#1otassium Sulphate Mg SON SO Standard Potassium Sulphate from aime Wecoorpasigh of p 518 Mg Soluble Potassium Sulphate nduct Mg October 2020 Danakali's Unique Colluli Development: A Global Game Changer Low cost Premium product Development underway Production and revenue in 2022 DANAKALI create. nurture. grow ASX: DNK | LSE: DNK | ADR: DNKLY Various European OTC: SO3 (e.g. FRA: SO3 | MUN: SO3)#2Danakali Investment Highlights 888 200 YEARS High quality Board and Executive team with deep project execution experience Binding 10-year offtake with EuroChem + 3y renewal US$250M of funding (US$221.5M committed, subject to satisfaction of CP's*, US$28.5M subject to negotiation** Sulphate of Potash (SOP) is the premium, high margin potash type First quartile operating costs - <US$150/t (mine gate) Unrivalled scale - 1.1Bt Ore Reserve and 200-year mine life Strong cash flow - US$85M p.a. to Danakali at full production Lowest capital intensity and highest returns Danakali NPV10, Real US$439m, IRR 31.3%1 - FEED Study Low cost Premium product Development underway Production and revenue in 2022 1. DNK Announcements, 29 Jan 18, 30 Nov 15. * US$200m of Senior Debt subject to the satisfaction of conditions precedent ** DNK Announcement 26 October 2020 DANAKALI#3High quality Board and Executive team Strong, energetic and accomplished Executive team supported by experienced, multi-disciplinary Board Executive team Niels Wage Chief Executive Officer Significant potash, shipping, logistics, trading and commodity experience including at BHP Stuart Tarrant Chief Financial Officer Extensive mining industry exposure, previously a finance manager at BHP Tony Harrington Project Director Over 30 years' experience across a range of mining projects in Africa and globally Dr Rod McEachern Chief Operating Officer Significant most recent experience with Nutrien Ltd related to potash mining, production, process engineering, logistics, safety and environmental compliance. Danakali Board Seamus Cornelius Non-Executive Chairman Corporate lawyer with over 20 years' experience in the resource sector Bob Connochie Non-Executive Director Highly experienced potash and mining specialist with over 40 years' industry experience John Fitzgerald Non-Executive Director Chartered Accountant with over 30 years' finance and corporate advisory experience in the resource sector Zhang Jing Non-Executive Director Over 15 years of international trading and business development experience in China Samaila D. Zubairu Non-Executive Director DANAKALI President and Chief Executive Officer Africa Finance Corporation (AFC). Extensive project finance experience in green-field project finance, acquisitions and equity capital market transactions Taiwo Adeniji Non-Executive Director Senior Director for Investment Operations & Execution, Africa Finance Corporation (AFC). Extensive in infrastructure investments and financial sector development Neil Gregson Non-Executive Director Mining/finance industry professional with extensive investor market, finance, portfolio management and leadership experience. Senior roles within Credit Suisse and most recently at JPM Global Natural Resources Fund.#4Key project metrics Front End Engineering Design (FEED) economic estimates and outcomes 1,2 100% of the Project (equity / pre-debt basis) Annualised SOP production Module I development capital6 Incremental Module II development capital 5,6 Capital intensity6 Incremental Module Il capital intensity6 Average mine gate cash costs? Average total cash costs 7,8 Average annual undiscounted free cash flows? Post tax NPV (10% real) Post tax IRR Danakali's 50% share of the Project (post finance basis) Average annual undiscounted free cash flows? Post finance NPV (10% real) - POST TAX Post finance IRR- POST TAX Module 13 Modules I & ||4,5 472ktpa 944ktpa US$302M US$202M US$640/t US$534/t US$427/t US$165/t US$149/t US$258/t US$242/t US$88M US$173M US$505M US$902M 28.1% 29.9% US$43M US$242M 29.7% US$85M US$439M 31.3% 1 DNK announcement 29 January 2018 2 Economic estimates and outcomes reported in US$ real 3 5 Assumed 100% funded from project cash flows and third-party debt 6 Including contingency, excluding sustaining and working capital 7 Assumed that Module I is 60% debt / 40% equity funded Average for first 60 years of production 4 Module Il production expected to commence in year 6 8 Includes mine gate cash costs, product logistics, and