BLACK ROCK MINING LIMITED — Capital/Financing Update 2018

May 7, 2018

ASX ANNOUNCEMENT 8 MAY 2018

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BLACK ROCK ACHIEVES WORLD FIRST PROCESSING RESULT DELIVERING ULTRA HIGH GRAPHITE CONCENTRATE GRADE OF OVER 99%

HIGHLIGHTS

• Black Rock delivers world first 99%+ purity graphite concentrate in a conventional flotation circuit at scale

• Significant scale of 200kgs of 99%+ graphite concentrate generated during recent pilot plant run was reprocessed through a polishing circuit to generate the ultra-high concentrate grades

• Black Rock produced an average grade of 99.3% TGC (graphite) using double LOI (Loss on Ignition) method

• Industry leading large flake product was produced after taking it to 99%, demonstrating the mechanical strength of the Mahenge flake

• 55% of ultra-high concentrate remains in the large/jumbo size fraction and minimal flake degradation in the upgrade circuit

• Shipments of ultra-high concentrate on route to potential global customers and partners

Tanzanian graphite developer Black Rock Mining Limited (BKT: ASX) (“Black Rock” or “the Company”)

is pleased to report a world first pilot plant production of 99%+ graphite concentrate using floatation methods only. The test was conducted as part of an upgrade program during recent pilot plant testing at SGS Lakefield in Canada for its 100%-owned Mahenge Graphite Project. A summary of the test production of Ultra class concentrate from Ulanzi is presented below:

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Table 1: 99.3 % Ultra Class Concentration Flake Distribution

Black Rock Mining Ltd ACN 094 551 336 ASX: BKT

Issued Capital 443m Shares 67.2m Options 2.4m Performance Rights

Australian Registered Office Tanzanian Office Directors Level 1, 35 Havelock Street Mahenge Resources Ltd Richard Crookes West Perth, WA 6005 202 Village Walk Building John de Vries Ph: +61 8 9320 7550 Toure Drive, PO Box 80003 Stephen Copulos E: info@blackrockmining.com.au Dar es Salaam Tanzania Gabriel Chiappini

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ASX ANNOUNCEMENT 8 MAY 2018

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Black Rock’s CEO John de Vries commented: “We are not aware of any deposit that is capable of producing 99.3% grade concentrate by standard flotation alone. Being able to generate ultra-high grade product using flotation is of significant value to downstream processors who are increasingly finding environmental constraints impacting their business. The value proposition of producing high specification concentrate has been validated by Syrah Resources’ recent announcement of planned increases of Balama concentrate grades to a targeted 97%-98% TGC.”

“We are particularly pleased with the minimal flake degradation during the additional polishing. With over 55% of the ultra grade concentrate reporting to the large and jumbo fraction, this simply underlines how remarkable Mahenge flake really is.”

“We believe through the consistent delivery of outstanding results and steadily progressing the project, Mahenge is demonstrating itself as the best undeveloped graphite project available globally.”

Pilot Plant Testworks

SGS Lakefield in Canada completed the pilot plant test work, processing 90 tonnes of Mahenge ore, comprising 50 tonnes from Cascades and 40 tonnes from Ulanzi. Mechanical commissioning was completed on 21 March 2018 with primary circuit processing completed on 5 April 2018. Ultra grade concentrate was delivered by repossessing 97.5% premium concentrate.

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----- Start of picture text ----- Primary Grind1680 micronsSecondary GrindFlotationRougher 600 microns ScavengerFlotationScavengerTailsPolishing Grind1 [st] Clnr1 [st] ClnrTails2 [nd] Clnr3 [rd] ClnrFlocculate and drum----- End of picture text -----

Figure 1 Single Circuit Option

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ASX ANNOUNCEMENT 8 MAY 2018

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For more information:

John de Vries Simon Hinsley Chief Executive Officer Investor Relations Black Rock Mining NWR Communications +61 438 356 590 +61 401 809 653 jdv@blackrockmining.com.au simon@nwrcommunications.com.au

About Black Rock Mining

Black Rock Mining Limited is an Australian-based company listed on the Australian Securities Exchange. The Company owns graphite tenure in the Mahenge region of Tanzania.

The Company’s 100%-owned Mahenge Graphite Project is one of the largest JORC-compliant flake graphite Mineral Resource Estimates globally, with a Mineral Resource Estimate of 211.9m tonnes at 7.8% TGC for 16.6m tonnes of contained graphite. Importantly, more than 50% of the Mineral Resource is in the Measured and Indicated categories.

Black Rock released an exceptional optimised Preliminary Feasibility Study (PFS) for the Mahenge Graphite Project, which considered a three-stage construction to deliver up to 250,000 tonnes per annum of 98.5% graphite concentrate for 31 years. The Company plans to fund stages two and three from free cash flow. The pre-production capex is US$90.1m to deliver a post-tax unlevered project NPV10 of US$905m incorporating the proposed 16% Government free carry and increased royalty rate.

The optimised PFS confirmed Black Rock has the potential for a long-life, low capex, high margin operation. Black Rock is moving towards commencing a Definitive Feasibility Study (DFS). Following the successful completion of the DFS and the associated financing, construction is expected to commence late-2018 with first production in 2019.

For further information on the Company’s development pathway, please refer to the Company’s website at the following link: http://www.blackrockmining.com.au and the corporate video presentation at http://www.blackrockmining.com.au/#video.

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Resource breakdown by prospect and total combined global resource

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Location of Black Rock’s Mahenge Graphite Project within Tanzania

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