Feasibility Study – Spherical Graphite Plant

Feasibility on Production of Lithium-Ion Battery Graphite

The release of the feasibility study on a downstream processing spherical graphite plant is due this month. We're just under two weeks shy of it being one year since KNL announced that it had commenced the feasibility study.

With the rapid acceleration and growth of the lithium-ion battery industry there is significant potential for KNL to produce value-added product from our Epanko graphite. Company announcements have pointed to Sojitz being a partner and/or distributor in a spherical graphite plant. This isn't just some pipe dream conjured up by management, there is a very real chance that this will proceed soon after the development of Epanko. Who knows maybe there's a chance it will be constructed concurrently with the development of Epanko.

We already know from Company announcements (Battery Test Results and Battery Anode Material Successfully Produced) that spherical graphite produced from Epanko graphite has undergone successful testing and benchmarking and that it exceeded expectations. Battery anode material was produced and testwork was undertaken at industrial scale to "replicate commercial production".

Our graphite guru, Christoph Frey, has overseen the technical aspects of the study. During a conversation I had with Andrew Spinks earlier in the year he referred to Frey as "Germany's graphite golden boy". To say that we have one of the world's finest graphite experts would be an understatement, and he's on our team! The weight that Christoph Frey's involvement in the feasibility study adds will be a significant advantage in us securing the right strategic partner for the funding and development of the downstream processing facility.

This will be a very exciting announcement for the Company and us shareholders. And just like with the RPF, updated BFS and RAP, I have no doubt that the feasibility study will be comprehensive and detailed and completed to a standard that will attract world-class strategic partners.

Only 12 days remain in the quarter. Bring on the DFS!!!