royalties DANAKALI#5Sulphate of Potash - Project Comp Economics Post-Tax Company DANAKALI KALIUM PM TAKES REWARD MINERALS LTD agrimin SALT LAKE POTASH LTD THE AUSTRALIAN COMPANY SOP Lake Wells (5) م DANAKALI Lake Project- Colluli Beyondie Potash (1) Lake Mackay (3) Lake Way (4) Disappointment (2) Prefinancing A$1,905m(7) A$402m A$293m A$922m A$497m A$541m NPV (Post Tax) 30% 23% 15% 21% 28% N/A% IRR (Post Tax) A$973/t(6) A$1,714/t A$ 1,156/t A$922/t A$1,038/t A$1,387/t Capital Intensity A$457m A$280m A$320m A$415m A$256m A$268m Initial Capex $m 8% 8% 8% 8% 8% 8% Disc Rate (Post Tax) A$790/t A$714/t A$714/t A$714/t A$786/t A$733 SOP Price Estimate (2017) (2017) (2019) (2018) (2019) (2019) 3.25 Years 5.5 Years 6.0 Years 4.2 Years 3.5 Years 4.0 Years Payback (Post Tax) Mine Life 200 years 30+ years 23 years 40 years 20 years 30 years (1) Kalium Company Announcements. 21 May 2020. Note FEED SOP Price, 4 March 2019 US$606/t or AU$865 using FX AUD: USD $0.70 as at 20 Oct 2020. Company Announcements: 18 Sept 2018, 4 October 2017 (2) Reward Company Announcements 2 October 2019. (3) Agrimin Company Announcements: 21 Jul 2020: Investor Presentation July 2020 (4)SO4 Company Announcements: 11 October 2020: Outstanding Bankable Feasibility Study. FX rate AUD:USD as at 20 October 2020 AU$0.70: US$1.00.(5) Australian Potash Announcements: 17 December 2019 & 13 August 2020. (6) Module 1 only, Assumes a capex of US$322 and 472 ktpa SOP production. (7) Module 1 &2. DNK owns 50% of the Colluli Project that has a NPV (Post Tax) of A$1,905m. DNK share of the NPV (Post Tax) is A$952.5m, 8% discount rate and includes corporate tax and royalties, FX rate of 0.70, Standard Chartered Bank Financial DNK Model: Dated as at 20 October 2020. Note this excludes project expansion related to other export opportunities. Note all previously announced NPV, IRR, Discount Rate have been at a post tax basis and all prices in US$. These figures have been provided specifically to compare DNK against Australian project economics use AU$#6AFC is a strong partner for Danakali, Colluli and Eritrea AFC is a leading investment bank and development finance institution created to help mobilise required capital towards driving Africa's development • Expertise in principal investing, project development and financial advisory External funding from commercial markets, Euro & Green Bond issuance require commercial returns • Addressing Africa's infrastructure development needs • Comprised of 27 African Member States (including recent addition Eritrea) and 3 Multilateral Organisations Broad investment footprint with US$8.0 billion cumulative amount disbursed across 32 African countries* "AFC's mandate is to develop Africa and ensure that more of the value of the continent's resources benefit the continent's people through the creation of jobs and opportunities along with improving living standards. AFC are fully committed to seeing Colluli developed as quickly and safely as possible and look forward to working with the key stakeholders, ENAMCO, Afreximbank and Danakali on this important objective and ensure the project is fully funded as soon as possible so production commences in 2022." Samaila D Zubairu President and CEO of AFC 26 October 2020 *Figures as at December 2019 DANAKALI#7Binding offtake provides cash flow certainty EuroChem will take, pay, market and distribute up to 100% of Colluli Module I SOP production¹ CMSC has the option to retain and sell up to 13% through alternative sales channels EUROCHEM • 10 year term with 3 year extension option¹ • Leading global fertiliser producer² Integrated mining, fertiliser production, logistics and distribution² • CY2019 revenue of US$6.1Bn and EBITDA of US$1.55Bn² Offtake is critical for lenders and underpinned senior debt facilities First long term take or pay SOP contract in the world to be executed Highly competitive process for EuroChem to win offtake agreement Secured 472ktpa of SOP 1 DNK announcement, 12-Jun-18 2 Eurochem 2019 Annual Report DANAKALI Danakali's Chairman and Chief Executive Officer visited EuroChem's Antwerp, Belgium fertiliser production facility#8Funding Overview US$250M of funding provides the majority of development capital, subject to satisfaction of CP's* AFC and Afreximbank have extensive experience in providing finance to African projects Documentation executed for US$200M in senior debt from AFC and Afreximbank in December 