GREENWING RESOURCES LTD — Capital/Financing Update 2020

Nov 25, 2020

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ASX Announcement 26 November 2020

CLEAN, LOW COST ENERGY TO ELECTRIFY GRAPHMADA GRAPHITE MINE

Bass Metals Limited (ASX:BSM)(the Company or Bass ) is pleased to provide shareholders with an update with regard to the key governing parameters of the Graphmada Mining Complex (the Project ) and the Company’s plans to expand operations, to cater to both the advanced materials market and traditional markets for its commercially proven graphite concentrates.

HIGHLIGHTS

• The Government of Madagascar’s is progressing a major electrification project between the capital Antananarivo and the port city of Tamatave, electrifying areas along National Road 2, immediately adjacent to the Graphmada Mining Complex.

• Upon completion of the electrification project, valued at EUR 203 million, Bass plans to access mains power via the construction of a 20-kV power line from the nearest substation to deliver cheap and clean baseload power to service an expanded Bass’ operation with a materially reduced operating costs.

• Graphite prices have materially improved and Benchmark Minerals are now predicting that the graphite market will fall into a supply deficit from 2023.

ELECTRIFICATION PROJECT

The Power Transmission Network Reinforcement and Interconnection Project in Madagascar (PRIRTEM) is aimed at interconnecting the country's three major power grids (Antananarivo, Toamasina, Fianarantsoa), to strengthen and link the two interconnected networks of Antananarivo and Toamasina, the country’s main export port and the location of Bass’ logistics center. The Project will

BASS METALS LTD. (ASX: BSM) ABN: 31 109 933 995 Phone: +61 (0) 7 3063 3233 Website: www.bassmetals.com.au

Post: PO Box 15048 Brisbane Qld 4000

electrify localities and rural areas along National Road 2, which the Company’s Graphmada Graphite Mining Complex sits immediately adjacent to.

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Figure 1: Electrification along RN2 with hydro power supply.

The Project aims to build a 220-kV power line between Antananarivo and Toamasina (267 km) with a 120 MW capacity, electrifying the rural areas along the high-voltage line corridor. Estimated at EUR 203 million, the Project is cofinanced by the African Development Bank Group, European Investment Bank, Import and Export Bank of the Republic of Korea, and the Government of Madagascar, and will be implemented over 48 months, with the main works expected to be completed in 2024.

The power line will interconnect Antananarivo and Tamatave to facilitate energy flow between the two networks and consequently ensure reliable power supply. Two hydro projects are currently under development; ‘Sahofika’ and ‘Volobe’ which are planned for completion in 2024 and will be linked with the Project, ensuring a clean, low cost source of energy. By upgrading its hydropower, Madagascar will also reduce its dependence on fossil fuels, realizing a significant positive impact on the economy.

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BENEFITS TO BASS

Power was the largest C1 production cost in Stage 1, contributing 47% of operating costs in 2019, equating to $0.30/kWh. Access to grid power from 2024 could halve power costs to approximately $0.15/kWh, effectively reducing C1 operating costs by 30%.

The opportunity to utilize grid power allows the Company to consider Dredging or Hydraulic Mining to potentially realize further cost savings for the Project.

The delivery of clean power to the Project will provide the added benefit of significantly improving the quality of life in the local rural community surrounding Graphmada.

TIM MCMANUS CEO

“This is a paradigm shifting development for Bass and its stakeholders, with the introduction of clean energy via hydro-electrification having the potential to significantly reduce operating costs for Stage 2. This has a material impact on the economics of the Project and confirms Stage 2 operating costs will be in the lowest quartile of graphite production globally.

The Company will incorporate this latest development into its expansion studies and will align its strategic goal of Stage 2 large scale mining and processing operations with this development.

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Figure 2: Stage 1 production successfully achieved at Graphmada.

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In addition, Bass is encouraged by the recent improvement in concentrate prices and a forecast supply deficit from 2023. Bass continues to field significant interest for concentrates produced from Graphmada, which has produced concentrates without penalty or rejection across all key markets.

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Figure 3: The near-term supply deficit.

Bass also continues its comprehensive drilling program at Graphmada, with a view to expanding its large flake graphite resources, and in parallel continues to progress its collaboration with advanced material specialists and technology providers.”

For more information, please contact:

Tim McManus Peter Wright Chief Executive Officer Executive Director Phone: (07) 3063 3233 Email: InvestorRelations@bassmetals.com.au www.bassmetals.com.au

This announcement has been approved by the Company’s Disclosure Committee for release.

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Disclaimer

This document has been prepared by Bass Metals Limited (the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this document.

This document is provided on the basis that neither the Company nor its officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the document and nothing contained in the document is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law.

Forward Looking Statements

This announcement contains certain ‘forward-looking statements’ within the meaning of the securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as ‘may,’ ‘should,’ ‘expect,’ ‘anticipate,’ ‘estimate,’ ‘scheduled’ or ‘continue’ or the negative version of them or comparable terminology.

Any forecasts or other forward-looking statements contained in this announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material.

Bass Metals does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements. The information in this document does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this document constitutes investment, legal, tax or other advice.

Important information

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal. The securities referred to in this document have not been and will not be registered under the United States Securities Act of 1933 (the ‘US Securities Act’), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the US Securities Act or an exemption from the registration requirements of the US Securities Act is available.

This document may not be distributed or released in the United States.

Competent Person Statement

The information in this document that relates to Exploration Results, Exploration Targets and Mineral Resources is based on information compiled by Tim McManus, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy and a full-time employee of the Company.

Tim McManus has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Tim McManus consents to the inclusion of the information in this document in the form and context in which it appears.

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