Ann: Merelani-Arusha Graphite Update, page-3

past confidential results show 96% large flake. no wonder knl are wanting to jump hoops ( ie get pissed around by other parties) for the merelani jv

1. In principle the support of Sky Associates, who are in the process of finalising the purchase of TML, for the proposal to consolidate the graphite assets, has been gained, and is expected to be finalized following the conclusion of their takeover of TML.
   
   The historical occurrence at Block C is well recognised and understood through the geological work carried out by SAMAX Limited in the mid 1990’s. During this period the main source of the graphite mined was the Kyanite graphite gneiss which reported an average grade of 6.5% graphite. (Reference Explor. Mining Geology., Vol 3,No 4, pp. 371-382, 1994).
   
   Metallurgical testwork and past full-scale commercial production show the graphite to be of unusually coarse flake size, crystalline and of high purity. The reported deposit flake distribution from published pilot plant flotation results (refer table 1 below) and sourced from confidential reports from the Block C mining operation, bear out the quality of the graphite produced and sold to end-users in commercial quantities.