QUANTUM GRAPHITE LIMITED — Investor Presentation 2022

Feb 9, 2022

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MARKET RELEASE For Immediate Release 10 February 2022

Investor Webinar Presentation

The Company is pleased to announce its participation in the ShareCafe Small Cap "Hidden Gems" Webinar, to be held Friday 11th of February 2022 from 12:30pm AEDT / 9:30am AWST.

Managing Director Sal Catalano will provide an overview of the Company’s Uley 2 flake graphite project (including the long duration energy storage downstream activities) located south-west of Port Lincoln, South Australia.

This webinar can be viewed live via Zoom and will provide viewers the opportunity to hear from, and engage with, a range of ASX-listed leading micro/mid cap companies.

To access further details of the event and to register at no cost, please copy and paste the following link into your internet browser:

https://us02web.zoom.us/webinar/register/5416151767246/WN_rJUuE_AySLq mpK1pJMzpXg.

A recorded copy of the webinar will be made available following the event.

A copy of the investor presentation to be delivered during the webinar is attached.

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

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QUANTUM GRAPHITE

Q1 2022

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EV Li-ion
Long
Batteries
Duration
Battery
Storage
Thermal
Management
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www.quantumgraphite.com

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Quantum Graphite Limited Highlights
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Quantum Graphite is the ASX-listed owner of the century old Uley graphite mine and the broader Mikkira Deposit loc ~~ated~~ in South Australia’s Eyre Peninsula, one of the world’s largest natural coarse flake graphite deposits.

Company Highlights

• Only coarse graphite company that is fully permitted and development ready (Uley 2).

• Only global flake graphite producer that has prequalified with major European and north Asian manufacturers.

• Only graphite company that has a decades long history of supplying major European and north Asian refractory manufacturers.

• Only graphite company that has an exclusive arrangement with Sunlands Co., a leading thermal energy storage technology company for the supply of graphite.

• Only graphite company that has designed and developed proprietary advanced processing technologies for the production of graphite products for the energy/renewables industry.

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ML 5561
ML 5562
RL 66
RL 67
ULEY
560000 565000
ML 5561
ML 5562
RL 66
ULEY RL 67
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
6150000 6150000
6145000 6145000
6140000 6140000
6135000 6135000
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The Uley 2 Project Overview
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Status: DFS completed for Uley 2 (Stage 1)

Location: Eyre Peninsula, SA; 20km west-south-west of Port Lincoln

Government approvals: All approvals obtained pursuant to Program for Environment Protection and Rehabilitation

Stage 1 mine life: 12 years

Mineral Resources or Reserves (JORC 2012): Total Mineral Resources 7.2Mt @ 11.10% TGC; Total Ore Reserves 4.0Mt @ 11.89% TGC

Stage 1 production level: Uley 2 processing plant will produce a minimum of 55,000 tonnes of high purity coarse flake.

Processing path and methodology: Liberation of graphite particles through crushing and grinding followed by floatation and polishing sections. Multi-stage polishing critical to enhanced flake graphite recoveries and maximising purity and coarse flake size. Offtake agreements in place: Joint Venture arrangement with The Sunlands Company Pty Ltd (thermal storage applications) approx. 20% of annual production.

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Illustration of the Uley 2 pit and surrounding (green) extensions to main Uley 2 ore body.

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The Uley 2 (Stage 1) Project Technicals
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Uley 2 Mining Study and Feasibility delivers strong financial metrics

Total undiscounted A$207million at a LOM TGC of 11.89% cash flow Crusher feed 500,000 tonnes per annum Graphitic carbon grade 11.89% Graphitic carbon recovery 84% Concentrate purity >97% graphitic carbon Capital expenditure A$79.98 million Processing cost (PCAF) A$55.3 per tonne Mining cost (MCAF) A$2.5/t milled at surface plus 5c for every 4m Product Cost (Av LOM) US$368 Product Price (Ex-works) US$919 dmt

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The Uley 2 Graphite Products
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Processing path and production profile for Uley 2 will focus on ultra high purity coarse flake of approximately 55,000 tonnes per annum, details of flake is set out below.

