Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’...

ASXMediaRelease27September2019‘SOR’

AnnualGeneralMeetingPresentationWESTERNAUSTRALIA,Perth,Sept.27th,2019–StrategicElementsLtd(ASX:SOR)ispleasedtoattachthe2019AnnualGeneralMeetingpresentation.StrategicElementsLtdThe Australian Federal Government has registered Strategic Elements as a Pooled Development Fundwith amandate tobackAustralian innovation. Strategic Elementsoperatesas a ‘venturebuilder’where it generatesventuresandprojectsfromcombiningteamsofleadingscientistsorinnovatorsinthetechnologyorresourcessectors.DuetothePooledDevelopmentFundprogramthatStrategicElementsoperatesunder,mostshareholderspaynotaxoncapitalgainsordividends.TheCompanyislistedontheASXunderthecode“SOR”.MoreInformation:MrCharlesMurphy,ManagingDirectorPhone:+61892782788Email:admin@strategicelements.com.auwww.strategicelements.com.au

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BackingAustralianSMEownedprojectsintechnologyandresources….

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➤ In2019SORannounced theobjectivetoentertheartificialintelligence, roboticsandcomputervisionsector.Wedidn'tusemillionsofdollarsofshareholders funds tostartthrough acquisitionofanexistingbusiness.Insteadwetookonthechallengetobuildoneourselvesfromtheground uptoaddrevenuesandIPintotheSORportfolio.

➤ BothneartermrevenueopportunitiesandvaluableIParebeinggenerated.Stealthisalreadyworking

withgloballyrecognisedpartnersandwearein

discussionswithmultiplepartiesonfurthersignificantopportunities.

§ Otherobjectiveswere“toidentifypotentialzonesofsulphides intheringfeatures”intheGibsonDesert.SORsuccessfullyidentifiedmultiple, largezonesthroughgeophysicalIPsurveysattheBehemothProject.It’saveryhigh riskveryhigh rewardproject,however$300,000incostsofaninnovativedrillprogramhavebeenoffset.

§ Otherobjectivesweretofurtherdevelop theNanocubeMemory Ink,conducttestinganddevelopademonstrator.Theprogramhasundergone researchanddevelopmentdelays,butwithUNSW,theCSIROandVTTFinlandassistanceprogressisagainbeingmade.

§ Allaboriginalaccessandheritageclearanceshavebeennegotiated,SORisatthefinalstepofcontractingarigto

drillforbase-precious-raremetals.

Introduction

➤ SORDirectorshavebackgrounds insoftwaredevelopment, dataandroboticsandhavesignificantexperiencewithresearchcommercialisation.Stealthwasfounded byfollowingourVentureBuildermodelandistheresultofanenormous amountofworkbytheStrategicElementsteam.

§ Atransparenttechnologydemonstratoriscurrentlybeingfabricated.

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The Company

➤ TheAustralianFederalGovernment hasregisteredStrategicElementsasaPooledDevelopmentFundwithamandatetobackAustralianSMEinnovation.

StrategicElementsoperatesasa‘venturebuilder’whereitgeneratesventuresandprojectsfromcombiningteamsofleadingscientistsorinnovatorsinthetechnologyor

resourcessectors.

➤ DuetothePooledDevelopmentFundprogramthatStrategicElementsoperatesunder, mostshareholderspaynotaxoncapitalgainsordividends.TheCompanyislistedontheASXunder thecode“SOR”.

➤ ThereissomuchtalentwithinAustralia’sgovernmentandresearchorganisations,howevermanydon’tfocustheirtalentsonarealcommercialproblem.

➤ ByfollowingaVentureBuildermodel,wecanpartnerthistalentwithacustomeroranend-userandtogetherworkonsolvingarealcommercialproblem.

Highrisk– highrewardresourcesandtechnologyinnovation

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Mostartificialintelligencecompaniesonlyfocusonsoftwaredevelopment.Ourpointofdifferenceisthe

deephardwareandsoftwarecapabilitiesto:

1. Physicallycustombuildautomatedrobotic

machines.

2. Integratecomputervisioncapabilitiesenablinga

computertosee(throughcamerasandsensors).

3. Createartificialintelligencethroughmachinelearningandsoftwaredevelopment.

➤ Usingamulti-disciplinaryapproachweareabletoconstructpurpose-builtsolutionsinartificialintelligence,machinelearning,bigdata,automation,androbotics togovernmentandbusinesses.

➤ TheStealthTechnologies teamhasanexperiencedin-house teamofinternationalaward-winningPhDandMastersqualified researchengineerswithdeepcapabilitiesinartificialintelligence,computervisionandrobotics(hardwareandsoftware).

