Ann: Positive Metallurgical Results For Nicanda Hill, page-2

HIGHLIGHTS: „h Head assay results return high grade graphite of up to 19.5% Total Graphitic Carbon (TGC) and V2O5 of up to 0.35%. „h 200kg bulk sample from Nicanda Hill was used in a metallurgical test work program. „h Initial mineralogical investigations have confirmed the substaintal presence of medium and coarse flake graphite of up to 1mm in length. „h Preliminary flotation test work has readily produced high grade graphite concentrate of up to 97.3% TGC. „h Initial flotation test work has shown graphite recovery of up 95% at a relatively coarse primary grind of 500£gm. „h The graphite flotation test work program is now focussed on optimising overall graphite recovery, concentrate grades and final concentrate product size distribution. „h More detailed metallurgical and mineralogical investigations are planned on a larger scale of samples from across the mineralisation zone. „h Vanadium recovery test work from graphite flotation tailing has been initiated.