2019 Includes export credit support from the Export Credit Insurance Corporation of South Africa US$21.5M equity investment from AFC received in December 2019 US$28.5M (credit approved by AFC, structure to be determined and subject to negotiation)** Module I working capital US$20M Module I development capital US$302M Uses → AFC AFREXIMBANK AICA FRANCE CORPORATION Mandated Lead Arrangers *US$200m of Senior Debt subject to the satisfaction of conditions precedent. DNK ASX announcement 26 Oct 2020 DANAKALI Balance US$100M AFC (Credit Approved by AFC) US$28.5m AFC equity investment US$21.5M Sources Senior debt US$200M Funding partners Senior debt Strategic equity investor Corporate financial adviser Export credit AFC AFRICA FINANCE CORPORATION Standard Chartered ESTABLISHED IN 2001 (ECIO INSURANCE ON OF SOUTH AFRICA SOC LTD CORPORATION#9Progress update Project has been significantly de-risked; now in development Phased EPCM process started by DRA Global Notice of Mine Development Commencement accepted by Eritrean Ministry of Energy and Mines EPCM phases 1 & 2 Mobilisation EPCM phases 3 - 6 Construction EPCM phases 1&2 complete Construction expected in 2021 Production targeted for 2022 Production DANAKALI#10Eritrea as a Mining Jurisdiction Danakali has been operating in Eritrea since 2009 and has found the country to be safe, stable and development focused Stable, supportive Government Simple, predictable tax conditions Pragmatic and business- friendly mining policies No evidence of corruption Improved geopolitical dynamics $ Significant community support * Safe and secure operational environment Improving infrastructure A DANAKALI#11Developing mining jurisdiction Bisha Mine Owned 55% by Zinjin Mining 45% by ENAMCO First industrial mine in the country since independence (1991) Gold, copper, zinc 1468 Employees, 95% Eritrean Sold for CA$ 1.86 Billion to Zijin Mining (2018) Zara Mining Share Company Owned 60% by China SFECO Group (sub of Shanghai Construction Group Co.) & 40% by ENAMCO Gold, copper, zinc 80 - 140koz 134 employees, 93% Eritrean M&A: Purchased from Australian miner Chalice Gold in 2014 for US$ 78M Asmara Mining Share Company Owned 60% by China Sichuan Road & Bridge Mining Inv Dev Corp. & 40% by ENAMCO Copper, zinc, gold, silver 230 employees, 94% Eritrean Purchased from Canadian miner Sunridge Gold in 2016 for US$ 65M SBM 世邦集团 DANAKALI#12Infrastructure Proximity to a Coastline Proximity to established port infrastructure provides unrivalled access to the global export markets and significant cost advantage • Massawa Existing port for export 230 ERITREA ETHIOPIA km Anfile Bay 87 km Proposed future port Colluli Mining and processing site DANAKALI create, nurture. grow#13Mineralisation commences at just 16m . Shallowest known evaporite deposit • Open-cut mining allows modular approach • Favourable combination of potassium salts for low energy SOP production • Limited environmental footprint • Opportunities for expansion • Solid salts layered with distinctive features Gypsum CaSO Stratification of the Colluli Resource¹ • Solid Salts are layered with distinction; with homogenous, predictable grade; allows ⚫ selective extraction; and • ⚫ reliable production rates Clastics Upper Rock Salt NaCl Sylvinite KCI Carnallitite KMgCl, Kainitite KMg(SO)CI Shallow deposit starting at 16m ASX announcements 29-Jan-18 and 19 Feb.18 DANAKALI Drill core from Colluli Ore Reserve#14Simple, Safe, Low-cost Mining & Processing 16m Simple, safe, low cost, open-cut mining Processing from solid salts Low complexity commercially proven processing technology .................. Lun.e Mine Crush/Float/Mix/Dry Transport to port Shipping Customer DANAKALI#15Overall production process Onsite Red Sea Water WITA 一層 bore field Reverse Osmosis/Portable Water Plant 豫一 Desalination Plant Solid Salts from Open Pit Mine KCI:NaCl Sylvinite KMgCl2 Carnallitite KMg(SO4)CI Kainitite 润 Process Plant Kainite/Carnallite Brine 0 DANAKALI create. nu tur grow Granular SOP K2SO4 Standard SOP K2SO4 个个个 一个个个 Evaporation Ponds To Port From Open Pit Mine Dry Harvester Short period ore to product MgCl2 Tails Pond K#16DANAKALI SOP is the premium, high margin potash type SOP is an environmentally-friendly, chloride-free source of Potassium and Sulphur SOP prices are typically 2-3x MOP prices SOP is used to enhance yields for high value crops such as fruits, vegetables, coffee, tea and nuts Demand