QUANTUM GRAPHITE LIMITED — Capital/Financing Update 2022

Jul 7, 2022

QUANTUM GRAPHITE

MARKET RELEASE For Immediate Release 8 July 2022

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----- Start of picture text ----- QUANTUM SUNLANDSPARTNERSHIP----- End of picture text -----

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Further to the Company’s announcements regarding the long duration energy storage pilot project, the Company provides the following further information by way of update.

A critical step in the pilot plant project is the ultra-high temperature test work to be undertaken by INEMET (https://tu-freiberg.de/en/fakult5/inemet) in respect of various specifications of Uley 2 coarse flake graphite. This flake is the main raw material required by the Quantum Sunlands Partnership (QSP) to manufacture the thermal energy storage media to be fitted within the Sunlands Co. energy storage cells.

The Uley 2 flake samples have been received by INEMET and are now being prepared for commencement of the initial test work next week. As announced, QSP and its project engineers completed the main test work methodologies in May 2022.

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QGL is the owner of the Uley flake graphite mineral deposits located south-west of Port Lincoln, South Australia. The company’s Uley 2 project represents the next stage of development of the century old Uley mine, one of the largest high-grade natural flake deposits in the world. For further information, qgraphite.com.

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These methodologies have now been further refined with INEMET and will include thermal treatment cycles of Uley 2 flake at temperatures reaching 2,200°C. The results of this test work will deliver valuable data to QSP for the purpose of optimising the energy storage media.

One of the significant benefits of the results of this test work is the potential application of this data to the advanced processing of Uley 2 flake to increase its purity and thereby significantly increase the prices the Company’s products can achieve in the market.

QSP estimates that initial results should be available by mid-August 2022.

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FOR FURTHER INFORMATION CONTACT:

Company Secretary Quantum Graphite Limited T: +61 3 8614 8414 E: info@qgraphite.com

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QSP is a joint venture between the Company and The Sunlands Co. Ltd for the manufacture of coarse natural flake based thermal storage media. The coarse flake will be exclusively sourced from the Company’s Uley mine. The finished media will be fitted within Sunlands Co.’s long duration energy storage cells.

https://www.sunlandsco.com/

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The Institute for Non-Ferrous Metallurgy and High Purity Materials focuses on sustainable and innovative processes that rethink existing production processes and the handling of supposed waste products in the spirit of the circular economy and zero waste thinking. INEMET’s dedicated team work toward a greener future and the revolutionizing of non-ferrous metallurgy. It develops existing processes within pyrometallurgy, hydrometallurgy and the semiconductor industry in working groups and in a variety of projects.

https://tu-freiberg.de/en/fakult5/inemet

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