Super high spheronising yields up to 83%

Chinese norm = 33%

SYR = 40% to 60% (11 November 2015)

MNS  75%

BKT = 83%

September Quarterly Report

Thick flake and high density flake characteristics led to exceptionally high spheronising yields up to 83%. This has potential to deliver sector leading economics

During the quarter a 99.2% TGC concentrate bulk sample was prepared and distributed to independent test facilities, graphite processors and end users. Of note, the graphite characterisation work indicates the following: The graphite flake is exceptionally thick and high density – 25% denser than competitor flake. One test facility noted this was by far the thickest flake they had tested and that this was in part responsible for the unusually high spheronisation yields. The high flake density has potential to make higher energy density battery cells. A sample of graphite is being purified to conduct a suite of detailed cell tests – in particular long term cycling to determine battery performance.

Given that Chinese spheronising plants typically achieve 33% processing yields (ie 3t of flake precursor to make 1t of spherical graphite), Mahenge graphite has potential to significantly reduce spheronising costs. The high purity Mahenge concentrates will also enable cost reductions in purification – both acid and thermal routes.