driven by rapidly growing middle class in developing nations and changing dietary preferences globally and global population growth Limited primary production available Secondary production (typically the high cost, energy intensive and environmentally unfriendly Mannheim Process1) accounts for over 50% of supply MOP KCI ~67Mtpa US$200-300/t* Low value, chloride tolerant *Price range between Jan. 2014 - Jan. 2020 SOPK2SO4 ~7Mtpa US$450-600/t* High value, chloride sensitive or intolerant Source: CRU, DNK announcement 29-Jan-18 1 The Mannheim Process is the conversion of MOP to SOP through the addition of heat and sulfuric acid, hydrochloric acid is a by-product Price reporting agency CRU "global SOP prices to increase to 2023 as the market balance tightens with limited new capacity to enter production" 2 Includes MOP converted to SOP via Mannheim Process#17SOP Demand & Supply Fundamentals Demand Supply Increasing global population Primary Natural Ore Changing dietary preferences Limited arable land available Average CAGR growth around 2 - 2.4% (excluding China) Primary Natural Brine Secondary production DANAKALI 2% MOP & Sulphate 13% salts reaction 35% 50% SOP production structure Secondary Mannheim process Source: Potassium Sulphates and Potassium Nitrate Market Outlook, CRU, January 2020#18US$/t First Quartile Cost of Production Danakali will be one of the lowest cost SOP producers Mine gate production costs for global SOP producers¹ 650 600 550 500 450 400 350 300 250 200 150 100 Colluli Modules I & II Solid salt, open-cut mining, close to port Chinese primary production Large distances to ports, majority of production consumed within China² <US$150/t 50 50 (mine gate) 2 1 CRU Potassium Sulphates and Potassium Nitrate Market Outlook, Internal company research 2 Argus Mannheim Process production High energy, high cost and environmental issues² Over >50% of production Protects margins for primary producers Chilean primary production Brine mineralisation, co-product to lithium production 4 6 SOP production capacity (Mt) USA primary production Brine mineralisation, long evaporation timeframe 8 DANAKALI#19SOP Pricing dynamics SOP demand and supply dynamics support a robust pricing environment • SOP price provides attractive SOP price premium over MOP Baltic Std MOP FOB margins for low cost primary producers • SOP price premium to MOP has consistently remained above US$200/t for over 5 years O Premium is sustainable due to: - Mannheim Process conversion cost Mannheim Process environmental issues (carbon emissions and acid disposal) Limited SOP supply expansion Robust and growing SOP demand 350 SOP price premium over MOP (US$/t) 300 250 200 150 100 50 DANAKALI Jul-20 Apr-20 Jan-20 Oct-19 Jul-19 Apr-19 Jan-19 Oct-18 Jul-18 Apr-18 Jan-18 Oct-17 Jul-17 Apr-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jul-14 Apr-14 Jan-14 Oct-13 Jul-13 Apr-13 700 600 500 400 300 200 100 Potash price (US$/t)#20Danakali ESG Framework DANAKALI Contributing to 13 of 17 Sustainable Development Goals • The United Nations Development Programme reported Colluli's potential contributions to Eritrea's Sustainable Development Goals • Colluli highlighted as a blueprint for mining in developing countries Five areas of direct positive impact including environmental, people and society, and fiscal effects • IFC & Equator Principles EQUATOR PRINCIPLES + IFC € COLLULI MINING SHARE COMPANY SUSTAINABLE DEVELOPMENT GOALS NO 1 POVERTY 2 ZERO HUNGER SSS 3 GOOD HEALTH AND WELL-BEING 4 QUALITY EDUCATION 5 GENDER EQUALITY • Global food security, organic product "Colluli has the potential to boost the national economy [of Eritrea] and potentially transform agriculture in the region" Christian Parra and Dr P Anand UNDP report authors, Analysis of the potential contributions of Colluli to sustainable development goals in Eritrea, January 2019 6 CLEAN WATER AND SANITATION 8 DECENT WORK AND INDUSTRY, INNOVATION 10 REDUCED INEQUALITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 CLIMATE ACTION 16 PEACE, JUSTICE AND STRONG INSTITUTIONS 17 PARTNERSHIPS FOR THE GOALS QO UN DP#21Danakali investment summary Colluli will be a low cost, high margin producer of SOP Project execution is de-risked Board and Executive team with extensive project execution experience Colluli cash flows are de-risked Binding 10-year offtake agreement Colluli funding to date DANAKALI US$250M of funding (US$221.5M committed, subject to satisfaction of CP's³, US$28.5M subject to negotiation4) FEED Study: Free cash flow of US$85M p.a. to Danakali at full production Danakali NPV 10, Real of US$439m at an IRR of 31.3%¹ SOP is the premium, high margin potash product Used to increase yields for high value food crops, including fruit, vegetables, coffee, tea and nuts ✓ Development underway with production and revenue to occur in 2022 ¹DNK announcements, 29-Jan-18 & 30-Nov-15 2Average for first 60ys of production. 