Tellus Holdings Update...• In the business of creating economic, social and environmental value from hazardous waste, clay and salt • Public unlisted infrastructure development

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TELLUS HOLDINGS LTD

The Use of Geological Repositories for the Storage, Recovery and Permanent Isolation of Hazardous Waste

Industry Technical Briefing - Perth

Maurice Sauzier, Business Development ManagerSteve Reece, Technical Services ManagerMike Ingram, Sandy Ridge Project LeaderJason Holmes, Group Manager Buss Dev. Toll Group

29th November 2016

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Safety and qualityTellus’ strategy is safety first and we maintain internationally recognized management systems

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Content

The use of Geological Repositories for the Permanent Isolation of Hazardous and Intractable Wastes

Welcome to Tellus & Safety message Maurice Sauzier Regional Business Development Manager

Tellus History & Overview Steve Reece Technical Services Manager

The basis for geological repositories Steve Reece Technical Services Manager

WAC & Safety Case Steve Reece Technical Services Manager

Sandy Ridge Project Mike Ingram Sandy Ridge Project Leader

Logistics Jason Holmes Group Manager Buss Dev. Toll Group

What does this mean for our customers? Steve Reece Technical Services Manager

Q&A All

Case Study – Deep Geological Disposal Steve Reece Technical Services Manager

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Tellus History and Overview

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Tellus Holdings Overview

Vision• In the business of creating economic, social and

environmental value from hazardous waste, clay and salt• Public unlisted infrastructure development company (2009)

National network of strategically located

“hub and spoke” scalable facilities

• Mt Walton Intractable Waste Disposal Facility (IWDF)-ClayVault 50/50 JV operator of WA Gov. site – existing

• National warehouse network – 8 existing sites (Toll)• Sandy Ridge project (WA) • Chandler project (NT)

Customer Value Add Proposition

• Permanently isolate difficult to manage waste using environmentally sound management principals, remove customer’s contingent liability & save the customer money

Tellus’ Geological Repositories

• Store & permanently isolate mostly hazardous chem. waste • Geological disposal in dry remote clay or salt beds via a

multi-barrier safety system that is passively safe

Established “Utility Style” Business

Model

• Tellus' business model follows world's best practice solutions operating in Europe and North America

• Geological repositories use natural barriers to permanently isolate waste, something a man-made barrier cannot

WA Gov.’s IWDF (ClayVault 50/50 JV) Sandy Ridge (WA) National Warehouses (Toll) Chandler (NT)

Source: IWDF Source: Toll warehouse Source: Chandler Concept Design Source: Sandy Ridge Concept Design

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Ex Shell, NSW Minerals CouncilVIC Haz Waste Consult. Committee

Ex Head-AMP Capital Investors, CEO Tenix Infrast. & Lend Lease Capital

Philip GarlingNon Executive Chairman

Duncan van der MerweGroup MD

Ron Sifton Advisor

Dr Nikki WilliamsNED

EX CFO Newalta, Canada’s biggest salt storage operator

Experienced Board and management team with key individuals retaining a proven global track record developing salt and kaolin mines and infrastructure projects

Noel DavisMD ClayVault WA

Ex WA Environmental Regulator, Managed only Class V waste facility

Highly Experienced Board and Team

Tellus founder, Ex Gencor (Billiton)Bank of Scotland & Nobles Group

Ex SLR, KMH Environmental and WYG

Ex BD Coffey Environmental, IBM

Robert CharterRegional BD Manager

Richard McAreeGM Sales & Marketing

Maurice SauzierRegional BD Manager

Ex. Coffey Int. Wesfarmers Ltd (CSBP), International SOS, Falck, Sonic Health

Jaime LiveseyProject Admin./ Snr Geologist

Ex EPMS, Project Manager at WA Kaolin

Mike IngramSandy Ridge Project Manager

Ex Wiltshire Geological, Schlumberger, TerraSearch

Steve ReeceTechnical Services Manager

Ex Compass Minerals -Managed UK salt & MinosusUnderground waste facility for 14 yrs

