Kibaran Resources Limited: Excellent Metallurgical Results at Merelani East Graphite Project

Excellent Metallurgical Results at Merelani East Graphite Project

- Metallurgical results confirm Merelani East contains a high distribution of large flake graphite with very high grade carbon concentrates recovered from simple flotation

- 32.7% of concentrate is Jumbo flake (>300 micron) at 98.1 % TGC

- Overall recovery 97.1% grading 96.2% TGC

- Trenching results double graphite mineralisation strike length to over 4km and support a substantial near surface occurrence

- Results support Kibaran's staged expansion strategy through multiple mines

Kibaran Resources Ltd. (ASX: KNL) is pleased to provide an exploration and metallurgical update of its 100% owned Merelani East project, located within the Merelani-Arusha graphite province.

The geological results and metallurgical testwork from the initial exploration program provide evidence of a significantly larger graphite mineralisation area, with comparable grade and flake size distribution to that historically mined at the adjacent Merelani Block C (refer announcement dated 4 February).

The initial exploration programme consisted of 22 Reverse Circulation (RC) drillholes, two Diamond (HQ3) drillholes and eight trenches that targeted three prospects. Flotation results for metallurgical sample AMT001 achieved a 97.1% recovery, with the concentrate grading 96.2% fixed carbon and has delivered an extremely high proportion of large and jumbo flake (>180 micron) material with extremely high fixed carbon grades (refer table 1).

Table 1: Flotation results for AMT001

Micron (µm) and Millimetre (mm). 1mm = 1000µm and fixed carbon content determined by loss of ignition method (LOI)

The metallurgical results are significant given the current market shortage of large flake high grade product and that higher value graphite is determined by both flake size and carbon content. The analysis indicates Merelani East graphite is suitable for all markets (i.e. Micronised, Expanded and Spherical) and the very high graphite concentrate grade provides access to even higher value niche markets, graphene production and use in 3D printing.

It is important to note no acids were used to achieve the high carbon concentrates.

The results support Kibaran's future expansion strategy of producing a premium quality graphite product from a separate source to the Epanko Graphite Project and meet the longer-term requirements of the broader graphite market which is seeking supplier diversity.

Trenching results received support the drilling results from the first 12 RC holes. Better results include:

- 37m at 7.0% TGC from trench AMT003

- 40m at 8.4% TGC from trench AMT004

- 48m at 7.3% TGC from trench AMT006

[Full results are outlined in Table 2]

The trench results doubled the total strike length of graphite mineralisation to more than four kilometres. The mineralisation appears consistent to that at adjacent Block C graphite mine which produced commercial quantities of high grade, large flake graphite in the mid-1990s, (refer Figures 1 and 2).

Executive Director Andrew Spinks commented, "The results confirm the Company's view on the high quality of graphite at Merelani East. Graphite end users and traders are looking for diversity of suppliers and this has driven Kibaran's strategy over the past three years - to broaden its own product supply base without compromising on quality. "

Notes for Table 1
All total graphite carbon ("TGC") analysis undertaken by LECO at independent commercial laboratory SGS in Johannesburg, South Africa. Samples collected over 1 metre intervals. Minimum intersection width 2 metres with internal waste of no more than 2 metres. Trench lengths are reported, as true width is unknown. Bearings are referenced to local grid. No top cut has been applied and intersection grade rounded to 1 decimal figure. Coordinates referenced to local grid WGS84 UTM36S.

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