EcoGraf: Updated Epanko Ore Reserve

The updated Ore Reserve is based on the 2024 Mineral Resource, announced to ASX on 11 March 2024, combined with the Company's "Oxide Ore first" approach for the Project, enabling improved process plant throughput and project economics.

Key Highlights:

• Epanko Ore Reserve increased to 14.3Mt at 8.8% total graphitic carbon (TGC) for 1.25Mt of contained graphite (refer Table 1)
• 110% increase in Proven Ore Reserves, with an industry-leading 82% of total Ore Reserves classified as Proven, delivering increased confidence on metallurgical factors such as process recoveries, flake size distribution and concentrate grades
• A 29% increase in contained graphite from the previous Ore Reserve announced to ASX on 21 June 2017 (previous Ore Reserve 11.7Mt at 8.3% TGC for 0.97Mt of contained graphite)
• Updated Ore Reserve is based on the 73,000tpa stage 1 Epanko development, with significant potential to expand production, given the Ore Reserve represents 2.3km of the total 3.5km Mineral Resource estimate strike length, and approximately only 20% of the vertical extent
• Initial 18-year Life of Mine (LOM) for stage 1, with additional Mineral Resources providing for a phased expansion up to 300,000tpa (refer ASX announcement on 28 April 2023)
• New mine design that delivers the Oxide Ore first strategy, provides significant operational benefits;
  • Increased initial process plant throughput of 850,000tpa when treating Oxide Ore to produce 73,000 tpa of graphite product.
  • Lower cost mining operation with 80% 'free dig' when mining the softer near surface Oxide Ore
  • Low strip ratio (Waste to Ore) for LOM of 0.3:1, including the processing of low grade
• New mine design follows recent site due diligence visits by KfW IPEX-Bank, Euler Hermes and independent technical engineers and environmental & social consultants
• Low-grade material of ~3.1Mt at 5.1% TGC will be stockpiled and the processing deferred to the end of the current mining schedule, extending the initial stage 1 operating period by a further 5 years, to 23 years

Epanko Ore Reserve Statement

The Ore Reserve estimation was carried out by Intermine Mining Consultants and has been classified in accordance with the JORC (2012) Code and is shown in Table 1.

Table 1 - July 2024 Ore Reserve Statement for the Epanko Deposit

Notes for Table 1: Cut-off grade applied Eastern Zone is 4% TGC; Cut-off grade applied Western Zone is 6.25% TGC. 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.

Material assumptions underpinning the Ore Reserve are set out below and in Appendix 1 (JORC Table 1).

The Epanko Ore Reserve was estimated from the March 2024 Mineral Resource estimates whilst factoring in the level of confidence in the Mineral Resource as well as considering relevant modifying factors and material assumptions. The Ore Reserve is based on Measured and Indicated Resources only. No Inferred Mineral Resources have been included in the Ore Reserve.

The updated Ore Reserve confirms the outstanding geology of Epanko and supports the debt financing program with KfW IPEX-Bank for a UFK loan of up to US$105m for the initial stage 1 development of Epanko (ASX announcement on 29 November 2023).

View flyover video: https://youtu.be/G4iKtBJUGVk

Epanko Project Snapshot

The Epanko natural graphite provides a superior quality and cost competitive feedstock for the Company's downstream products, in particular for spherical battery graphite a key raw material for the lithium-ion battery market.

ASX Listing Rule 5.9.1

In accordance with ASX Listing Rule 5.9.1, and in addition to further information included in this announcement, including Appendix 2 JORC Table 1, the Company provides the following information:

Material Assumptions: The Ore Reserves are based on key modifying factors that include analysis, designs, schedules and cost estimates of the Epanko Bankable Feasibility Study (Study) that describes the development of the Epanko Graphite Project over an 18 year mine life. Material assumptions of the Study include:

• Extensive metallurgical testwork has been completed. This testwork is described in this document and supports modifying factors applied in the Ore Reserve estimate.
• The mining process has been based on Measured and Indicated Mineral Resources reported in accordance with the JORC code, detailed mine designs, specifications from a geotechnical study and mining equipment determined from experienced Mining contractors.
• The processing plant design has been developed by experienced design engineers to support the flowsheet and the predicted recovery, throughput and production estimates.
• The infrastructure requirements have been defined by specialist engineers.
• The detailed designs discussed above have been used as the basis for capital and operating cost estimates derived from first principles, estimates and vendor quotes.

