Altech Advanced Materials AG: CORPORATE UPDATE MARCH 2020

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Heidelberg (pta028/30.03.2020/14:00 UTC+2) Highlights:

* Almost all of the outstanding Stage 2 site construction work (electrical substation) has been completed
* Site suspended due Malaysia's Covid-19 movement control order
* European initiatives continuing

Altech Advanced Materials AG ("AAM"; FRA: AMA1) is pleased to provide information from Altech Chemicals Limited, Australia, ("Altech Chemicals"), regarding an update on Altech Chemicals Australia PTY LTD ("Altech Australia") High Purity Alumina (HPA) plant site in Johor, Malaysia and details about its previously announced European based initiatives.

Corporate:

At the Company's high purity alumina (HPA) plant site in Malaysia, almost all of the outstanding Stage 2 site construction work (electrical substation) has been completed. No work additional to Stage 2 is currently planned or proposed. The minor remaining work on the substation consists of internal fit out (most fit out has been completed), sewage and drainage work. Work at the site is currently suspended due to the Malaysian government's imposition of a movement control order in response to the outbreak of Covid-19, the order is currently in effect until 31 March 2020. The HPA site is fully fenced and has 24-hour security (both at the industrial complex and at the plant site), as the movement of security personnel is exempt from the control order. Site work can re-commence easily when the control order is lifted.

In relation to the global Covid-19 pandemic, in addition to supporting the welfare of all its employees, the Company is only proceeding with discretionary expenditure that will assist to position it to continue to progress its HPA project once financial markets and the global economy stabilise.

European Initiatives:

On the basis that it is likely that most able governments, but particularly those in Europe, will make available significant (likely unprecedented) economic stimulus once stability returns to financial markets and the global economy, Altech is continuing with its European based activities to best position it for this situation. Mr Uwe Ahrens, Altech Chemicals alternate director and member of the management board of AAM, is continuing with his German based work to promote Altech Australia's HPA product and to assist AAM with its planned rights issue and share placement. Although face-to-face meetings are currently being limited by the Covid-19 situation, teleconference and internet facilitated meetings are continuing.

AAM remains on track for prospectus approval from BaFin (German Federal Financial Supervisory Authority) by mid-April 2020. The rights-issue shall commence upon prospectus approval, but timing might be altered in light of the then pre-vailing Covid-19 situation.

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.

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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
ISIN(s):	DE000A2BPG14 (Share) DE000A2LQUJ6 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf