EVOLUTION ENERGY MINERALS LIMITED — Major Shareholding Notification 2021

Nov 17, 2021

ASX:EV1 | 18 November 2021

ASX ANNOUNCEMENT

Global Sustainable Resources Fund

Becomes Major Shareholder in Evolution

HIGHLIGHTS

• ARCH Sustainable Resources Fund LP (“ARCH SRF”) becomes 25% shareholder with $8M investment in Evolution IPO

• Total potential funding of up to US$25M (including the IPO investment)

• ARCH SRF brings significant expertise and capability to guide Evolution’s commitment to

Environmental, Social and Governance (“ESG”) leading practice

• The ARCH SRF Investment signals a strong vote of confidence in the Chilalo Project and Evolution’s management team

• Amanda van Dyke appointed as ARCH SRF’s representative on the Evolution board

• ARCH have completed second site-visit

Evolution Energy Minerals (“Evolution” or the “Company”) is pleased to welcome ARCH SRF as a major

shareholder with an investment of A$8 million in Evolution’s Initial Public Offering ( “IPO” ). ARCH SRF’s

investment of A$8 million is part of an overall potential allocation of up to US$25 million for ongoing financial support to the Chilalo Graphite Project (“ Chilalo Project ”).

In addition, ARCH SRF has acquired a 1.7% net sales return royalty on minerals from the Chilalo Project in exchange for A$2 million.

Trevor Benson, Evolution’s Executive Chairman, commented:

“ARCH SRF’s investment, is testament to the quality of the Chilalo Project and its prospects for near-term development. With its combination of technical, financial and ESG capability, we are extremely pleased to have ARCH SRF as a cornerstone investor in Evolution.”

“Like ARCH SRF, we view the Chilalo Project as a quality asset and have assembled a team with considerable graphite marketing, financing and project delivery experience, as we strive to become a producer of sustainable graphite products for the global green economy.”

ARCH SRF is advised by ARCH Emerging Markets Partners Limited, a specialist investment advisory firm with deep experience in emerging markets, private equity, asset management and ESG matters. The ARCH SRF investment team also has significant project finance expertise and the capacity to access funding required for the development of the Chilalo Project.

Under the terms of the Investment Deed with ARCH SRF, Evolution has agreed to a course of action to advance

its ESG credentials and embed its ESG commitments into its corporate governance structures. The Company recognises the importance of compliance to international ESG standards, not just as a driver to attract investment funds, but to ensure sensible and sustainable business operations in the future. ARCH SRF’s significant investment not only underpins the Company’s commitment to ESG standards, but also provides the Company with critical insight into the expectations of ESG fund managers with respect to ESG standards. Together with its prioritisation of ESG performance, this is expected to enable Evolution to be positioned as an attractive investment proposition for a wide range of ESG-focused fund managers.

EVOLUTION ENERGY MINERALS LIMITED

Level 1, Emerald House, 1202 Hay Street, West Perth WA 6005 | T: +61 8 9200 4960 | ASX:EV1 | ev1minerals.com.au

ASX:EV1

EVOLUTION ENERGY MINERALS LIMITED

As part of its significant investment in Evolution, Amanda van Dyke has joined the Evolution board as ARCH SRF’s representative, in the capacity of non-executive director. Amanda will also be a member of the ESG Committee, an independent committee established to advise the Evolution board in relation to matters which

involve ESG considerations or impact the Company’s ESG credentials.

Managing Director of the ARCH SRF investment strategy and Evolution director, Amanda van Dyke, commented:

“We view Chilalo as a world-class asset, supported by Evolution’s team, which has considerable graphite marketing, financing and project delivery experience. Our investment follows a year long due diligence period including an extensive review of the project’s ESG credentials and a site visit in May 2021. A recent follow-up site visit in November confirmed our confidence in the Chilalo Project.”

“ARCH SRF was created with a strict ESG focus to work in strategic partnership with companies like Evolution, supporting them financially, technically, on ESG and commercially to create investor value. Our vision is to deploy our significant ESG, project financing and development expertise to ensure Evolution meets the highest standards for sustainable development to become the supplier of choice for high-value graphite and battery materials products.”

The Company will provide further information on its ESG strategy and approach to ESG management in the coming weeks.

This announcement has been approved for release by the Evolution board of directors.

For further information please contact:

Trevor Benson Michael Bourguignon Executive Chairman Executive Director tbenson@ev1minerals.com.au mbourguignon@ev1minerals.com.au T: +61 8 9200 4960 T: +61 8 9200 4960

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www.evolutionenergyminerals.com.au

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ASX:EV1

EVOLUTION ENERGY MINERALS LIMITED

ABOUT EVOLUTION

Evolution is committed to supplying sustainable graphite solutions for the global green economy and in doing so, create the first net zero carbon mine. A DFS confirmed the opportunity to produce high-quality flake graphite at Chilalo and the Company intends to apply Chilalo flake graphite to downstream processing to produce battery anode material, expandable graphite, micronised graphite and graphite foil. The Chilalo Project is located in south-eastern Tanzania, East Africa, 100 km north of the border with Mozambique, approximately 180 km west of the coastal port city of Mtwara on the Indian Ocean and 400 km south of Tanzania’s largest city, Dar es Salaam.

The Chilalo Project hosts a high-grade mineral resource of 20.1Mt at 9.9% total graphitic carbon (TGC) for 1,991 Kt of contained graphite, as shown in the table below.

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Chilalo Mineral Resource Estimate[1]

	Domain	JORC Code Classification	Zone	Million Tonnes (Mt)	TGC (%)			Contained Graphite (Kt)
			Main	9.2	10.6			982
		Indicated	North-East	1.0	9.5			100
			All	10.3	10.5			1,082
	High Grade		Main	7.4	9.5			704
		Inferred	North-East	2.3	8.8			205
			All	9.8	9.3			908
		Indicated + Inferred	All	20.1	9.9			1,991
			Main	37.8	3.4			1,282
	Low Grade	Inferred	North-East	9.5	4.1			394
			All	47.3	3.5			1,677
	High Grade + Low Grade	Indicated + Inferred	All	67.3	5.4			3,667
The Mineral Resource was estimated within constraining wireframe solids using a core high-grade domain defined above
a nominal 5% TGC cut-off within a surrounding low-grade zone defined above a nominal 2% TGC						cut-off. The mineral
resource is quoted from all classified blocks above a lower cut-off of 2% TGC within these wireframe								solids. Differences
may occur due to rounding.
1The Chilalo Mineral Resource estimate was reported by Evolution in the prospectus dated 28 September 2021, as supplemented by a
supplementary prospectus dated 6 October 2021 (collectively, the Prospectus). Evolution confirms that it is						not aware of any new
information or data that materially affects the Chilalo			Mineral Resource estimate included in the Prospectus				and that all material
assumptions and technical parameters underpinning the Chilalo Mineral Resource estimate in the Prospectus continue to apply and have
not materially changed.

www.evolutionenergyminerals.com.au

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