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ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27 th , 2019 – Strategic Elements Ltd (ASX: SOR) is pleased to attach the 2019 Annual General Meeting presentation. Strategic Elements Ltd The Australian Federal Government has registered Strategic Elements as a Pooled Development Fund with a mandate to back Australian innovation. Strategic Elements operates as a ‘venture builder’ where it generates ventures and projects from combining teams of leading scientists or innovators in the technology or resources sectors. Due to the Pooled Development Fund program that Strategic Elements operates under, most shareholders pay no tax on capital gains or dividends. The Company is listed on the ASX under the code “SOR”. More Information: Mr Charles Murphy, Managing Director Phone: +61 8 9278 2788 Email: [email protected] www.strategicelements.com.au For personal use only

Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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Page 1: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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:[email protected]

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Page 2: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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BackingAustralianSMEownedprojectsintechnologyandresources….

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Page 3: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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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Page 4: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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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Page 5: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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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Page 6: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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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Page 7: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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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Page 8: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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Behemoth Project: High risk- high reward greenfield exploration…

Must use geophysics to see under the cover..

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Page 9: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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Page 10: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

Behemoth

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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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Page 11: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 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

0

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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

Sou

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OE

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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

0

50

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

Mar

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Development of Overall Printed Electronics Market

Sou

rce:

OE

-A

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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Page 12: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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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Page 13: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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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Page 14: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

CurrentworkontheGoldenBlocksgoldfieldinNZconsistsofnegotiationswithregulatoryandotherpartiesforaccessintotheareatocontinuethehighlysuccessfulexplorationprogramsrunbytheCompany.

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GOLDENBLOCKS

APPLYING TECHNOLOGY TO A 100 YR OLD HIGH GRADE GOLDFIELD

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Page 15: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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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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Page 16: Annual General Meeting Presentation - asx.com.au · ASX Media Release 27 September 2019 ‘SOR’ Annual General Meeting Presentation WESTERN AUSTRALIA, Perth, Sept. 27th, 2019 –

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Just look at the potential….!F

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