QUANTUM GRAPHITE LIMITED — Investor Presentation 2024

Mar 3, 2024

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MEDIA RELEASE For Immediate Release 04 March 2024

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The Company is pleased to announce that it has delivered the attached briefing to US agencies, EXIM Bank and Department of Energy, in connection with the Quantum Graphite-Sunlands Co. downstream activities. The purpose of the briefing was to illustrate the Company’s, and its joint venture partner Sunlands Co.’s, capability of building an integrated independent supply chain for the production of high purity graphite utilising the group’s proprietary technologies.

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QUANTUM
GRAPHITE Sunlands Energy Co.
Proprietary Flake Graphite purification
Exclusive Flake Graphite mineral source technology an d T ES battery technology
TES Graphite Cell Manufacture High Purity Graphite (99.9% gC) Refining
The Sunlands TES Graphite Cell stores heat at Uley 2 flake graphite can be purified to this level
ultra-high temperatures and transfers utilising the Sunlands Co. proprietary technologies
conditioned heat to conventional coal boilers which do not require harsh chemical treatments,
to produce superheated steam for base load avoid the destruction of flake particle size and is
thermal power plants. easily scalable.
TECHNOLOGY PARTNER
CRITICAL MINERALS PARTNER
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The focus of the briefing was to demonstrate the potential of Quantum Graphite’s Uley mine and its greater Uley/Mikkira resource region to provide a long-term sustainable supply to a US-based large scale flake graphite purification facility operated by Sunlands Co. The proposed facility would take delivery of approximately 100,000 tonnes per annum from Uley 2 and produce approximately 95,000 tons per annum of high purity graphite including in the form of spheronized high purity graphite.

At this rate of high purity production, it is assumed that all of the Company’s annual Uley 2 production of 100,000 tonnes, as proposed in the revised definitive feasibility study prepared by Lycopodium Minerals (see ASX market release of 11 December 2023, Uley 2 DFS Financial Update ), would be processed at a US-based facility. A significant factor underpinning this rate of production is the benign geochemistry of the Uley orebodies that are capable of being processed and refined to high purity graphite without harsh chemical treatment and further reduction in flake size. Consequently, the purification process eliminates non-graphitic carbon elements without materially degrading or diminishing the resulting production level of high purity flake graphite. Importantly, the size fraction of Uley 2 production as set out in the revised definitive feasibility study is maintained in the purification process.

The proposed facility would be the single largest supplier of high purity graphite outside of China and serve the key advanced manufacturers of isostatic graphite, Li-ion anode, and Sunlands Power’s own thermal energy storage cells.

The Company and Sunlands Co. have accepted an invitation by one of the agencies to submit to its funding application process under the agency’s program to develop alternative supply chains in critical minerals and industries.

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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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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/

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An integrated independant supply chain for the delivery of High Purity Flake Graphite

A briefing for

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Quantum Graphite

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Quantum Graphite

Owner of century old Uley graphite mining and processing facility located in Port Lincoln, South Australia

Sunlands Pure

Licensed refiner of flake graphite producing 100 ktpa of 99.9% PG and SPG

Sunlands Power

Licensed manufacturer of TES Graphite Cells and related generation facilities

Silver Fir MRI Trading Marketing agent for remaining Existing offtaker for 55 ktpa production of PG and SPG after for 5 years the supply to Sunlands Power and MRI Trading

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Uley Mine, Eyre Peninsula, South Australia
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QUANTUM GRAPHITE

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Uley 2 Stage 1 Feasibility (excluding returns from refined product)

Total undiscounted cash fow	A$990.4 million1
Crusher feed	1,200,000 tonnes per annum
Graphitic carbon grade	11.89%
Graphitic carbon recovery	84%
Concentrate purity	>94% graphitic carbon
Capital expenditure	A$152.7 million
Processing cost (PCAF)	A$236.05 per tonne (inclusive of admin)
Mining cost (MCAF)	A$2.5/t milled at surface plus 5c for every 4m
Production	100,000 dmt per annum
Product cost (Av LOM)	US$401.14 dmt (inclusive of drying and bagging)
Product price (Ex-works)	US$1,225 dmt (unrefned price)