➤ StealthTechnologies hasthecapabilitytocustombuildartificialintelligenceandrobotic systemsforitsownproprietary technologiesandincollaborationwithcommercial/governmentpartnersfortheirownspecificbusinesscases.

About the Company

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ArtificialIntelligenceSaaSsolutiontounlock thevaluelosttominingcompaniesthrough controlroomoperatorvariability.

Commencedaprogramthatidentifiespotentialgame-changing technologiesforAustralia’snationalsecurityanddefence.

AgreementwithgiantUScompanyHoneywelltobuildautonomousroboticvehiclesforsecurityapplications.

➤ Opportunity tofast-trackStealth’stechnologybyworkingwithdefenceindustryendusersandpotentialcustomers.

➤ Partnerhaslargeexistingcustomerse.g BHP,Barrick,Goldcorp.Recurringrevenuefeeopportunity fromSaaS.

Recent Agreements Signed in Start-up Phase

Mining

Defence

Security➤ Initialpaymentof$100k.

Potentialopportunity withHoneywellmanaging facilitiesallovertheworld inmultiplesectors.

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§ Appoint technicaladvisoryboardfromartificialintelligence,mining, defenceandsoftwaredevelopment sectors.

Next Steps in Venture Development

§ Appointbusinessdev skillstotheStealthteam.Hireexternaltalenttoworkwithin-houseexperts.

§ Sign largeminingcompanyend-usersforartificialintelligence infixed-plantprocessing inmining.

§ Formagreementswithleadingresearchinstitutesandexpertsacrossartificialintelligenceandroboticstechnologies.Focusonsolvingspecificcustomerproblems.

§ Sign furtheragreementstocreatepracticalAIandRoboticssolutions forthemining, infrastructure,defenceandmanufacturing sectors.

§ Deliverexperimentalautonomous securityvehicletoHoneywell requirements.

§ CompleteAustralianDefenceTechnology programandtailorStealthtechnology toaspecificAustralianDefencesectorproblem.

§ Assessacquisitionopportunities thatprovideportfolio synergiesandrecyclingofresources.

§ Initiatesolutionservicesforadvancedhardwareandsoftwareengineering.

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Behemoth Project: High risk- high reward greenfield exploration…

Must use geophysics to see under the cover..

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Behemoth

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Nickel, Copper, Gold, Rare Earths

1. Aboriginal LandAccess&MineralExplorationAgreementsigned.

2. CompletedgeophysicalIPsurveyatBehemothProjectidentifying threeverylargezonesofpotential sulphides.

3. Woncompetitivedrilling fundsof$150,000 fromWAgovernment forinnovativedrillingprogramreducednetcosttoSOR.

4. Successfullyconductedaboriginalheritagenegotiationsandclearancefordrilling.

5. Soldgoldprojectfor$150,000 further reducingnetcostofdrillprogramtoSOR.

6. Logistics,rigaccessanddrillprogramplanning completed.

7. ContractingofdrillrigoperatorandPOWexpectedshortly

8. Drillingwilltargettheanomalouschargeabilityzoneswithinthecentre ofthemulti-ringedmagneticfeature.

➤ Behemoth isalargemulti-ringedmagneticgeologicalfeatureburied intheGibsonDesert.Expertsaredividedonwhethertheringfeatureiscausedbytheimpactofameteoritefromabove,anintrusion ofmagmafrombelowand/orassociatedmineralsystem.

➤ TheBehemothprojectwasVentureGeneratedincollaborationwithDr FrancoPirajnowhoisarecognised globalexpertonmineralsystems,withmorethan45yearsofexperience,inindustry,academiaandgovernment.

SignificantProgresssetsupdrillprogram

➤ Irrespectiveofthemodel, thechargeablematerialdetectedbyarecentIPgeophysicalsurveyburiedwithintheringfeatureindicateslargepotentialzonesofdisseminatedsulphides withpotentialforbase,preciousand/or raremetalmineralization.

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Zone B3

1. Threelarge(e.g.2km,1.4km,3km)anomalous IPchargeabilityzoneswerediscovered.

2. Anomalous zonesalsoreflect800m+widthpotential(>400m+eachsideoftheIPline).

3. Modelleddepthsof300-400mtotopofanomalismwellwithinmodern drillingcapabilities.

4. Chargeablematerialinanomalouszonesmodelleduptohighlevelsof40mV/V.

5. Anomalous zonesmodelled toapprox.500mindepth (limitofdata)andareopen.

6. Denserpartsofagravityanomalymodelled tocontinue toatleast1kmindepth(andopen).

InterpretationoftheIPsurveyresultsidentified threeverylarge,multi-kilometre sizedchargeablezones,whichindicatethepotential foraccumulationsofdisseminatedsulphidesandhence,areprospectiveforbasemetals,preciousmetalsandraremetalmineralisation.

