Notes Interest Interest Rate Rate Interest Bearing Total
2021 % $ $ $ $
Financial Assets
Cash and cash equivalents 6(a) 0.50% 6,728,978 - - 6,728,978
Trade and other receivables 7 - - 246,918 246,918
Other non-current receivables 13 - - 7,509,881 7,509,881
Total Financial Assets 6,728,978 - 7,756,799 14,485,777

Financial Liabilities
Trade and other payables 14 0.00% - - 427,089 427,089
Lease liabilities - - 84,230 84,230
Total Financial Liabilities - - 511,319 511,319

Net Financial Assets/(Liabilities) 6,728,978 - 7,245,480 7,245,480

(b) Credit Risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date, is the carrying amount, net of any provisions
for doubtful debts, as disclosed in the balance sheet and in the notes to the financial statements.

The Company does not have any material credit risk exposure to any single debtor or group of debtors, under financial instruments entered into by it.

(c) Commodity Price Risk & Liquidity Risk

At the present state of the Company’s operations it has minimal commodity price risk and limited liquidity risk due to the level of payables and cash reserves
held. The Company’s objective is to maintain a balance between continuity of development funding and flexibility through the use of available cash reserves.

- 42 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

18. Financial Instruments (continued)

(d) Net Fair Values
For assets and other liabilities, the net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised
markets in standardised form. The Company has no financial assets where the carrying amount exceeds net fair values at balance date.

The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the balance sheet and in the notes to the
financial statements.

19. Accumulated losses (Restated)

30-Jun-22 30-Jun-21
$ $
Carrying amount at the beginning of the period (27,473,110) (28,255,932)
Profit (loss) for the period (5,729,919) 2,325,866
Foreign exchange movements on translation of subsidiary financial statements - (1,543,044)
Expiration of performance rights 2,598,535 -
Carrying amount at the end of the year (30,604,494) (27,473,110)

20. Auditors' remuneration 30-Jun-22 30-Jun-21

$ $
Audit - Moore Australia Audit (WA)
Audit and review of the financial reports 50,619 46,011

21. Related Parties 30-Jun-22 30-Jun-21

Key management personnel compensation $ $
Short-term employee benefits 1,317,967 1,120,755
Post-employment benefits 99,297 81,685
Share-based payments 489,012 217,265
1,906,276 1,419,705
During the financial year there were no loans made or outstanding at year end (2021: nil)

Other transactions with key management personnel

The mother of Luke Atkins (non-executive chairman) is the owner of the office premises that the Company rents for its registered office and principal place
of business. During the year the Company paid $100,000 (2021:$100,000) rent and outgoings on normal commercial terms and conditions.

Other related party transactions

MIE Tech Sdn Bhd, a company controlled by Non-Executive Director, Tunku Yaacob Khyra, recharges RM75,000 monthly for secondment of Mr Uwe
Ahrens to the Group.

The Company recharges €10,000 per month to its associate company, Altech Advanced Materials AG as reimbursement of Mr Uwe Ahrens’ secondment
cost to Germany.

The Compay charges its associate company, Altech Advanced Materials AG, 3% p.a interest on a quarterly basis, on balance of consideration (€4,750,000)
for sale of 25% of Altech Industries Germany AG.

22. Expenditure commitments

(a) Exploration

The Company has certain obligations to perform minimum exploration work on the various mineral leases that it holds. These obligations may vary over
time, depending on the Company's exploration programs and priorities. As at 30 June 2022, total exploration expenditure commitments on tenements held
by the Company have not been provided for in the financial statements and those which cover the following twelve month period amount to $228,000
(2021: $152,000). These obligations are also subject to variations, may be subject to farm-out arrangements, sale of relevant tenements or via application
for expenditure exemptions from prior-year commitments from the relevant government department.

