First Graphene Ltd. — Interim / Quarterly Report 2016

Mar 10, 2016

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(Formerly MRL Corporation Limited)

ACN 007 870 760

INTERIM FINANCIAL REPORT

For the Half Year Ended

31 December 2015

Directors

Corporate Directory Share Registry

Warwick Grigor (Chairman) Craig McGuckin (Managing Director)

Peter R. Youd (Executive Director)

Denis Geldard (Non-Executive Director)

Chris Banasik (Non-Executive Director)

Company Secretary

Automic Registry Services Level 1, 7 Ventnor Avenue West Perth W.A. 6005

Telephone: +61 8 9324 2099 Facsimile: +61 8 9321 2337

Auditor

BDO Audit (WA) Pty Ltd 38 Station Street Subiaco WA 6008

Peter R. Youd

Solicitors – Australia

Principal Registered Office in Australia

Suite 3 9 Hampden Road Nedlands WA 6009

Steinepreis Paganin Lawyers and Consultants Level 4, The Read Buildings 16 Milligan Street Perth WA 6000

Telephone: +61 1300 660 448 Facsimile: +61 1300 855 044

Solicitors – Sri Lanka

Varners

Email: info@firstgraphite.com.au Website: www.firstgraphite.com.au

Stock Exchange Listing

The Company is listed on the Australian Securities Exchange Limited under the trading codes FGR , FGROA and FGROB

Level 14, West Tower World Trade Centre Echelon Square Colombo 01 Sri Lanka

Bankers

Westpac Banking Corporation Level 6 109 St Georges Terrace Perth WA 6000

First Graphite Limited Consolidated Financial Report – December 2015

Page 2

Contents

Corporate Directory .................................................................................................................. 2
Directors’ Report ........................................................................................................................ 4
Auditors Independence Declaration ...................................................................................... 5
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................. 6
Consolidated Statement of Financial Position ....................................................................... 7
Consolidated Statement of Changes in Equity ..................................................................... 8
Consolidated Statement of Cash Flows.................................................................................. 9
Notes to the Consolidated Financial Statements ................................................................ 10
1. Basis of Preparation of half-year financial statements ........................................ 10
Accounting policies ........................................................................................................... 10
2. Segment information................................................................................................ 11
3. Revenue and other income .................................................................................... 12
4. Other Current Assets ................................................................................................. 12
5. Exploration and evaluation expenditure............................................................... 12
6. Issued Capital ............................................................................................................ 13
7. Dividends ................................................................................................................... 14
8. Subsequent events after Reporting Date .............................................................. 14
9. Capital Commitments.............................................................................................. 14
10. Contingent Liabilities and Contingent Assets ....................................................... 14
11. Fair Value measurement of financial instruments ................................................ 14
12. Share based payments ............................................................................................ 15
Directors Declaration ............................................................................................................... 16
Independent Auditors Report ................................................................................................ 17
Additional Securities Information ........................................................................................... 19
Additional Securities Information ........................................................................................... 20

First Graphite Limited Consolidated Financial Report – December 2015

Page 3

Directors’ Report

Your Directors present their report on the consolidated entity (referred to hereafter as the “Group”) consisting of First Graphite Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2015.

DIRECTORS

The following persons were Directors of First Graphite Limited during the half-year and up to the date of this report:

• Warwick Grigor (appointed 4 December 2015)

• Craig Robert McGuckin

• Peter Richard Youd

• Denis Geldard

• Chris Banasik

• Peter Hepburn-Brown (resigned 20 November 2015)

REVIEW AND RESULTS OF OPERATIONS

Operating Results

Net operating loss after tax for the half-year ended 31 December 2015 was $2,520,265 (2014: $2,065,621), of which $443,109 (2014: 769,991) were non-cash expenses.

Review of Operations and Changes in State of Affairs

The key areas of activity during the half were:

• Commencement of an extensive research and development program at the University of Adelaide on commercial graphene production.

• Continued development of mine projects at Pandeniya and Aluketiya

• Further exploration drilling at the Company’s projects

AUDITORS INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 5.

Signed in accordance with a resolution of Directors and on behalf of the Directors by:

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Craig McGuckin

Managing Director Nedlands, 11 March 2016

First Graphite Limited Consolidated Financial Report – December 2015

Page 4

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF FIRST GRAPHITE LIMITED

As lead auditor for the review of First Graphite Limited for the half-year ended 31 December 2015, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of First Graphite limited and the entities it controlled during the period.

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Phillip Murdoch

Director

BDO Audit (WA) Pty Ltd

Perth, 11 March 2016

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees

First Graphite Limited Consolidated Financial Report – December 2015

Page 5

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the Half-Year Ended 31 December 2015

Note Revenue from continuing operations Other income 3 Exploration and evaluation expenditure Legal expenses Occupancy expenses Employee benefit expenses Depreciation and amortisation Share based payment expense 12 Other expenses from ordinary activities (Loss) from continuing operations before tax expense Income tax benefit/(expense) (Loss) after tax from continuing operations Other comprehensive income Items which may be reclassified to the profit or loss Foreign currency translation difference on foreign operations Total comprehensive loss for the period attributable to the owners of First Graphite Limited Basic (loss) per share (cents per share) Diluted (loss) per share (cents per share)	Half-Year
	2015 $ 2014 $
	908 136,566
	908 136,566
	(1,289,825) (770,781) (33,783) (22,072) (115,702) (66,033) (9,826) (2,918) (13,519) (5,771) (405,079) (764,220) (653,439) (570,392)
	(2,520,265) (2,065,621) - - (2,520,265) (2,065,621)
	(119,980) 21,734
	(2,640,245) (2,043,887)
	(1.15) (1.29) (1.15) (1.29)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

First Graphite Limited Consolidated Financial Report – December 2015

Page 6

Consolidated Statement of Financial Position

As at 31 December 2015

Note Current Assets Cash and cash equivalents Trade and other receivables Other current assets 4 Total Current Assets Non-Current Assets Exploration and evaluation assets 5 Property, plant and equipment Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Total Current Liabilities Total Liabilities Net Assets Equity Issued capital 6 Reserves Accumulated losses Total Equity	31 December 2015 $ 30 June 2015 $ 3,135,303 1,055,093 59,472 36,172 42,466 32,339
	3,237,241 1,123,604
	1,868,934 1,910,640 261,554 61,556
	2,130,488 1,972,196
	5,367,729 3,095,800
	678,076 484,782
	678,076 484,782
	678,076 484,782
	4,689,653 2,611,018
	65,057,796 60,743,995 3,448,157 3,163,058 (63,816,300) (61,296,035)
	4,689,653 2,611,018

The above consolidated statement of financial position should be read in conjunction with the accompanying notes

First Graphite Limited Consolidated Financial Report – December 2015

Page 7

Consolidated Statement of Changes in Equity For Half-Year Ended 31 December 2015

As at 1 July 2015 Profit/(loss) for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Share placement during the period Share placement to employee Share issue costs Issue of options Balance at 31 December 2015 As at 1 July 2014 Profit/(loss) for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Share placement during the period Share placement to employee Share issue costs Issue of options Balance at 31 December 2014	Issued capital Share based payments reserve Translation reserve Accumulated losses Total equity 60,743,995 2,848,053 315,005 (61,296,035) 2,611,018 - - - (2,520,265) (2,520,265) - - (119,980) - (119,980)
	- (119,980) (2,520,265) (2,640,245) 4,578,791 - - - 4,578,791 - - - - - (264,990) - - - (264,990) - 405,079 - - 405,079
	65,057,796 3,253,132 195,025 (63,816,300) 4,689,653
	Issued capital Share based payments reserve Translation reserve Accumulated losses Total equity 58,281,263 2,094,333 112,530 (57,893,088) 2,595,038 - - - (2,065,621) (2,065,621) - - 21,734 - 21,734
	- - 21,734 (2,065,621) (2,043,887) 1,598,000 - - - 1,598,000 10,500 - - - 10,500 (75,768) - - - (75,768) - 753,720 - - 753,720
	59,813,995 2,848,053 134,264 (59,958,709) 2,837,603

