#1[MAGNUM MINING AND EXPLORATION LIMITED APPALACHIAN IRON ASX Presentation October 2022 West Virginia Project#2Background on Appalachian Iron • Appalachian Iron is a party to a license agreement with Molong Petroleum Machinery Company (an entity incorporated in China) (Molong). It has the right to elect to enter into a future formal process agreement to utilise all intellectual property, information and data relating to the HIsmelt iron ore process (HIsmelt Process), as well as Molong providing technical services and key equipment to Appalachian Iron in order to produce green pig iron in the United States. Appalachian Iron has been pursuing the development of a proposed pig iron project using the HIsmelt Process to produce green pig iron at a plant in West Virginia (West Virginia Project). The West Virginia Project is still in a conceptual stage, with Appalachian Iron having secured non-binding agreements for land access, pig iron offtake, raw materials supplies, HIsmelt technology, and engineering for the West Virginia Project. • The West Virginia Project is a long-term project, where Magnum can potentially use the know-how, expertise and HIsmelt Process available to Appalachian Iron to assist in the development of this project, together with Magnum's Buena Vista Magnetite Project, to increase value for shareholders. ASX PRESENTATION MAGNUM MINING & EXPLORATION APPALACHIAN IRON PAGE 2#3Magnum Acquisition of Appalachian Iron • Acquisition of Appalachian Iron Inc provides Magnum with right to enter into a formal license agreement for use of HIsmelt technology and to advance Appalachian Iron's other interests HIsmelt technology to be used to develop a green pig iron plant at the Buena Vista Magnetite Project Appalachian Iron has entered into a number of non-binding agreements for existing land access in the US, pig iron offtake and raw material supplies to further the development of an iron ore project in West Virginia Acquisition of Appalachian Iron has the potential to add further value to Magnum due to the transaction being based on performance shares that only vest when milestones are met APPALACHIAN IRON ASX PRESENTATION MAGNUM MINING & EXPLORATION PAGE 3#4HIsmelt technology Core principles The HIsmelt process represents a practical alternative to the blast furnace to produce pig iron • · • HIsmelt is a direct smelting reduction iron-making process that directly smelts preheated ferrous materials (e.g. iron ore fines, C-fines, slags, etc) and reductants (e.g. non-coking coal, biochar, etc) as the system's source of reducing agents and heat The ferrous fines, reductants and fluxes are injected into the molten iron bath Fountain of molten metal erupts into the top space by rapid expulsion of CO, H2, N2 from molten bath Reaction gases CO and H2 are combusted with oxygen from hot blast, generating heat Heat from the gas combustion top space and heated metal and slag which fall back into the bath, provide energy for sustaining reduction reactions and direct smelting of iron ore Slag coats and protects water cooled panels, minimizing energy loss ASX PRESENTATION MAGNUM MINING & EXPLORATION APPALACHIAN IRON SMELT REDUCTION VESSEL (SRV) AT THE HEART OF TECHNOLOGY PAGE 4#5HIsmelt technology Commercialisation achieved 40-year development path 1980S Small Scale Pilot Plant (SSSP) in Germany - 10kt/yr design 1990S HIsmelt Research & Development Facility (HRDF) in Kwinana, Australia, - 100kt/yr design 2000S 2012 2013 2017 2022 HIsmelt Kwinana Joint Venture (HKJV) in Kwinana, Australia owned by a consortium of Rio Tinto, Nucor, Mitsubishi and Shougang - 800kt/yr design Molong Petroleum Machinery purchased the Kwinana equipment from HKJV shareholders Start of construction of Molong HIsmelt plant in Yangkou, Shandong Province, China Molong purchased the technology IP from Rio Tinto 2 HIsmelt plants operating in China with 3m tonnes produced to date, orders placed for 8 plants in Asia ASX PRESENTATION MAGNUM MINING & EXPLORATION APPALACHIAN IRON KWINANA HISMELT PLANT PAGE 5 A#6HIsmelt technology Commercialisation achieved Operations at Molong, Australia Started up in 2016 for a capital cost of $250m with a • design rate of 600kt/yr using hematite Currently producing at design rate of 50,000t per month @ 99% availability using Australian hematite Can be increased to 100,000t per month via higher purity feed e.g. C-Fines, and higher oxygen injection 524,000t produced in 2021, includes 1 month offline due to COVID • Production cost lower than local blast furnaces Low levels of Si and P in pig iron - sold as high-purity pig iron (HPPI) to foundries with a $100/tonne premium vs BF pig iron ASX PRESENTATION MAGNUM MINING & EXPLORATION MOLONG HISMELT PLANT APPALACHIAN IRON PAGE 6#7APPALACHIAN IRON HIsmelt technology Key benefits Green, flexible, high purity and low cost Environmental benefits Greater raw material flexibility Lower operating costs ● Reduced CO2 emissions as well as pm10, SOx, NOx, durans/furans and benzene compared to traditional blast furnace operations using sinter plans and coke ovens. Clear and defined path to zero carbon emissions. HIsmelt is the preferred smelter technology for the EU's ULCOS (Ultra Low CO2 Steelmaking) program that aims to reduce CO2 emissions of the steel industry by 90% Ability to use lower grade raw materials which are