- 43 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

22. Expenditure commitments (continued)

(b) Intercompany Loan Commitments

0n 1 May 2015, the Company entered into an Intercompany Loan Agreement (Agreement) with its 100% owned subsidiary Altech Chemicals Sdn Bhd
(ATCSB).
Under the terms of the Agreement:
• The Company extends a loan facility up to the amount of $100,000,000 to provide funding to enable ATCSB to advance the development of a high
purity alumina manufacturing facility in Malaysia.
• Interest payable is nil for the period up to and preceding the date at which ATCSB commences commercial production from its proposed high purity
alumina manufacturing facility.
• From the date at which ATCSB commences commercial production from its proposed high purity alumina manufacturing facility, interest shall be
charged on the loan at an arms-length commercial rate of interest.

0n 1 April 2020, the Company entered into a Shareholder Loan Agreement with its 75% owned subsidiary Altech Industries Germany GmbH (AIG). On 29
December 2020, the Shareholder Loan Agreement was amended to include the party Altech Advanced Materials AG (AAM), the holder of the remaining
25% in AIG.
Under the terms of the Shareholder Loan Agreement and as amended on 29 December 2020:
• The Company extends a loan facility up to the amount of EUR50,000,000 to provide funding to enable AIG to advance the development of its
operations in Germany.
• AIG simultaneously and proportionally (75% to 25%) utilises the facility made available under the AAM Shareholder Loan Agreement. That is, funding
to be provided to AIG is allocated in the proportions of 75% by the Company and 25% by AAM.
• Interest payable is nil for the period up to and preceding the date at which AIG commences commercial production from its proposed battery materials
manufacturing facility.
• From the date at which AIG commences commercial production from its proposed high purity alumina manufacturing facility, interest shall be charged
on the loan at an arms-length commercial rate of interest.

(c) Capital commitments

EPC contracts for the construction of the Malaysian HPA plant and the Australian kaolin loading facility have been executed with SMS group GmbH and
Simulus Engineering Pty Ltd for prices of US$280 million and US$2.5 million respectively. Commitment to the contracted expenditure is subject to a number
of conditions being met including the securing of the total targeted project funding. As at 30 June 2022, the Company had no capital commitments in
relation either contract (2021: Nil). All works completed as stage 1 or stage 2 early works construction under the US$280 million SMS group GmbH contract
had been billed to the Company and paid as at 30 June 2022. As at 30 June 2022, no early works had been completed under the Simulus Engineering Pty
Ltd contract.

On 9 August 2022, the Company’s 75%-owned subsidiary, Altech Indistries Germany GmbH entered into a Contract for Supplies and Services with Kuttner
GmbH & Co for the development of a battery materials pilot plant in Saxony Germany, for the price of €2,981,146. As at 30 June 2022, the Group had
capital commitments of $2,334,922. It is currently anticipated that all of the commitment amounts will become payable during the subsequent financial year
(2022/23).

23. Segment Information

The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief operating decision
makers) in assessing performance and determining the allocation of resources. The financial statements presented above are the same as the reports the
directors review.

The Group operates predominantly in 2 segments, which are the development of a battery materials pilot plant in Germany and development of a high
purity alumina (HPA) plant in Malaysia, as well as mineral exploration. Although the Group has established a 75%-owned company in Germany and a
wholly owned subsidiary in Malaysia, the operations of the Group for the year ended 30 June 2022 were largely centred in one geographic segment, being
Australia. The board of directors anticipate including a second geographic segment when the proposed construction of the battery materials pilot plant in
Germany and HPA plant in Malaysia are at a more advanced stage.

24. Employee entitlements and superannuation commitments

Employee Entitlements
These are the following employee entitlements at 30 June 2022: Annual Leave Provision $219,814 (2021: $228,461) and Long Service Leave Provision
$128,569 (2021: $100,703).

Directors, officers, employees and other permitted persons’ Performance Rights Plan
Details of the Company's Performance Rights Plan are disclosed in the Remuneration Report.

- 44 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

24. Employee entitlements and superannuation commitments (continued)

Superannuation commitments
The Company contributes to individual employee accumulation superannuation plans at the statutory rate of the employees’ wages and salaries, in
accordance with statutory requirements, to provide benefits to employees on retirement, death or disability. Accordingly no actuarial assessment of the
plans is required.