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes

First Graphite Limited Consolidated Financial Report – December 2015

Page 8

Consolidated Statement of Cash Flows

For the Half-Year Ended 31 December 2015

Cash flows from operating activities Payments to suppliers and employees Payments for exploration and evaluation Interest received Net cash outflows from operating activities Cash flows from investing activities Payments for property, plant and equipment Net cash (outflows)/inflows from investing activities Cash flow from financing activities Proceeds from placement of shares Payment for share issue costs Net cash inflows from financing activities Net increase/(decrease) in cash and cash equivalents Exchange rate adjustments Cash and cash equivalents at beginning of the period Cash at the end of the period	Half-Year
	2015 $ 2014 $
	(802,007) (507,354) (1,211,883) (639,368) 5,285 11,108
	(2,008,605) (1,135,614)
	(220,610) (5,433)
	(220,610) (5,433)
	4,578,791 1,148,000 (264,990) (75,768)
	4,313,801 1,072,232
	2,084,586 (68,815) (4,376) 82,795
	1,055,093 1,230,499
	3,135,303 1,244,479

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes

First Graphite Limited Consolidated Financial Report – December 2015

Page 9

Notes to the Consolidated Financial Statements

1. Basis of Preparation of half-year financial statements

This consolidated interim financial report for the half-year reporting period ended 31December 2015 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Financial Statements of First Graphite Limited as at 30 June 2015 and any public announcements made by First Graphite Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Accounting policies

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except as set out below:

• (a) New and amended standards adopted by the group

A number of new or amended standards became applicable for the current reporting period, however, the group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards. There will be some changes to the disclosures in the 30 June 2015 annual report as a consequence of these amendments.

• (b) Impact of standards issued but not yet applied by the entity

The consolidated entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) which are relevant to its operations and effective for the current reporting period. The adoption of all the new and revised Standards and Interpretations has not resulted in any changes to the consolidated entity’s accounting policies and has had no effect on the amounts reported for the current or prior periods.

First Graphite Limited Consolidated Financial Report – December 2015

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Notes to the Consolidated Financial Statements

2. Segment information

(a) Identification of reportable segments

The Group has identified its operating segments based on the internal reports which are reviewed and used by the Board (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

The existing operating segments are identified by management based on the manner in which the Group’s operations were carried out during the financial year. Discrete financial information about each of these operating businesses is reported to the Board on a monthly basis.

The reportable segments are based on aggregated operating segments determined by the similarity of the asset base and revenue or income streams, as these are the sources of the Group’s major risks and have the most effect on the rates of return. The Group’s segment information for the current reporting period is reported based on the following segments:

Mining and exploration activities

The Board has determined the Company has one reportable segment, being mineral exploration and development in Sri Lanka. As the Company is focused on mineral exploration, the Board monitors the Company based on actual verses budgeted exploration expenditure incurred by area of interest.

Corporate services

This segment reflects the overheads associated with maintaining the ASX listed MRL corporate structure, identification of new assets and general management of an ASX listed entity.

Business Segment	Exploration	Exploration	Corporate Service	Corporate Service	Total	Total
	31	31	31	31	31	31
	December	December	December	December	December	December
	2015	2014	2015	2014	2015	2014
	A$	A$	A$	A$	A$	A$
Interest revenue	1,670	5,169	3,615	5,939	5,285	11,108
Foreign exchange gain/(loss)	1,545	(1)	(5,922)	81,483	(4,377)	81,482
Operating loss	(756,943)	(400,896)	(1,763,322)	(1,664,725)	(2,520,265)	(2,065,621)
Depreciation expense	(12,157)	(4,409)	(1,362)	(1,362)	(13,519)	(5,771)
Business Segment	Exploration		Corporate Service		Total
	31	30 June	31	30 June	31	30 June
	December	2015	December	2015	December	2015
	2015		2015		2015
	A$	A$	A$	A$	A$	A$
Segment assets	247,061	1,541,325	5,120,668	1,554,475	5,367,729	3,095,800
Segment liabilities	48,300	21,852	629,676	462,931	678,076	484,783

First Graphite Limited Consolidated Financial Report – December 2015

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Notes to the Consolidated Financial Statements

