Ann: Annual Report to shareholders, page-11

Highlights from Chairman's Letter

Requisite fullscale mining permit applications have been submitted and are progressing at a speed suitable to Talga’s project development timeline, set to meet the 2023 start of production for many of the announced Li-ion battery megafactories.

Talnode®-C marketing is progressing under our long list of customer engagements, which include six of the world’s majorautomotive manufacturers and the majority of announced European battery megafactories. Based on qualification testing to date, customer confidence is strong and Talnode®-C is set to fulfill the anode requirements of major industry players looking for a locally produced, competitively priced and sustainable alternative to today’s imported materials.

Projected Li-ion battery production capacity continues to rapidly grow, driving demand for increased anode manufacturing capacity to support these new battery supply chains. Following the expressions of interest received for Talnode®-C and the strong interest in Talnode®-Si we are actively working to grow our operations, starting with the Niska expansion. With our vast Swedish graphite resources, scalable and sustainable processes and competitive anode products Talga is in a strong position to successfully expand in line with our customer’s needs.

To deliver on our project development and expansion plans, Talga is aligning itself with strong industry partners. During the year this included agreements with Mitsui and Macquarie. Additionally, Talga has engaged with a range of major battery supply chain partners under confidential agreements and the interest, in both project and product, has only increased as qualification tests progress. The Talga team is working closely with strategic partners to support project development, from funding through to sales and production, and customer product qualification, to secure supply agreements and support project financing, towards delivering maximum project value and shareholder returns.

It is now time to build on these strong foundations and I expect 2021 to be a pivotal year for Talga and our shareholders. Our founder’s decision to invest in our truly unique Swedish graphite deposits and his mission to produce graphitic materials that enable greener batteries and products, destined to improve the world, is projected to pay significant future benefits to all stakeholders. As an early mover with strong vertical integration and the ability to grow with our target market, Talga is poised to become one of the world’s largest and most successful anode producers.