EcoGraf Limited: 127% Increase in the Epanko Mineral Resource

The Mineral Resource estimate incorporates the results of the 2023 drilling and trenching program, which includes record high assay results for Epanko, including 43m at 20.8% Total Graphitic Carbon ('TGC') which demonstrates the continuous high-grade nature.

Key Highlights:

• Epanko MRE increased to 290.8Mt at 7.2% TGC for 21.0Mt of contained graphite (refer Table 1), a 127% increase from the previous MRE announced on 2 March 2023 ('March 2023 MRE').
• 39% increase in Measured + Indicated tonnes from the March 2023 MRE
• Drilling assay highlights continue the high-grade nature, with recent assays including:

• MHRC122 37m at 11.5% TGC from 0m
• MHWB008 33m at 12.5% TGC from 0m
• MHRC116 45m at 13.0% TGC from 3m ¹
• MHRC115 47m at 11.0% TGC from 6m ¹

• Mineral Resource paves the way for project expansion up to 300,000tpa
• High grade trenching results over Mount Grafit show the high-grade potential along strike that is outcropping at surface and will assist the expansion studies beyond the existing mining schedule, with trenching assay including:

• MHT26 43m at 20.8% TGC from 0m
• MHT24 33m at 19.7% TGC from 30m

• Drilling and trenching confirms the massive electromagnetic high is the contiguous graphitic unit, with the deposit width up to 210m, providing the potential for long-term low strip ratios
• Geological interpretation now shows a single continuous unit of graphite mineralisation that will be contained in the new Special Mining Licence (SML) which is expected to be granted
• The new Epanko Mineral Resource occurs over 3.5km strike length, and remains open along strike and down dip, with significant further growth potential
• Epanko development recognised in the Joint Statement of the Minerals Security Partnership (MSP) in Press Release by US Department of State for the noticeable milestone in securing German-based KfW IPEX-Bank to arrange a senior debt facility of up to US$105 million
• Demand for natural graphite, led by the global lithium-ion battery market, is forecast by Benchmark Mineral Intelligence² to increase at 31.5%pa in the current decade
• Customers requiring new sources of supply as China introduced new legislation³ to restrict natural flake graphite and its products (including battery anode graphite)

Epanko MRE Summary

The MRE was carried out by ERM Sustainable Mining Services team (previously CSA Global) ("ERM"), EcoGraf's long-term Resource Consultant. The Mineral Resource has been classified in accordance with the JORC (2012) Code and is shown in Table 1.

Table 1 - March 2024 Mineral Resource Estimate for the Epanko Deposit >5.5% TGC

Notes for Table 1: Tonnage figures contained within Table 1 have been rounded to nearest 100,000. % TGC grades are rounded to 1 decimal figure. Abbreviations used: Mt = 1,000,000 tonnes, Kt = 1,000 tonnes. Rounding errors may occur in tables.

The MRE update was focused on the conversion of the previously Inferred northern and southern parts of the Epanko Western Zone to Indicated and Measured, as well as the down-strike expansion of the Mineral Resource into the southern extension of the Western Zone.

The extensional Mineral Resource drilling and trenching has added a further 1,350m strike to the south of the Western Zone mineralisation of Epanko, in an area dubbed "Mount Grafit" (Figure 9), the towering peak of the Western Zone, which sits at 1,400mRL. Both the expansion drilling and trenching show that the mineralisation remains open along-strike and down-dip.

The southern-most three trenches have intercepted Epanko-record high TGC% graphitic schist, dominated by the Project's unique "Cheetah" ore (Figure 6), which characterises the high-grade units of Epanko. This high-grade zone includes a peak assay result of 29.5% TGC, and remains open down strike and dip, presenting exciting potential for the plans for a phased expansion of production from the initial 73,000tpa up to 300,000tpa (ASX announcement on 28^th April 2023).

Epanko Development

The results support Epanko's position as a long-life, high quality natural flake graphite project located in south-west of Tanzania, with extensive work already undertaken by EcoGraf to establish a development-ready new graphite mine, including:

• Financing program underway with KfW IPEX-Bank Mandated for UFK Loan of up to US$105m for 73,000tpa Development of Epanko;
• The completion of a Bankable Feasibility Study (BFS) and pre-development program has demonstrated highly attractive metrics⁴ to support the funding program (refer announcement dated 28 April 2023, dated Epanko Pre-Development Program Delivers Outstanding Results):

• Pre-tax ungeared NPV₁₀ of US$348m
• Ungeared internal rate of return (IRR) 36%
• Average annual EBITDA over the initial 10 years⁵ of US$79m
• Rigorous process completed to update capital and operating costs with pre-production capital costs of US$134m
• High grade near surface mineralisation supporting oxide first mine scheduling for higher throughput, higher grade and early revenue
• Metallurgical test work supports simpler, single line flotation circuit, reducing capital cost and de-risking the flowsheet
• Stripping ratio for waste reduced from to 0.27 delivering lower mining costs;