3 US$200m of Senior Debt subject to the satisfaction of conditions precedent 4DNK ASX announcement 26 Oct 2020.#22Thank you DANAKALI create. nurture. grow ASX: DNK | LSE: DNK | ADR: DNKLY Various European OTC: SO3 (e.g. FRA: SO3 | MUN: SO3)#23Appendix DANAKALI create. nurture. grow ASX: DNK | LSE: DNK | ADR: DNKLY Various European OTC: SO3 (e.g. FRA: SO3 | MUN: SO3)#24DANAKALI Unrivalled scale Colluli is the largest known SOP Resource and Reserve, with the largest production potential and longest life of mine of its SOP development and production peers (ex China) COLLULI RESOURCE AND RESERVE 1.3Bt Mineral Resource @ 11% K₂O for 260Mt of contained SOP 1.1Bt Ore Reserve @ 10.5% K₂O for 203Mt of contained SOP 1,000 Over 85% 800 of the Mineral Resource converts into Ore Reserve Source: DNK announcements, 29-Jan-18 & 19-Feb-18, peer announcements ktpa 600 400 200 COLLULI PRODUCTION AND LIFE OF MINE Almost 200 years of 944ktpa SOP production Clear potential to add further modules and ramp up production as market conditions allow Module II - 472ktpa Module I-472ktpa 2020 2050 2080 2110 2140 2170 2200 Year#25Market Potential (SOP Application Rates) Canada <1kg/ha USA 57kg/ha Latin America 10kg/ha Russia 7kg/ha Europe 43kg/ha China 71kg/ha Middle East 26kg/ha India Africa 4kg/ha 2kg/ha € Q Southeast Asia 1kg/ha Australia <1kg/ha Appropriate-use SOP markets SOP-under-applied markets Source: Argus, CRU, Statistics Canada, Australian Bureau of Statistics (2015 data) DANAKALI#26Closest known SOP deposit to a coastline 1 Distance to port for Colluli and other SOP greenfield development projects¹ AUSTRALIAN PROJECTS ETHIOPIAN PROJECTS Port 87km Colluli (potential) Anfile Bay 230km Colluli Massawa Peer company announcements, Google Maps Source: DNK announcement 29-Jan-18, peer company announcements 790km+ Circum (Danakil) Circum Tadjoura, Djibouti 790km Yara Dallol Yara Tadjoura, Djibouti Australian projects range from 700km to 1,500km away from the nearest established ports Beyondie Kalium Lakes Mackay Agrimin Darwin, NT, or Geraldton, WA Lake Disappointment Reward Port Hedland, WA Lake Wells Salt Lake Potash Esperance, WA Wyndham, WA Karinga Lakes Verdant Darwin, NT DANAKALI#27Population growth drives the requirement for SOP SOP increases yields in high value crops and is integral to navigating the global food security challenge Key demand drivers: 6000 Arable land per person (m²) Population (Bn) DANAKALI 12 22 1. Global population growth 5000 2. Reduction in arable 4000 5,200m² land per capita 3. Changing dietary preferences 3000 4. Under-application 2000 in developing countries 2.5Bn 1000 5. Water availability 3.6Bn (2000) 9.8Bn 10 8 Up to 5.7Bn (2050) 6 4 1,700m² Number of people living in water scarce areas globally¹ 0 1950 1970 1990 2010 2030 2050 Source: Integer Research, United Nations world population prospects (2015), Handelsblatt Research Institute "The Future of Agriculture and Food", FAOSTAT 2017, FAO 2012, UN Water Development Report 2019 1 'Water scarce' = without regular supply of water for at least 1 month in a year 2 0#28US$200M senior debt facility 2 leading African development financial institutions, AFC and Afreximbank, have executed documentation to provide CMSC with US$200M in senior debt finance To be funded equally by the Mandated Lead Arrangers Funds will be used for development and construction of the Project Endorsement of the strength of the Project Key enabler for further funding requirements Further step towards completing ground- breaking project financing in Eritrea Key terms Facility type and value Mandated Lead Arrangers Credit risk insurance Borrower Guarantors Tenor Margin Covenants Availability Details • · • Senior secured loan facilities of US$200M • AFC and Afreximbank e ECIC • CMSC DANAKALI Danakali, STB Eritrea Pty Ltd (fully owned subsidiary of Danakali) and ENAMCO 7 years from financial close, based on a scheduled amortisation profile 