QUANTUM GRAPHITE LIMITED — Capital/Financing Update 2021

May 27, 2021

www.quantumgraphite.com

Corporate

• Capital raising: March 2021 capital raising of A\$2million at a share price of 6.5 cents representing an approximate 25% premium to the Company's last traded share price.
• Trading status: The suspension in the trading of the Company's shares will be lifted upon the release of drilling results in respect of the drilling program announced on 7 May 2021. The Company expects to mobilise drill rigs in the next 4-6 weeks.

Stage 2.

Corporate (cont'd)

• Uley 2 funding mandate: Now concluded with European lead arranger/placement agent. Proposed financing structure is a senior secured bond to be listed on the Luxembourg Stock Exchange regulated MTF market.
• European capital markets access: Mandate represents a significant achievement, offering expertise and experience and geographic coverage uniquely suited to the Company and its focus on the European markets.

• Mandate process: Chimaera Capital Markets retained as the Company's financial adviser to work with lead arranger. Bond terms will be announced once the detailed legal transaction structure is finalised and ratings process is completed. The Company will update the market as it progresses through the key milestones; (a) settling the transaction legal structure with all necessary foreign attorney opinions; (b) obtaining a credit rating; (c) preparation of all disclosure documentation; (d) listing of the bonds; and (e) the private placement of the bonds.

Uley 2 Project Recap

• DFS Expansion: Results from technical work demonstrate a robust project with significant upside. Uley 2 Stage 1 delivers operating costs of less than US\$350 dmt and an operating margin of more than US\$500 dmt (ex works) based on a basket price of US\$919. Commencement next quarter of DFS expansion works to significantly upgrade production capacity within existing plant footprint.
• Marketing: The Company continues its discussions with customers in Europe and north Asia. Delivery of samples to prospective customers has recommenced although COVID-19 restrictions continue to disrupt these activities. Improving vaccination rates in western Europe as well as Australia should result in reducing the pandemic impact on these activities.
• Sunlands Offtake: The Company and Sunlands expect to finalise their negotiations in relation to an offtake arrangement. As previously announced, the Company was expecting to receive Sunlands' response to its proposal by mid-May 2021. This response is due imminently and the Company is expected to announce within the next 2 weeks.

Sunlands Collaboration

• R&D program: The Company continues to advance its testwork program on the production of the appropriate graphite flake specification required to produce the thermal energy storage media needed for Sunlands Co. TES cell technology.
• Grant application: Application under the Federal Government's Modern Manufacturing Initiative to assist accelerate both the R&D program and settle the manufacturing process pathway for the production of the finished product, ie. the actual thermal energy storage media components to be installed within TES cells.

Technology Focus Matched to All Markets

Tech strategy: Company uniquely positioned to participate in both traditional markets and new and emerging markets focused on developing technologies.

Thermal products: This represents the Company's traditional markets, principally refractory and now also includes the rapidly growing market for expandables.

EV: Recent IEA report drives home massive demand for graphite to meet EV market over the next 20 years. Growth estimate at 25x current natural flake production.

TES: IRENA forecasts growth in installed energy storage to exceed 600GWhs by 2030 from current installed base of less than 20GWhs.

Blanket Coverage: Quantum is the only natural flake graphite company that has direct exposure to all these markets and an exclusive relationship with one of the leading TES technologies by virtue of its Sunlands Co. partnership.

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Riveting Reading

A number of reports published by eminent global bodies have alerted the world's governments to the pressing need to revise policy settings and commence strategic long range planning in critical minerals and renewables. Decarbonising the planet will have major challenges not the least of which will be ensuring the world's critical mineral supply is delivered within challenging timeframes. The prospect of a rapid increase in demand for critical minerals – well above anything seen previously in most cases – raises

• CSIRO: Critical Energy Minerals Roadmap, 21 May 2021
• IEA: World Energy Outlook Special Report, The Role of Critical Minerals in Clean Energy, May 2021
• IRENA: Innovation Outlook, Thermal Energy Storage, December 2020

"Today's mineral supply and investment plans fall short of what is needed to transform the energy sector, raising the risk of delayed or more expensive energy transitions

huge questions about the availability and reliability of supply. In the past, strains on the supply-demand balance for different minerals have prompted additional investment and measures to moderate or substitute demand. But these responses have come with time lags and have been accompanied by considerable price volatility. Similar episodes in the future could delay clean energy transitions and push up their cost. Given the urgency of reducing emissions, this is a possibility that the world can ill afford."

