Industry view (producers, end users, analysts) is that demand for acid-spar will increase by >3% per year over the next 5 years and prices are forecast to increase in the medium to long-term, the key drivers being:

- No large scale commercial alternative or recycling

- Refrigeration demand will continue to grow in emerging economies – new generation of zero ozone depleting potential (ODP) and very low global warming potential (GWP) refrigerants, hydrofluoroolefins (HFO’s)

- Driven by environmental legislation, most recently the Kigali Amendment, where over 170 nations agreed to phase down low ODP, high GWP Hydrofluorocarbons (HFCs).

- Energy reduction in the steel and aluminium industry

- Emerging uses – fluoropolymers in lithium batteries for example, demand for automotive Li-ion batteries forecast to grow CAGR 34%

- Chinese supply-demand dynamics

China Produces >50% world fluorspar production

China fluorspar exports continue to decline with acid-spar exports decreasing >50% since 2011, driven by increasing internal demand and production/export restrictions, China already consumes 90% of its domestic fluorspar production – heading towards becoming a future net importer

Western Europe and North America are the largest acid-spar consuming regions outside of China, importing more than 900,000 tonnes per year

USA imports 100% of its fluorspar

North America and Europe face the potential risk of security of supply

Fluorspar is classified as a critical raw material by the European Commission – high risk of supply shortage and consequent impact on the economy

USA listed fluorspar as a critical mineral in 2018

China listed fluorspar as a strategic mineral in 2017

Imbalance between production and consumption in China causing supply gap - to be filled by new fluorspar producers outside China

Based on macroeconomic drivers the Company continues to be strategically placed to capitalise on the supply gap in the future by developing its 100% owned large fluorspar assets, containing fluorspar resources of 13.1 million tonnes, located in the key markets of the USA and Europe.

* The information in this Fluorspar Market Summary is drawn from various sources, including Industrial Minerals Magazine/FastMarketsIM, United States Geological Survey, Roskill, IHS, UN Comtrade, industry sources, Xenops and CRU. CAGR – Compound annual growth rate.

Industry view (producers, end users, analysts) is that demand for acid-spar will increase by >3% per year over the next 5 years and prices are forecast to increase in the medium to long-term, the key drivers being:

No large scale commercial alternative or recycling

Refrigeration demand will continue to grow in emerging economies – new generation of zero ozone depleting potential (ODP) and very low global warming potential (GWP) refrigerants, hydrofluoroolefins (HFO’s)

Driven by environmental legislation, most recently the Kigali Amendment, where over 170 nations agreed to phase down low ODP, high GWP Hydrofluorocarbons (HFCs).

Energy reduction in the steel and aluminium industry

Emerging uses – fluoropolymers in lithium batteries for example, demand for automotive Li-ion batteries forecast to grow CAGR 34%

Chinese supply-demand dynamics

China Produces >50% world fluorspar production

China fluorspar exports continue to decline with acid-spar exports decreasing >50% since 2011, driven by increasing internal demand and production/export restrictions, China already consumes 90% of its domestic fluorspar production – heading towards becoming a future net importer

Western Europe and North America are the largest acid-spar consuming regions outside of China, importing more than 900,000 tonnes per year

USA imports 100% of its fluorspar

North America and Europe face the potential risk of security of supply

Fluorspar is classified as a critical raw material by the European Commission – high risk of supply shortage and consequent impact on the economy

USA listed fluorspar as a critical mineral in 2018

China listed fluorspar as a strategic mineral in 2017

Imbalance between production and consumption in China causing supply gap - to be filled by new fluorspar producers outside China

Based on macroeconomic drivers the Company continues to be strategically placed to capitalise on the supply gap in the future by developing its 100% owned large fluorspar assets, containing fluorspar resources of 13.1 million tonnes, located in the key markets of the USA and Europe.

The information in this Fluorspar Market Summary is drawn from various sources, including Industrial Minerals Magazine/FastMarketsIM, United States Geological Survey, Roskill, IHS, UN Comtrade, industry sources, Xenops and CRU. CAGR – Compound annual growth rate.