3. Revenue and other income

Interest revenue Realisation of foreign currency reserve upon deconsolidation of Kumai Group Foreign exchange (loss)/gain 4. Other Current Assets Current Security deposits Prepayments 5. Exploration and evaluation expenditure Opening balance Foreign currency translation adjustment Share based payment for acquisition 31 October 20141 Total exploration and evaluations expenditure		31	31 December 2015 $ 31 December 2014 $ 5,285 11,108 - 43,975 (4,377) 81,482
			908 136,565
		1,868,934 1,910,640

1 In accordance with the second stage of the agreement with The Supreme Group of Sri Lanka for the acquisition of graphite exploration licences, 5,000,000 vendor shares in FGR were issued to the Supreme Group at $0.09 per share.

First Graphite Limited Consolidated Financial Report – December 2015

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Notes to the Consolidated Financial Statements

6. Issued Capital

6. Issued Capital
Issued and Paid-Up Capital Opening Ordinary shares, fully paid Movements in ordinary share capital Issues to investors September to November 2015 Placement to senior employee Placement to investors September 2014 Shares issued to Supreme Global Holdings (Pvt) Ltd2 Less issue costs At end of the period	31 December 2015 Number of Shares 31 December 2014 Number of Shares 31 December 2015 $ 31 December 2014 $ 196,716,587 149,191,587 60,743,995 58,281,263 83,250,714 4,578,791 150,000 10,500 16,400,000 1,148,000 5,000,000 450,000 (264,990) (75,768)
	279,967,301 170,741,587 65,057,796 59,813,995

2 This relates to the acquisition of exploration licences in Sri Lanka. Refer to Note 5 for further details. As the fair value of assets acquired was unable to be reliably measured, the fair value of equity issued has been used as a reasonable estimate of fair value.

First Graphite Limited Consolidated Financial Report – December 2015

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Notes to the Consolidated Financial Statements

7. Dividends

No dividends have been paid or declared during the period.

8. Subsequent events after Reporting Date

There have been no subsequent events after the reporting date.

9. Capital Commitments

There have been no changes to capital commitments since 30 June 2015.

10. Contingent Liabilities and Contingent Assets

On 9 April 2013 the Company announced it had reached agreed terms with The Supreme Group of Sri Lanka for the acquisition of 45km[2] of graphite exploration licences representing 45 Grids. The remaining terms of the acquisition are;

1. Payment of US$500,000 at the time of commencement of commercial mining activities.

The Directors do not believe there are any grounds for any other claims of a material nature as at the date of this report and as at the reporting date.

11. Fair Value measurement of financial instruments

Due to the short-term nature, the carrying value of the current receivables and current payables is assumed to approximate their fair value.

First Graphite Limited Consolidated Financial Report – December 2015

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Notes to the Consolidated Financial Statements

12. Share based payments

An additional 16,000,000 unlisted options were granted to directors, with an exercise price of $0.10, in accordance with the Employee Share Options Plan and a corporate adviser with an exercise price of $0.10. The options expire on 21 May 2017.

The pricing of the options at the time of issue was calculated using the Black-Scholes option valuation method applying the following inputs.

Exercise price range	$0.10
List of options range	1.5 years
Underlying share price	$0.06
Expected share volatility	120%
Dividend yield	0%
Risk free interest rate	2.03%
Fair value of options	$0.0253

Historical volatility has been the basis for determining expected share price volatility as it assumes this is indicative of future tender, which may not eventuate. When applicable, market conditions have been built into the options pricing model to reflect the likelihood of those conditions being met. Historical data has been used to determine dividend yield and option life. The value of the consultants’ and directors’ option is based on the Black Scholes option pricing model.

The Group recognised total expenses of $405,079 (2014: $764,220) related to director, senior employee and consultant share based payment transactions in the period.