• Granted mining licence and environmental approvals;
• New Special Mining Licence (SML) nearing approval to support 300,000tpa expansion study;
• Independent Engineer's Review by SRK Consulting on behalf of lenders, confirming technical aspects of the proposed development and that the Equator Principles social and environmental planning satisfies International Finance Corporation Performance Standards and World Bank Group Environmental, Health and Safety Guidelines;
• Completion of a tailings storage facility (TSF) expansion study shows that the TSF capacity can be progressively expanded to 80 million tonnes, which is 8 times the initial capacity, supporting significant expansion potential;
• Higher value large flake distribution for higher revenue with flake graphite sales for key markets in Europe and Asia;
• Superior product for use in Lithium-ion batteries with testwork demonstrating high performance, and lower emission anode material: and
• Recruitment of an experienced project development team and advanced project execution planning to support a Final Investment Decision.

Reference Notes :

1: Previously reported and refer ASX announcement 21 December 2023

2. Refer website www.benchmarkminerals.com

3. Refer https://www.reuters.com/world/china/china-require-export-permits-some-graphite-products-dec-1-2023-10-20/

4 Financial metrics are in nominal terms and refer ASX announcement on 28th April 2023

5.. Post commissioning and ramp up phase.

Epanko Mineral Resource and Geology

Extensive evaluation conducted with prospective graphite customers demonstrates that the unique geology of Tanzanian graphite delivers a superior battery anode material product, which outperforms other global reference materials in mechanical shaping, purification and electrochemical benchmarking analysis. This positions Epanko to become a globally significant supplier of high-quality graphite for the Company's planned battery anode material facilities in key international markets.

The MRE is wholly contained within a favourable graphitic schist unit, with barren gneissic and schist rock units in the hanging wall and footwall to the graphitic schist unit. Two zones of graphitic schist have been identified, named the Eastern Zone and the Western Zone. The quality of Epanko graphite is the result of two key geological advantages, a calc silicate dominant host gangue mineral with very little deleterious elements and very high crystallinity caused by extremely high metamorphic pressure and temperature. The graphitic schists contain between 3% and 29% TGC. The majority of the Resource of the Project are contained within the Western Zone, a sub-vertical, approximately 200m wide unit of graphitic schist, steeply dipping to the east, which strikes approximately north-south for the 5.5km length of the Company's SML application. Flake graphite crystallinity provides its physical and industrial properties, with the favourable Epanko mineralogy resulting in improved recoveries, product quality and economic efficiency.

As a result of these geological features, Epanko flake graphite is easily liberated using a low-cost, efficient flotation process to produce high quality graphite products, supported by the Company's large scale 200 tonne bulk sample program that outperformed the Ore Reserve block model grades, confirming the integrity of the model and demonstrating the robust nature and significant upside of the Epanko MRE undertaken by ERM.

The grade-tonnage curve for the March 2024 MRE (Measured, Indicated and Inferred) is provided in Figure 2.

Table 2 - Key Parameters of the March 2024 Epanko Mineral Resource

The Mineral Resource shows a significant increase in tonnes for the Inferred, Indicated and Measured categories of the block model, compared to the previously reported Mineral Resource in 2023.

The Inferred tonnage increase is predominantly attributed to the continuation of the Western Zone mineralisation further south, down-strike. This previously untested 1,350m southern extension, which was identified via the Company's Versatile Time Domain Electromagnetic (VTEM) geophysical survey, was drill tested for the first 950m and trench tested for the final 400m. Results confirmed the interpretation of the geophysics, with the approximately 200m wide sub-vertical unit continuing along strike. Additional drilling and sampling is recommended within the Inferred volumes to support future mining studies.

The northern and southern areas of the 2023 MRE for the Western Zone, were previously classified as Inferred and only trench tested. 100m spaced drill lines targeted this area and displayed continued strong consistency in the mineralisation. Additionally, the results from this drilling provided significant validation and confidence in the results from surface trenching.

The increase in the Measured volumes result from infill drilling of gaps within the Indicated Resource of the Western Zone. These results provided sufficient confidence in the geological interpretation and grade distribution to justify Measured classification.

A reporting cut-off grade of 5.5% TGC is used to report the Mineral Resource and was selected following a review of the 2017 BFS mine optimisation and scheduling, which includes +5% TGC ore being scheduled into the operation, delivering a positive economic outcome.

Only minor changes occurred with the Eastern Zone Mineral Resource with the addition of recent drilling.