Richie PhillipsEnvironmental Approvals Mgr

Senior Environmental Scientist, Ex GHD, URS, and WS

Jonathan FisherCFO & Company Secretary

Project Finance expertise, ex Rothschild Infrastructure, Atlas Iron

Steve HoskingChandler Project Manager

Experienced BFS Study Leader, Ex Atlas Iron, BHP

Katriina TahkaHuman Resources

Co-CEO of A Human Agency & provides HR advice & strategy

Henriette RossouwOccupational Hygienist

12 years exper. Occup. Hygienist & Rad. Safety Specialist in waste, infrastr. & mining

Joe LuxfordUnderground Advisor

40 years of experience in mining ops & project development

20 years of experience in office admin. & accounting

Claudia KnightsOffice Manager

Ex CEO/ MD Brambles Industrial Services & Cleanaway Australia, Ex Chair WSN

Chris BerkefeldNED

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Geological Repositories

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What is a Geological Repository?Geological repositories are increasingly seen as a method of permanently isolating difficult to manage wastes

Principle benefits of geological repositories?

Provide the highest levels of containment principally through the use of carefully selected natural geological barriers

Multi-barrier “deep salt” or “arid near-surface clay” geological repository can permanently isolate waste from the biosphere, something a man made barrier alone can not

Salt and clay geological repositories do not require ongoing monitoring after the end of an institutional control period as they are passively safe.

By storing “like with like” this creates opportunity for future recycling/ recovery of valuable materials (“A geological repository today is a potential future mine of tomorrow”)

There is no ongoing potential liability as there is a permanent isolation of the waste from the biosphere in the geological barrier - considered “best practice”

Source: IWDF Source: Sandy Ridge Concept Design Source: Chandler Concept Design

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Arid Near Surface Geological Repositories

*Post ICP = Post Institutional Control Period is the period following the institutional control period (with restricted access) where there could be unrestricted access to and use of the site for agreed uses (eg. grazing)

What is a Geological Repository?

Underground storage or disposal of waste that relies on a thick, dry, geologically stable and extensive natural geological barriers and man made barriers

Long life solution, natural barrier that isolates waste from the biosphere safely & permanently

Very low risk of groundwater contamination

Once site is closed, it requires no ongoing monitoring (post ICP*) and is passively safe

Natural geological liner thickness ~14m or more (Tellus clay) and lifespan of containment – hundreds of thousands to millions of years

Can issue permanent isolation / disposal certificates – hence can remove customer liability

Globally considered “best practice” for both hazardous and radioactive waste

Why are Geological Repositories superior toEngineered Landfills?

Landfill relies on man made barriers that can often be thin, have surface and ground water issues and are not geologically extensive or stable

Short life solution that cannot permanently isolate waste from the biosphere

Risk of groundwater contamination (pollution risk if no liner or when liner breaks)

Once site is closed, it requires ongoing monitoring and maintenance

Typical landfill liner thickness ~1.5m or less, and lifespan of containment – 10-30 years

Do not issue permanent isolation / disposal certificates (hence cannot remove liability from customer balance sheet)

Not considered to be best practice (hazardous waste is being banned from landfill)

Geological Repository – Arid Near Surface Clay (Sandy Ridge) Engineered Landfill

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EU Waste Acceptance Criteria(2003/33/EC)

“….in salt mines, the salt is considered to provide total containment”. 2

Proven Low Risk Technology

150 projects worldwide

Europe a leader in UG salt storage – Germany 20 mines

Tellus business model and technology is proven international best practice

Source: Salt - Minosus (UK) Source: Salt - Minosus (UK)Source: Clay- IWDF (Australia)Source: Clay- (France, Andra, Cires) S: Salt – K+S Entsorgung (Germany)

1 Source: PRACTICAL SOURCEBOOK ON MERCURY WASTE STORAGE AND DISPOSAL, United Nations Environment Programme, 2015 – page 59, 2 Source: COUNCIL DECISION of 19 December 2002 establishing criteria and procedures for the acceptance of waste at landfills pursuant to Article 16 of and Annex II to Directive 1999/31/EC (2003/33/EC), THE COUNCIL OF THE EUROPEAN UNION - Appendix A Section 3.1

