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ASX ANNOUNCEMENT QUARTERLY ACTIVITIES REPORT Period ending 31st December 2020 HIGHLIGHTS Pre - tax NPV8 A $ 909 million • IRR 17.5 % Average Annual EBITDA A $ 144 million Australian VANADIUM LIMITED 29TH JANUARY 2021 ORE RESERVE 32.1 Mt ↑ 77 % MINE LIFE 25 years 47 % OPEX 12 % US $ 3.66 / lb V205 V205 PRODUCTION 24.3 Mlbs pa 8 % Technical and Financial PFS Update reflects robust economics , incorporated a revised layout and location , an updated process design and a new extended Ore Reserve . Launch of green hydrogen strategy and MOU with ATCO for supply of green hydrogen . Confirmation of high purity vanadium pentoxide production from pilot scale testwork . • Strategic vanadium offtake MOU signed with U.S. Vanadium LLC . • Option to acquire Geraldton region processing plant land extended . • • . MOU for collaboration with UK company GSA Environmental on vanadium products . Geotech drilling to gather data for the BFS completed . Company set to complete externally reviewed Bankable Feasibility Study by mid - 2021 , focusing on dedicated vanadium pentoxide production for steel and battery industries . VSUN Energy MOU for vanadium electrolyte supply and battery sales agency for Australia signed with V - Flow Tech , commercial vanadium redox flow battery ( VRFB ) manufacturer based in Singapore . Residential VRFB product development underway . Corporate • Board renewal with Cliff Lawrenson appointed as Chair , former Chair Brenton Lewis stepped down at the AGM in November . • $ 973,000 R & D refund received . • Cash at bank on 31st December 2020 was $ 7.15 million . Australian Vanadium Limited Level 1 , 85 Havelock Street West Perth , WA 6005 Phone : +61 8 9321 5594 Fax : +61 8 6268 2699 Email : info@australianvanadium.com.au ASX : AVL FRA : JT7.F OTC : ATVVF ABN : 90 116 221 740