GREENWING RESOURCES LTD — Interim / Quarterly Report 2020

Oct 15, 2019

ASX Announcement 16 October 2019

Bass continues strong progression at Graphmada, achieving record large flake graphite volume, record wet tonne production and a record quarter for concentrates sold.

Bass Metals Limited (ASX: “BSM”) (“Bass” or the “Company”) is pleased to provide the following production and sales update for the September quarter, from its 100% owned Graphmada Mine Complex located in eastern Madagascar.

HIGHLIGHTS

• 1,128 wet tonnes produced for the September quarter, a new quarterly record, inclusive of 8 days scheduled maintenance shutdown over the quarter. These results exceed the record results reported for the June quarter.

• 924 dry tonnes produced for the September quarter, with drying operations continuing to operate above the designed feed rate and expected efficiencies.

• Critically, large flake production increased to 42% of production for the September quarter, materially exceeding the 32% large flake production achieved for the June quarter.

• For the month of September 2019, Bass received record monthly sales orders of 1,233mt leaving around 1,178mt of forward sales committed at the end of the quarter.

• Subsequent to quarter end, Bass received orders of 251mt with further imminent sales expected. Projected shipments for the December quarter 2019 are in the range of 1,200 – 1,300mt. Bass is closely approaching having all current inventory under contract.

PRODUCTION

Bass continued to make substantial progress towards its goals at Graphmada over the September quarter, delivering another record for wet tonnes produced and substantially improving large flake production to over 40% of total output for the quarter.

The Graphmada Mining Complex achieved record mining metrics on the back of capital investments from earlier in the year. 63,321 ore tonnes were mined in the September quarter, substantially increasing ore stockpiles for future processing. The increase in ore mined equating to an approximate 200% increase on the 21,453 ore tonnes mined in the June quarter.

Total material movement also increased to 187,768 tonnes at a strip ratio of 3:1. This improvement in strip ratio down from an already low ratio of 5:1 for the June quarter will again positively lower operating costs.

During the quarter 34,699 tonnes of ore were processed at an average Head Grade of 4.6% Fixed Carbon (FC), resulting in a 2019 record of 1,128 wet tonnes produced at an average final concentrate grade of 92% FC.

Large flake production increased materially to 42%, equating to a 30% increase on the previous quarter’s output, with periods over 60% achieved. These large flake concentrates ranged up to 95.1% FC.

As previously reported, during the September quarter a new daily record was achieved on August 29 of 29 wet tonnes at 61% large flake at 92.3% FC. A record result for the combination of tonnes, large flake and FC produced in 24 hours.

In addition, a new daily record for Head Grade of 7.2% FC was recorded during the quarter.

A small period of production was interrupted by the testing of a new reagent in the flotation circuit in September. Results exceeded expectations, with higher recoveries achieved. At a third of the cost of the incumbent reagent, the newly tested reagent offers a significant reduction in processing costs.

SALES

Bass’ total shipments of 312mt for the quarter were lower than expected owing to timing of orders received. However, the Company confirmed sales orders of 1,178mt, generating total shipments and forward sales of 1,490mt for the September quarter, well above expectations and an outstanding outcome.

Subsequent to quarter’s end, Bass sold a further 251mt, leaving the Company extremely well positioned to achieve shipments in excess of 1,200mt for the December 2019 quarter, with a reasonable likelihood that this number could be materially higher.

Recently, as a result of changes in global supply dynamics, Bass was able to complete its first and very substantial sale of its premium graphite into China and expects demand for its product to continue to grow in this region.

As previously announced, the Company has already qualified its concentrates for sale into the key markets of Europe, India and the USA. Bass has continuously sought to broaden its customer base with a view to its plans for large scale mining and is pleased with its progress to date. The Company has yet to have rejected a single tonne of concentrate or to be penalized for concentrate quality post its September quarter 2018 commissioning of Graphmada.

Bass also continues to receive significant interest in its potential to produce expandable and purified graphite products, highlighted by the recently announced Joint Venture discussions with Urbix Resources Ltd (Urbix), to which Bass is devoting considerable resources to materialize this substantial opportunity.

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TIM MCMANUS CEO:

“The team at Graphmada has proven that large flake production at premium final concentrate grades is sustainable. A strong culture of continuous improvement in growing production volumes and concentrate quality while lowering operating costs is driving significant strategic interest in Bass.

The recently announced discussions with Urbix is a prime example. The Company also continues to field interest from parties for participation in the expansion of its operations and downstream production ambitions.

Bass continues to be able to offer opportunities to end users that other companies at present are not able to; existing production, established and

growing sales channels, a recognized and accepted product, high and increasing volumes of large flake production, and an ever-growing expertise in mining, processing and the selling of graphite. We view our retained intellectual property regarding the processing of graphite and ever increasing production expertise as considerable assets of the Company.

With sustainable production and growing strategic interest, the Company is setting a substantial foundation for its the next critical stage of growth for its highly valued shareholders. Bass’ long-stated aim to shift to large scale mining operations with downstream integration underpins Bass’ strategic drive towards its ultimate goal of becoming a material participant in global graphite markets, within traditional sectors and high growth graphite technology sectors such as fire retardants, concrete additives and energy applications."

For more information, please contact:

Tim McManus David Round Chief Executive Officer CFO/Head of Sales Phone: (07) 3203 5894 Phone: (07) 3203 5894 Email: admin@bassmetals.com.au Email: admin@bassmetals.com.au www.bassmetals.com.au

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.