First Graphite Limited Consolidated Financial Report – December 2015

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Directors Declaration

In the Directors’ opinion:

• a) The financial statements and notes set out on pages 6 to 15 are in accordance with the Corporations Act 2001, including:

• a. Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and

• b. Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date, and

• b) There are reasonable grounds to believe First Graphite Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

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Craig McGuckin Managing Director

Nedlands, 11 March 2016

First Graphite Limited Consolidated Financial Report – December 2015

Page 16

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of First Graphite Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of First Graphite Limited, which comprises the consolidated statement of financial position as at 31 December 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of First Graphite Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of First Graphite Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees

First Graphite Limited Consolidated Financial Report – December 2015

Page 17

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of First Graphite Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001

BDO Audit (WA) Pty Ltd

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Phillip Murdoch

Director

Perth, 11 March 2016

First Graphite Limited Consolidated Financial Report – December 2015

Page 18

Additional Securities Information

(Note, this information does not form part of the audited financial statement)

a)	Substantial Shareholders
	Shareholder name	Number of shares		% Of issued Shares
	Twynam Agricultural Group Pty Ltd	18,000,000			6.43
	IPS Nominees Limited	16,849,000			6.02
b)	Distribution of Shareholdings – Fully Paid Ordinary Shares:
	Size of Holding	Number of Shareholders		Number of Share
	1 – 1,000		65		12,183
	1,001 – 5,000		45		148,061
	5,001 – 10,000		102		878,987
	10,001 – 100,000		520	23,917,997
	100,001 and over		327		255,010
			1,059	279,967,301
	Equity Security	Quoted			Unquoted
	Fully Paid ordinary shares	279,967,301			-
	Options	173,023,939		12,000,000
c)	Top 20 Security Holders – Fully Paid Ordinary Shares (FGR) at 8 March 2016
	Name of Holder		Number of Shares		%
	1 Twynam Agricultural Group Pty Ltd			18,000,000	6.43
	2 IPS Nominees Ltd			16,824,000	6.01
	3 Gregorach Pty Ltd			12,005,946	4.29
	4 Citicorp Nominees Pty Limited			10,145,691	3.62
	5 McGuckin Family			7,631,240	2.73
	6 Haydos Corporation Pty Ltd			7,000,000	2.50
	7 Emerpus Asia Ltd			6,250,000	2.23
	8 Hallidaf Management Limited			6,094,794	2.18
	9 Jitarning Nominees Pty Fund A/C>	Ltd <Watson Super		5,200,000	1.86
	10 Mr Jason Peterson & Mrs Lisa Peterson Peterson S/F A/C>			4,715,000	1.68
	11 Mr Ryan Jehan Rockwood			4,500,000	1.61
	12 Carrington Corporate Pty Ltd			4,000,000	1.43
	13 Grande Prosperity Resources Limited			3,980,907	1.42
	14 Winkara Pty Ltd			3,516,800	1.26
	15 Chin Yong Chong			3,367,234	1.20
	16 Benjamin Phillipe Grenier			3,000,000	1.07
	17 SDG Nominees Pty Ltd			2,900,000	1.04
	18 J P Morgan Nominees Australia Limited			2,529,811	0.90
	19 Ginga Pty Ltd			2,450,000	0.88
	20 Steven Dan Tuong			2,300,000	0.82
	Total Top 20 shareholders			126,411,423	45.15
	Other shareholders			153,555,878	54.85
	Total Issued Shares			279,967,301	100.00

At 8 March 2016, there were 169 shareholders holding less than a marketable parcel of 9,260 shares ($0.054 cents on this date) in the Company totalling 613,330 ordinary shares.

First Graphite Limited Consolidated Financial Report – December 2015

Page 19

Additional Securities Information

(Note, this information does not form part of the audited financial statement)

All granted licences are in good standing and comply with the reporting requirements of the exploration licence.

Licence Number	FGR Interest - %	Status	General Location
IML/C/HO/8416	100	Granted	Western
EL/225	100	Granted	Central
EL/226	100	Granted	Central
EL/228	100	Granted	Central
EL/243	100	Granted	Central
EL/318	100	Granted	Central
EL/321	100	Granted	Central
EL/227	100	Granted	South Central
EL/322	100	Granted	South Central
EL/231	100	Granted	South West
EL/244	100	Granted	South West
EL/262	100	Granted	Central
EL/325	100	Granted	Central
EL/326	100	Granted	Central

First Graphite Limited Consolidated Financial Report – December 2015

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