Altech Advanced Materials AG: INDEPENDENT CONFIRMATION OF HPA PROJECT'S GREEN CREDENTIALS

Heidelberg (pta011/20.05.2020/10:20 UTC+2) Highlights:

* Altech's project to produce high-purity alumina (HPA) has been confirmed as "green" by the Centre of International Climate and Environmental Research (CICERO)
* Confirmation encompassed both project and governance aspects
* According to CICERO's "second opinion" an investment in Altech-Australia's HPA project is an ecologically sensible and sustainable investment

Altech Advanced Materials AG ("AAM") is pleased to announce that the high purity alumina (HPA) project of Altech Chemicals Australia PTY LTD ("Altech Australia") has been formally assessed as "green" by the independent Centre of International Climate and Environmental Research (CICERO) based in Oslo, Norway.

This positive project assessment, formally termed a "second opinion", confirms that Altech's HPA project is of a type suitable for finance via green bonds. The project can now be considered by investors that participate in the green bond market, the size of which is approaching USD 250 billion annually and a large portion of which is present in Europe.

The CICERO evaluation was initiated in mid-March 2020 and included an overall assessment and review of the technical project implementation, design and documentation, as well as criteria for corporate governance and transparency. In its Green Bond Second Opinion Report, a copy of which is available on AAM's web site (https://www.altechadvancedmaterials.com/sites/default/files/Altech%20CICERO%20Green%20Bond%20Second%20Opinion%20Final%2015%20May%2020.pdf), CICERO assessed the project's overall framework as a Light Green shading and assessed a governance score of Good. CICERO also noted that "a (higher) Medium Green (project) shading could be achieved if renewable energy solutions at some scale are implemented", which is something that the Company is currently investigating.

The project's green shading score does not affect bond pricing, rather it provides a transparent mechanism by which green bond investors are able to categorize their investment in terms of sustainability, climate risks and impacts.

In terms of the projects strengths, CICERO noted that "Altech's process includes recycling processes and does not create substantial amounts of solid or liquid waste that would go to tailing points. In addition, nearly 100% of the hydrochloric acid used in its chemical process is recycled and reused in the process plant."

The project assessment was initiated by AAM, of which Altech Chemicals Ltd is a 29.9% shareholder. As announced on 30 January 2020, AAM has executed an agreement with a Swiss based international investment bank to act as Placement Agent in relation to the issuance of equity or other equity instruments (securities) by AAM via private placement. AAM is aiming to secure funding to position it to exercise its option to acquire up to a 49% interest in Altech's HPA project for USD 100 million. This positive second opinion report is expected to assist AAM in its capital raising initiative by opening the project to the large pool of European funds for green or environmentally sound and sustainable investments, such as those that may participate in the green bond market.

Commenting of the CICERO Green Bond Second Option Report, Altech managing director and AAM CEO Iggy Tan said "the second opinion report formalizes the view that Altech's single step HPA process is an energy efficient green process - a real game changer in terms of environmentally friendly, energy efficient and consequently lower cost production of high purity alumina. The report should be of considerable assistance to AAM and will open up a new group of potential investors for this exciting project."

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 Chemicals Ltd, Australia. 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