The 2023 technical field program has continued to demonstrate the excellent correlation between the VTEM and the mineralised graphitic unit. This has provided EcoGraf with the geological confidence to continue the Western Zone interpretation further south to the southern extent of the SML. The result is an interpreted, total continuous strike length of 5.5km of graphitic schist, stretching the entire length of the SML. The northern 3.5km, is now represented by the new MRE, leaving a further 2km to the south untested.

Drilling and Trenching

During 2023, a total of 1,835m of diamond drilling (DD), 3,009m of reverse circulation (RC) drilling and 191m of trenching was completed for Resource infill and extension, infrastructure sterilisation and geotechnical, metallurgy and environmental monitoring purposes. All potentially mineralised samples were submitted to SGS Mwanza for sample preparation and analysis for total graphitic carbon, and all graphite results for these samples, totalling 4,379, have now been received.

Table 3 lists all significant intercepts for the drill program, with significant intercepts focused on the high-grade intervals; greater than or equal to 7% TGC and 10m or more in length.

Included in these results are record high results for the Epanko project, which further confirm the high-grade nature of the mineralisation targeted by the Epanko 73,000tpa operation, as well as extending this into the southern extension of the Western Zone, which will support the Project's phased expansion up to 300,000tpa. The record, from MHT26; 43m at 20.8% TGC from 0m includes a peak assay result of 29.5% TGC.

It is important to observe that a significant number of these intercepts start at or near surface. This demonstrates the presence of the high-grade mineralisation close to surface, within the oxide zone; which, as the recent bulk sample program helped to demonstrate, can be free-dug without blasting.

The Mineral Resource infill drilling targeted the Inferred northern and southern parts of the Epanko Western Zone, with a combination of RC and DD drilling. Whereas the Resource expansion drilling and trenching focused on the southern extension of the Western Zone.

Mineral Resource Estimation

A block model constrained by the interpreted geological envelopes was constructed with a parent cell size of 10m (E) by 25m (N) by 20m (RL) adopted, with sub-celling used to maintain the resolution of the mineralised domains. Samples composited to 1m length were used to interpolate TGC grades into the block model using ordinary kriging interpolation techniques. A search ellipse of 170m (X) by 50m (Y) by 10m (Z) was used to select samples for grade interpolation within Epanko West, supported by the variogram model, which exhibits a 20° southerly plunge. A search ellipse of 80m (X) by 60m (Y) by 20m (Z) was used to select samples for grade interpolation within Epanko East, with the search ellipse orientation adjusted for each block based upon the geometry of the local graphitic schist wireframe model.

A minimum of 4 and maximum of 12 samples were used per block estimate for both Mineral Resource estimates. Block grades were validated both visually and statistically. All modelling was completed using Datamine software.

Density data was derived from Archimedes method test work using diamond core billets, wax coated to prevent water incursion into cavities. The Epanko density database is based upon 1,171 diamond core samples, with density values of 1.92 t/m³, 2.34 t/m³ and 2.83 t/m³ applied to the oxide, transitional and fresh weathering domains respectively for Epanko West, and 1.76 t/m³, 2.57 t/m³ and 2.83 t/m³ for Epanko East.

The Epanko Mineral Resource is classified as a combination of Measured, Indicated and Inferred, and is reported in accordance with the JORC Code (2012), with geological and sampling evidence sufficient to confirm geological and grade continuity within the volumes classified as Measured, and to assume the continuities within the Indicated volumes. The classification levels are based upon an assessment of geological understanding of the deposit, geological and grade continuity, drillhole spacing, quality control results, search and interpolation parameters, and an analysis of available density information. The graphite concentrate is amenable to standard metallurgical recovery processes and metallurgical characteristics are considered to provide Epanko with significant competitive and commercial advantages (refer ASX announcement Updated Bankable Feasibility Study 21 June 2017). Testwork reported has confirmed the graphite mineralisation is suitable for the 'expanded' and 'spherical or anode' lithium-ion battery markets.

Figure 4 shows a long section through the Epanko West deposit, showing the updated Mineral Resource classification categories applied to the block model. Some Mineral Resource volumes previously classified as Inferred have been transferred to Indicated, and Indicated to Measured. A significant volume of previously unclassified material is now classified as Inferred.

Within the Inferred classification volumes, the maximum distance from a drill sample to an Inferred block is approximately 250 m. Geophysical studies demonstrate the occurrence of graphite along strike and to depth, beyond the southernmost lines of drilling. The Competent Person considers the geological continuity of the host graphitic schist, and the grade (TGC) continuity within the schist, satisfy the requirements for reporting of an Inferred Mineral Resource.

