Ann: AGM Presentation, page-14

Matt Bohlson Graphite Miners News For The Month Of May 2018 May. 30, 2018 12:09 PM Summary Graphite spot price were slightly up in May. Graphite market news - "Graphite’s role in the Electric Vehicle revolution." Graphite company news - Battery Minerals raises A$20m for Montepuez. Triton Minerals signs second graphite offtake deal for Anciabe. Graphite spot and contract price news During May China graphite flake-194 EXW spot prices were up 0.81%, and are up 9.78% over the past year. Source: Northern Graphite website In my January 30 Trend Investing Interview with Benchmark Minerals Simon Moores he said about graphite: Spherical graphite anode plants, predominately based in China, were traditionally 5-10,000 tpa but now we are tacking four megafactories that are looking to produce 60,000 to 100,000 tpa from 2020 onwards. This will have a significant impact on the precursor markets of flake and synthetic graphite. On the flake graphite side, a fall in output from China together with a rebound in demand from steel (refractories and recarburizer) and lithium ion batteries has pushed prices up. Our flake graphite prices index is up 25% y-o-y. The timing is good for the opening of what will be the world's largest flake graphite mine operated by Syrah Resources in Mozambique. The ramp up of this mine will have the most significant impact on the global graphite market in many years. Graphite demand v supply Demand China steel industry demand is a significant factor. EV led lithium ion battery demand is strong and growing as evidenced by four new anode megafactories with 360,000 tpa capacity set to come online by 2020 (a tripling of current capacity). Supply China dominates graphite supply. New supply is coming on from Syrah Resources. Graphite market news On May 3 Investing News reported: "Graphite's role in the electric vehicle revolution. Graphite, a little-known component of lithium-ion batteries, is booming thanks to a unified global pushback against fossil fuels and a commitment to clean energy. It's here that graphite producers hope to contribute to the gradual curbing of climate change-related effects by helping create batteries for emission-free vehicles. "Demand for graphite is going to increase dramatically as the trend towards electric vehicles grows exponentially over the next several years," Thomas Yingling, CEO of Berkwood Resources [TSXV:BKR], told INN." On May 18 Industrial Minerals reported: "China graphite market to climb on reducing supply; amorphous price edging up. Graphite producers in Qingdao suspended production this week to guarantee better air conditions before the Shanghai Cooperation Organization [SCO] Summit in June, supporting graphite flake prices, while amorphous graphite prices into Europe increased..