Funds are available for the purposes of the plans to satisfy all benefits that would have been vested under the plans in the event of:
 termination of the plans;
 voluntary termination by all employees of their employment; and
 compulsory termination by the employer of the employment of each employee.
During the year employer contributions (including salary sacrifice amounts) to superannuation plans totalled $156,933 (2021: $173,715).

25. Contingent liabilities

There were no material contingent liabilities not provided for in the financial statements of the Group as at 30 June 2022 other than:
Native Title and Aboriginal Heritage
Native title claims have been made with respect to areas which include tenements in which the Group has an interest. The Group is unable to determine
the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent the claims may significantly affect the Group or
its projects. Agreement is being or has been reached with various native title claimants in relation to Aboriginal Heritage issues regarding certain areas in
which the Group has an interest.

26. Events subsequent to balance date

On 14 September 2022, Altech announced that it had entered into a Joint Venture with Fraunhofer IKTS in relation to commercialisation of a 100 MWh
Sodium Alumina Solid State Battery Plant for grid storage.
Further, there has not arisen since the end of the financial year any other item, transaction or event of a material and unusual nature likely, in the opinion
of the directors of the Company to affect substantially the operations of the Group, the results of those operations or the state of affairs of the Group in
subsequent financial years.

27. Parent entity disclosure 30-Jun-22 30-Jun-21

$ $
STATEMENT OF FINANCIAL POSITION
ASSETS
Current assets 11,055,759 6,654,844
Non-Current assets 92,252,694 87,026,385
TOTAL ASSETS 103,308,454 93,681,229

LIABILITIES
Current liabilities 560,654 535,855
Non-Current liabilities 158,930 154,055
TOTAL LIABILITIES 719,583 689,910
NET ASSETS 102,588,871 92,991,319

EQUITY
Issued capital 124,487,777 107,509,911
Accumulated losses (23,661,275) (21,865,368)
Share based payments reserve 1,762,369 7,346,777
TOTAL EQUITY 102,588,871 92,991,319

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Net profit / (loss) (4,394,441) 4,688,626
Total comprehensive loss for the year (4,394,441) 4,688,626

- 45 -
 ALTECH CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022

28. Controlled entities

Investments in controlled entities comprise:
Beneficial percentage
held by economic
entity
Name Principal activities
2022 2021
% %
Altech Chemicals Ltd Parent entity

Wholly owned and/or controlled entities:

Altech Chemicals Sdn Bhd (Malaysia) 100 100 HPA Plant

Battery Materials
Altech Industries Germany GmbH 75 75
Plant

Altech Meckering Pty Ltd 100 100 Kaolin Mine

Intellectual
Altech Chemicals Australia Pty Ltd 100 100 Property/Patent
Holder
Canning Coal Pty Ltd 100 100 Mineral exploration
Altech Chemicals Sdn Bhd is incorporated in Malaysia, and Altech Industries Germany GmbH is incorporated in Germany, all other controlled
entities are incorporated in Australia. Altech Chemicals Limited is the head entity of the consolidated group, which includes all of the controlled
entities.

- 46 -
 ALTECH CHEMICALS LIMITED
DIRECTORS’ DECLARATION
For the year ended 30 June 2022

The Directors of the Company declare that:

1. The financial statements and note, as set out on pages 1-46, are in accordance with the Corporations Act 2001:

(a) comply with Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements, constitutes
compliance with International Financial Reporting Standards (IFRS); and

(b) give a true and fair view of the financial position as at 30 June 2022 and of the performance for the year
ended on that date of the consolidated group.

2. The Managing Director and Chief Financial Officer have given the declaration required by s295A of the Corporations Act 2001.

3. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when
they become due and payable.

