Company Presentation Charles Whitfield Executive Directorstatic.knowledgevision.com/account/brr/assets/...MARKET SEGMENTATION Industrial Grade Technical Grade EV Grade Battery Grade

Galaxy Resources Limited

Company Presentation

Charles Whitfield

Executive Director


meeting a lithium future

The following presentation represents Galaxy‟s management‟s best judgment at the time of presentation. The contents include forward looking statements prepared on the basis of assumptions which may prove to be incorrect. This presentation should not be relied upon as recommendation or forecast by Galaxy Resources Limited. No representation or warranty is made as to accuracy, completeness or reliability of the information

Competent PersonsThe information in this report that relates to Mineral Resources is based on information compiled by Mr. Robert Spiers who is a full time employee of Hellman &Schofield Pty Ltd and who is a Member of the Australian Institute of Geoscientists. Mr. Spiers has sufficient experience which is relevant to the style of mineralisationand type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Codefor Reporting of Exploration Results, Mineral Resources and Ore Reserves‟. Mr. Spiers consents to the inclusion in this report of the matters based on his informationin the form and context in which it appears.

The information in this report that relates to Mineral Ore Reserves is based on information compiled by Mr. Roselt Croeser who is a full time employee of Croeser PtyLtd. Mr. Croeser has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves‟.Mr. Croeser consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Results, including exploration data and geological interpretations is based on information compiled by Mr PhilipTornatora who is a full time employee of the Company and who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute ofGeoscientists. Mr. Tornatora has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he isundertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves‟. Mr. Tornatora consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

James Bay Competent PersonThe mineral resources are reported in accordance with National Instrument 43-101 and have been estimated in conformity with generally accepted CIM “Estimation ofMineral Resource and Mineral Reserves Best Practices” guidelines. Resource evaluation work was completed by Mr. Sébastien Bernier, P.Geo (OGQ#1034,APGO#1847) an independent Qualified Person as defined by NI 43-101.


meeting a lithium futureLITHIUM POWER

Endurance

Acceleration

Power per Kilogram (kg)

En

erg

y: W

att

-Ho

urs

/Kg

Lead Acid Battery

Nickel Cadmium

Battery

Lithium Ion

Battery

Nickel Metal

Hydride Battery

3Source: Galaxy Resources Ltd

Lighter

Longer Life

Energy Density

Environment

EV Revolution

US$11b US$43b („20)


meeting a lithium futureINVESTMENT OVERVIEW

Lithium Pure Play

Downstream Integration – Value Add

Resource, Chemical, Battery

Operating mine and ore resources – Australia / Canada

Lithium Carbonate chemical facility in China

Lithium battery project in China

4



Spodumene

Production

Lithium Carbonate

Production

Lithium Cathode

Production

Lithium Battery

Production

INTEGRATION & VALUE ADD

Source: Galaxy Resources Limited

$1 $3 $44 $500

Revenue per Li unit



Registered in Australia and listed on ASX

Member of the S&P/ASX300

Cash position – A$50 million

China Construction Bank credit line

Substantial Shareholders

Creat Resources 11.0%

M & G Group 8.0%

Fengli Group 7.0%

Capital Structure

Shares on issue 323 m

Options on issue 52 m

Share price (as of 16 Sep 11) A$0.77

Undiluted market capitalization A$251m

Diluted market capitalization A$291m

6

CORPORATE STRUCTURE

0

50

100

150

200

250

300

350

400

450

No

v-0

8

De

c-0

8

Jan

-09

Fe

b-0

9

Ma

r-0

9

Ap

r-0

9

Ma

y-0

9

Jun

-09

Jul-

09

Au

g-0

9

Se

p-0

9

Oc

t-0

9

No

v-0

9

De

c-0

9

Jan

-10

Fe

b-1

0

Ma

r-1

0

Ap

r-1

0

Ma

y-1

0

Jun

-10

Jul-

10

Au

g-1

0

Se

p-1

0

Oc

t-1

0

No

v-1

0

De

c-1

0

Jan

-11

Fe

b-1

1

Ma

r-1

1

Ap

r-1

1

Ma

y-1

1

Jun

-11

Ma

rke

t C

ap

A$

m

Galaxy Market Capitalisation (fully diluted)