not suitable for blast furnace or DRI shaft furnace operation, including high phosphorous, high alumina, and high titanium iron ores, C-fines (ultra-fine slag fines), mill- scale, steel works slags, dusts, sludges, non-coking coals and biomass. In addition, the raw materials are injected as powders and do not require agglomerating into pellets or briqueGes. Due to the elimination of front-end processes required for a BF operation (i.e. no coke ovens and sinter plants) and DRI shaft furnaces (no pellet plant) as well as ability to use a wide variety of cheap raw materials (see above). ASX PRESENTATION MAGNUM MINING & EXPLORATION PAGE 7#8APPALACHIAN IRON HIsmelt technology Key benefits Green, flexible, high purity and low cost Significantly lower ⚫Due to the elimination of coke ovens, sinter and/or pellet plants. The capital costs Premium quality final product (pig iron) construction of a HIsmelt plant is relatively simple as the HIsmelt technology uses many of the traditional ironmaking core plant ancillary facilities, such as hot blast stoves, injection systems and power plants. The capital costs of constructing a HIsmelt plant could be up to 60% less than constructing a similar sized BF or DRI plant (including coke ovens, pellet plants etc.). • When compared to the traditional BF process, including significantly lower silicon, manganese and phosphorous content. The lower levels of impurities provide yield and fluxing benefits in the downstream steelmaking process for BOF and EAF producers. HIsmelt pig iron will demand higher value-in-use premium than DRI and BF pig iron. ASX PRESENTATION MAGNUM MINING & EXPLORATION PAGE 8#9Hayfork Shasta Lake Redding Lassen National Forest • Fully Permitted Iron Ore Mine Anderson Mineral Chester Westwood Easy Access to Union Pacific Railway & Highway • Near High Voltage power lines and Natural Gas pipelines Close to all major West Coast ports for export Nevada is friendly to mining and industrial developments 0 30 60 90 00 Kilometres Healdsburg Magalia CO Paradise Oroville Susanville Herlong PYRAMID LAKE PAINTE RESER lay Gerlach Colado Rail Load Out Empir Vernon 710 Unionville Rochester Huxley Rail Load Out Lovelock Belden Quincy Reno 395 Portola The Ponderosa Forola Reno Tahoe National Fores 50 Grass Valley Valley Carson City Yuba City Port of West Sacramento sey le 50 Placerviller Folsom Sacramento 505 Santa Rosa FIK 0 Stockton Port Port of Richmond Concord Stock on San Francisco Manteca Oakdale 205 880 580 Modesto Turlock Port of San Francisco South Lake Tahoe 395 Kirkwood 395 Bridgeport Stanislaus National Forest Sonora Tuolumne Merced Chowchilla Yosemite National Park Yosemite Valley 95 water Dixie Valley Buena Vista Project 395 Lee Vining Inyo National Forest Mammoth Lakes 395 Bishop Inyo National Forest Mariposa Fish Camp Oakhurst Sierra National Forest "Mina 95 Coaldale Silver Peak#10APPALACHIAN IRON Buena Vista Resource Highlights Zero Carbon pig iron plant in the USA Low cost iron ore concentrate Significant "green credentials" Magnum is working towards becoming the first green pig iron plant in the USA, with "Net Zero" carbon emissions • JORC compliant, indicated and inferred resource of 232Mt @ 18.6% Fe1 • Anticipate the Plant will produce 2M tpa less CO2 than a comparable BF plant due to the replacement of replacement of coal by locally sourced biochar • . • The unique flexibility of the HIsmelt process allows the plant to use hydrogen in future Remediation and clean up of legacy steel wastes, which cannot be recycled/ removed profitably by any other operation Generates excess renewable power from the biochar plants and HIsmelt plant The Company confirms that it is not aware of any new information or data that materially affects the information included in the Maiden JORC 2012 Resource for the Buena Vista Magnetite Project announced on 23 March 2021 and that all material assumptions and technical parameters underpinning the estimates in the announcement of the 'Maiden JORC 2012 Resource for the Buena Vista Magnetite Project' dated 23 March 2021 continue to apply and have not materially changed. ASX PRESENTATION MAGNUM MINING & EXPLORATION PAGE 10#11Nevada Iron + Appalachian Iron APPALACHIAN IRON Access to HIsmelt Technology High Demand Product Increase in size and scale • HIsmelt technology to be used to develop a green pig iron plant at the Buena Vista Magnetite Project. ● HIsmelt technology to be used to develop a green pig iron plant at the Buena Vista Magnetite Project and also potentially at the West Virginia Project. Benefit to west and east coast of United States. Appalachian Iron has entered into a number of non-binding agreements for existing land access in the US, Pig Iron offtake and raw material supplies to further the development of an iron ore project in West Virginia. NEVADA IRON The Green Steel Company PAGE 11 ASX PRESENTATION MAGNUM MINING & EXPLORATION#12Disclaimer APPALACHIAN IRON This document (the "Document") is issued by Magnum Mining and Exploration Ltd.. ("Magnum" or the "Company") to provide interested parties with preliminary information in connection with the proposed sale of shares in Magnum. This Document is not intended to form the basis of a decision to purchase the business referred to in this Document or any other investment decision and does not constitute an