QUANTUM GRAPHITE LIMITED — Capital/Financing Update 2014

Jan 2, 2014

==> picture [207 x 72] intentionally omitted <==

VALENCE INDUSTRIES LIMITED

60 Hindmarsh Square, Ground Floor Adelaide South Australia 5000 AUSTRALIA

24 December 2013

Mr Nathan Bartrop Senior Adviser Listings Compliance ASX Compliance Pty Ltd 20 Bridge Street SYDNEY NSW 2000

ASX ANNOUNCEMENT (ASX:VXL)

UPDATED STATEMENT OF COMMITMENTS

Set out below is the updated statement of commitments for Valence Industries Ltd (Company), based on the actual amount raised under the Company’s replacement prospectus dated 15 November 2013, being $6,734,735.

	Actual Funds Raised	Actual Funds Raised
Application of Funds	Total $	Year 1 $	Year 2 $
Tenements	$50,000	$25,000	$25,000
Phase 1	$2,800,000	$2,800,000	-
processing
Engineering	$800,000	$700,000	$100,000
& Metallurgy
Mining	$400,000	$400,000	-
Related
Costs of the	$838,000	$838,000	-
Offers and
Listing
Working	$1,899,735	$950,000	$896,735
capital
Total	$6,734,735	$5,713,000	$1,021,735

Yours sincerely,

==> picture [72 x 48] intentionally omitted <==

Jaroslaw (Jarek) Kopias Company Secretary Valence Industries Ltd

www.valenceindustries.com

ASIA PACIFIC I NORTH AMERICA I EUROPE

ABN 41 008 101 979