Substantial Investor

Li Shu Fu (Geely Motors) A$30m



INDUSTRY OVERVIEW

7



LITHIUM CONSUMPTION – BY END USE

Battery, 23

Ceramic Glass, 31Greases, 9

Pharmaceuticals, 2

Air Treatment, 6

Aluminium, 6

Continuous Casting, 4

Rubber Thermoplastics, 4

Other, 15

Estimated Consumption of Lithium by end use 2011 (est. 120,000 tons LCE)

8Source: Galaxy



GROWTH IN OTHER AREAS BEFORE EVs

Time

Li B

atte

ry U

nits

Source: *Amadee, Galaxy

Growth 25-30%

Power Tools

E-Bikes

Starter Batteries

Energy Storage

Electric Vehicles

Electronics

*US$13b 2020

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

*US$13b 2020

*US$16b 2020



FOCUS ON THE E-BIKE MARKET

China produces 27 m E-Bikes pa

97% - heavy lead acid batteries

PRC weight restrictions

1,000 lead plants shutdown

Mass conversion to Li Batteries0.2 0.2 0.3

25

7.510

14

1921

23.5

2730

3335.5

3840.5

44

0

5

10

15

20

25

30

35

40

45

50

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

E Bikes Sales in Asia till 2016



11

PRESSURE ON LEAD BATTERIES



CHINA MACRO STRATEGY

China – Less reliance on oil based transport system

Twelve 5 Year Plan – Low Carbon Economy

5m EVs by 2020 (13.6 mil vehicles pa)

50% ownership of EVs & Hybrids by 2030

Beijing Initiatives will drive EV demand

“Mass energy storage” key to China‟s strategy

China targeting 20% from renewable source by 2020

China - 1 MW of wind power installed every hour



13

GLOBAL LITHIUM FORECAST

FMC Corp ForecastWorld Lithium Supply Conference 2011 Toronto

2-3 times Demand Increase by 20200

50000

100000

150000

200000

250000

300000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Auto

Base

17% CAGR 2015-2020

12% CAGR 2015-2020

0

50000

100000

150000

200000

250000

300000

350000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Batteries for E2WVs

Batteries for HEV/PHEV/EV

Batteries for Portable Devices

Other Applications

Lithium Demand (MT LCE)

2011 106,000

2015 133,000

2020 187,000

2025 288,000

CAGR 2011-2025 = 7.4%

Signom Box ForecastWorld Lithium Supply Conference 2011 Toronto



GALAXY’S BUSINESS

RESOURCE, CHEMICAL, BATTERY

14



Corporate

Company

Resource

Division

Chemical

Division

Battery

Division

MD Terry Stark MD Guojiang Sun A ct MD Lui Chan

MD Iggy Tan

15

BUSINESS DIVISIONS

Wesfarmer‟s style business structure allows Galaxy to manage diverse

business units



RESOURCE DIVISION

16


meeting a lithium futureMT CATTLIN MINE

Operating spodumene mine

Resource of 18 mt at 1.08% Li2O *

Expected mine life of 18 years at 1 mtpa

137,000 tpa spodumene grading 6% Li2O

Record construction of <11 months

Project on time and on budget (A$80m)