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Safety Case

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Safety CaseSafety cases for the Tellus facilities is based on a multi barrier concept, underpinned by geology,

hydrogeology, operational procedures and an arid climate

Transport Operations Operations Closure & Control Period

Extensive Clay and Salt bedsPackaging

Engineered barriers during operations Natural barriers

• Tellus’ safety case draws on best practice examples developed around the world

• Based on strict waste acceptance criteria

• Combination of engineered and natural barriers (multi-barrier system),

• Store like with like materials, for operational safety and to create opportunities for the future potential recovery of valuable materials

• Waste that can not be recycled can be permanent isolated

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Sandy Ridge Multi Barrier SystemCells are un-lined and rely on the natural environment and materials to exclude water. This design permanently isolates the waste. Recent expert peer review – “ international best practice facility”

Cells in construction with waste placement under cover

High integrity cell caps installed– site passively safe

Waste placement taking place with clay installed over waste

Multi barrier system

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Waste Acceptance Criteria

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Waste Acceptance

Sectors serviced

Mining, Oil & Gas

Manufacturing (Heavy Industry, chemicals)

Utilities (electricity, gas, water, waste management - includes household haz waste)

Agricultural, forestry, fishing, scientific services

Government (Fed/State & Local including SES)

Healthcare, Media Telecoms & Technology

Tellus is bringing “world’s best practice” solutions to a difficult to manage problem

Sandy Ridge - wastes accepted and excluded

Chemical waste (NEPM Schedule A List 1: Waste categories) Yes

Naturally occurring radioactive waste (“NORM”) - LLW level Yes

Low level radioactive waste (LLW) Yes

Intermediate (ILW) & High level radioactive waste (HLW) No

Chandler - wastes accepted and excluded

Chemical waste (NEPM Schedule A List 1: Waste categories) Yes

Naturally occurring radioactive waste (“NORM”) – Exemption Level Yes

Nuclear Waste (enriched uranium & plutonium) - LLW, ILW, HLW No

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Sandy Ridge Waste Acceptance CriteriaChemical Wastes ( = accepted, = not accepted. 1= normally excluded but possibly suitable1)

Accepted on site (temporary

storage)

Suitable for long term storage or permanent

isolation in a waste cell

• Chemical wastes subject to meeting the characteristics criteria • Liquid and sludges 1

• Explosive wastes 1

• Flammable liquids or solids 1

• Self combusting wastes or wastes that can generate a gas-air mixture which is toxic or explosive 1

• Highly corrosive or oxidizing

• Gases

• Infectious waste eg. hospital waste and body parts

• Biodegradable wastes capable of being broken down by microorganisms eg sewerage, abattoir waste

• Putrescible wastes which rot such eg. household rubbish

• Uncertified waste which can not be identified or has not undergone characterisation testing

• Reacts with the repository geology such as dissolving it or producing a gas

1Normally excluded unless modified before disposal or during disposal so the operational or post closure safety of the waste cell and facility is not compromised2 Classification of Radioactive Waste – ARPANSA RPS20

Radioactive wastes2 ( = accepted, = not accepted)Accepted on site

(temporary storage)

Suitable for long term storage or permanent

isolation in a waste cell

• Naturally Occurring Radioactive Material (NORM) up to LLW activity levels such as titanium processing

• Low level Waste (LLW) eg. smoke detectors, exit signs, industrial gauges and medical isotopes

• Intermediate level waste (ILW) eg. reprocessed spent nuclear fuel & components with high radioactivity levels

• High level waste (HLW) eg. spent nuclear fuel

• Nuclear waste eg. power generation and defense use

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Waste Packaging CriteriaMaterials always transported “like with like” in safe containers that meet regulatory standerds

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Waste Acceptance Procedure

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Waste ZoningZoning approach allows safe storage and isolation of materials that have been accepted against criteria

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Hazardous Waste – Further InformationTellus has the ability to store, recover and permanently isolate a broad range of hazardous materials across

many different industry groups

STORAGE AND PERMANENT ISOLATION OF HAZARDOUS WASTE

USING GEOLOGICAL REPOSITORIES

Fly Ash



Mercury and Mercury Compounds



NORM Waste



Inorganic Chemicals

(NEPM Type D)

Example NEPM Waste Types and Specific Wastes

• Type A - Plating and Heat Treatment • Asbestos

• Type B - Acids • Pesticides

• Type C - Alkalis • Fly Ash

• Type D - Inorganic Chemicals • Mercury

• Type F - Paints, Resins and Inks • NORM

• Type G - Organic Solvents • Pesticides

• Type J - Oils • PFAS

• Type M – Organic Chemicals • Spent Pot Lining

• Type N – Soil & Sludge • Sealed Sources (LLW)

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• General description(s) of material including MSDS/DG code if available

• Has the material been characterised to a sufficient level of detail to allow initial screening against Tellus Waste Acceptance Criteria?

