Speciality Metals International Limited Annual Report 2020

Speciality Metals International Limited Annual Report 2020 1 Chairman’s Address We invite you to continue to support us in our journey to realise the potential of Speciality Metals to add significant value beyond our existing assets and for all stakeholders. Dear Shareholders Welcome to the 2020 annual report for Speciality Metals International Limited ( Speciality Metals or Company ). The past 12 months has been a period of consolidation for the Company; building on the momentum started in 2019 to transition from a junior exploration company to an emerging tungsten producer. Against the backdrop of the COVID-19 pandemic and these unprecedented times, we have stayed on track. Our leadership team changed during the year. We thank you for your patience, trust and continued support as the team assembled to execute the operational strategies for our flagship projects at Mt Carbine and to rebuild the corporate foundation. We are committed and together, we have the mix of skills and experience to navigate the Company through an increasingly complex operating environment. The world is facing enormous challenges such as climate change, political and social polarisation, rising protectionism and supply chain uncertainty. Businesses and society are interdependent, and Speciality Metals does not operate in a vacuum. Society and investors now have expectations in relation to a company’s environmental, social and governance (ESG) performance and are increasingly holding executives to account. Given these fundamental shifts, the Board with the leadership team have taken the time to reflect on the Company’s purpose, values and positioning. We believe everything starts with a purpose, and it is necessary for all of us to align on what we are about so that we can move in the same direction. We have articulated our Purpose as: Resourcing the new economy for a better tomorrow We are a value-oriented resources company, sustainably producing and managing new economy minerals and metals. We maximise the potential of our assets through resource- efficiency and investment in our people to deliver materials that are critical for a better tomorrow . It’s how we drive value in our operations, approach new opportunities and at the same time deliver positive societal impact while minimising our environmental footprint. Our focus on new economy minerals are those which are in growing demand to meet the global shifts in energy, industry and sustainability. Tungsten has, just this month, been recognized by the European Commission as having the highest economic importance of all raw materials, and is already listed by USA, Japan, India and Australia as a critical mineral (that is, vital for its economy but having a high supply risk). Our team is committed to enhancing Speciality Metals’ existing portfolio and business model to contribute to this globally relevant agenda. This is exciting and challenging. We invite you to continue to support us in our journey to realise the potential of Speciality Metals to add significant value beyond our existing assets and for all stakeholders. Oliver Kleinhempel Non-Executive Chairman