KNL 2016, page-6

I further predict that the neighbours will continue to sing KNL's praises, as seen in the 16 December 2015 report prepared by Alpha Securities about Blackrock Mining (ASX:BKT):

Further, the Company is of the view that the metallurgical test results for Epanko North and Ulanzi will match the metallurgical test results from Kibaran Resources’ (ASX: KNL) Epanko orebody (see Footenote 1, below).

In particular, the metallurgical test results for KNL’s Epanko orebody were in the upper quartile for quality/purity. Metallurgical testwork undertaken by KNL highlights that Epanko graphite is large flake and has ‘expandability’ potential (i.e. suitable for further processing into expanded graphite), which are the key attributes that command premium pricing in the graphite market.

Consequently, these metallurgical test results have enabled KNL to market their future production via an offtake agreement with a division of global German industrial giant ThyssenKrupp (initial off-take agreement for 20,000tpa, which represents 50% of Kibaran’s planned 40,000tpa graphite production from Epanko).

Footenote 1: KNL’s Epanko orebody extends to the immediate north into BKT’s Mahenge North Graphite Project and has the same contiguous ore body into Epanko North, with Ulanzi also showing similar qualities. KNL’s Epanko project has a JORC resource estimate of 23.3Mt at 9.4% TGC for 2.19Mt contained graphite.