QUANTUM GRAPHITE LIMITED — Capital/Financing Update 2015

May 14, 2015

ASIA PACIFIC I EUROPE I NORTH AMERICA

==> picture [250 x 79] intentionally omitted <==

ASX ANNOUNCEMENT

ASX: VXL & VXLO

15 May 2015

Cleansing Notice – Share Placement

Placement cleansing notice under section 708A(5)(e) of the Corporations Act

Issuer: Valence Industries Limited (ASX Codes: VXL and VXLO) Release date: 15 May 2015

Valence Industries Limited ( Valence ) has issued 7,117,665 fully paid ordinary shares in the company at an issue price of $0.29 per share under a placement made to investors exempt from receiving a disclosure document ( Placement ).

Details of the Placement

Class of Securities: Ordinary shares ASX Code of the securities: VXL Date of the issue 12 May 2015 and 13 May 2015 Total number of shares issued: 7,117,665

Valence advises that:

1. The shares offered under the Placement were issued without disclosure to investors under Part 6D.2 Corporations Act 2001 (Cth) ( Corporations Act ).

2. This notice is given under section 708A(5)(e) of the Corporations Act.

3. As at the date of this notice, Valence has complied with the provisions of Chapter 2M Corporations Act as they apply to Valence and has complied with section 674 Corporations Act.

4. As at the date of this notice, there is no excluded information of the type referred to in sections 708A(7) and 708A(8) of the Corporations Act that has not already been disclosed to investors generally.

w w w . v a l e n c e i n d u s t r i e s . c o m 60 Hindmarsh Square I Adelaide I South Australia I 5000 I Australia p: +61 8 8215 6400 I e: info@valenceindustries.com ABN 41 008 101 979

2

==> picture [48 x 49] intentionally omitted <==

For further information, please contact: Jaroslaw (Jarek) Kopias CFO & Company Secretary Valence Industries info@valenceindustries.com +61 8 8418 8564

w w w . v a l e n c e i n d u s t r i e s . c o m