2021 Annual Report

Greenbushes is a large-scale, long life, low cost, hard rock lithium mine with spodumene concentrate plants, located approximately 250km south of Perth, Western Australia. Greenbushes has the highest Ore Reserve grade of any hard rock lithium mine globally and is a well-established operation with mining operations spanning over many years, with lithium operations commencing in 1983. The site comprises a large open pit mine, three processing plants – two producing chemical grade lithium concentrates (CGP1 and CGP2) and one producing technical grade lithium concentrates (TGP), and associated infrastructure. Kwinana is one of the first fully automated battery grade lithium hydroxide facilities globally and the only constructed lithium hydroxide plant in Australia. The refinery is approximately 35km south of Perth, Western Australia, and only 200km north of Greenbushes, adjacent to major supply chain logistics. The completed plant will comprise two individual production trains with an aggregate nameplate capacity of 48ktpa of premium battery-grade lithium hydroxide. The first production train (Train 1) is fully constructed and currently being commissioned, with production expected to commence in the second half of 2021 and complete ramp up by the end of 2022. The second production train (Train 2) is under construction and is expected to commission in 2024. • During the year, IGO divested its share of the Company’s 30% interest in the Tropicana Gold Mine. On 13 April 2021, the Company announced that it had entered into a binding agreement with Regis Resources Limited (Regis) for the sale of IGO’s 30% interest in the Tropicana Gold Mine. The execution of the binding sale agreement marked the completion of the Tropicana strategic review which was announced in September 2020. On 31 May 2021, the Company announced the completion of the divestment transaction. In addition to its Nova mining operation and interest in the Lithium JV, the Company is pursuing aggressive growth through its portfolio of high-quality belt scale exploration projects across Australia and overseas that prioritise nickel and copper exploration and discovery. EXPLORATION OVERVIEW IGO has an enduring, long-term commitment to exploration targeting transformational value creation and sustainable growth through the discovery of clean energy metals. Our disciplined approach to greenfield exploration and discovery is designed to maximise the chance of step-change success by: • focusing on high value magmatic nickel-copper-cobalt (PGE) deposits and sediment-hosted copper (±cobalt/gold/silver) deposits aligned with our clean energy metals strategy • applying leading generative geoscience, prospectivity assessments and ranking to identify the most prospective underexplored belts within Australia and elsewhere, that have the potential to deliver Tier 1 and Tier 2 discoveries of our preferred commodities and deposit styles • leveraging the technical excellence of our world class exploration team, with our innovative geophysics and geochemistry capabilities where leading technologies are deployed, and this, coupled with our proprietary in-house databases, are key enablers for discovery success; and • in addition to our systematic belt-scale exploration, IGO is also seeking advanced exploration opportunities, typically through partnering with complimentary junior explorers, where IGO can bring its unique skills and technologies to bear on projects to enhance the probability of success for all parties. To this end, the Group has continued to build and develop its unique portfolio of highly prospective brownfields opportunities and belt scale greenfield projects. Key work activities completed during this period include: BROWNFIELDS EXPLORATION Nova near-mine (nickel-copper-cobalt) – Diamond drilling (DD) near the Nova Operation continued to follow-up on 3D seismic targets that had previously been drilled and intersected prospective mafic-ultramafic intrusions with polyphase magmatic Fe-Ni-Cu sulphides. All remaining underground targets were tested with only minor mineralisation encountered. Encouraging results were received from several prospects tested by surface drilling. DD programs are planned to further test the highly prospective Orion intrusion on the Boadicea JV (E28/1932) and to follow-up encouraging air core (AC) drilling results at the Chimera target. GREENFIELDS EXPLORATION • Fraser Range (nickel-copper-cobalt) - IGO continued to strengthen its position in the prospective Fraser Range through new JV agreements, new tenement applications and the relinquishment of non-core tenements, and at year end had total tenement holdings of approximately 12,225km 2 . During the year, IGO continued to explore along the Fraser Range, focusing on infill AC drilling at specific targets, completing moving-loop electromagnetic (MLEM) surveys over coincident geophysical, geochemical and/or geological anomalies, and DD testing of compelling targets, typically based on the presence of electromagnetic (EM) conductors and geochemical anomalies generated through AC drilling. Regional AC drilling programs commenced south of the Trans Access Road early in the June 2021 quarter. MLEM surveys are planned for the Boadicea JV (E28/1932) where the Orion, Elara and Hercules prospects are interpreted to strike, and the Southern Hills area to the southwest of the Nova Operation. • Paterson (copper) – the Paterson Project is targeting sediment-hosted copper deposits with potential gold, silver and/or cobalt credits. The project comprises four key ground positions, consisting of three earn-in and JV Agreements with Cyprium Metals Limited, Encounter Resources Limited and Antipa Minerals Limited respectively, and tenements staked by IGO. On the Cyprium JV tenements managed by IGO, a relogging and resampling program of historical drill cores and reverse circulation (RC) chips was completed to gain a better understanding of stratigraphy, basin architecture, mineralisation styles, alteration halos and geochemical footprints. On the Encounter JV tenements, assay results from an infill soil sampling program in late-2020 identified four priority-1 multi-element anomalies that require follow up. Several DD holes targeted a combination of EM geophysical and geochemical anomalies. As of 1 April 2021, the Encounter JV transitioned to IGO management. On the Antipa Minerals JV tenements, assay results were received for 79 wide spaced shallow AC holes drilled in late-2020. Highly anomalous drill samples of gold and silver mineralisation have extended the strike length of the Poblano gold‐copper-silver mineralised trend by approximately 500m. A 133-hole AC program commenced in mid-June 2021 that aims to test geophysical, structural and stratigraphic targets across a broader area of the JV tenements. IGO ANNUAL REPORT 2021— 39