Ann: Annual Report to shareholders, page-2

Get ready for the cash injection. The going concern statement is a cracker.

The Group has recently commissioned its Lindi Jumbo graphite project and is in the process of ramping up production
and sales. The Group’s cash flow forecasts through to 30 September 2025 reflect that the Group will be required to raise additional working capital during this period to enable it to meet its planned operational and ramp up costs.

The timing and extent of additional working capital required over the forecast period is in turn dependent upon the rate at
which production from operations can be ramped up, the cost of production and the sale price received from production
sales.
The Group’s ability to continue as a going concern and meet its debts as and when they fall due is dependent on its
ability to raise additional capital and/or secure additional project funding as and when required as part of the ongoing
ramp up of production and sale of production at the Lindi Jumbo graphite project.

As part of its ongoing financing activities, the Group has received approved offer letters from two Tanzanian banks for
a working capital facility of between US$3.6 million to US$4 million in order to finance the differences in timing between
receipts from sales and local operational costs. The Group is currently evaluating the details of these offers.
The directors consider that there are reasonable grounds to believe that the Group has the ability to raise further funding
during the ramp up of production at the Lindi Jumbo graphite project as and when required based on the aforegoing
and its past ability to raise funding. However, in the event that additional funding is not forthcoming as and when
required, there remains material uncertainty that may cast significant doubt on the Group’s ability to continue as a going
concern and, as a result, whether it is able to realise its assets and discharge its liabilities in the normal course of
business and at the amounts stated in the financial report.

The financial report does not include any adjustments relating to the recoverability or classification of recorded asset
amounts or to the amounts or classification of liabilities that may be necessary should the Group not be able to
continue as a going concern.

Before you all get excited about the Tazania banks funding arriving any time soon, You need to read the following section of the Annual Report.

The Company has also been in intensive negotiations with a number of Tanzanian banks to provide a working capital/line
or credit facility of US$3m- US$4m. Two banks have provided credit approved facility offer letters which are currently
being negotiated with the banks. Gemcorp is also required to approve the use of a facility to ensure the senior debt
provider has first charge security. It is expected that one of these facilities will be available for use by the Company by
November 2024.