Critical Minerals Strategy 2023: discussion paper

Fleet Space Technologies Pty Ltd
8A Myer Court, Beverley SA 5009 Australia
(08) 7200 2633

2023 Critical Minerals Strategy
Unlocking the Potential of Australia's Resources: National
Exploration using Real-time Ambient Noise Tomography

Summary
Fleet Space believes that the development of a new critical minerals strategy by the
Australian government is a necessary and important step towards ensuring the security and sustainability of the nation's critical mineral supply chains. With the increasing demand for critical minerals in the global market and their crucial role in technological advancements, it is vital that Australia takes a proactive approach to securing its supply of these minerals.

In particular, Fleet Space supports the government's focus on developing a sustainable and secure supply chain for critical minerals. We believe that the exploitation of new technologies, such as advanced exploration and extraction methods, and the creation of strategic partnerships with key players in the industry, will be crucial to achieving this goal.

We also believe that increasing the competitiveness and confidence of the Australian critical minerals sector, through initiatives such as investment in national pre-competitive exploration data, will help to drive innovation and growth in the industry.

Expanding Australia’s Critical Mineral Industry

This submission argues for the augmentation and expansion of the national geological exploration programme “Exploring for the Future”, undertaken by GeoScience Australia, with additional funding to adopt and deploy the latest, innovative exploration technology.

● Expand pre-competitive national geophysical exploration with Australian technology
● De-risk Australian critical mineral exploration for junior and senior companies
● Dramatically reduce critical mineral exploration time horizons to meet exploding global
demand for clean-air energy and mobility technologies
● Encourage global investment into Australian resources
● Build the national stockpile of proven mineral reserves
● Provide the significant raw material supply volume required for confident down-stream
beneficiation investment and development

fleetspace.com
01
Partnership with Australian Industry

This submission also suggests the national deployment of ExoSphere, a world’s first technology recently developed by Australian company Fleet Space Technologies, for regional scale rapid exploration for the advancement of the goals outlined in this submission:

● Results in 4 days with real-time satellite connectivity, compared to 6-20 weeks for
traditional manual methods.
● Combines passive, ambient noise tomography, edge processing and satellite
connectivity to deliver real-time results
● Reduces unnecessary drilling by up to 80%
● Continuous rolling-surveys can cover thousands of km2
● 3D subsurface velocity maps for accelerated discovery and feasibility assessments
● Small, lightweight, battery operated sensors reduce environmental and social impact

This technology has been developed and is manufactured in Australia, making it a valuable asset for the country's economic development. Providing regional scale ambient noise tomography results to industry would result in a massive influx of investment and discovery for Australian critical minerals.

About Fleet Space Technologies

fleetspace.com
02
Fleet Space Technologies is Australia's leading space company. Fleet operates from a state-of-the-art manufacturing facility in Adelaide, South Australia, and has recently expanded internationally to the US. At Fleet, we are explorers with a mission to connect the Earth, Moon and Mars.

Fleet designs, builds and operates a constellation of small satellites which deliver universal connectivity for the betterment of everyone on earth. The team has rapidly grown to over 100 employees in the last 6 months. In May 2022, Fleet Space launched their most recent satellite, Centauri 5, with their Centauri 6, 7 and 8 launching in 2023 with SpaceX.

The company’s key capabilities are low-power, high performance edge computing in small spacecraft applications as well as additive manufacturing for space hardware. Fleet Space is also one of the global leaders in microsatellite digital beamforming for low power wide area networks. Fleet is currently working within the Defence sector to support the design, integration and deployment of high quality, low latency, resilient and secure Low Earth Orbit telecommunication satellites to provide reliable, tactical voice and data beyond line of sight.

Fleet is also a pioneer in new manufacturing techniques. The Centauri-5 satellite used a 3D printed all metal patch antenna created using Fleet’s in-house 3D printing capabilities. Fleet
Space is working towards mass manufacturing of satellites and will establish a satellite Hyper
Factory at the landmark Australia Space Park development.

Fleet Space's Contributions to the Development of the Critical Minerals Sector

Recently, Fleet launched ExoSphere, a solution for the mineral exploration industry providing lightning fast, highly scalable 3D mapping solutions to pinpoint minerals and increase accuracy in drilling targets. This cutting-edge technology is already helping the world transition to clean-air mobility technologies by creating a faster, more sustainable and less expensive route to finding critical mineral deposits. Fleet’s sensors, the Geodes, are deployed in a survey area and leverage real-time passive seismic methods to ‘scan’ the land beneath searching for minerals. This is then rapidly processed and transmitted through Fleet’s low power satellite network.