Nickel, Copper, Gold, Rare Earths

Drillingwilltargetgeophysicalanomalies

AsannouncedonJuly1,2019

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About the Nanocube Memory Ink➤ TheNanocubeMemory Inkisarevolutionary

nanotechnologymaterialunderdevelopment tobeprintedorcoatedontonon-silicon transparentorflexiblesurfaces(e.g.glass,plastic)tostore/retrievedata.

© OE-A – A working group within VDMA

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

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Development of Overall Printed Electronics Market

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Increase from2016-2017: 8 %2017-2018: 10 %

2018: 34.8 Bn US$, predominant by OLED displays, conductive inks, 2027: 73.43 Bn. US$

Strong growth potential for stretchable electronics, logic and memory, thin film sensors

| LOPEC 2018 Main Press Conference

Sources: Allied Market Research, Displaybank,IDTechEx, Konica Minolta, Markets and Markets,

Smithers Pira, Transparency Market Research

© OE-A 2018

Page 8 | 14/03/2018

➤ PrintedElectronicsisamassiveemergingsectorcurrentlymoving from innovation toproducts (USD73Billion).

➤ Memory isoneofthemostimportantcomponents inmodernelectronics.ItisattheheartofelectronicsandOneofthecorecomponents thatenabledatatobestoredondevicesratherthanincloud.

➤ Prototypesdemonstratestrongpotentialforincreasedprintedmemorycapacityonflexibleand/ortransparentsurfaces.

© OE-A – A working group within VDMA

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

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Development of Overall Printed Electronics Market

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Increase from2016-2017: 8 %2017-2018: 10 %

2018: 34.8 Bn US$, predominant by OLED displays, conductive inks, 2027: 73.43 Bn. US$

Strong growth potential for stretchable electronics, logic and memory, thin film sensors

| LOPEC 2018 Main Press Conference

Sources: Allied Market Research, Displaybank,IDTechEx, Konica Minolta, Markets and Markets,

Smithers Pira, Transparency Market Research

© OE-A 2018

Page 8 | 14/03/2018

➤ Printabletransparentmemory,withincreasedmemoryandflexibilitypotentialnotavailableinmarkettoday.

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World Class Nanocube Memory TeamImproveinkfortransparentandflexiblesubstrates.

Trialedadvanceddeviceconfigurations andperformancetestingonglasssurfaces.

Fabricationandtestingwithworld’smostadvancedprintedelectronicsfacility.

#1UniversityinAustraliaformaterialscienceand#37intheWorld.

Globalleaderinprintedelectronicswith100scientists.Partnerswithworld’sbiggestcompanies.

Australia’spremierresearchorganisation.NanomaterialsanddevicesteaminMelbourne.

Smallclusterofselectstart-upsandbilliondollarcompanies.

Accesstonewbusinessdevelopmentandpilotmanufacturing resources.

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Transparent Printable Memory Demonstrator

➤ BeingfabricatedwithUNSWandVTTFinland tohighlight theunique transparentbenefitsoftheNanocubePrintableMemory Ink.

➤ TransparentdisplayandtouchsensorcomponentwiththetransparentNanocubeMemory Inkandcustomapplicationlogicdevelopedbytheteam.

➤ Isafullyprintedstoragetechnology fortransparentsurfaces.Physicallydeployedonglassandnothostedbyasiliconstoragetechnology

➤ TheinitialversionshowcasesthetransparentnatureoftheNanocubeMemoryandtheabilitytoprintfunctionalmemoryontoglass.

➤ Futureversionswithdifferent functions tosecurity.Couldstorearangeofinformationorimagesdirectlyonglass.Couldbecombinedwithsensorsandothercomputervision technologies.

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CurrentworkontheGoldenBlocksgoldfieldinNZconsistsofnegotiationswithregulatoryandotherpartiesforaccessintotheareatocontinuethehighlysuccessfulexplorationprogramsrunbytheCompany.

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GOLDENBLOCKS

APPLYING TECHNOLOGY TO A 100 YR OLD HIGH GRADE GOLDFIELD

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▶ SignlargeminingcompanyforrevenuegeneratingworkonminingArtificialIntelligenceSaaSsolution.

▶ DrillmultipledeepholesattheBehemothProjectforcopper,gold,rareearths.

▶ DeliveraTransparentMemoryInkDemonstrator.

▶ EnterfurtherAIandroboticsagreementformining,defence,infrastructureormanufacturing.

Objectives for Q4 2019

▶ Commencegeophysicsatnewproject– ‘Leviathancopper-gold-rareearths’

▶ CompleteprogramwithDepartmentofDefencetotailortechnologyofferingfordefenceindustrycustomers.

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Just look at the potential….!F

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