8.5% p.a. over 3-month LIBOR Customary positive, negative and financial covenants and undertakings for a funding facility of this nature For a period of up to 24 months after financial close; and After satisfaction of all conditions precedent "The finalisation of debt funding for Colluli brings it one step closer to making a significantly positive impact on the Eritrean economy and its people. Colluli has the potential to significantly boost the Eritrean economy while providing benefits to Eritreans through improved agricultural productivity, training and employment" Berhane Habtemariam, ENAMCO General Manager and Eritrean Minister of Finance Source: DNK announcement, 5-Aug-19#29Plant production process Saline Storage Tank Desalination Plant Flotation Ө Deslime Carnallitite/Sylvinite Roll/Impact Crusher Carnallite decomposition Centrifuge Reverse Osmosis/ Portable Water Thickener Fine Tailings Kainitite Roll/Impact Crusher Deslime Kainite decomposition Tailings Q DANAKALI create. nu tur grow 一个个个 Cyclone Evaporation ponds Storage Compaction Centrifuge H Ambient temp. SOP processor Flotation Ө Cyclone Storage Granular SOP (47%) Standard SOP (53%) 个个个 Evaporation ponds#30Solid salts provide cost and time savings Colluli has the unique ability to process solid salts, leading to shortest extraction to port timeframe of any SOP greenfield development project SOLID SALTS NEAR SURFACE - OPEN-CUT (COLLULI) SOLID SALTS AT DEPTH-SOLUTION DANAKALI At least several months from extraction to port WATER PUMP TREATMENT DISSOLVE PUMP EVAPORATE MINE PROCESS TRUCK SHIP MINE PROCESS TRUCK SHIP COST & TIME SAVINGS Less than one week from extraction to port € LAKE WATER BRINE Several months (at least) from extraction to port Relevant development peers: Danakil (Circum Minerals), Yara Dallol (Yara international) At least several months from extraction to port PLAYA BRINE LAKE WATER PUMP EVAPORATE MINE PROCESS TRUCK SHIP Several months (at least) from extraction to port At least several months from extraction to port TRENCH BORE PUMP EVAPORATE MINE PROCESS TRUCK SHIP Several months (at least) from extraction to port Relevant development peers: Mackay (Agrimin), Lake Wells (Australian Potash), Beyondie (Kalium Lakes), Lake Wells / Lake Way (Salt Lake Potash) Relevant development peers: Sevier Playa (Crystal Peak Minerals)#31Capital and Operating Expenditure FEED confirmed industry-leading capital intensity and first quartile operating costs FEED development and working capital estimates¹,2 FEED operating cost estimates4 Metric Plants, ponds, and mine development Module I Module II Metric Module I Modules I & II US$130M US$97M Mining US$77/t US$73/t Supporting infrastructure Owners costs and EPCM Contingency US$80M US$37M Processing US$64/t US$59/t Development capital US$56M US$41M US$36M US$27M US$302M US$202M Water logistics US$2/t US$2/t G&A US$22/t US$15/t Mine gate cash costs US$165/t US$149/t Working capital (including working capital contingency)² US$20M Product logistics US$73/t US$73/t FOB cash costs US$238/t US$222/t Total capital US$322M US$202M Capital intensity (excluding working capital³) US$640/t US$534/t Royalties US$20/t US$20/t Incremental Module Il capital intensity US$427/t Total cash costs US$258/t US$242/t Source: DNK FEED results announcement, 29-Jan-18 1 Estimates have been compiled for the economic period of review (first 60 years of production) 2 3 Capital estimates are presented in real US$, June 2017 (rolled forward from US$, September 2015 used in DFS (ASX announcement 30 November 2015)), to an accuracy of ±10% Working capital is calculated in reference to the delay from first production to cash receipt from product sales 4 Operating cost estimates are presented in real US$, June 2017 (rolled forward from US$, September 2015 used in DFS (ASX announcement 30 November 2015)), to an accuracy of ±10% DANAKALI#32NPV Sensitivities & Commodity Price Coefficient's Commodity Price coefficient of variation (2010-2020) SOP 5% Gold 15% Copper 16% SOP Price DANAKALI create, nurture pross FEED dual module - Economic outcomes for scenario testing Discount Rate Development Capital Nickel 27% Product Logistics Costs Mining Operating Costs MOP 27% Iron Ore 35% Lithium 46% Sources: Bloomberg. Company Data & Standard Chartered Analysis Sept 2020 Product Logistics Costs Water Logistics, G&A Costs 400 450 500 550 Base NPV (US$M) 600 650 700 750 800 850 900 950 1.000 