• What is the volume/tonnage of material currently requiring management?

• What location(s) is the material currently stored at?

• What physical form is the material currently stored in?

• How is the material currently stored? (undercover/open air etc.)

• How is it currently packaged (if any packaging)?

• What is the required timescale for removal of material from their current location(s)

• Does the material require permanent isolation (disposal)?

• Does the material need to be stored at Tellus site for future retrieval?

• Will there be future arising’s of this material which also need to be managed?

Typical Information RequirementsTypical information required in order to provide proposal

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Liquid Immobilisation

Sludge pit wastes (client sample)

Tellus kaolin blend recipe

Example of a refinery with tank farm Tank farm sludge (client sample) Example of a refinery with sludge pit

Lab. scale experiments (Germany) Strength and free liquid tests Tests confirm immobilisation

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Sandy Ridge Project

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Sandy Ridge Project Location

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Sandy Ridge Project Overview

Category Detail

Location• 140 km NW of Kalgoorlie• 7.6 km from the existing IWDF (same

geology)

Business

• Haz. waste storage, recovery and permanent isolation (mostly chem.waste but also small vol. NORM & LLW)

• Potential for kaolin sales (ceramics, paint, immobilizer)

Capacity • 100 k tpa waste licence (Ave: 66 k tpa)• Future expansion potential

Life of Project

• 25 years rolling operational terms• Potential project life is

multi-generational (>100 years)

Facility• Open cell with mobile roof

(dry placement)• Cell size: ~50 k t / cell

Jobs

• Construction: 90 (including indirect) • Production: 21 growing to 35 FTE • Indirect: >50• DIDO from Kalgoorlie, Coolgardie &

Southern Cross

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Sandy Ridge Facility

After 11 years of operations

Waste Inspection Building

Low Level Rad. Materials Store

Weighbridge

Admin office and Inspection Gate

Container Yard

Kaolin Process Plant and Store

Kaolin Ore Stockpile

Services Area (fuel, power, water,

maintenance)

Technology Park (future)

Accommodation Village (1.8km)

Water Ponds and Wash-down

Water Supply (12km)

Active Mine Pit

Active Waste Cell 1st Cell being Rehabilitated

Closed Cells (monitoring phase)

After 11 years of operations

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Mining

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Waste Placement

Backfill over placed waste

LLR waste isolation shaft construction

Container un-loading

Empty container returned to the surface

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Backfill and Capping

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Rehabilitation and Closure

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Tellus Next Steps

May 2018

Sandy Ridge operations

commence -first waste placement

Jan. 2013 – Oct. 2016

3.5 years of feasibility studies, government

engagement, licencing and approvals processes

June 2016

Lodged PER, start of final

environmental approvals process

July 2017

Sandy Ridge Ministerial Approval

(expected)

August 2017

Development financing for Sandy Ridge

arranged

Sept. 2017

Toll warehouses open for Tellus

customers –

October 2018

Sandy Ridge total build complete

Sandy Ridge: feasibility study progress

2014

Scoping Study (FEL 1)

August 2016

Interim Bankable

Feasibility Study (BFS - FEL 2.5)

July 2017

(BFS - FEL 3)2015

Pre-Feasibility Study (FEL 2)

Sandy Ridge: regulatory and corporate approvals progress

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Community Consultation Heritage Surveys, Site Visits, community consultation

Indigenous business opportunities Support environmental program -30 rangers Sponsorship of ‘Exploring with Kids on Country’ film – cultural and environmental learnings

Community Engagement – WA

Supporting local businesses

Tellus supports training, local jobs and business, investment and regional development in the Goldfields region

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Logistics

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National Storage and Transfer Facility Network

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Toll “Hub and Spoke” Collaboration

