COLD

PELLETISATION
Novel process to turn low-value
fines into a high-value product

1
1. THE MARKET
MINING AND STEEL COMPANIES HAVE STARTED ADOPTION OF NEW TECHNOLOGIES DRIVEN BY
THE SEARCH FOR QUALITY AND THE NEED TO CUT GREENHOUSE GASES

o EMISSIONS TARGETS: CARBON TAX, CREDITS, PR, REGULATORY CHANGES ARE FORCING
COMPANIES TO ADAPT

o PELLET PREMIUMS: CAPACITY CONSTRAINTS AND LONG-TERM DRIVE FOR QUALITY ARE
PUSHING UP PREMIUMS

o PENALTIES FOR WASTE : CURRENT SOLUTIONS ARE INEFFICIENT, SOLUTIONS NEEDED

TO REDUCE STOCKPILE LIABILITIES (EXCL JAPAN)

o REDUCING RELIANCE ON SINTER PLANT: EUROPEAN PRESSURE TO REDUCE SINTER

USAGE

o CAPITAL CONSTRAINTS: INDURATION PLANTS REQUIRE LARGE CAPEX, FOOTPRINT AND

MMTPA TO ACHIEVE ECONOMIES OF SCALE. PERMITTING CAN TAKE MANY YEARS DUE TO
ENVIRONMENTAL BURDEN

o MARKET- A SHIFT IN SENTIMENT: SOME OF LARGEST MINING AND STEEL COMPANIES ARE 2
 2. WHY CHANGE & WHY NOW

o MINING AND STEEL COMPANIES NEED SHORTER TERM SOLUTIONS TO HIT

EMISSIONS TARGETS (HYDROGEN NOT QUICK ENOUGH), BSL SOLUTIONS CAN BE
IMPLEMENTED ON A LOW COST & MODULAR BASIS, AS THE MARKET FOR
PELLETS INCREASES

o STEELMAKERS ARE HAVING TO PAY LARGE PREMIUMS AND FINES ARE BEING
DUMPED OR STOCKPILED (OR SINTERED, WHICH IS HIGHLY POLLUTING)

o INTRODUCTION OF CARBON TAX AT THE STEEL WORKS, INCREASING OVER TIME

o VALE ANNOUNCEMENT IS VALIDATING MARKETPLACE ALTHOUGH OTHER MINERS

NEED SOLUTIONS.

IT IS EARLY DAYS FOR COLD AGGLOMERATION SO THERE IS EXPECTED TO BE

3
PERFORMANCE IMPROVEMENTS OVER TIME
3. BSL’S SOLUTION
PROPRIETARY TECHNOLOGY ADDRESSING NEED FOR QUALITY AND REDUCES
GREENHOUSE GASES
The BSL Process
revolutionises steel-making
by producing cold-bonded
pellets as an alternative to
the induration pellet process.
The BSL Process also
BSL’s technology allows
monetises previously
steel and mining companies
unviable waste and by-
to significantly reduce Capex
products, clearing large
, reduces energy usage and
tailings sites and produces
emissions when compare
a clean, higher value
against induration
product.
4
4. WHY BSL?
BSL’S TECHNOLOGY PROVIDES A LOW COST, MODULAR SOLUTION TO PROMOTE THE
CIRCULAR ECONOMY AND REDUCE EMISSIONS.

REDUCED ENERGY & CO2 | ACCESS TO CARBON CREDITS AND PREMIUM

IMPROVED PERFORMANCE | LESS BINDER, HIGHER PRODUCTIVITY

$ LOW CAPEX | >90% REDUCTION VS STANDARD INDURATION PLANTS

NEW MARKETS| MONETISE LOW GRADE, ULTRA FINE MATERIALS AND COMPOSITE PELLETS
5
 4. BSL’S COLD BONDING PROCESS
START

Notes
• Capex
figures are
capex per
million tons

• BSL Capex
is expected
to be $10m
per 1Mtpa

6
END
4. BSL’S KEY MARKETS
Waste & primary fines and EAF pellet feed
01
Waste Fines
Industrial smelter and mine
waste, historical slag
dumps
Including millscale, baghouse
dust, oxide fines, sludges and
slimes.
Historical ferroalloys including
ferrochrome, ferrotitanium and
ferromanganese
Low value metallic fines (sub
6mm)
02 03
Primary Materials EAF Green Pellets
Primary mining material Circumventing $bn
polluting plants
Including iron ore, Electric Arc Furnace (EAF)
zinc, chrome and Research project to
manganese revolutionise steel
industry.
Providing technology to Significant cheaper
mines to access pellet feedstock providing fresh
iron units and reducing high-
premium whilst
capex and heavy pollutions.
reducing emissions.
BSL is targeting 30-50% of
total EAF feed
7
4. WASTE FINES: GENERAL BENEFITS
BSL are working on a number of waste projects including the agglomeration of metallic
and oxide Fe fines and ferroalloy fines.