Comprehensive met results confirm historical high quality production mix

• Medium to Extra-Large Flake - 73% of overall production of gC

• Large and Extra-Large Flake purities - 97.2%gC and 97.8%gC respectively

• Process Recoveries - > 89% gC

Size Fraction (μm)	Size Fraction (Mesh)	Approx. Weight Dist. (%)	Graphitic C Purity (%)
+300	+50	10.5	97.8
-300+150	-50+100	35.4	97.3
-150+75	-100+200	27.1	97.2
-75	-200	27.0	90.7

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Uley 2 - A Multi Generation Project
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Excluding the other mineralised envelopes (within EL 6224) the Uley 2 Project is a multi generation project.

Priority 1 Short Term Ore Reserve extension

• Uley 2 South 50m

• Infill drilling at Uley 3 (area bordered by blue dotted line)

Priority 2 Medium Term Resource extension

• Uley 3 South

• Extension drilling to 50m-by-50m intervals

Priority 3 Long Term Resource extension

• Uley 2 West geophysical anomaly target

• Uley 2 South beyond Priority 1 along strike of the geophysical anomaly

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Figure 2 Uley 2 Ore Reserve and near-mine extension target priorities

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Sunlands Co. Joint Venture –
Direct Participation in the New Energy Markets
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The Joint venture with Sunlands Co. has transformed QGL from a raw material supplier to a direct participant in the ultra high growth long duration e ~~nergy~~ storage markets.

The joint venture’s exclusive manufacture of graphite energy storage media for Sunlands Co.’s battery technology delivers:

• captive long term market for its products;

• ~~superior product pricing compared to~~ its peers

• a significant additional revenue stream with unmatched growth potential

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Figure 3: Installed TES capacity projections according to IRENA’s Paris Agreement-aligned
Transforming Energy Scenario
900
QGL Sunlands Co.
800
JV Potential Market
700
600
>600 GWh
500
Current Installed Capacity
400
<30 GWh
300
200
100
0
2019 2030
Power Heating Space cooling
GWh
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Note: Heating projections are not in the scope of this analysis due to a lack of data on aquifers and small-scale distributed TES (e.g. residential water tanks). Nonetheless, growth in the installed capacity of these technologies is expected given their versatile use from short to seasonal scale.

Copyright © IRENA 2020. IRENA Innovation Outlook Thermal Energy Storage 2020

Uley 2 DFS results do not include the financial impact of the Joint Venture on the overall Uley 2 IRR. QGL has designed a techno-economic scope of works to determine this impact, which will estimate the joint ventures annual net income contribution to QGL.

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Joint Venture Delivers Massive Potential Demand for Uley Flake
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Key metrics

• 5 tonnes of flake graphite is required for 1MWh of storage

• up to 4x this tonnage may be required for a commercial installation

• Sunlands Co. estimates it will require approximately 40% of the Company’s production to deliver 150MW of dispatchable storage for a continuous 8 hour period.

Major application opportunities

• Retro-fitting of Sunlands Co. storage systems to existing coal fired power stations is one of the major global application opportunities

• Most Australian coal fired power stations are scheduled to cease operation in the next 15 to 20 years

• Demand from retrofitting Australian power stations only is likely to exceed QGL’s production rate of 55,000 tonnes per annum over the next decade

“There are several options that could move the dial on emissions from existing coal-fired power plants besides limiting their lifetimes. These include: retrofitting with CCUS or biomass co-firing equipment; repurposing facilities to focus on providing power system adequacy and flexibility...”

“Conventional sources of flexibility in the form of power plants and interconnections have long maintained the reliability of power systems around the world. Today thermal power plants provide the bulk of the flexibility required by many electricity systems and this remains the case to 2040... This is made possible by the retrofitting of existing thermal power plants, which helps increase ramp rates…”

Chapter 6.9- 6.12 Outlook for Electricity IEA World Energy Outlook 2019

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About Quantum Graphite Limited
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Board of Directors Bruno Ruggiero, Chairman Sal Catalano, Managing Director Bob Osmetti David Trimboli Key Technical Consultants Mine Engineer, Dr. Karen Lloyd (Jorvik Resources) Steven Chadwick, (Spectrum Metallurgical Consultants)		Capital Structure Shares on Issue (on a fully diluted basis post consolidation) approx. 293 million. Top 50 Shareholders >80%. Board represents approximately >40% shareholding.
		Tenement Tenement Type Interest
		ML5561 Mining Licence 100%
		ML5562 Mining Licence 100%
		RL66 Retention Licence 100%
		RL67 Retention Licence 100%
		EL6224 Exploration Licence 100%

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QUANTUM GRAPHITE

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.

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 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 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.

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 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.