QUANTUM GRAPHITE LIMITED — Capital/Financing Update 2023

Feb 21, 2023

QUANTUM GRAPHITE

MARKET RELEASE For Immediate Release 22 February 2023

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The Company is please to announce confirmation from the South Australian Department for Energy and Mining that Exploration Licence 6224 has been renewed until 12 October 2027.

The Company’s Uley 2 Project is one of the

high-grade coarse-flake mineralised envelopes within EL6224 which represents the broader Mikkira graphite resource covering much of the southern tip of South Australia’s Eyre Peninsula. Future exploration work will continue to target the other 4 major mineralised zones denoted as Primary EM Targets (see fig.1).

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560000 565000
ML 5561
ML 5562
RL 66
RL 67
ULEY
EL 6224
HOMESTEAD
SALT LAKE
KACEY
LEGEND
EM Target
Primary EM Target
Secondary EM Target
Exploration Lease
FISHERY Retention Lease
Mining Lease
Conservation and National Parks
Lincoln (CP)
N Lincoln (NP)
Sleaford Mere (CP)
0 1,250 2,500 5,000 Railway line
Meters GDA94; MGA53 Road
560000 565000
Figure 1: Title Boundaries
6150000 6150000
6145000 6145000
6140000 6140000
6135000 6135000
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The Company has previously announced the bond financing structure for the financing of Uley 2 by way of the issue of corporate bonds on the Luxembourg Stock Exchange (https://www.luxse. com/about-us). The Company has finalised the legal structure for the issuance and, importantly, the key environmental targets that ensure that the Company’s issuance will qualify as Sustainably Linked Bonds (SLBs). The environmental targets relate to the sustainable supply and management of infrastructure, including water and power and will be incorporated in the SLB issuance documentation.

The Company is also pleased to announce that it has executed a non-binding insurance proposal with a major global insurer. This will form the basis of negotiations to conclude the final terms of the package of insurance policies for Uley 2. This package will include construction (and commissioning), liability and trade credit. Further announcements will be made following formal presentations to be made by the Company in Sydney and London during the week beginning 13 March 2023.

FOR FURTHER INFORMATION CONTACT:

Company Secretary Quantum Graphite Limited E: info@qgraphite.com

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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.

QSP is our joint venture with Sunlands Co. for the manufacture of coarse natural flake based thermal storage media. The flake will be sourced exclusively from the QGL’s Uley mine. The manufactured media will be fitted within Sunlands Co.’s long duration energy storage cells. https://www.sunlandsco.com/