General Benefits are as follows:

o Improved value in use from waste

o Reduction in emissions vs sinter plant
o Uplift in quality and productivity through reduced binder
addition vs traditional binders
o Energy saving to the furnace with reduce binder
addition

8
 4. WASTE FINES: BENEFITS
BSL are working with a large steel company in the US to agglomerate waste DR fines including
ultrafines that currently can’t be agglomerated. The agglomerated fines will be charged into the EAF to
generate additional value.
BSL are able to use an existing roller press on the client’s site and minimal capital requirements to adopt
BSL’S Technology

VALUE-ADD IS AS FOLLOWS:
Itemised benefit Explanation $/t
This is material that isn’t currently being
Ultra fines agglomerated + 35.00
BSL’s binder substantially reduces the amount of
Reverts reverts + 5.50
Fine material loss
prevention Reduction in losses through transportation + 60.00
The existing binder used has negative impact on furnace
Energy Saving to Furnace power use + 1.50
Cleaning downtime saving Reduction in plant cleaning cost + 40.00
9
Additional binder cost BSL binder cost -19.00
4. WASTE & BY-PRODUCTS - STATUS
MONETISING LOW & NEGATIVE VALUE MATERIAL

• BSL is working with steel companies and dump owners around the world to monetise their waste and by-
product materials

• BSL is able to agglomerate multiple smelter waste materials including

• metallic and oxide fines,
• Pellet chips
• Oily millscale,
• Baghouse dusts, DR and HBI fines and
• Other smelter waste products (e.g. Cr, Ti, Ni, Mo).

• BSL can agglomerate low or zero-value mine waste and agglomerate using small amounts of binder.

• BSL’s proprietary technology can improved pellet and briquette performance.

Status: BSL is currently working with a large steel company in the US to agglomerate their DR fines. BSL is
able to agglomerate ultrafine material not previously viable. A larger scale field trial is planned for Q3 2022.

BSL has 8 additional waste contracts in development and is developing a number of historical dumps projects
10
with joint venture partners.
4. PRIMARY IRON ORE BENEFITS
BSL are working with a number of large primary iron ore producers based in Canada,
Australia, Brazil, and Europe.
Benefits derived from agglomeration of primary iron ore are as follows:

o Additional margin on saleable produce (pellet premiums)

o Reduction in emissions and energy requirements vs induration
o 90%+ reduction in Capex
o Easier permitting pathway
o Modular construction
o Lower standard deviation in pellet specifications
o Flexibility on pellet size and shape and uniformity to improve stacking and reduction in
the furnace
o Opportunity to improve pellet performance by addition of material to end-users
specification (e.g. carbon or flux ingredients)

11
DIRECT REDUCTION
Key focus for BSL to meet Industry move towards Green Steel
• Previous experience
• Waste project development work for ESI – successful basket tests (Abu
Dhabi)
• Current DRI waste project in the USA

• Developing DRI capability

• Natural Gas/ Hydrogen DRI simulation furnace installed Q3
• 2x primary DR development contracts
• DRI oxide waste project

• Key Considerations
• Minerology - high grade / reverts
• Shaft Conditions and design
• HBI or Hot transport
• Gas type
• Future green steel developments (e.g. hydrogen steel production)
12
DIRECT REDUCTION
Route to Greener Steel

Sample No 1 3 10

CCS (kN) 1.16 3.60 1.74

% Total Fe 86.30 86.60 87.10

% Metallisation 94.20 90.30 93.90

13
4. PRIMARY: BSL VS INDURATION
Capital Expenditure $/ installed capacity

CAPITAL EXPENDITURE (PER INSTALLED METRIC TONNE)

