QUANTUM GRAPHITE LIMITED — Capital/Financing Update 2024

Apr 1, 2024

MEDIA RELEASE For Immediate Release 02 April 2024

Uley 2 and Uley 3 Resource Expansion Program Completion of Uley Airborne Electromagnetic Survey

The Company is pleased to announce the completion of the helicopter-borne geophysical survey over all its Uley mineral tenements in the southern Eyre Peninsula. Completion of the survey marks the final step in the planning of the Uley 2 and Uley 3 Resource Extension Program (Extension Program) and provides the essential data necessary for the Company's upcoming 100 reverse circulation drill hole program.

The scope of the Extension Program was outlined in the 2024 Interim Financial Statement Directors' Report (see https://bit.ly/3vEh3R9) which included details of the planned airborne survey over the whole of EL 6224 as well as RLs 66 and 67 and MLs 5561 and 5562.

The survey was undertaken by UTS Geophysics and consisted of approximately 900 line-kms over the Company's Uley tenements (Figures 1 and 2).

It followed the ground-based geophysics conducted over the Uley 2 and Uley 3 areas in December 2023. The purpose of the initial ground-based survey was to conduct a detailed reconciliation of the diamond drill data obtained from the Uley 2 and Uley 3 areas over the 6-year period from 2015 to 2021 and assist in the scoping of the airborne survey.

The results of both the ground-based survey and the airborne survey will be utilised for all future exploration work including development of district wide targets, i.e., beyond Uley 2 and Uley 3, as well as the immediate 100 drill hole program.

Figure 1: Helicopter towing VTEM Sensor

ABOUT QUANTUM GRAPHITE LIMITED

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

ABOUT SUNLANDS ENERGY CO.

Sunlands Energy Co. is the leading developer of thermal energy storage technology designed to drive utility-scale steam turbine generators. The company designs thermal energy storage cells (TES) that are capable of restoring baseload generation, critical inertia to grid networks and eliminating the large scale curtailment of renewables generation. https://www.sunlandsco.com/

Conductive Features of Graphite

Graphite is an excellent conductor of heat and electricity. EM is a well-established geophysical tool to exploit these features to identify graphite occurrences and a proven method of mapping near surface graphite concentrations. The tight spacing of the airborne survey will deliver significant and invaluable data that will generate a more detailed mapping of graphite concentrations than that provided by the Company's existing data.

In addition to the EM data, the magnetics response will deliver geological structural data that will enhance the Company's understanding of the geology of the area and further refine the Company's geological model of the greater Uley region.

Managing Director, Sal Catalano, commented that, "our technical team is now better placed than any other previous investigation of the regional geology. We know we are seeing the tip of the iceberg at Uley 2 and Uley 3 and the survey data will provide the granular information needed for the upcoming drill program and ongoing resource development. Recent market developments have impressed upon us the urgency of expediting the resource development that will underpin multi-decade operations at Uley. "

Figure 2: Geophysical survey flightlines over EL 6224, RLs 66 and 67 and MLs 5561 and 5562

Airborne Survey Technicals

The survey was conducted utilising the VTEM Max Time Domain EM system in conjunction with a Geometrics Split-Beam Magnetometer at a 100-metre line spacing, with flight lines orientated in an east-west direction.

The survey acquired district scale high resolution electromagnetic (EM) and magnetics data representing the most detailed geophysical survey ever conducted in the region. The data obtained from the airborne survey will now be the subject of detailed analysis and the results of the analysis are expected to be released to the market by the end of May 2024.

FOR MORE INFORMATION PLEASE CONTACT: Company Secretary Quantum Graphite Limited T: +61 3 8614 8414 E: info@qgraphite.com