This declaration is made in accordance with a resolution of the board of directors and is signed by authority for and on behalf of
the directors by:

Iggy Tan
Managing Director
DATED at Perth this 21st day of September 2022

- 47 -
 ALTECH CHEMICALS LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2022

The board of directors of Altech Chemicals Limited (“ATC”) is committed to conducting the Company’s business in
accordance with the highest standards of corporate governance. The board is responsible for the Company’s Corporate
Governance and the governance framework, policy and procedures, and charters that underpin this commitment. The board
ensures that the Company complies with the corporate governance requirements stipulated in the Corporations Act 2001
(Cth), the ASX Listing Rules, the constitution of the Company and any other applicable laws and regulations.

The table below summarises the Company’s compliance with the ASX Corporate Governance Councils Corporate
Governance Principles and Recommendations (4th Edition), in accordance with ASX Listing Rule 4.10.3.

Principles and Recommendations Disclosure Compliance

Principle 1 – Lay solid foundations for management and oversight
1.1 A listed entity should disclose: These matters are disclosed in the Company’s Complies
(a) the respective roles and responsibilities of Board Charter, which is available on the
its board and management; and Company’s website
(b) those matters expressly reserved to the
board and those delegated to management
1.2 A listed entity should: When a requirement arises for the selection, Complies
(a) undertake appropriate checks before nomination and appointment of a new directs, the
appointing a director or senior executive or board forms a sub-committee that is tasked with
putting someone forward for election as a this process, and includes undertaking
director; and appropriate checks and any potential candidates.
(b) provide security holders with all material
information in its possession relevant to a When directors retire and nominate for re-election, Complies
decision on whether or not to elect or re- the board does not endorse a director who has
elect a Director not satisfactorily performed their role.
1.3 A listed entity should have a written agreement The company executes a letter of appointment Complies
with each director and senior executive setting with each director and services agreements with
out the terms of their appointment. senior executives.
1.4 The company secretary of a listed entity should The Company Secretary reports to the chair of the Complies
be accountable directly to the board, through board on all matters to do with the proper function
the chair; on all matters to do with the proper of the board.
functioning of the board.
1.5 A listed entity should: Due to its size and limited scope of operations, the Does not comply
(a) have and disclose a diversity policy; Company does not currently have a diversity
(b) through its board or a committee of the policy.
board set measurable objectives for
achieving gender diversity in the As the Company's activities increase in size,
composition of its board, senior executives scope and/or nature, the board will consider the
and workforce generally; and appropriateness of adopting a diversity policy.
(c) disclose in relation to each reporting
period:
(1) the measurable objectives set for that
period to achieve gender diversity;
(2) the entity’s progress towards
achieving those objectives; and
(3) either:
(A) the respective proportions of
men and women on the board,
in senior executive positions
and across the whole workforce
(including how the entity has
defined “senior executive” for
these purposes); or
(B) if the entity is a “relevant
employer” under the Workplace
Gender Equality Act, the entity’s
most recent “Gender Equality
Indicators”, as defined in and
published under the Act.
 ALTECH CHEMICALS LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2022

Principles and Recommendations Disclosure Compliance

1.6 A listed entity should: The board currently undertakes, on an annual Complies
(a) have and disclose a process for basis, an internal formal evaluation of the
periodically evaluating the performance of performance of the board and individual directors.
the board, its committees and individual In addition to this, the Chairman provides informal
directors; and feedback to individual board members on their
(b) disclose for each reporting period whether performance and contribution to board meetings,
a performance evaluation has been on an ongoing basis.
undertaken in accordance with that
process during or in respect of that period.
1.7 A listed entity should: The performance of all senior executives is Complies
(a) have and disclose a process for evaluating evaluated on an annual basis by the Managing
the performance of senior executives at Director and in the case of the Managing Director,
least once every reporting period; and by the board.
(b) disclose for each reporting period whether
a performance evaluation has been
undertaken in accordance with that
process during or in respect of that period.