Classification criteria. The Ore Reserves comprises Measured and Indicated Mineral Resources only. The Study includes some Inferred Resources which are mined incidentally with the Measured and Indicated Resources and treated as waste for scheduling purposes. Over the 18 year mining period, approximately 82% of the material mined is within the Measured Resource category and approximately 18% is within the Indicated Resource category.

Mining Method: Graphite ore will be mined from two open cut pits which will be developed at the Western Zone and Eastern Zone. These are approximately one kilometre apart and lie near the northern boundary of the Mining License area. The Western Zone consists of mining a strike length of 2,300m along the top of the ridge to a depth of 210m in the south, and the Eastern Zone sits partially over a hill within a small valley and will be mined to a depth of 125m and the pit will have a strike extent of 350 m.

• Mining will be by a conventional drill and blast, truck and shovel operation, using a mining contractor. Blasting will be required in both the West Pit and the East Pit, however 80 % of oxide Ore is classified as free dig. Ore will be loaded onto trucks and transported to the Run-Of-Mine Pad (ROM Pad). Waste rock will be transported by trucks to the waste rock storage facility.
• The height of the mining benches is determined according to physical characteristics of the mineralisation. It is assumed that a 5 m working bench height will be maintained with free dig or blasted material excavated in two discrete flitches, each nominally of 2.5m height to minimise dilution and to maximise ore recovery.
• To accommodate the 73,000tpa of graphite product, the mine schedule will target a ROM feed of 850,000 tpa when feeding Oxide ore. This will drop to 60,000 tpa and 720,000 tpa respectively when feeding Transitional and Fresh Ore.

Processing Method: The design is based on an 850,000 tpa flotation processing plant treating Oxide ore which will be the predominate feed for the first 7 years, to produce 73,000 tpa of graphite product and Transitional and Fresh ore will be processed at a rate of 720,000 tpa, producing 60,000 tpa of graphite product. Low-grade Western oxide material (~ 3.1 Mt at 5.1% TGC) will be stockpiled and processing deferred till the end of the mining schedule.

Ore will be processed through the processing plant which will consist of:

• A conventional two stage crushing circuit with a jaw crusher as the primary crusher and a cone crusher as the secondary crusher;
• A single stage rod mill (grinding to 710 microns) in closed circuit with a screen;
• A rougher flotation stage;
• Regrinding of the rougher tailings;
• Scavenger flotation;
• Primary cleaning and polishing of rougher/scavenger concentrate;
• Four stage cleaning flotation;
• Dewatering of the graphite;
• Concentrating the graphite in a pressure filter;
• Drying of the concentrate in a rotary dryer;
• Dry screening of graphite product into saleable size fractions.

Testwork carried out on composite samples and ore variability samples demonstrate outstanding grade and recovery of graphite in final concentrate with no deleterious elements.

Estimation Methodology: Revenue is calculated as the concentrate price less royalties, less fixed and variable costs to produce and transport the product to the point of sale. Process plant feed from the mining schedule provided a head grade that was modelled through the processing plant and used to model costs and revenue over the life of the project.

The forecast 2024 Graphite baseline price was used to calculate base revenue and was provided by Fastmarkets.

The financial projections have been modelled utilising an average basket price per tonne of graphite produced. The NPV is derived from post royalty, debt and equity funded real cash flows using a 10% discount rate.

Material Modifying Factors: The Epanko Graphite Project is located within the mining license granted by the Government of Tanzania.

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.

Competent Person Statements

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 the Ore Reserve has been compiled by Mr Steve O'Grady. Mr O'Grady, who is a Member of the Australasian Institute of Mining and Metallurgy (#201545), is a fulltime employee of Intermine Engineering and produced the Mining Reserve estimate based on data and geological information supplied by Mr Williams. Mr O'Grady has sufficient experience that is relevant to the estimation, assessment, evaluation and economic extraction of Ore Reserve that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr O'Grady consents to the inclusion in this report of the matters based on his information in the form and context that the information 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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