Executive Summary, IEA: World Energy Outlook Special Report, The Role of Critical Minerals in Clean Energy, May 2021

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Resolution 1 - Ratification of prior issue of 22,930,787 Placement Shares (issued under ASX Listing Rule 7.1)

To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

That, for the purposes of ASX Listing Rule 7.4 and for all other purposes, Shareholders ratify the issue of 22,930,787 Shares at an issue price of \$0.065 per Share issued in accordance with ASX Listing Rule 7.1 on 24 March 2021, to institutional, professional and/or sophisticated investors and on the terms and conditions set out in the Explanatory Memorandum. Resolution Business For Against Abstain Open Placement Shares 107,226,510 180,836 3,270,880 30,741

See Notice of Meeting and accompanying Explanatory Memorandum for applicable Voting Exclusion Statement.

1	Ratification of prior issue of 22,930,787

Resolution 2 – Issue of Placement Shares to related party (Luala Pty Ltd) 2,076,923 Shares to Luala Pty Ltd at \$0.065 per Share on the terms and conditions set out in the Explanatory

To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

That, for the purposes of ASX Listing Rule 10.11 and for all other purposes, Shareholders approve the issue of Memorandum. Resolution Business For Against Abstain Open 2 Issue of Placement Shares to Luala Pty Ltd 106,004,463 233,323 3,987,365 2,289,037

See Notice of Meeting and accompanying Explanatory Memorandum for applicable Voting Exclusion Statement.

Resolution	Business	$\sim$	Against		Dper
_	Issue of Placement Shares to Luala Pty Ltd	106,004,463		,365 3,987	2,289,037

Resolution 3 – Issue of shares to related party (Pershing Nominees Pty Ltd)

	To consider and, if thought fit, to pass the following resolution as an ordinary resolution:
	That, for the purposes of ASX Listing Rule 10.11 and for all other purposes, Shareholders approve the issue of 5,761,527 Shares to Pershing Nominees Pty Ltd at \$0.065 per Share on the terms and conditions set out in the Explanatory Memorandum.
	See Notice of Meeting and accompanying Explanatory Memorandum for applicable Voting Exclusion Statement.
Resolution	Business	For	Against	Abstain	Open

Resolution 4 - Approval of Proposed Issue of Shares to Markets Nominees Pty Ltd for the provision of capital market services

To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

That, for the purposes of ASX Listing Rule 10.11 and for all other purposes, Shareholders approve the issue of up to 43,080,000 Shares to Markets Nominees Pty Ltd on the terms and conditions set out in the Explanatory Memorandum. Resolution Business For Against Abstain Open 4 Issue of Shares to Markets Nominees Pty Ltd 68,644,250 254,354 52,784,812 2,289,037

See Notice of Meeting and accompanying Explanatory Memorandum for applicable Voting Exclusion Statement.

Resolution	Business	Against	Abstain	Jper
	Issue of Shares to Markets Nominees Pty Ltd 68,644,250	254,354	52784812	2,289,037

DISCLAIMER

This presentation includes certain statements that may be deemed forward-looking statements. All statements ln these presentation materials (other than statements of historical facts) which address future production, reserve potential, exploration activities and events or developments that the Company expects, are forward-looking statements. Such forward-looking statements may include, without limitation: (i) estimates of future graphite prices, supply, demand and/or production; (ii) estimates of future cash costs; (iii) estimates of future capital expenditures; (iv) estimates regarding timing of future development, construction, production or closure activities; (v) statements regarding future exploration results; (vi) statements regarding cost structure, project economics, or competitive position, and; (vii) statements comparing the Company's properties to other mines, projects or metals.

Although the Company believes that such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance, that the Company expressly disclaims any responsibility for revising or expanding the forward looking statements to reflect actual results or developments, and that actual results or developments may differ materially from those projected, in the forward looking statements. summary information and does not take into account the circumstances of any Individual investor. Prospective investors in the Company are encouraged to obtain separate and independent advice with regard to any investment Photographs, maps, charts, diagrams and schematic drawings appearing in this presentation are owned by and have been prepared by or commissioned by the Company, unless otherwise stated. Maps and diagrams used in the

This presentation does not constitute a recommendation regarding the securities of the Company, and should not be construed as legal or financial advice. It has been prepared for information purposes only and contains general in the Company. By accepting the presentation materials, the recipient agrees to keep permanently confidential the information contained herein.

The Company confirms that it is not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning the estimates in this announcement continue to apply and have not materially changed.

presentation are illustrative only and may not be drawn to scale. Unless otherwise stated, all data contained in charts, graphs and tables is based on information available at the date of this presentation. By accepting this presentation, the Recipient agrees to be bound by the foregoing statements.