Principle 2 – Structure the board to be effective and add value

2.1 The board of a listed entity should: Due to its size and limited scope of operations, the Does not comply
(a) have a nomination committee which: Company does not currently have a nomination
(1) has at least three members, a majority committee, however board sub-committees are
of whom are independent directors; formed, as required, to manage matters that would
and normally be dealt with by a formally constituted
nomination committee, as was the case with the
(2) is chaired by an independent Director;
search and appointment of the current Managing
and disclose: Director.
(3) the charter of the committee;
(4) the members of the committee; and As the Company's activities increase in size,
(5) as at the end of each reporting period, scope and/or nature, the board will consider the
the number of times the committee appropriateness of a nomination committee.
met throughout the period and the
individual attendances of the members
at those meetings; or
(b) if it does not have a nomination committee,
disclose that fact and the processes it
employs to address board succession
issues and to ensure that the board has
the appropriate skills, knowledge,
experience, independence and diversity to
enable it to discharge it duties and
responsibilities effectively.
2.2 A listed entity should have and disclose a board A copy of the board skill matrix is appended to Complies
skills matrix setting out the mix of skills that the this Corporate Governance Statement.
board currently has or is looking to achieve in its
membership.
2.3 A listed entity should disclose: Mr Peter Bailey is considered by the board to be Complies
(a) the names of the directors considered by an independent director and this is disclosed on
the board to be independent directors; the Company web site and in its annual and half-
(b) if a director has an interest, position or yearly director reports.
relationship of the type described in Box
2.3 but the board is of the opinion that it The length of service of each director is disclosed
does no compromise the independence of in the Company’s annual and half yearly director
the director, the nature of the interest, reports and in notices of meetings when directors
position or relationship in question and an are nominated for re-election.
explanation of why the board is of that
opinion; and
(c) the length of service of each director.
 ALTECH CHEMICALS LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2022

Principles and Recommendations Disclosure Compliance

2.4 A majority of the board of a listed entity should Mr Peter Bailey is the only independent member Does not comply however the
be independent directors. of the Company’s board. board is of the view that the skills
and experience of the directors
allow the board to act in the best
interests of shareholders and is
appropriate for the size of the
Company.
2.5 The chair of the board of a listed entity should Mr Luke Atkins is the Chairman and is not an Does not comply, however the
be an independent director and, in particular; independent Non-Executive Director. board is of the view that this is
should not be the same person as the CEO of appropriate for the Company,
the entity. considering its size and stage of
development.
2.6 A listed entity should have a program for The Company Secretary and Managing Director Complies
inducting new directors and for periodically ensure the comprehensive induction of all new
reviewing whether there is a need for existing directors to the Company, this includes site visits,
directors to undertake professional development presentations and meetings with executives.
to maintain the skills and knowledge needed to All directors are afforded opportunities for ongoing
perform their role as directors effectively. professional development at Company expense.
Principle 3 – Instil a culture of acting lawfully, ethically and responsibly
3.1 A listed entity should articulate and disclose its The Board is committed to the development of a Does not Comply
values statement of values.
3.2 A listed entity should: The Company code of conduct is available on the Complies
(a) have and disclose a code of conduct for its Company web site.
directors, senior executives and
employees; and
(b) ensure that the board or a committee of
the board is informed of any material
breaches of that code.
3.3 A listed entity should: The Company’s Whistleblower Policy is available Complies
(a) have and disclose a whistleblower policy; on the Company web site.
and
(b) ensure that the board or a committee of
the board is informed of any material
incidents reported under that policy
3.4 A listed entity should: An anti-bribery and corruption policy is available Complies
(a) have and disclose an anti-bribery and on the Company web site.
corruption policy; and
(b) ensure that the board or a committee of
the board is informed of any material
breaches of that policy
 ALTECH CHEMICALS LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2022

