QUANTUM GRAPHITE LIMITED — Capital/Financing Update 2013

Dec 3, 2013

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ASX Announcement 4 December 2013

Valence Industries Ltd (Strategic Graphite Ltd) Offer Extension

Strategic Energy Resources Limited (ASX: SER) as the major shareholder with 21,788,908 shares in Valence Industries Limited has been advised that the current replacement prospectus has been delayed by a week due to postal delays with the mailing house. As a result, and at the request of shareholders, Valence Industries Ltd has decided to extend the closing date for the rights issue and placement offer from the 5th of December 2013 to the 12th of December 2013.

In addition to the SER shareholding in Valence Industries, SER also has a 1.5% overriding sales royalty.

The non-renounceable rights issue and placement at an issue price of 20 cents per share has been underwritten to the minimum subscription amount of $6,500,000.

See following release from Valence Industries Limited

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Further Information:

Mark Muzzin Managing Director

ACN: 051 212 429 Suite 905, 530 Little Collins Street Melbourne VIC 3000 Australia, 3000 Telephone: (03) 9909 7078 Facsimile: (03) 9909 7070 www.strategicenergy.com.au

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VALENCE INDUSTRIES LIMITED 4 DECEMBER 2013 ASX:VXL

A N N O U N C E M E N T V A L E N C E I N D U S T R I E S OFFER EXTENDED DUE TO POSTAL DELAYS OFFER CLOSES THURSDAY 12 DECEMBER 2013

Valence Industries Limited (formerly Strategic Graphite Limited) has been advised by a number of shareholders that the delivery of the company’s current replacement prospectus (Prospectus) was delayed. This has been an issue for shareholders in Western Australia and regional areas in particular where postal delays with the mailing house have been apparent. As a result, and at the request of shareholders, the company has decided to extend the closing date for the rights issue and placement offer (Offer) by one week.

The Offer to shareholders and the public, which was due to close on Thursday 5 December 2013, will now Close on Thursday 12 December 2013 .

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|---|---|---|---|---|---|---|---|
|SHAREHOLDERS|PUBLIC|
|The Offer is open to existing shareholders.|The Offer is open to the public.|
|Please remember that applications can be|The public can make an application using the|
|made by Shareholders by completing the|Shortfall Form at the back of the Prospectus. The|
|personalised entitlement form. Shareholders|Shortfall Application form with the Prospectus can be|
|can apply to take up their rights issue and|downloaded by going to www.valenceindustries.com)|
|can apply for additional shares.|or by phoning us on 08 8418 8580.|
|Payment can be made using|BPay|,|cheque|Payment can be made via|cheque|or|electronic|
|or|electronic funds transfer|(EFT).|funds transfer|(EFT).|
|To arrange EFT payment or a replacement|To arrange EFT payment or to get a copy of the|
|Application Form please contact the|Shortfall Application form please contact the|
|Company on 08 8418 8580.|Company on 08 8418 8580.|

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A copy of the Prospectus can be downloaded from the Company’s website at www.valenceindustries.com.

The revised Offer timetable due to these Postal Delays and the extensions is as follows:

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|---|---|---|
|New Timetable|Previous timetable|
|Original Prospectus lodged with ASIC|Unchanged|Thursday 7 November 2013|
|Record Date|Unchanged|Thursday 7 November 2013|
|Replacement Prospectus lodged with ASIC|Unchanged|Friday 15 November 2013|
|Despatch of Prospectus to Eligible Shareholders|Unchanged|Tuesday 19 November 2013|
|Opening Date|Unchanged|Tuesday 19 November 2013|
|Annual General Meeting|Unchanged|Tuesday 19 November 2013|
|Share Consolidation effective|Unchanged|Tuesday 19 November 2013|
|Closing Date|Thursday 12 December 2013|Thursday 5 December 2013|
|New Securities and Director Securities issued and allotted|Tuesday 24 December 2013|Tuesday 17 December 2013|
|Despatch of transaction confirmation statements|Friday 3 January 2014|Thursday 19 December 2013|
|Listing of Shares on ASX|Monday 6 January 2014|Friday 20 December 2013|

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Preparation for the recommencement of processing of graphite at the company’s Uley mine is progressing to plan. The company expects to commence production of graphite in Q1 2014 and pursue the delivery of its advanced flake graphite manufacturing program and sales.

* Valence Industries Limited is named after the four valence bonds that bind carbon atoms and our name reflects the importance of our bonds with shareholders, community, personnel and customers.

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