Tellus Board inspecting Toll equipment

36Integrated Logistics Solutions

Integrated Supply Chains Core To Our Strategy

Seamless End-to-end Management of Goods & Information

Objective

Rationale

Evolution

Own or control / coordinate critical value points along the supply chain

Customers want transparency & control(1) across complex supply chains

Change in focus from single country to cross-border and multi product

(1) Over physical assets and information in relation to those assets

Warehousing

Suppliers Land Transport

Consolidation hub & value added processing

EXPORT ActivitiesPorts, stevedoring & freight

forwarding

IMPORT ActivitiesPorts, stevedoring & customs

clearance

International Transportation Sea & Air Freight

De/consolidation hubs, cross dock & value added

processing

End Customers

Warehousing/ Local

manufacturing

Primary/ Secondary

DistributionLand Transport

Order (Origin services) (Cross-border services) (Destination services) Delivery


Safety is one of our core values, it’s at the heart of everything we do

Safety

At Toll we believe that all injuries are preventable and that no task

is so important that it can’t be done safely.

We believe that everyone has the right to go home safely and together we make it happen.

• Toll is committed to a safety first culture • The safety of our staff and contractors

representing us and the communities in which we operate is our priority

• Toll’s strong focus on engaging our employees and improving safety leadership skills has led to improvement in a wide range of safety performance measures

Think safe. Act safe. Be safe. is our united One Toll strategic approach to managing health and safety across the Group

Safety is in your hands.

Safety is in your hands –2015 Toll Safety Campaign


Chain of Responsibility - Why Toll Should be the Carrier of ChoiceCommitment to safety and reasonable steps:• Speed management standard: use of GPS monitoring (or ‘black box’ technology) to

monitor and manage driver speed and fatigue• Purpose-built residential facilities so drivers can take rest (e.g. Dubbo facility)• Use of DSS technology to monitor eye-lid movement for fatigue management in high-

risk sectors such as mining• In-truck and outward-facing cameras to measure G-force events to enable incident

investigation and proactive management• ICAM investigation• Online Safe Driving Plans• Constant monitoring of legal variation/derogation• Strict compliance standards for speed limiters• Engineering out distraction: project with MUARC• Load restraint guidelines specific to load profile• Ongoing consultation with industry associations, regulators, enforcement agencies and

unions to ensure best practice and continuous improvement.

Toll’s service isn’t just moving your goods efficiently, it’s peace of mind


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Karratha

WA Linehaul RoutesWA Key transport hubs

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People

• 21,000+ Australia / New Zealand• 40,000+ globally

Service Offering

• Extensive road, rail, sea and air linehaul transportation

• Licensed DG facilities for waste storage• Liquids distribution• International freight forwarding and

customs clearance • Remote and resource logistics• Offshore and onshore logistics• Transport management services via a

single online platform

Infrastructure

• 1,200+ facilities globally and 700 + nationally including comprehensive regional network

• Over 25,000+ fleet and equipment• 13+ shipping vessels • Fleet of 35 freighter aircraft, over 240

flights per day to 131 airports and access to major passenger airline belly space

• 3,000,000 m2 warehouse space

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Tellus / Toll Combined Network Model

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What Does This Mean For our Customers?

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Tellus and the circular economyTellus’ Geological Repositories can uniquely meet both ESM solutions and support the circular economy

“Applying Environmentally Sound Management principles may result in a lower option in the hierarchybeing chosen but result in a better overallenvironmental outcome” UK Government - DEFRA

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Removing contingent liability, freeing up the balance sheet, reducing costs, improving operational , health and safety management and social licence to operate

Removing Contingent Liability from Clients

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Removing Contingent Liability from ClientsTellus’ Clients Generate Significant Liabilities That Aren’t Easily Removed

Tellus Removes its Clients’ Liabilities by Issuing Permanent Isolation Certificates

Operational Liability

• Liability arises through approvals obligations, generation of waste and rehabilitation requirements

LegalLiability

• Liability is a consequence of Operational Liability and encompasses legal title, duty of care, Directors’ duties, etc.