Second spodumene shipment completed

70-80% of design output

17

Esperance

Resource Tonnes Li2O % Ta2O5 ppm

Measured 3,193,000 1.17 149

Indicated 10,613,000 1.06 168

Inferred 4,382,000 1.07 132

TOTAL 18,188,000 1.08 156

*



Power Generation

Maintenance

BuildingDMS Plant

Laboratory

Crusher

Tailings Treatment

Run of Mine Pad

Primary Screening

18

Water

Treatment

Administration

Building

Fine

Ore Bin



CHEMICAL DIVISION

19



Xinjiang Non-ferrous

Aba Guangsheng

Jiangxi Ningdu Taiyu

General Lithium

Minfeng Lithium

Sichuan Tianqi

JIANGSU

Sichuan Ni&Co Guorun

20

CHINA LC INDUSTRY



21

JIANGSU PLANT IS STRATEGICALLY LOCATED

Zhangjiagang Free Trade Zone

Galaxy owns 100%

120 top foreign companies

Chemical Industrial Park

Adjacent to a wharf

Supply of sulfuric acid and soda ash

Close to markets

Acid Plant

Jiangsu Lithium Carbonate Plant

Wharf



MARKET SEGMENTATION

Industrial Grade

Technical Grade

EVGrade

Battery Grade

EV PlusGrade

<99.0% LC 99.0% LC 99.5% LC 99.9% LC 99.99% LC

Price US$5,500/t

75% of battery

market

Price US$7,500/t

15% of battery

market

Price US$12,000/t

10% of battery

market



Largest LC plant in China

17,000 tpa of high quality LC

Continuous production technology

Capability - 99.9% purity and above

Focus lithium-ion battery industry

Currently under construction

Commissioning expected in 2011

23

JIANGSU LITHIUM CARBONATE PLANT



Artist Impression - Jiangsu Lithium Carbonate Plant



















Galaxy Plant

Tianjin Warehouse

Changsha Warehouse

33

CHINA PRODUCT DISTRIBUTION



Offtake framework agreements for 17,000 tpa

Mitsubishi - exclusive distributer in Japan (5,000 tpa)

13 major lithium cathode producers in China (12,000 tpa)

Fixed annual volumes

Price agreed on a quarterly basis

Minimum of 99.5% purity

34

OFFTAKE FRAMEWORK AGREEMENTS



BATTERY DIVISION

35


meeting a lithium futureLITHIUM CONSUMPTION – BATTERIES

36Source: Roskill

Lithium used inCathode

Lithium used as Electrolyte

Some Li used inAnode but

mainly Graphite



Thousands of small medium factories

High labour assembly lines

Cheap low quality raw materials

Prone to quality inconsistencies

High defect rates affecting life of batteries

All trying to do their own R&D

Cannot compete with Japanese & Korean batteries

37

CHINA’S LITHIUM BATTERY INDUSTRY



Feasibility study completed

“Turn key” equipment supplied by KUBT (Korea)

Full automation – extremely low reject rates

Suppliers of Samsung and LG Chem

K2 Energy US lithium battery partner

Leap frog R&D

350,000 E-bike battery packs pa – easy entry point

More stable Lithium Iron Phosphate batteries

Securing battery sales off-take

38

GALAXY’S APPROACH



Plant Location

Zhangjiagang

China

Technology Partner

K2 Energy Solutions

USA

Turn Key Partner

KOBET Consortium

Korea

EPCM Manager

M+W Group

Germany

INTERNATIONAL PARTNERS

Owner

Galaxy Resources

Australia


meeting a lithium futureBATTERY PROJECT



Statistic

Number of Battery Packs pa 350, 000

Battery Pack Capacity 36V, 10Ah

Cathode Base Material Li Iron Phos

Anode Base Material Graphite

PROJECT STATISTICS

36

cylindrical

cells



42


Typical KUBT mixerTypical KUBT mixers

KUBT coating and drying machinery



43


KUBT rolling and slitting machineryKUBT rolling and slitting machinery

KUBT separator formation machineryKUBT separator formation machinery



FEASIBILITY STUDY

Production Rate (packs pa) 350,000

Capital Costs A$ 134 million

Revenue pa A$ 68 million

Ave Net Cash (pre tax) pa ^ A$ 30 million

Net Present Value NPV (non-geared, real @10%) ^ A$ 187 million

Internal rate of Return IRR% 29%



“SECURITY OF SUPPLY

FOR CHINA GROWTH”

45

Documents

Company Presentation Charles Whitfield Executive Directorstatic.knowledgevision.com/account/brr/assets/...MARKET SEGMENTATION Industrial Grade Technical Grade EV Grade Battery Grade