Ann: Balama Central Graphite Project Scoping Study, page-2

Highlights of Balama Central Scoping Study • Scoping study highlights the potential to generate significant financial returns from the Balama Central Graphite Project in Mozambique •
Key findings of the study include: o Capex* US$50m

Opex* US$372/t (includes blasting costs)

Payback less than 1.5 years (see Appendix 3 for sensitivity analysis)

• Average Ore Grade – 10.6% total graphitic carbon (TGC)

• Initial production rate 53,000 – 55,000tpa of graphite concentrate

• Mine life of greater than 10 years based on Indicated Resources only

• Concentrate grade 97% TGC • Concentrate recoveries of 93%

• A product basket price of US$1,221 FOB per tonne**