Principles and Recommendations Disclosure Compliance

Principle 4 – Safeguard the integrity of corporate reports
4.1 The board of a listed entity should: The Board has approved the formation of an Audit Complies
(a) have an audit committee which: and Risk Management Committee. The Audit and
(1) has at least three members, all of Risk Management Committee Charter is available
whom are non-executive directors on the Company’s website.
and a majority of whom are
independent directors; and
(2) is chaired by an independent
director; who is not the chair of the
board,
and disclose:
(3) the charter of the committee
(4) the relevant qualifications and
experience of the members of the
committee; and
(5) in relation to each reporting period,
the number of times the committee
met throughout the period and the
individual attendances of the
members at those meetings; or
(b) if it does not have an audit committee,
disclose that fact and the processes it
employs that independently verify and
safeguard the integrity of its corporate
reporting, including the processes for the
appointment and removal of the external
auditor and the rotation of the audit
engagement partner.
4.2 The board of a listed entity should, before it The board does receive a statement signed by the Complies
approves the entity’s financial statements for a Managing Director and the Chief Financial Officer.
financial period, receive from its CEO and CFO a
declaration that, in their opinion, the financial
records of the entity have been properly
maintained and that the financial statements
comply with the appropriate accounting standards
and give a true and fair view of the financial
position and performance of the entity and that
the opinion has been formed on the basis of a
sound system of risk management and internal
control which is operating effectively.
4.3 A listed entity should disclose its process to This process is currently being documented. Once Does not comply
verify the integrity of any periodic corporate this documentation is complete, a copy of the
report it releases to the market that is not process will be available on the Company
audited or reviewed by an external auditor. website.
Principle 5 – Make timely and balanced disclosure
5.1 A listed entity should have and disclose a The Company does have a Continuous Disclosure Complies
written policy for complying with its continuous policy, which is available on the Company web
disclosure obligations under listing rules 3.1 site.
5.2 A listed entity should ensure that its board The board does receive copies of all market Complies
receives copies of all material market announcement, whether material or not,
announcements promptly after they have been immediately after lodgement with the market.
made
5.3 A listed entity that gives a new and substantive All new and substantive investor or analyst Complies
investor or analyst presentation should release presentations are released to ASX ahead of
a copy of the presentation materials on the ASX presentation.
Market Announcements Platform ahead of the
presentation
 ALTECH CHEMICALS LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2022

Principles and Recommendations Disclosure Compliance

Principle 6 – Respect the rights of security holders
6.1 A listed entity should provide information about The company does provide information about its Complies
itself and its governance to investors via its governance on the Company’s web site.
website.
6.2 A listed entity should have an investor relations The Company has implemented an investor Complies
program that facilitates effective two-way relations program targeting retail investors and
communication with investors. encourages all investors or potential investors
to communicate with the Company via its web
site.
6.3 A listed entity should disclose how it facilitates The Company Shareholder Communication Complies
and encourages participation at meetings of Policy is available on the Company web site.
security holders.
6.4 A listed entity should ensure that all substantive All resolution at the Company’s 2021 annual Complies
resolutions at a meeting of security holders are general meeting of shareholders were determined
decided by a poll rather than by a show of by poll
hands.
6.5 A listed entity should give security holders the Security holder can elect to receive Complies
option to receive communications from, and communications from the Company electronically
send communications to, the entity and its either by contacting the Company’s share
security registry electronically. registrar, or the Company directly.
Principal 7 – Recognise and manage risk
7.1 The board of a listed entity should: The Board has approved the formation of an Audit Complies
(a) have a committee or committees to and Risk Management Committee. The Audit and
oversee risk, each of which: Risk Management Committee Charter is available
(1) has at least three members, a majority on the Company’s website.
of whom are independent directors;
and
(2) is chaired by an independent director
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period,
the number of times the committee
met throughout the period and the
individual attendance of the members
at those meetings; or
(b) if it does not have a risk committee or
committees that satisfy (a) above, disclose
that fact and the processes it employs for
overseeing the entity’s risk management
framework.
7.2 The board or a committee of the board should: The board reviews the management framework Complies
(a) review the entity’s risk management annually.
framework at least annually to satisfy itself
that it continues to be sound and that the
entity is operating with due regard to the
risk appetite set by the board; and
(b) disclose, in relation to each reporting
period, whether such a review has taken
place.
7.3 A listed entity should disclose: The Company does not currently have an internal Does not comply.
(a) if it has an internal audit function, how the audit function. The board considers that the
function is structured and what role it Company is not of a size that currently warrants
performs; or an internal audit function.
(b) if it does not have an internal audit
function, that fact and the processes it
employs for evaluating and continually
improving the effectiveness of its
governance, risk management and internal
control processes.
 ALTECH CHEMICALS LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2022