Since announcing ExoSphere in March 2022, Fleet has signed contracts with over 20 customers based in Australia and North America including Oz Minerals, Core Lithium and
Talon. Fleet’s ExoSphere technology is contributing to solve the pressing global priority to decarbonise mobility and find more than $13trillion USD worth of minerals required for the energy transition to help meet global net zero priorities.

fleetspace.com
03
Discussion Paper Questions

1. How can Australia capitalise on its existing advantages to create economic
opportunity for all Australians – particularly regional communities and First Nations
Peoples?

A strong and diverse economy underpins the government’s commitment to creating
more sustainable, high-value jobs for all Australians. The government must diversify
and transform Australia’s industry and economy, leveraging Australia’s natural and
competitive strengths.

61% of First Nations People live in regional and remote areas, and they make for 32%
of remote community populations. For regional communities and First Nations to
thrive, access to high-quality economic opportunities that significantly improve quality
of life must be available.

Deploying Australian-made, productivity accelerating, rapid mineral exploration
technologies - such as ExoSphere by Fleet - allows Australia to take advantage of the
opportunities in a net zero economy while addressing supply chain vulnerabilities.

● Developing mineral exploration projects in regional areas and infrastructures
to support those projects, which will also create new jobs and economic
opportunities.
● Encouraging greater collaboration between the mining sector and First Nations
communities to ensure that they benefit from the development of these
resources.
● Implementing environmental and social sustainability policies that balance
economic development with the protection of natural resources and the
interests of local communities, such as promoting non-invasive exploration
techniques that are respectful of first nations peoples lands, and investing in
research and development to develop new technologies that can make mining
more efficient, safer and environmentally friendly.

3. What might be done to ensure maximum reasonable opportunity for local
employment and local business participation in projects?

● Offering tax incentives or grants for companies that invest in local employment,
contribute to local training and education programs.
● Providing direct investment, along with industry partnership, for research and
development initiatives that focus on critical minerals and development of less
invasive exploration techniques.
● Implementing procurement policies that give preference to local businesses
and suppliers, which will help to build a strong local supply chain.

4. What are the specific opportunities Australia should seek to realise while

fleetspace.com
04
developing downstream processing and manufacturing capabilities?

● Technological advancement: drive technological advancement and create new
opportunities for innovation.
● Improved environmental sustainability: by leveraging non-invasive exploration
techniques, Australia can reduce the environmental impact of its resource
extraction activities and improve its overall sustainability.
● Improved trade balances: by sourcing critical minerals for the energy transition
locally, Australia can improve its trade balances and reduce its reliance on
import.

5. For key technologies and value chains, such as batteries, magnets, alloys and other
clean energy technologies, what are the key obstacles to Australia moving up the
value chain?

Australia must support the development and continued growth of our critical minerals
industry in order to secure Australia’s economic future amongst a declining future for
coal. Countries are scrambling to capture the forecast critical mineral demand and the
decades long economic benefit which comes with world-class mines; all of which
begins with discoveries made through exploration. Exploration is highly risky.
Exploration is now a loss-making exercise, with average costs per discovery at $192M,
with average value discovered at only $135M over the last 10 years; so the
government of Australia must take steps to reduce the risks associated with
exploration to encourage investment and development of a world-class critical mineral
industry. With a highly competitive global environment for national critical mineral
solutions, Australia must take advantage of domestic technologies and
Australian-made competitive advantages.

6. How can governments, industry, and researchers support Australia’s critical
minerals industry to move further downstream and develop new sovereign
capabilities? CC

Policies and programs which encourage investment in the critical minerals industry
through exploration, mining and beneficiation with more of the downstream value
chain captured will strengthen the Australian economy into the future;

Due to the fact that most critical minerals reserves are located in remote areas, its
exploration, development and commercialisation could bring many benefits to
regional areas in terms of infrastructure, new supply chain networks economic growth.
The critical nature of those reserves for the energy transition implies that countries
that secure the reserves and exploration will have a greater advantage in terms of
sovereign capabilities without needing to rely on external resources, governments or
even supply interruptions.

fleetspace.com
05
9. How can government support the capability of critical minerals companies and
other relevant entities to identify, engage and grow new target markets?

One effective way for the government to support critical minerals companies and
other relevant entities in identifying, engaging and growing new target markets is by
reducing the risk and uncertainty associated with exploration. This can be achieved by
implementing a pre-competitive national exploration program that provides
high-quality data on the minerals potential of a region. By investing in this type of
program, the government is able to provide assurance to new target markets about
the long-term supply potential of critical minerals in Australia, which in turn incentivizes
investment. Additionally, by having a better understanding of the minerals landscape,
companies are better equipped to engage with new target markets and grow their
customer base, leading to a stronger, more diversified economy.

