Ann: Pre-Feasibility Study Completed, page-4

HIGHLIGHTS  PFS concludes robust technical and financial viability of the Namangale Project, delivering high quality, large flake, high TGC product

 Pre tax NPV of US$1.31B, 87% IRR and pay-back of 1.4 years based on 22-year mine life.

 JORC Mineral Resource Estimate update of 461Mt @ 4.9% TGC

 Maiden JORC Ore Reserve of 127Mt @ 4.4% TGC

 Forecast annual production of 170kt/y of graphite concentrate, with non-binding MOUs for 100kt/y from three China based end-users

 Blended basket price of US$1,684/t against US$536/t OPEX (FOB Mtwara), translates to average annual US$195M EBITDA

 Relatively low US$173M CAPEX for Project development, due to Namangale’s close proximity to infrastructure and sealed roads to Mtwara port

 Volt’s Board endorses the Project Consultant’s recommendation to immediately progress the Namangale Project and undertake a Definitive Feasibility Study (“DFS”) in 2017, paving the way for finalising off-take agreements and project finance

 DFS will target additional high quality large flake size graphite from Namangale