1.050 1.100 1.150 1.200 1.250 1.300 1.350 1.400 20% Unfavourable 10% Unfavourable 10% Favourable 20% Favourable#33COVID 19 Impact COUNTRY RESPONSE OPERATIONAL ASPECTS Eritrea's approach successful Access to site is secured DANAKALI create nurture prow LOOKING FORWARD CKD No major impact on op. costs 405 cases in total since outbreak (majority from illegal border crossing into Eritrea) 7 new cases 41 active No deaths DNK has access to site Able to get people in the country (with the usual 2-week quarantine period applied) Active mining companies, maintained operations . Bisha able to operate through the last 7 months. Imported new heavy earth moving equipment with support crews during the COVID 19 period) Continuing development alternative scheduling • Power ready to go- Aggreko currently operating in country RO Plant just to be completed and shipped up Camp built and ready to be shipped to site Geotech work required prior to slab and foundation work on plant Adjusting rosters (Bisha currently doing 3 months on 1 month off)#34Competent Persons Statements DANAKALI Competent Persons Statement (Sulphate of Potash and Kieserite Mineral Resource) Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20 Equiv. and 7% Kieserite. The Mineral Resource contains 303Mt @ 11% K20 Equiv. and 6% Kieserite of Measured Resource, 951Mt @ 11% K20 Equiv. and 7% Kieserite of Indicated Resource and 35Mt @ 10% K20 Equiv. and 9% Kieserite of Inferred Resource. The information relating to the Colluli Mineral Resource estimate is extracted from the report entitled "Colluli Review Delivers Mineral Resource Estimate of 1.289Bt" disclosed on 25 February 2015 and the report entitled "In excess of 85 million tonnes of Kieserite defined within Colluli Project Resource adds to multi agri-commodity potential" disclosed on 15 August 2016, which are available to view at www.danakali.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. Competent Persons Statement (Sulphate of Potash Ore Reserve) Colluli Proved and Probable Ore Reserve is reported according to the JORC Code and estimated at 1,100Mt @ 10.5% K₂O Equiv. The Ore Reserve is classified as 285Mt @ 11.3% K₂O Equiv. Proved and 815Mt @ 10.3% K₂O Equiv. Probable. The Colluli SOP Mineral Resource includes those Mineral Resources modified to produce the Colluli SOP Ore Reserves. The information relating to the January 2018 Colluli Ore Reserve is extracted from the report entitled "Colluli Ore Reserve update" disclosed on 19 February 2018 and is available to view at www.danakali.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. Competent Persons Statement (Rock Salt Mineral Resource) Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 347Mt @ 96.9% NaCl. The Mineral Resource estimate contains 28Mt @ 97.2% NaCl of Measured Resource, 180Mt @ 96.6% NaCl of Indicated Resource and 139Mt @ 97.2% NaCl of Inferred Resource. The information relating to the Colluli Rock Salt Mineral Resource estimate is extracted from the report entitled "+300M Tonne Rock Salt Mineral Resource Estimate Completed for Colluli" disclosed on 23 September 2015 and is available to view at www.danakali.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. AMC Consultants Pty Ltd (AMC) independence In reporting the Mineral Resources and Ore Reserves referred to in this public release, AMC acted as an independent party, has no interest in the outcomes of Colluli and has no business relationship with Danakali other than undertaking those individual technical consulting assignments as engaged, and being paid according to standard per diem rates with reimbursement for out-of-pocket expenses. Therefore, AMC and the Competent Persons believe that there is no conflict of interest in undertaking the assignments which are the subject of the statements. Quality control and quality assurance Danakali exploration programs follow standard operating and quality assurance procedures to ensure that all sampling techniques and sample results meet international reporting standards. Drill holes are located using GPS coordinates using WGS84 Datum, all mineralisation intervals are downhole and are true width intervals. The samples are derived from HQ diamond drill core, which in the case of carnallite ores, are sealed in heat-sealed plastic tubing immediately as it is drilled to preserve the sample. Significant sample intervals are dry quarter cut using a diamond saw and then