Ann: Caula Graphite Project Concept Study Drilling Complete, page-2

​

CONCEPT STUDY DRILLING COMPLETED, INTERSECTS ADDITIONAL WIDE, SHALLOW ZONES OF GRAPHITE AT CAULA PROJECT
Results further underpin project concept study, which is due for completion in April 2018, paving the way for the DFS
Key Points
 11 further diamond drill holes completed as part of the current Concept Study on the Caula Graphite Project in Mozambique
 Concept Study infill and resource extension drilling campaign also aimed at further upgrading current JORC resource of 5.4Mt at 13% Total Graphitic Carbon (TGC) for 702,600 tonnes of contained graphite
 Wide graphite intersections in all 11 diamond holes drilled including:
o 86m from 57m to 143m downhole in MODD 014
o 68m from 44m to 112m downhole in MODD 018
o 62m from 6m to 68m downhole in MODD 019
o 59m from 5m to 64m downhole in MODD 032
o 55m from 35m to 90m downhole in MODD 031
 Previous diamond drilling at Caula returned spectacular grades up to 26% TGC with wide zones averaging more than 15% TGC
 Samples are being sent for assaying and metallurgical testwork
 Concept Study scheduled for completion in Q2 2018 followed by commencement of Definitive Feasibility Study (DFS).