Proposal to acquire

Kidman Resources

2 May 2019

Transaction overview

Wesfarmers has entered into a Process & Exclusivity Deed with Kidman Resources (‘Kidman’) in relation to its proposal to acquire 100% of the outstanding shares in Kidman for $1.90 cash per share, representing a transaction value of approximately $776 million

Consideration delivers Kidman shareholders an attractive premium & certain cash return:

47% premium to the last closing price on 1 May 2019

44% premium to the 60-day VWAP to 1 May 2019

Proposal to be effected via scheme of arrangement & is supported by:

the Kidman Board, key management & a number of Kidman’s major shareholders, who collectively own

~17% of outstanding shares (subject to there being no superior proposal & the independent expert concluding that the scheme is in the best interests of Kidman shareholders)

Kidman’s joint venture partner, Sociedad Quimica y Minera de Chile S.A. (SQM)

Proposed transaction is conditional upon satisfaction of customary conditions including:

completion of confirmatory due diligence

entering into a Scheme Implementation Agreement (SIA)

Wesfarmers entering into an agreement with SQM to effect amendments to the Mt Holland joint venture agreement

final Board approvals & approval of Kidman shareholders

Acquisition to be funded through existing debt facilities; not expected to affect Group’s credit rating

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Transaction rationale

Global uptake of electric

vehicles presents an attractive opportunity

Investment in a globally significant, high-grade lithium project

Opportunity to leverage Wesfarmers’ expertise & capabilities

Partnership with an industry

leader

The global uptake of electric vehicles over the medium to long term provides opportunities to deploy capital & achieve attractive returns

Lithium is a critical raw material & input into the production of battery grade lithium hydroxide which is a key part of the electric vehicle value chain

Kidman’s 50% ownership of the Mt Holland lithium project includes a large-scale, long-life & high-grade lithium deposit

Project comprises the development of the asset through the construction of a mine, concentrator & refinery in Western Australia

Development of the asset will leverage Wesfarmers’ existing capabilities in chemical processing & long track record of successfully developing processing plants, while generating strong returns on capital over time

Acquisition provides an opportunity to partner with SQM, a global leader in the lithium industry with a long operating history & deep market knowledge, as the joint venture partner in the Mt Holland project

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Global uptake of electric vehicles presents attractive opportunity

The global uptake of electric vehicles in the medium to long term provides opportunities to deploy capital & achieve attractive returns:

Increasing penetration of electric vehicles driven by significant reductions in manufacturing costs, lower operating costs relative to traditional vehicles, increasing battery range & the transition of major auto manufacturers to electric drivetrains

Lithium is a critical raw material & input to production of battery-grade lithium hydroxide for the growing electric vehicle market, with lithium-ion batteries forming the basis of electric vehicle drivetrains:

Lithium hydroxide is expected to play an increasingly important role in the market, as manufacturers shift to production of longer-range batteries for electric vehicles

The production of battery-grade lithium hydroxide is an attractive part of the value chain:

Requires specialised processing capabilities, supported by high-grade feedstock

Few global producers with the scale & capability to produce high quality product to the required specifications, & the ability to build long term customer relationships

The chemical manufacturing & refining of battery-grade lithium hydroxide is an attractive part of the value

chain, with demand growth expected from the global uptake in electric vehicles

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Investment in a globally significant, high-grade lithium deposit

Overview of Mt Holland Lithium Project

Mine site includes Earl Grey lithium deposit:

Resources: 189Mt @ 1.50% Li2O (7.0Mt of lithium carbonate equivalent)

Reserves: 94Mt @ 1.5% Li2O)

PERTH

Proposed lithium hydroxide refinery:

Located in Kwinana industrial area

Capable of producing ~45kt per annum of lithium hydroxide

KALGOORLIE

Proposed

Concentrator

Proposed spodumene concentrator:

2Mt per annum spodumene concentrator

Produces spodumene concentrate for use in lithium hydroxide refinery

Upon completion, the joint venture will be a Western Australia-based integrated producer &

supplier of premium, battery-grade lithium hydroxide for the electric vehicle market

1.Earl Grey is the world’s third largest hard rock deposit of contained lithium

Opportunity to leverage Wesfarmers’ expertise & capabilities

Through its Chemical, Energy & Fertilisers business, Wesfarmers can provide:

A world-class capability in the manufacture of chemicals to high quality specifications

Strong operating presence & knowledge in the Kwinana industrial area to assist in managing the design, approval, construction, commissioning & ramp-up of the refinery

Long track record of successfully delivering plant developments & expansions, while generating strong returns on capital over time

Strong commercial ability in negotiating supply contracts & building long-term customer relationships with global counterparties

As a specialised chemical manufacturer in Western Australia, Wesfarmers can leverage its operating capability

& knowledge in the Kwinana industrial area to support the development of lithium processing operations

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Partnership with an industry leader

SQM is a Chilean-based integrated producer & seller of lithium products, potassium fertilisers, specialty plant nutrients, iodine & industrial chemicals

SQM is listed on the Santiago & New York stock exchanges, with a market capitalisation of ~$13b as at 30 April 2019

In FY2018, SQM’s lithium division had approximately 17% global market share & accounted for ~53% of SQM’s gross profit

SQM & Kidman formed the Mt Holland joint venture in 2017

The proposed transaction will create a unique partnership between Wesfarmers & SQM through the Mt Holland lithium joint venture

The partnership will combine:

SQM’s global expertise in the development, production, marketing & sale of chemical products, including lithium hydroxide

SQM’s production assets are supported by an international trading network in more than 110 countries

WesCEF’s local expertise in managing the design, construction, commissioning & ramp-up of chemical processing plants

The partnership will support the development of an integrated world-class lithium operation in Western

Australia, bringing significant investment, job creation & new technical expertise to the State

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Summary & next steps

Wesfarmers’ proposal to acquire 100% of the shares in Kidman for $1.90 cash per share:

delivers Kidman shareholders an attractive premium & certain cash return

underpins the development of the Mt Holland lithium project

Proposal is supported by the Kidman Board, a number of the company’s major shareholders & SQM

Proposed transaction conditional upon satisfaction of customary conditions including:

completion of confirmatory due diligence

Entering into a Scheme Implementation Agreement (SIA)

Wesfarmers entering into an agreement with SQM to effect amendments to the Mt Holland joint venture agreement

final Board approvals & approval of Kidman shareholders

Under the Process & Exclusivity Deed, the Kidman Board has granted Wesfarmers a period of up to four weeks to undertake exclusive confirmatory due diligence

During this period, the parties have agreed to negotiate the terms of the SIA, which will reflect the key commercial terms of the proposal

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Questions