INDURATED PELLET $165.20

BSL COLD PROCESS $9.60
SAVING $155.60
$155.60

Assumptions
o Indurated pellet data collected from multiple sources
o Quotes for a North American mining operation and advised range provided by technical consultants Wood Mackenzie (regions outside of China)
o Two operational indurated pellet plants
o Cold pellet based on BSL’s preferred pellet plant configuration as of 2022
o Opportunity to significantly improve capital intensity with a lower carbon footprint

14
4. PRIMARY: BSL VS INDURATION
Total cost comparison $/t
BSL COLD PELLET PLANT
INDURATION PLANT ($/T) ($/T)

TOTAL OPEX1: 14.10 23.50

CARBON TAX: 3.30 1.00

FINANCE CHARGE: 9.90 VS 0.60

DEPRECIATION CHARGE 11.00 0.60

TOTAL COST: $38.20 $25.70

Assumptions
o 1 Including binder

o Pellet Pricing is the same in both cases

o Carbon intensity (Mt CO2e per Mt pellet) – Induration 0.13, BSL 0.04
o Carbon tax is charge at a rate of $25 per ton of co2 equivalent. This figure is based on global average carbon pricing.
o Finance charge is based on 100% financing. Charged at a rate of 6%
o Depreciation - 100% of capex costs, Straight line over 15 years 15
4. PRIMARY STATUS
• BSL is working with a number of primary iron ore miners around the world including; North America,
Australia, Brazil and Europe/CIS.

• BSL uses bespoke binding formulations and a cold agglomeration process to produce pellets and briquettes
that can meet ISO pellet specifications using significantly less energy and CO2 and with large reductions in
Capex.

• BSL is currently in advanced stages with a North American mining company to commercially pelletise the
concentrate. BSL are able to meet all of the KPIs required. Moving to larger quantity furnace testing in 2023

• BSL has an additional six development contracts with major mining companies

Status: BSL’s pellet specifications have been validated by a number of third-party test houses. BSL is currently
working with agglomeration EPCs, including roller press and extruder manufacturers, to demonstrate the
technology at scale.

16
4. WORLD-CLASS PELLETS
BSL CAN PRODUCE PELLETS THAT RIVAL INDURATED PELLETS WITH ADDITIONAL
ENVIRONMENTAL BENEFITS AND LOW BINDER ADDITION.

Indicator Standard Units Current Results

Cold Compressive Strength ISO 4700:2015 daN 200-300

Porosity N/A % c.40%

Tumble Strength ISO 3271:2015 % + 6.3mm 85-95%

Swelling ISO 4698:2007 Free Swelling <15%

Dynamic Low Temperature

ISO13930:2015 % + 6.3mm 95-97%
Disintegration

Dynamic Low Temperature

ISO13930:2015 % - 0.5mm 3-5%
Disintegration

Relative Reducibility R180 ISO7215: 2015 % 65-75%

*Work has also been conducted by the Materials Processing Institute and a third party test centre to highlight early reducibility in our cold pellets. This
is not captured by conventional indurated pellet testing however offers a tangible benefit 17
4. EAF GREEN PELLETS: OVERVIEW
BSL are developing a composite pellet for direct feed of fresh iron units into the EAF, circumventing the
induration and DRI plant.

The composite pellet consists of Iron ore, carbon and binder

BSL have completed 40 test melts at a 7-tonne EAF at the Materials Processing Institute in the UK. The
composite pellets reduce well, use less <1% binder and generate close to 100% yield.
1 2 3

BSL Pelletising Technology

X
EAF

X DRI Plant

Induration Plant

Iron Ore
X Blast Furnace BOS Slag

Scrap Steel

18
4. EAF GREEN PELLETS: BENEFITS
BSL are completing a full value-in-use study to determine the net benefits of using composite pellets in the
EAF. Pellets will require increase in energy use at the furnace, increase electrode use and loss of
productivity however the benefits are expected significantly exceed the costs based on early data from BSL’s
melt programme:

Potential benefits are as follows:

o Significantly reduced feedstock price.

o Composite pellet c.50% price of scrap even after adjustment for Fe units
o Reduced energy use and emissions in supply chain.
o Removal of induration and DRI plant generates significant capex, energy and emission savings that
far exceed additional energy requirement in EAF
o Ability to use non DR grade ore
o 64% Fe composite pellets showed similar performance to 70% Fe pellets without increased energy
costs. This delivers additional savings to the EAF and opens the market to lower grade ores. Further
test work required
o Premium for higher quality feedstock.
o Benefits expected to be derived from fresh iron units vs scrap
o Low nitrogen benefits.
19
o Early data from trial melts suggests a significantly reduced nitrogen content in the steel (subject to
5. WHY COMPANIES ARE WORKING WITH BSL
SUCCESSES TO DATE AND PROTECTED, TAILORED SOLUTIONS

Operational track record: Industry Expertise

A full-scale plant has been operating at Our lab is based within the Material Processing Institute (MPI),
a large steel company in the UK for the a world-leading steel and research centre with access to the top
experts in their field. Independent labs such as COREM and
past five years using the BSL Process to
SGA have also validated BSL’s pellet performance.
produce BOS and Blast Furnace quality
briquettes.

