Valence Industries New Sales from Valence into Europe Markets

Perth, Australia (ABN Newswire) - Valence Industries Ltd. (the 'Company') is pleased to announce it has signed a new Sales Agency Contract for the sale of Uley Graphite(TM) into the European market.

- New Sales Agency Contract for sale of Uley Graphite in Europe

- Contract is for sale of between 22,000t and 25,000t of flake graphite per year for 3 years

- Pricing of sales is forecast at an average price of US$1,400 per tonne, in line with targets

The contract is with a UK-based company, which has agreed to act as a representative for Valence Industries in Europe for the marketing and sales of specific flake graphite product lines from the Uley Graphite(TM) operations outside Port Lincoln, South Australia. The agent previously managed sales of Uley Graphite(TM) when it was in operation 25 years ago.

The agent (which cannot be identified due to confidential terms) has forecast that it will sell between 22,000 tonnes and 25,000 tonnes of Uley Graphite(TM) each year over an initial three-year period, with options to extend. The contract commences mid-2015, in line with the production ramp up of the Uley Graphite(TM) operations that is performing as planned through commissioning.

The pricing of sales under this contract is jointly forecast to be consistent with Valence Industries7 targeted average price of US$1,400 (AU$1,800) per tonne.

Graphite will be marketed for use in the energy and resources sectors through to heavy industrial engineering under the company's VXL StratGraff(TM) brand. These market segments in Europe represent strong growth sectors for Valence Industries.

The agreement is the first Sales Agency Contract for the Company. It will add to Valence Industries' capabilities and reach into the European market and help to further expedite the already strong sales process. The Company will work closely with its European agents to manage customer relationships and to provide technical support to customers for these sales.

Valence Industries may consider other sales agency arrangements in other regions and for other graphite product lines and brands to add to the direct customer Sales Contracts and the Memoranda of Understanding already entered into by the Company.


About Valence Industries:

Valence Industries Ltd. (ASX:VXL) is an industrial manufacturing company producing high grade flake graphite products for distribution and sale to global markets. Valence Industries owns established processing facilities and infrastructure to manufacture a wide range of graphite product lines for multiple applications and multiple industries. Valence Industries produces and sells its graphite products from its Uley Graphite facilities in regional South Australia for delivery to diversified markets for graphite in the Asia Pacific, Europe and North America.



Contact:

Valence Industries Ltd.
Christopher S. Darby, CEO & Managing Director
info@valenceindustries.com
+61 8 8215 6400

Rebecca Lawson
Media & Capital Partners
rebecca.lawson@mcpartners.com.au
+61 433 216 269