Transformative Technology with Global Impact

MTM Critical Metals Limited (ASX: MTM | OTCQB: MTMCF) is positioned at the intersection of technology innovation, sustainability, and critical materials supply. The company's breakthrough Flash Joule Heating (FJH) technology has demonstrated exceptional results in recovering precious and critical metals from electronic waste and other feedstocks, addressing growing global challenges in resource recovery and environmental management. With recent test results showing ultra-high-grade gold recovery exceeding 550 g/t and the securing of a long-term feedstock supply agreement, MTM is on the path toward commercial implementation of its innovative metal recovery solution.

MTM's proprietary Flash Joule Heating technology represents a fundamental advancement in how valuable metals can be recovered from complex waste streams. Unlike conventional extraction methods that rely on energy-intensive smelting or hazardous acid leaching, FJH applies rapid electrical pulses to heat materials to approximately 3,000°C in milliseconds within a controlled atmosphere. This single-step process efficiently converts metals into water-soluble chlorides without the environmental impacts associated with traditional techniques.

The technology demonstrates substantial advantages over conventional methods, including drastically reduced energy consumption, processing time measured in milliseconds rather than hours, elimination of toxic chemical usage and significantly higher recovery rates. These benefits position FJH as potentially transformative for metal recovery across multiple industries and applications.

Recent testing on high-value printed circuit board (PCB) feedstock has yielded extraordinary results that showcase the technology's capabilities. The processed e-waste contained metal concentrations of 551g/t gold and 2,804g/t silver, alongside 42% copper content - grades that dramatically exceed traditional mining concentrations. For context, typical gold ore grades in conventional mining operations range from 1-5 g/t, meaning MTM's e-waste feedstock contains over 100 times more gold per tonne than conventional ore. Most impressively, the FJH process achieved near-perfect recovery rates across multiple metals - 100% for gold, 97% for silver, and consistently above 90% for other valuable metals including copper (91%), tin (97%), and zinc (99%). These exceptional results demonstrate both the economic potential of "urban mining" from e-waste and the technical superiority of MTM's approach compared to conventional recovery methods.

In a significant milestone for its commercialisation strategy, MTM secured a five-year e-waste supply agreement with Dynamic Lifecycle Innovations, a leading U.S.-based recycling company. This arrangement guarantees a minimum annual volume of 700 tonnes of high-grade e-waste feedstock, with a target of approximately 800 tonnes per year. The agreement includes notable performance penalties to ensure reliable supply and extends for an initial five-year term commencing Q4 2025, with potential for extension. This partnership significantly de-risks MTM's commercial rollout by ensuring consistent access to metal-rich feedstock. Dynamic Lifecycle Innovations, founded in 2001 and headquartered in Wisconsin, specialises in secure data destruction and responsible e-waste recycling, providing MTM with a reliable and quality-controlled supply chain.

They have recently signed a second long-term supply agreement with U.S. recycler Plastic Recycling Inc. for up to 400 tonnes per year of high-metal-content processed electronic scrap (PES). This complements an earlier agreement with Dynamic Lifecycle Innovations, bringing total guaranteed feedstock to over 1,100 tonnes annually. The five-year agreement, soon to be formalised, enables scalable metals recovery from PCB-rich e-waste, particularly from U.S. datacentres and telecom sectors.

The global e-waste challenge presents both an environmental imperative and a substantial economic opportunity. Global e-waste generation reached 62 million tonnes in 2022 and is projected to rise to 82 million tonnes by 2030, with the recycling market valued at a potential $250 billion by 2032. Yet current recycling rates remain below 20%, highlighting the massive untapped potential. MTM's technology addresses this market gap by providing a more efficient, environmentally responsible solution for recovering valuable materials from e-waste. The company's approach aligns with growing regulatory pressures, circular economy initiatives and consumer demand for sustainable resource management. The U.S. Department of Defense has also expressed strategic interest in MTM's sustainable recovery process, highlighting the national security implications of domestic critical material processing.

Beyond e-waste, MTM has achieved significant breakthroughs in processing other high-value materials:

Rare Earth Elements (REE): The company's FJH technology has demonstrated 93% REE conversion to high-purity chlorides with a 95% reduction in impurities like iron, aluminium, and phosphorus. This achievement provides a sustainable alternative to conventional energy-intensive REE processing methods, potentially addressing supply constraints in materials critical for renewable energy, electric vehicles and high-tech applications.

Lithium Recovery: MTM has successfully transformed nearly 90% of spodumene from the refractory alpha phase to the beta phase—a critical step in lithium extraction—in significantly less processing time compared to conventional kiln methods. The company has also completed promising test work to convert spodumene concentrate directly into lithium chloride, potentially streamlining the lithium refining process and enhancing commercial viability.

Financial Position Overview

MTM Critical Metals Ltd has strengthened its financial position significantly in the quarter ending March 31, 2025, with cash reserves reaching approximately $10 million, representing a substantial increase from $5.38 million at the end of the previous quarter. The company's current funding runway extends to approximately 8.7 quarters based on its current cash utilisation rate, providing a solid foundation for continued operations and development activities.