resealed and double bagged for transport to the laboratory. Halite blanks and duplicate samples are submitted with each hole. Chemical analyses were conducted by Kali-Umwelttechnik GmBH, Sondershausen, Germany, utilising flame emission spectrometry, atomic absorption spectroscopy and ion chromatography. Kali-Umwelttechnik (KUTEC) has extensive experience in analysis of salt rock and brine samples and is certified according by DIN EN ISO/IEC 17025 by the Deutsche Akkreditierungsstelle GmbH (DAR). The laboratory follows standard procedures for the analysis of potash salt rocks chemical analysis (K+, Na+, Mg2+, Ca2+, Cl-, SO42-, H2O) and X-ray diffraction (XRD) analysis of the same samples as for chemical analysis to determine a qualitative mineral composition, which combined with the chemical analysis gives a quantitative mineral composition.#35Competent Persons Statements DANAKALI The information in this presentation is published to inform you about Danakali Limited (the "Company" or "DNK") and its activities. DNK has endeavoured to ensure that the information enclosed is accurate at the time of release, and that it accurately reflects the Company's intentions. All statements in this presentation, other than statements of historical facts, that address future production, project development, reserve or resource potential, exploration drilling, exploitation activities, corporate transactions and events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not a guarantee of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices of potash and, exploitation and exploration successes, capital and operating costs, changes in project parameters as plans continue to be evaluated, continued availability of capital and financing and general economic, market or business conditions, as well as those factors disclosed in the Company's filed documents. There can be no assurance that the development of the Colluli Project will proceed as planned. Accordingly, readers should not place undue reliance on forward looking information. To the extent permitted by law, the Company accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation. Recipients should make their own enquiries in relation to any investment decisions. Mineral Resources and Ore Reserves have been reported according to the JORC Code, 2012 Edition. Mineral Resource, Ore Reserve and financial assumptions made in this presentation are consistent with assumptions detailed in the Company's ASX announcements dated 25 February 2015, 4 March 2015, 19 May 2015, 23 September 2015, 30 November 2015, 15 August 2016, 1 February 2017, 29 January 2018 and 19 February 2018 which continue to apply and have not materially changed. The Company is not aware of any new information or data that materially affects assumptions made. This presentation does not comprise an admission document, listing particulars or a prospectus relating to the Company, does not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. This presentation does not constitute a recommendation regarding any decision to sell or purchase securities in the Company. No representation or warranty, express or implied, is given by or on behalf of the Company or its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud). In the United Kingdom, this presentation has not been approved by any person authorised under the Financial Services and Markets Act 200 ("FSMA") and is directed only at Investment Professionals within the meaning of section 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("FPO") and High Net Worth Companies and unincorporated associations within the meaning of section 49(2) of the FPO. Persons of any other description, including those who do not have professional experience in matters relating to investments, should not rely or act upon this presentation. For more information, please contact: Danakali Niels Wage Chief Executive Officer +61 8 6189 8635 Corporate Broker Canaccord Genuity James Asensio/Angelos Vlatakis +44 (0)20 7523 4680 Mark Riseley Senior Corporate Development & Investor Relations Manager +61 417 007 579 UK IR/PR Instinctif Partners Mark Garraway / Sarah Hourahane / Dinara Shikhametova [email protected] +44 (0)207 457 2020 Visit the Company's website: www.danakali.com Follow Danakali on LinkedIn: www.linkedin.com/company/danakali-limited Subscribe to Danakali on YouTube: www.youtube.com/channel/UChGKN4-M410vPKxs9b-lJvw