FinancialLiability

• Liability recognised on clients’ balance sheets, which negatively impacts financial health and ability to optimise capital structure

Permanent Isolation in Repository

• Tellus permanently isolates clients’ waste in a geological repository, employing best practice and proven methodology

Issuance of Perm. Isol. Cert. (PIC)

• Tellus issues client a PIC, which absolves the client of its hazardous waste liability resulting in a net gain

Removal of Financial Liability

• Tellus solves a valuable problem for its clients by removing financial liability from the balance sheet and improving clients’ financial positions

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Other Benefits to Clients?

Tellus Solutions

Reduce corporate and director liability and increasing senior management: Tellus issue’s Acceptance, Storage, Recovery and Permanent Isolation CertificatesEvidence used during financial and compliance audit

Certificates reduce or remove contingent liability (lower financial risk, frees up the balance sheet – AASB* 137 and internationally IAS37)Provide simple and cost effective solutions with long term price predictability

Sustainable and safe solution – (improved reputational, operational, safety risk mgt and removes the regulatory complexity from your site)

Utilising a geological repository with a sustainability technology park improves your sociallicense to operate provides confidence of your stakeholders (lowers reputational risk)

Simple solution – if you can package it and it meets our acceptance criteria, we can take it

Emergency service facility for man made & natural disasters (improved financial, reputational, op’s, health & safety risk mgt – BP Deepwater well, Brazil BHP/ Vale Samarco)

Limited number of affordable safe & secure facilities that permanently solve the problem

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Questions and Discussion

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Contact Details

Maurice Sauzier

Business Development ManagerE: [email protected]

A: Level 34, Exchange Tower, 2 The Esplanade, Perth, WA 6000

T: +61 2 8257 3395 F: +61 2 8233 6199

www.tellusholdings.com.au

Steve Reece

Technical Services ManagerE: [email protected]

A: Suite 2, Level 10, 151 Castlereagh Street, Sydney, NSW, 2000

T: +61 2 8257 3395 F: +61 2 8233 6199

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Deep Geological Repositories – Case Study

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Chandler Proposal (NT)

1.5 km

3.2 km

1.8 km

0.8 km

Unique assets: Waste permanently isolated in a ~ 500 million year old salt bedGeology: Salt bed ~ 800m deep, ~ 250m thick, ~ 18km wide, salt bed (length unknown)Aquifer and climate: No aquifers have passed through the salt bed over the last ~ 500 million years. Located in an arid areaInfrastructure: Next to Darwin to Adelaide railway line

860 m downcast (salt production shaft)820 m upcast shaft (ventilation)5,760 m decline (waste and ventilation)

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Winsford Rocksalt Mine - UKLargest salt mine in the UK - operating for over 170 years – combined mining and storage business.

Mining by drill and blasting

Operating since 1844Salt for snow and ice clearance in winter

Mining with continuous miners Large underground voids created

Located in rural part of NW England

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Alternative Mine Uses (AMU)

Concept of alternative uses of the underground void first identified in 1990’s

Deepstore launched in 1997

The first Alternative Mine Use (AMU)Mining areas after clean up

Storage room construction in progress Documents arriving for archiving

Room and pillar system >23M m3

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MinosusMinosus JV set up by Salt Union Ltd and Veolia for storage and disposal of hazardous wastes

Level 3 verification testing

APC from Energy from Waste plants Secure receiving facility constructed

WAC met – waste loaded for underground APC delivered in bulk - packed on site

Underutilised existing shaft

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Minosus – Dry Packaged PlacementMultiple packages taken underground and placed into secure permanent isolation location

Containers opened in sealed storage room

Containers being driven to disposal areaContainers received 200m below ground

APC bags “pyramid stacked” Monitoring of underground atmosphere

Transit containers moved into mine shaft

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Germany – Hydraulic BackfillingAPC residues used extensively as mine backfill incorporating liquid wastes as part of the recipe

Testing of backfill recipes

Liquid waste receiving tanksAPC residues being unloaded

Surface mixing and pumping plant APC backfill in disposal room

Bulk receiving of APC and liquid waste

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Chandler Multi barrier systemCombination of engineered and geological barriers provide permeant isolation

High integrity sealing systems

Multi barrier isolation system

Salt backfill and creep

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Chandler Safety Case Approach

Salt creepWaste Acceptance Criteria Sealing Strategy

Geotechnical analysis Operational performance FEP analysis Post closure performance analysis