Epanko Recognised by MSP in U.S. Press Release

The Company is pleased to note its Epanko Graphite Project was recognised in a recent Joint Statement of the Minerals Security Partnership (MSP) issued by the US Department of State.

The press release recognises EcoGraf's recent significant milestone in securing German-based KfW IPEX-Bank to arrange a senior debt facility of up to US$105 million for the development of stage 1 of the Company's Epanko Graphite Project in Tanzania.

This statement follows MSP principals' meeting in Toronto during the recent Prospectors and Developers Association of Canada (PDAC) annual convention, one of the largest mining events in the world.

The theme of the principals' meeting was responsible investment in critical minerals, with the key objective to strengthen collaboration between the MSP and like-minded partners. The MSP aims to accelerate the development of diverse and sustainable critical minerals supply chains through working with host governments and industry to facilitate targeted financial and diplomatic support for strategic projects along the value chain.

The press release can be found at: https://www.state.gov/joint-statement-of-the-minerals-security-partnership/

References:

Note 1: Refer ASX announcement 21 December 2023

Note 2: Refer ASX announcement on 28th April 2023

Table 3 : All 2023 Epanko Drill Holes, with Major High-Grade Significant Intercepts - greater than 10m length, greater than or equal to 7% TGC and less than or equal to 5m of included, consecutive <7% TGC material. Hole IDs marked with an asterisk indicated previously reported assay results.

Forward looking statements

Various statements in this announcement constitute statements relating to intentions, future acts and events. Such statements are generally classified as "forward looking statements" and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. The Company gives no assurances that the anticipated results, performance or achievements expressed or implied in these forward-looking statements will be achieved.

Production targets and financial information

Information in this announcement relating to the Bankable Feasibility Study conducted on the Epanko Graphite Project, including production targets and forecast financial information derived from the production targets, included in this announcement is extracted from an ASX announcement dated 21 June 2017 "Updated Bankable Feasibility Study" available at www.ecograf.com.au and www.asx.com.au. The Company confirms that all material assumptions underpinning the production targets and forecast financial information derived from the production targets set out in the announcements released on 21 June 2017, 2 March 2023 and 28 April 2023 continue to apply and have not materially changed.

Exploration Results and Mineral Resources - Competent Person Statement

The information in this report that relates to Mineral Resources is based on, and fairly reflects, information compiled by Mr. David Williams and Mr. David Drabble. Mr. David Williams is a full-time employee of ERM and is a Member of the Australian Institute of Geoscientists (#4176)(RPGeo). Mr. David Drabble is a full-time employee of EcoGraf Ltd. and is a Member of the Australasian Institute of Mining and Metallurgy (#307348). Mr David Williams and Mr David Drabble have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr David Williams and Mr David Drabble consent to the disclosure of the information in this report in the form and context in which it appears. Mr David Drabble assumes responsibility for matters related to Sections 1 and 2 of JORC Table 1, while Mr David Williams assumes responsibility for matters related to Section 3 of JORC Table 1.

The information in this report that relates to Exploration Results is based on, and fairly reflects, information compiled by Mr. David Drabble. Mr. David Drabble is a full-time employee of EcoGraf Ltd. and is a Member of the Australasian Institute of Mining and Metallurgy (#307348). Mr David Drabble has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr David Drabble consents to the disclosure of the information in this report in the form and context in which it appears.

This announcement is authorised for release by Andrew Spinks, Managing Director.

For further information, please contact:

INVESTORS

Andrew Spinks

Managing Director

T: +61 8 6424 9002

About EcoGraf

EcoGraf is building a vertically integrated battery anode materials business to produce high purity graphite products for the lithium-ion battery and advanced manufacturing markets. Over US$30 million has been invested to date to create a highly attractive graphite mining and mineral processing business.

In Tanzania, the Company is developing the TanzGraphite natural flake graphite business, commencing with the Epanko Graphite Project, to provide a long-term, scalable supply of feedstock for EcoGraf™ battery anode material processing facilities, together with high quality large flake graphite products for specialised industrial applications.

Using its environmentally superior EcoGraf HFfree™ purification technology, the Company will upgrade the flake graphite to produce 99.95%C high performance battery anode material to supply electric vehicle, battery and anode manufacturers in Asia, Europe and North America as the world transitions to clean, renewable energy.

Battery recycling is critical to improving supply chain sustainability and the Company's successful application of the EcoGraf™ purification process to recycle battery anode material provides it with a unique ability to support customers to reduce CO₂ emissions and lower battery costs.

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APPENDIX 2 JORC TABLE 1

JORC Table 1 Section 1 - Sampling Techniques and Data

JORC 2012 Table 1 Section 2 - Reporting of Exploration Results

JORC 2012 Table 1 Section 3 - Estimation and Reporting of Mineral Resources