Kibaran Resources Limited: Merelani-Arusha Graphite Update - Exploration and Consolidation

Merelani-Arusha Graphite Update - Exploration and Consolidation

- Drilling results at Merelani East indicate significant graphite mineralisation, potentially larger than Merelani Block C

- Merelani East metallurgical testwork underway

- Exclusivity Agreement with Tanzanite One Mining Limited extended

Kibaran Resources Ltd. (ASX: KNL) is pleased to provide an update on its Merelani-Arusha graphite project and developments with the Merelani Block C negotiations (refer figure 1).

MERELANI EAST (100% KNL)

The programme consisting of 22 Reverse Circulation (RC) and 2 Diamond (HQ3) drill holes has been completed. Drilling targeted three prospects that were previously identified from Kibaran's regional geological interpretation (refer figure 1). Extensive Graphite mineralisation has been encountered over a total strike length in excess of 2 kilometres and mineralisation appears consistent with mineralisation that occurs at the adjacent Block C graphite mine which, when in production in the mid-1990s, produced commercial quantities of extremely high grade, large flake graphite (refer Figures 2 and 3).

With Metallurgical testwork underway the drilling results support the potential for a significantly larger occurrence of comparable grade and flake size distribution of graphite to that originally mined at Merelani and over a much broader area. Results from the first 12 RC holes have been received. Better results received to date include:

- 43m at 7.5% TGC from 7m (AMRC003), including;

7m at 12.5% TGC

- 36m at 6.7% TGC from 31m (AMRC010), including

5m at 19.7% TGC

- 61m at 6.3% TGC from 0m (AMRC011), including;

6m at 14.5% TGC

[Full results are outlined in Table 1]

EXTENSION OF EXCLUSITY AGREEMENT - MERELANI BLOCK C

The Company and both AIM listed Richland Resources Limited wholly owned subsidiary Tanzanite One Mining Limited ("TML") and Tanzania's State Mining Corporation ('STAMICO") via their STAMICO-TML Joint Venture have extended the Exclusivity Period in the original Memorandum of Understanding (MoU), to 5th May 2015, with the intent of finalising an agreement to consolidate the Joint Venture's graphite assets at Merelani with Kibaran's 100% owned contiguous licences (refer previous announcements).

In principle the support of Sky Associates, who are in the process of finalising the purchase of TML, for the proposal to consolidate the graphite assets, has been gained, and is expected to be finalized following the conclusion of their takeover of TML.

The historical occurrence at Block C is well recognised and understood through the geological work carried out by SAMAX Limited in the mid 1990's. During this period the main source of the graphite mined was the Kyanite graphite gneiss which reported an average grade of 6.5% graphite. (Reference Explor. Mining Geology., Vol 3,No 4, pp. 371-382, 1994).

Metallurgical testwork and past full-scale commercial production show the graphite to be of unusually coarse flake size, crystalline and of high purity. The reported deposit flake distribution from published pilot plant flotation results (refer table 1 below) and sourced from confidential reports from the Block C mining operation, bear out the quality of the graphite produced and sold to end-users in commercial quantities.

Table 1 Pilot Plant Testwork Results

Flotation results and metallurgical technical data referenced from the Africa 1995 IMM Conference in Windhoek titled Merelani Graphite Project - Tanzania co-authored by Mr J.G. Park, Mr A.C. Northfield and Mr D.S. Dodd, Minerals Engineering, Vol. 7, No's 2/3, pp 371-387, 1994 Printed in Great Britain

Executive Director Andrew Spinks commented, "This approach of the development of a second mine and processing plant in the highly regarded, historical Merelani graphite province is in keeping with Kibaran's long term strategy, to be a major producer of high grade, large flake graphite from its Tanzanian properties."

For further information, please contact:

Company Secretary

Robert Hodby

Kibaran Resources

P: + 61 8 6380 1003

About Kibaran Resources Limited:

Kibaran Resources Ltd. (ASX: KNL or "Kibaran") is an exploration company with highly prospective graphite and nickel projects located in Tanzania.

The Company's primary focus is on its 100%-owned Epanko deposit, located within the Mahenge Graphite Project. Epanko currently has a total Indicated and Inferred Mineral Resource Estimate of 22.7Mt, grading 9.8% TGC, for 2.2Mt of contained graphite, defined in accordance with the JORC Code. This initial estimate only covers 20% of the project area. Metallurgy has found Epanko graphite to be large flake and expandable in nature.

Kibaran also has rights to the Merelani-Arusha Graphite Project, located in the north-east of Tanzania. Merelani-Arusha is also considered to be highly prospective for commercial graphite.

Graphite is regarded as a critical material for future global industrial growth, destined for industrial and technology applications including nuclear reactors, lithium-ion battery manufacturing and a source of graphene.

In addition, the Kagera Nickel Project remains underexplored and is located along strike of the Kabanga nickel deposit, owned be Xstrata, which is considered to be the largest undeveloped, high grade nickel sulphide deposit in the world

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Spinks, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgates by the ASX from time to time. Andrew Spinks is a director of Kibaran Resources Ltd. and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Andrew Spinks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr David Williams, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. David Williams is employed by CSA Global Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". David Williams consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.