14. What are the opportunities for critical minerals projects to maximise their ability to
support clean energy supply chains and technologies?

Critical minerals projects and developments offer great potential in supporting clean
energy supply. As technology advances, new methods are available to develop those
reserves with lower environmental footprint and to make mining more sustainable in
the long run. Fleet`s ExoSphere is an example of that: the technology utilises a
non-invasive method with low environment footprint and no drilling required
whatsoever to collect Earth’s geological data.

15. How could the Australian Government help industry address capability barriers to
supporting clean energy supply chains for critical minerals projects?

Policies and programs which encourage investment in the critical minerals industry
through exploration, mining and beneficiation with more of the downstream value
chain captured will strengthen the Australian economy into the future;
As stated above, exploration is now a loss-making exercise, with average costs per
discovery at $192M, with average value discovered at only $135M over the last 10
years. High quality, wide scale and pre-competitive 3D geophysical data can de-risk
exploration by guiding investment and explorers to high potential areas for further
exploration. New technology, such as ExoSphere by Fleet, can dramatically reduce the
cost of discovery by dramatically accelerating exploration and reducing unnecessary
drilling;
● Utilising 3D subsurface mapping technology, such as ExoSphere by Fleet,
drilling can be highly targeted to reduce unnecessary time, cost and
environmental impact;
● A national exploration program utilising ExoSphere by Fleet would
dramatically reduce average exploration times by allowing explorers to target
high quality tenement sites;

fleetspace.com
06
● Pre-competitive 3D velocity data, provided by ExoSphere by Fleet, would
increase the efficacy of further government investment into later stage
exploration by increasing drill target efficiency; and
● Investment into refining, beneficiation and down-stream processing can be
given confidence as Australia increases its critical mineral stockpile through
efficient exploration.

For instance, Western Australia is currently investing in a state-wide survey with 40 km
spacing, costing $12 million over 4 years. At this spacing, it can only provide broad
geological features at great depths. ExoSphere by Fleet can provide tighter spacing
for better resolution features at a speed that is not able to be matched by other
methods.

16. How can the Australian Government support the sector’s integration with key clean
energy supply chains, both domestic and international?

● The Australian government can provide tax incentives, grants, or other forms
of support to companies investing in or developing clean energy technologies.
● The government can provide funding for research and development initiatives
aimed at advancing clean energy technologies and improving their
competitiveness in the global market.
● The government can provide incentives or subsidies to companies and
consumers who adopt clean energy technologies, helping to create demand
and spur investment.

17. What more can Australia do to ensure we are the international best practise
jurisdiction for ESG?

Australia can demonstrate its commitment to being an international best practice
jurisdiction for Environmental, Social and Governance (ESG) by implementing a low
impact national exploration program. This program will aim to reduce the number of
meters drilled and the number of drill holes needed to make a discovery. On average,
655,000 meters are drilled and 5700 drill holes are used per discovery. By committing
to reducing these numbers, Australia can lower the environmental impact of
exploration and maintain its reputation as a responsible and sustainable leader in the
industry. Utilizing low impact geophysical technologies, such as ExoSphere, can play a
significant role in reducing the drilling requirements of exploration companies.

20. What are the opportunities to further strengthen the ESG credentials of the sector?
For example, helping industry showcase their high ESG projects or support

fleetspace.com
07
enabling capabilities such as the adoption of mineral traceability measures.

● The government can encourage mining companies to adopt sustainable
practices, such as reducing their environmental footprint, utilising less invasive
exploration techniques. The government can develop and enforce ESG
standards for the mining sector to ensure that companies are held accountable
for their impact on society and the environment.
● The government can support community engagement and consultation
initiatives, such as those aimed at resolving conflicts between mining
companies and local communities, to ensure that the interests of all
stakeholders are taken into account. Any innovation that is more respectful of
the land should be considered and favored when exploring.
● The government can encourage mining companies to improve their disclosure
and reporting of ESG performance and impacts, making it easier for investors,
stakeholders, and the general public to assess their ESG credentials.
● The government can help industry showcase their high ESG projects and
encourage the sharing of best practices among mining companies to drive
continuous improvement in ESG performance. THis could go through some
marketing effort to assess and recognise providers whose solutions are less
impacting the environment, communities or that take a special care of local
communities and highlight those companies to be recognised as “preferred
partner”.

Contact
Ryan McClenaghan M: +61 436 344 217
Director Business Development E: ryan.mcclenaghan@fleet.space

fleetspace.com
08