Principles and Recommendations Disclosure Compliance

7.4 A listed entity should disclose whether it has The Company does make these disclosures Complies
any material exposure to environmental or
social risks and, if it does, how it manages or
intends to manage those risks.
Principle 8 – Remunerate fairly and responsibly
8.1 The board of a listed entity should: The Company has set up a Remuneration Partly Complies
(a) have a remuneration committee which:: Committee which has four members comprising
(1) has at least three members, a majority the Non-Executive Chairman, two Non-Executive
of whom are independent directors; Directors and the Managing Director. Only one
and director is considered independent and the
Remuneration Committee is not chaired by an
(2) is chaired by an independent director
independent director.
and disclose
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period,
the number of times the committee
met throughout the period and the
individual attendance of the members
at those meetings; or
(b) if it does not have a remuneration
committee, disclose that fact and the
processes it employs for setting the level
and composition of remuneration for
directors and senior executives and
ensuring that such remuneration is
appropriate and not excessive.
8.2 A listed entity should separately disclose its The Company discloses its practices in relation to Complies
policies and practices regarding the the remuneration of non-executive directors,
remuneration of non-executive directors and the executive directors and senior executives in its
remuneration of executive directors and other annual remuneration report.
senior executives.
8.3 A listed entity which has an equity-based The company’s Security Trading Policy obliges all Complies
remuneration scheme should: directors, officers and employees of the Company
(a) have a policy on whether participants are to advise the Company, via the company
permitted to enter into transactions secretary, or any securitisation of Company
(whether through the use of derivatives or securities. A copy of the policy is available on the
otherwise) which limit the economic risk of Company’s web site.
participating in the scheme; and As at the date of this statement the company
(b) disclose that policy or a summary of it secretary has not been advised by an officer or
employee of the Company of any securitisation of
Company securities that they own.

As the Company's activities increase in size, scope and/or nature, the Company's corporate governance principles will be
reviewed by the board and amended as appropriate.
Further details of the Company's corporate governance policies and practices are available on the Company's website at
www.altechchemicals.com.
 ALTECH CHEMICALS LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2022

Board experience, skills and attributes matrix

Experience, skills and attributes Altech Chemicals Limited board

Total directors 7

Experience
Corporate leadership 7
International experience 7
Resources Industry experience 5
Other board level experience 7
Capital projects experience 7
Equity and debt raising / capital markets 6
Alumina and/or chemicals industry experience 4
Knowledge and skills
Legal 1
Minerals and/or chemicals processing 4
Engineering and project development 4
Finance and Accounting 3
Tertiary qualifications
Law 1
Engineering 4
Commerce/Business 2
 ALTECH CHEMICALS LIMITED
ASX ADDITIONAL INFORMATION
For the year ended 30 June 2022

The shareholder information set out below was applicable as at 18 October 2022.

Altech Chemicals Ltd has its registered office at Suite 8, 295 Rokeby Road, Subiaco, Western Australia, Australia, 6008. The telephone
number is +61 8 6168 1555. Altech shares are listed on the Australian Securities Exchange as well the Frankfurt Stock Exchange.

COMPANY SECRETARY
The name of the Company Secretary is Mr Martin Stein.

TWENTY LARGEST HOLDERS OF LISTED SECURITIES

The names of the twenty largest holders of each class of listed securities are listed below:

Ordinary Shares
No of Percentage
Name Ordinary % of Issued
Shares Held Shares
DEUTSCHE BALATON AKTIENGESELLSCHAFT 168,291,263 11.80%
MAA GROUP BERHAD 90,995,691 6.38%
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT 70,812,687 4.96%
SMS INVESTMENTS S A 57,418,528 4.02%
CITICORP NOMINEES PTY LIMITED 53,405,739 3.74%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 53,269,264 3.73%
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM 50,598,374 3.55%
BNP PARIBAS NOMS PTY LTD <DRP> 32,376,950 2.27%
MR YUSUF KUCUKBAS <YASEP A/C> 13,940,000 0.98%
MR KENNETH JOSEPH HALL <HALL PARK A/C> 13,380,000 0.94%
LAKE MCLEOD GYPSUM PTY LTD 11,408,202 0.80%
BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT DRP> 7,640,708 0.54%
MR PETER JOSEPH BOURKE & MRS KERRIE LEEANNE JONES <BOURKE SUPER FUND A/C> 7,573,000 0.53%
MR IAN EWART HALFORD 7,282,897 0.51%
MR JOHN SMITH & MS BARBARA SMITH <JOHN R SMITH FAMILY A/C> 7,140,000 0.50%
NATIONAL NOMINEES LIMITED 7,121,212 0.50%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 6,872,142 0.48%
MR BASIL CATSIPORDAS 6,000,000 0.42%
MR LINDSAY GEORGE DUDFIELD & MRS YVONNE SHEILA DOLING DUDFIELD 5,745,497 0.40%
LJ & K THOMSON PTY LTD <LJT & KT SUPER FUND A/C> 5,600,000 0.39%
Total Top 20 676,872,154 47.44%
Others 749,893,715 52.56%
Total Ordinary Shares on Issue 1,426,765,869 100.00%

DISTRIBUTION OF EQUITY SECURITIES

Analysis of numbers of security holders by size of holding as at 18 October 2022:

Ordinary Shares
Distribution Number of % of Issued
Shareholders Number of Shares Shares
1 – 1,000 194 15,184 0.00%
1,001 – 5,000 370 1,563,465 0.11%
5,001 – 10,000 1,103 9,268,841 0.65%
10,001 – 100,000 3,395 145,280,684 10.18%
100,001 – and over 1,374 1,270,637,695 89.06%
Totals 6,436 1,426,765,869 100.00%
 ALTECH CHEMICALS LIMITED
ASX ADDITIONAL INFORMATION
For the year ended 30 June 2022

SUBSTANTIAL SHAREHOLDERS

The names of the substantial shareholders listed in the holding Company's register as at 18 October 2022 are:
Number of % of Issued
Substantial Shareholder Shares Shares
DEUTSCHE BALATON AKTIENGESELLSCHAFT/ DELPHI UNTERNEHMENSBERATUNG 239,103,950 16.76%
AKTIENGESELLSCHAFT
MELEWAR EQUITIES (BVI) LIMITED & MAA GROUP BERHAD 135,034,675 9.46%

UNMARKETABLE PARCELS
The Company has 653 holders of unmarketable parcels, being a parcel of shares less than $500.

UNQUOTED SECURITIES
Altech has unquoted securities totalling 30,050,000 Performance Rights held by a total of 20 holders.

The names of the holders holding more than 20% of each class of unlisted securities are listed below:

Performance Rights
Holder Number
Managing Director Performance Rights
Iggy Tan 15,000,000

VOTING RIGHTS
Subject to any rights or restrictions for the time being attached to any shares or class of shares of the Company, each member of the
Company is entitled to receive notice of, attend and vote at a general meeting. Resolutions of members will be decided by a show of
hands unless a poll is demanded. On a show of hands each eligible voter present has one vote. However, where a person present at
a general meeting represents personally or by proxy, attorney or representative more than one member, on a show of hands the
person is entitled to one vote only despite the number of members the person represents.

On a poll each eligible member has one vote for each fully paid share held and a fraction of a vote for each partly paid share determined
by the amount paid up on that share.

ON-MARKET BUY BACK

There is currently no on-market buyback program for any of Altech Chemicals Limited’s listed securities.

EXPLORATION AND MINING INTERESTS

As at 30 June 2022, the Company has an interest in the following tenements:

ATC
Tenement ID Registered Holder Location Project Grant Date
Interest
M70/1334 Altech Meckering Pty Ltd WA Australia Meckering 100% 19/05/16
E70/4718-1 Canning Coal Pty Ltd WA Australia Kerrigan 100% 1/12/15