Ann: Walkabout Signs Sales Agreements, page-2

Walkabout Contract Sells up to 75% of Lindi Jumbo Annual Production

Walkabout Resources Ltd (ASX:WKT) is pleased to report the conclusion of a series of Agreements to contract at least 30,000 tonnes per annum of a range of natural flake graphite products from the developing Lindi Jumbo mine to European and Chinese traders and end-users

Highlights

• A total of 30,000 tonnes per annum or approximately 75% of the initial production target of 40,000 tonnes per annum is now contracted. Negotiations for sales of the remaining 10,000 tonnes per annum of production are continuing.

• Heads of Agreement (HOA) for the sale of 7,500 tonnes per annum to a large Chinese graphite and expandable products mining and processing Company, Jixi Puxiang New Material Co. Ltd. under a HOA leading to a binding Agreement;

• Heads of Agreement for the sale of 10,000 tonnes per annum of premium concentrate products to a Chinese-European Trading House (CTH), who prefers to not have their identity disclosed at this time and with a particular focus on the expandable graphite markets;

• Memorandum of Understanding with a strategic alliance for the sale of 12,500 tonnes per annum to Georg H. Luh GmbH, a German based, specialist graphite trading house with access to European expandable graphite markets (see ASX announcement of 10/5/2017);

The Agreements make provision for the negotiation of binding Sales and Purchase Agreements, including certain exclusivity arrangements, to be finalised before the end of 2017 and for deliveries to commence during 2018. All Agreements call for firm sales terms with pricing mechanisms and specifications to be finalised by the end of 2017.

Trevor Benson, Executive Chairman of Walkabout Resources commented; “These Agreements are a significant step forward in providing evidence as to the demand for the Lindi Jumbo Project premium high grade and large flake graphite products and are key to finalising the current funding proposal for the development of our Project. Having just returned from China, where Company executives finalised these Agreements I am confident that all the quality product from our Project at Lindi will be produced and contracted for sale."

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