Ann: Battery Manufacturing Facility Study, page-2

Kibaran Resources Limited (ASX: KNL), (‘Kibaran’ or the ‘Company’) is pleased to report the results of its Battery Grade Graphite Scoping Study (‘Battery Study’ or ‘Study’) which highlights robust economics and a compelling case for the development of a Manufacturing Facility to participate in downstream value added processing. STUDY HIGHLIGHTS  Manufacturing of first battery grade Spherical Graphite is scheduled to commence 12 to 18 months into Stage 1 Epanko Graphite Project expanded production  Exponential growth in graphite demand forecasted over the next 5 years from Electric Vehicle (EV) and Battery Storage industries  Key Study Results o Pre-tax NPV10 of US$115m o Pre-tax IRR of 51% o Capital Expenditure of US$35m o Annual pre-tax cashflow of US$18mpa based on Stage 1 o Payback 1.9 years  Stage 1 production to commence at 15,000tpa, increasing to 50,000tpa over 3 stages, producing Spherical, Expanded and other purified graphite products  Testwork confirmed Epanko Graphite is of superior quality and exceptionally well suited for the production of Spherical Graphite and other purified graphite products  Staged expansion expected to be supported by project cashflow  Discussions commenced with strategic industry partners to jointly fund the feasibility study and ultimately capex through direct investment into the project  TanzGraphite Technologies Pty Ltd incorporated to host ownership
The Study was based on the additional product from the modelled 100,000tpa (refer Scoping Study announcement 22 January 2015) over the 40,000tpa level from the Bankable Feasibility Study. There have been no material changes to those assumptions from the Scoping Study announced in January. Mr Andrew Spinks, Managing Director commented “The completion of the Epanko BFS now provides the Company with certainty to position itself to become part of the global graphite supply chain and secure strategic partnerships for the battery grade Spherical Graphite market. The planned Gigafactories associated with the emerging electric vehicle and Energy Storage System will have a significant impact on graphite demand.” Mr Spinks added further “We are once again focussing our efforts on the European, Japanese and US markets, as they are seeking alternative supply for manufactured graphite products, where processing is undertaken in line with sustainable environmental methods. We will be providing a clear alternative to existing Chinese sources and are focussed on securing interest from the worlds new Gigafactories.”