Ann: Company Presentation, page-2

This is a good summary of graphite for those who are trying to decide between the graphite companies out there.


CURRENT GRAPHITE INDUSTRY
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 Market requires graphite grade of 94-97% C and seeks large flake > 180 micron
 Several types of graphite: Expanded, Spherical and Micronised
 Spherical graphite is immediate key growth sector; key graphite ingredient in batteries
 Battery applications: not necessary to have high graphite grade, rather flake size and
conductivity are key properties
 Thermally efficient building products are expected to drive demand for Expanded Graphite,
which is forecast to be a larger market than Spherical Graphite
 Single graphite deposits will not control the market, end users seek supply diversity and
market traders want exclusivity
 New production unlikely to flood market; if demand increases there is likely to be a massive
shortfall of graphite

Graphite has the potential to become a mainstream commodity driven by
technological advances and efficiency