MTM successfully completed a capital raise of $8 million in October which was oversubscribed at $0.065 per share, a small discount of only ~3% below the 30-day VWAP. The purpose of the raise was to fund a 1-tonne per day demonstration plant.

The company also announced a $7.5 million placement in December 2024, though it's important to note that this second placement actually closed in January 2025 and was therefore not included in the December 31, 2024 cash balance. It was fully subscribed at $0.145 per share which was at no discount to the last closing price. This placement was particularly notable as it was unsolicited and driven by strong interest from institutional investors, highlighting strong confidence in MTM's direction and growth potential. Key institutional investors included Pengana Capital, which invested $4 million to become a substantial shareholder and Terra Capital, an existing substantial shareholder that increased its holding.

Together, these raises totalled $15.5 million, providing significant financial resources for the company's operations.

KnightHawk Engineering, the company contracted to design and deliver the 1-tonne-per-day pilot plant, agreed to accept payment in MTM shares instead of cash, converting a portion of its engineering fees into equity. The equity-for-services arrangement aligns KnightHawk’s interests with MTM’s success and signals optimism about MTM’s future prospects.

The company reported a comprehensive loss of $3,299,791 for the six-month period ending December 31, 2024, compared to $1,643,580 in the previous corresponding period. This increase primarily reflects the expanded operations associated with Flash Joule Heating technology development, including higher administration costs and R&D expenditure. Net cash outflow from operating activities ($1,265,658) and investment activities ($3,344,641) increased from the previous corresponding period due to expenditure relating to development of the Flash Joule Heating processing system.

Asset Position and Future Outlook

Total assets increased by 32% from the previous year-end, reaching $24,729,769. With net assets of $23,886,818 as of December 31, 2024, MTM is well-positioned to execute its growth plans. The company anticipates a strong pipeline of news flow throughout 2025, including updates on its pilot facility, ongoing testing programs, and advancements in collaborations. Recent developments in 2025 have shown promising results, including a breakthrough in gallium and germanium recovery from semiconductor waste using the company's proprietary FJH technology, achieving recovery rates of approximately 90% for gallium and 80% for germanium.

MTM is advancing rapidly toward commercial implementation with significant progress on its 1-tonne-per-day demonstration plant in Texas. The process design was signed off at the end of February 2025, representing a significant development milestone. With design completion achieved in Q1-2025, commissioning is planned for Q4-2025. This demonstration facility will validate the scalability of the FJH technology across various feedstocks and serve as a springboard for commercial partnerships and potential licensing arrangements.

During the second half of 2024, MTM established a strategic collaboration with Indium Corporation, a global leader in refined technology metals. This partnership aims to develop sustainable U.S.-based recovery solutions for gallium, germanium, and indium—critical metals essential for the semiconductor and technology industries. The collaboration has advanced applications for U.S. Department of Energy grants, targeting $3-10 million in potential funding. Backed by Indium Corporation's industry expertise, MTM is well-positioned to capitalise on the increasing demand for domestically-sourced critical materials.

The environmental benefits of MTM's technology are substantial. Compared to traditional extraction methods, FJH offers:

• Drastically reduced energy consumption, potentially 500 times less energy than conventional methods
• Elimination of acid usage and toxic waste streams typically associated with metal recovery
• Significant reduction in greenhouse gas emissions compared to smelting
• Minimised water consumption and environmental footprint

These advantages align with growing regulatory pressures, corporate sustainability commitments, and investment criteria focused on environmental performance. As regulatory frameworks continue to evolve toward greater producer responsibility for electronic waste and stricter standards for processing operations, MTM's cleaner technology offers a compelling compliance pathway.

MTM Critical Metals Limited stands at the forefront of a significant opportunity in sustainable metal recovery. With its innovative Flash Joule Heating technology demonstrating exceptional results in recovering high-value metals from e-waste and other feedstocks, the company is seemingly well-positioned to capitalise on growing global demand for environmentally responsible resource recovery solutions.

The recently secured long-term e-waste supply agreement, combined with the progress toward a demonstration plant in Texas, significantly reduces execution risk on the commercial pathway. The company's strengthened balance sheet following successful capital raises provides a solid foundation for executing its growth strategy. As global challenges in critical material supply chains and e-waste management intensify, MTM's technology offers a compelling solution that addresses both environmental and economic imperatives. The coming year represents a pivotal period as the company transitions from technology validation to commercial operations, with potential for the demonstration plant to accelerate adoption across multiple industries and applications.

Additionally, President Trump's recent implementation of substantial tariffs—particularly the 104% rate on Chinese imports—creates a uniquely favourable environment for MTM's domestic critical metals recovery operations, as manufacturers seek secure supply chains insulated from international trade tensions. This protectionist trade policy effectively enhances the economic case for MTM's technology while positioning the company as a strategic contributor to national resource security.

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