Tailored Solution
IP

BSL have filed 10 patents

and PCTs in multiple We build on 9 years of
jurisdictions. innovation, R&D and binder
development directly supporting
Further patents to be filed in the BSL Process. BSL utilises a
2023 proprietary database of
chemicals to produce pellets
A culture of continuous using tried and tested
innovation at the UK equipment to produce pellets
laboratory tailored to raw material and
end-user needs.
20
 6. BSL CORPORATE ROADMAP

2022/2023 2024 2025

• DRI metallic licence in
production
• Blast Furnace Trial
programme
• Design/construction of
primary pellet 500ktpa pilot
plant
• 10Kt-15Kt Blast Furnace trial
• EAF commercialisation
partnership
• Proprietary project
development
• Primary Iron ore pilot plant • Primary iron ore pellet plant
commissioned (licence commissioned
customer) • Expansion in in each key
• 2x Proprietary waste plants vertical
commissioned
• Additional waste license(s)
• EAF composite pellet plant
revenues

21
APPENDICES

22
BLAST FURNACE PELLET
CANADIAN MATERIAL
12MM EXTRUDED PELLET 3.8CM3 ROLLER PRESS “PELLET”

23
24
 EAF Project - Metallic Yield by Cast
102.0

100.0

98.0
% % Met Yield

R² = -7E-04
96.0

94.0

92.0

90.0
0 5 10 15 20 25 30 35
Trial Number

25
 EAF Project - % Nitrogen Final v % Met Pellet Addition
0.035
Total

0.03

0.025
% Nitrogen Final

0.02

0.015

0.01

0.005

0
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
% Met Pellet Addition

26
 kWh/t v % Met Pellet Addition
1000.0

900.0

800.0
y = 12.829x + 408

700.0
kWh/t

600.0

500.0

400.0

300.0
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
% Met Pellet Addition

27
GENERAL DISCLAIMER
General Disclaimer

Binding Solutions Ltd (“BSL”) has taken all reasonable care in producing and publishing the
information contained in this document and any associated documentation including but not
limited to its website and will endeavour to do so regularly. Material presented by BSL may still
contain technical or other inaccuracies, omissions or typographical errors, for which BSL
assumes no responsibility. BSL does not warrant or make any representations regarding the use,
validity, accuracy, completeness or reliability of any claims, statements or information on this
document.

This document does not constitute, or form part of or contain any invitation or offer to any person
to underwrite, subscribe for, otherwise acquire, or dispose of any shares in BSL or advise
persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on
in any connection with or act as an inducement to enter into any contract or commitment
therefore. No reliance may be placed for any purpose whatsoever on the information or opinions
contained in this presentation or on its completeness and no liability whatsoever is accepted for
any loss howsoever arising from any use of this presentation or its contents otherwise in
connection therewith.

28
4. EAF COMPOSITE BRIQUETTE PROJECT -
STATUS
• BSL and the Materials Processing Institute have received a c.$1m grant from the UK government for a
development project to create composite briquettes for direct feed into the EAF.

• BSL conducted a 40 test melt programme using MPI’s 7-tonne EAF to analyse reduction of BSL’s
composite briquettes

• Yield data is very high. A full value-in-use study is currently underway to determine cost savings and
performance benefits.

• BSL are currently working with two development partners to test additional materials with a view to full
commercialisation later in 2022.

• A full life cycle analysis is currently underway to capture all environmental benefits throughout the supply
chain.

• BSL are analysing the low nitrogen steel results using the current process. This would have significant
economic benefits for the industry in addition to the core technology.
29
For inquiries about this presentation please contact:

Binding Solutions Limited Julian Lee

Materials Processing Institute jlee@bindingsolutions.com

Eston Road,
Middlesbrough, TS6 6US
Tel: +44 207 993 5261

30