Ann: Graphmada Graphite mine operational update, page-8

Hi guys, got some update from management :

It seems that BSM office line and servers went down while our CEO was in Madagascar. As David Round (CFO and Company Secretary) and Tim Mcmanus (CEO), are the only two based in Australia, Perth and Brisbane respectively, there was no one who could physically open the office in Brisbane to have the problem resolved. Our management does not believe in having big corporate overheads, so David Round and Tim McManus wear many hats, "IT" being one of them, however, both BSM phone line and admin email are now working again.

Regarding operations in the ground, BASS team is progressing solidly. The main objective is still to build a significant industrial minerals company that is cash flow positive in 2017. The delay in selecting suppliers/making equipment purchases for refurbishment seems to have its origin when the company was faced with the decision in December 2016 to payout Stratmin VS making equipment purchases, and they choseed to payout Stratmin as a priority and an opportunity to grab and not to miss out, which they believe delivers a significant benefit to all shareholders and removes a large overhang in the stock. That also meant Bass could take some extra time in getting the equipment purchases right for the long-term (lower capex / higher quality equipment / lower operating costs), of which they are now very satisfied.

So while Bass is only into their 10 month of ownership under new management, they believe they have made some significant advances into turning Graphmada around and setting a strong foundation for cash flow for many years to come.

Hope that helped, happy LARGE FLAKES graphite investment to all !