Uley 2 at a Glance

Project Overview

Status: DFS completed for Uley 2 Stage 1

Location: Eyre Peninsula, SA; 20km west-south-west of Port Lincoln

Government approvals: All approvals obtained pursuant to Program for Environment Protection and Rehabilitation

Scheduled start of development: Q2 2022

Stage 1 mine life: 12 years

Stage 1 production level: Uley 2 processing plant will produce a minimum of 55,000 tonnes of high purity coarse flake.

Graphite mineral processing: Liberation of graphite particles through crushing and grinding followed by floatation and polishing sections. Multi-stage polishing critical to enhanced flake graphite recoveries and maximising purity and coarse flake size.

Graphite beneficiated to 99%: Following mineral processing, graphite flakes will be beneficiated to 99% utilising Sunlands Co. technology. DFS for beneficiate process to be completed by mid 2022.

Offtake agreements in place: Joint Venture arrangement with The Sunlands Company Pty Ltd (thermal storage applications) approx. 20% of annual production.

Definitive Feasibility, Reserves & Resources

Definitive Feasibility Study & Mining Study Highlights

Life of Mine key economic and financial input parameters and modifying factors

Process Plant Feed 500,000 tonnes per annum
Graphitic carbon grade 11.89%
Graphitic carbon recovery 84%
Concentrate purity >97% total graphitic carbon (TGC) for coarse flake
Processing Cost A$55.3 per tonne
Mining Cost A$2.5/t milled at surface plus 5c for every 4m
Operating Costs (ex working) A$439 dmt
Product Price US$919 dmt

Base case Uley 2, stage 1 delivers robust project economics. Further optimisation work including beneficiation study to increase the flake purity to >99% greatly enhances project economics.

Location Map
ML 5562

Area: 187.5ha
Expiry: 1 October 2021

1 of 8
ML 5561

Area: 22ha
Expiry: 1 October 2021

2 of 8
RL 66

Area: 22ha
Expiry: 16 March 2024

3 of 8
RL 67

Area: 44ha
Expiry: 16 March 2024

4 of 8
Major exploration target Included within EL 6224
Area: 75km2
Expiry: Renewal Pending 5 of 8
Major exploration target Included within EL 6224
Area: 75km2
Expiry: Renewal Pending 6 of 8
Major exploration target Included within EL 6224
Area: 75km2
Expiry: Renewal Pending 7 of 8
Major exploration target Included within EL 6224
Area: 75km2
Expiry: Renewal Pending 8 of 8

Mineral Resource estimate for Uley 2 (3.5% total graphitic carbon cut-off)

Classification Tonnes
mt
TGC
%
Density
t/m3
TGC Tonnes
kt
Measured 0.8 15.6 2.1 125
Indicated 4.2 10.4 2.1 435
Inferred 1.3 10.5 2.2 137
TOTAL 6.3 11.1 2.1 697

Significant upside resource potential within the Uley 2 resource envelope. Extensional drilling of Uley 2 supports ongoing resource expansion.

Contact us.

Head Office

Quantum Graphite Limited
349 Collins Street
Melbourne, Victoria, 3000
Australia

Investor Relations

Enquiries to be addressed to the Company Secretary

E: info@qgraphite.com

© 2021 РQuantum Graphite Limited