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Altech Advanced Materials AG
Ansprechpartner: Hansjörg Plaggemars
Tel.: +49 6221 64924-0
E-Mail: info@altechadvancedmaterials.com

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Altech Advanced Materials AG: MEZZANINE DEBT UPDATE

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Heidelberg (pta034/06.03.2020/15:00) - Highlights
* Update meeting in London with Altech Chemicals and Macquarie Bank
* Re-affirmed interest for a USD 90 million mezzanine facility
* Positive response from bourgeoning European LiB sector to Altech Australia's HPA project
* Posting of Board Member Uwe Ahrens to Germany delivering results

Altech Advanced Materials AG ("AAM"; FRA: AMA1) is pleased to provide an update from Altech Chemicals Limited, Australia, ("Altech Chemicals"), on the progress on proposed USD 90 million mezzanine loan facility for the HPA-Project.

Altech Chemicals informed us, that they are continuing to work with its preferred mezzanine lender Macquarie Bank ("Macquarie") to secure a USD 90 million mezzanine loan facility. An update meeting was recently held with Macquarie in London, where when pressed by Altech Chemicals as to its continual interest in providing the facility, the Macquarie team reaffirmed its interest - especially given the recent increased profile of planned lithium-ion battery plant construction in Europe, and a stated industry preference for securing long-term battery materials supply.

Finalising a facility remains subject to Macquarie satisfying all of its due diligence, various internal approvals and inter-creditor arrangements with senior lender KfW IPEX-Bank. Macquarie has progressed discussions with KfW IPEX-Bank and its legal counsel (Freshfields), regarding access to the previous legal due diligence work and updates to this work.

Whilst Altech has a ten-year offtake sales arrangement for its Malaysian 4N HPA plant with Mitsubishi Corporation's Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi), Macquarie stressed to Altech Chemicals the importance of selling a proportion of the planned HPA production to an end user at fixed product prices to demonstrate some pricing transparency in an otherwise opaque market.

The recent posting of Mr Uwe Ahrens to Germany (refer Corporate News 27 February 2020) is already starting to deliver increased engagement with emerging participants in the bourgeoning European lithium-ion battery sector. Response to the promotion of Altech Australia's HPA project and its 99.99% (4N) HPA has been positive. The objective for Altech Chemicals and AAM to link with one or more HPA end-users that appreciate the advantage of a current commitment to accept future volumes of the 4N HPA product at pre-agreed or other transparent pricing, and/or to directly partner for the development of the Altech Australia's HPA project.

The Management Board

About Altech Advanced Materials AG

Altech Advanced Materials AG ("AAM") currently plans to subscribe up to 49% in Altech Chemicals Australia PTY LTD ("Altech Australia") for up to USD 100 million from Altech. AAM is currently implementing its capital raising strategy to be able to fund the investment.

Altech Australia is currently building a high-purity alumina (99.99%, 4N HPA) production facility for 4,500 tons p.a. in Malaysia and also has its own deposit for the mining of the main raw material kaolin. 4N HPA is needed for the production of LED lights as well as a separator for lithium-ion batteries, e.g. needed for electric vehicles and smartphones. Market demand for 4N HPA is expected to grow with a CAGR of 30% p.a. until 2028. The process patented by Altech Australia allows the production of HPA as cost leader, as the HPA can be obtained directly from kaolin. This allows production without the use of energy-intensive aluminium. The production volume for the first 10 years is secured by an off-take agreement with Mitsubishi Australia and the production capacity and quality is guaranteed by the German plant manufacturer, SMS group GmbH, Dusseldorf, which has also agreed to contribute in equity to the Altech HPA project.

The project has an investment volume of approximately USD 390 million, of which KfW-IPEX Bank has already committed USD 190 million under certain conditions and of which USD 10 million is assumed as equity investment from SMS group GmbH. Altech Chemicals is in talks with Macquarie Bank on the provision of USD 90 million in mezzanine capital. The remaining USD 100 million is to be made available by AAM.

(end)
emitter: Altech Advanced Materials AG
Ziegelhäuser Landstraße 3
69120 Heidelberg
Germany
contact person: Hansjörg Plaggemars
phone: +49 6221 64924-0
e-mail: info@altechadvancedmaterials.com
website: www.altechadvancedmaterials.com
stock exchanges: regulated market in Frankfurt; free market in Dusseldorf; open market in Berlin
ISIN(s): DE000A2BPG14 (share), DE000A2LQUJ6 (share)
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