offer, invitation or recommendation for the sale or purchase of securities or assets by any person, including without limitation or any member of its Groups, or any of their respective directors, officers, partners, employees, agents, representatives or advisers. Neither the information contained in this Document nor any further information made available in connection with the Transaction will form the basis of any contract. The ultimate purchaser of the business or any part thereof will be required to acknowledge in the sale and purchase agreement that it has not relied on, nor been induced to enter into such agreement by, any Document or warranty, save as expressed in such agreement. This Document does not purport to be comprehensive or to contain all the information that a prospective purchaser may need and should be read in conjunction with the "Company Presentation". Each recipient of this Document must make its own investigation and assessment of the business and sites referred to herein and confirms that it is sufficiently expert to understand the risks involved in the Transaction. The contents of this Document have not been verified by Magnum or by any other person. No representation, warranty or undertaking, express or implied, is or will be made or given and, so far as is permitted by law, no responsibility or liability is or will be accepted by Magnum or any of their respective directors, officers, partners, employees, agents, representatives or advisers or any other third party named, or referred to in this Document in relation to the accuracy or completeness of this Document, or as to the achievement or reasonableness of, and no reliance should be placed on, any future projections, management targets, estimates, prospects, returns or assumptions contained herein, or any other written or oral information made available in connection with the Transaction. Any responsibility or liability for any such information is, so far as is permitted by law, expressly disclaimed. Without limitation forward looking information or other estimates or projections with respect to the performance of the business or any of the sites contained in this Document may contain elements of subjective judgement and analysis and reflect various assumptions which may or may not prove to be accurate or realistic. These projections have not been independently verified and must not be regarded as forecasts. This Document has been compiled from, and is based on, information and assumptions from a variety of sources, including reports made available by other producers. Such information and assumptions may not prove to be accurate or realistic. This Document is private and confidential.. On no account may this Document (or any part of it) be copied, disclosed or made available to any person other than the recipient to whom it is addressed. This Document does not constitute in any jurisdiction an offer or invitation for the sale or purchase of any securities or of any of the assets, liabilities, interests, business or entities described herein or the solicitation of any of the foregoing. None of Magnum, the members of its respective Groups or their respective directors, officers, partners, employees, agents, representatives and advisers accept any liability to any person in relation to the distribution or possession of this document in any jurisdiction. In no circumstances will Magnum or any member of its respective Groups be responsible for any costs or expenses incurred by any recipient in connection with any investigation or evaluation of the Transaction or for any other costs or expenses incurred by any person in connection with the Transaction. In furnishing this Document, Magnum undertake no obligation to provide recipients with access to any additional information, or to update, or to correct any inaccuracies which may become apparent in, this Document or any other information made available in connection with the Transaction. Magnum reserves the right, without advance notice, to change the Transaction or to terminate negotiations at any time before the signing of any binding agreement. The issue of this Document shall not be taken as any form of commitment on the part of Magnum to proceed with any transaction. Any prospective purchaser interested in the Transaction is strongly recommended to seek its own legal and financial advice. References in this Document to the term "market" or similarly construed words, are not intended, and should not be read as an admission of a properly defined market for the purposes of any competition, antitrust, or regulatory analysis. In this Disclaimer, the term “Group”, in respect of any person, means such person along with all direct and indirect subsidiaries and subsidiary undertakings of such person. By accepting this Document, the recipient agrees to be bound by the foregoing provisions. Any obligations arising out of or in connection with this Document and any negotiations in relation to the Transaction shall be subject to and governed by Australian law and subject to the jurisdiction of the Australia Courts. ASX PRESENTATION MAGNUM MINING & EXPLORATION PAGE 12#13[MAGNUM MINING AND EXPLORATION LIMITED APPALACHIAN IRON Neil Goodman CEO, Appalachian Iron Telephone +61 439 919 668 Email [email protected] For more information