1. Includes JORC 2012 Reserves and Resources

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Processing path and production profile for Uley 2 will focus on ultra high purity coarse flake of initially 100,000 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 refined to 99.9% gC

• Process Recoveries - > 89% gC

	Size Fraction (μm)	Size Fraction (Mesh)	Approx. Weight Dist. (%)	Unrefned gC 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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QUANTUM GRAPHITE

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FINANCIAL YEAR 2024 2025 2026 2027 2028 2029 TOTALS
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Reserve 4,003,000 4,003,000 3,890,015 2,863,547 1,723,547 580,423
Production - 10,720 97,394 108,166 108,462 55,072 379,813
Revenue (USD) - 13,132,317 119,307,146 132,502,992 132,866,014 67,463,002 465,271,472
Revenue (AUD) - 20,203,565 183,549,456 203,850,757 204,409,253 103,789,234 715,802,265
Mining - 2,223,922 17,579,358 11,475,773 9,045,905 4,494,168 44,819,127
Sustaining Capital, Asset - - 4,500,000 4,500,000 4,512,329 4,373,973 17,886,301
Management and Closure
Processing - 3,401,511 19,907,510 21,166,574 21,224,565 12,812,360 78,512,519
Bagging and Transport - 33,894 708,509 675,665 813,465 617,516 2,848,601
Admin - 522,163 2,071,625 2,071,625 2,077,301 1,549,462 8,292,176
G & A, Corporate Costs - - - - - -
State Royalties - 707,125 6,424,321 7,134,777 7,154,324 3,632,623 25,053,079
Total Costs - 6,888,616 51,190,783 47,024,414 44,827,888 27,480,102 177,411,804
Capital Costs (152,705,050)
Net Operating Cash 13,314,949 132,358,673 156,826,343 159,581,365 76,309,132 538,390,461
EBITDA - 13,314,949 132,358,673 156,826,343 159,581,365 76,309,132 538,390,461
Finance Costs - - - - - -
Depreciation (20,095,934) (12,448,152) (8,794,846) (6,353,922) (5,108,496) (4,690,854) (61,887,316)
Tax - - (19,688,364) (43,304,696) (44,447,478) (22,181,454) (129,621,992)
NPAT (20,095,934) 866,797 103,875,462 107,167,726 110,025,391 49,436,824 346,881,153
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Bruno Ruggiero , Chairman

Sal Catalano , Managing Director

David Trimboli

Michael Wyer

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Lycopodium

(Engineering & Design)

Lycopodium Minerals

(Metallurgy)

ProTherm Systems

(Thermal Processing Consultants)

TU Bergakademie Freiberg, Institute of Non-Ferrous Metallurgy and High Purity Materials (INEMET) (High Purity Metallurgy)

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Shares on Issue (on a fully diluted basis) approx. 337.884 million. Top 50 Shareholders >77.39%. Board represents >40% shareholding.

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Produc�on (Tonnes) Revenue/EBITDA
120,000
250,000,000
100,000
200,000,000
80,000
150,000,000
60,000
100,000,000
40,000
50,000,000
20,000 -
2024 2025 2026 2027 2028 2029
-
2024 2025 2026 2027 2028 2029 Revenue (AUD) EBITDA
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Net Cumula�ve Cash Flows
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
-
(50,000,000) 2024 2025 2026 2027 2028 2029
(100,000,000)
(150,000,000)
(200,000,000)
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The Uley 2 feasibility results do not include the economic and financial impacts of the commercialisation of refined graphite products, or the Joint Venture with the Sunlands Energy Company.

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QUAN ~~TUM~~ GRAPHITE

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ML 5561
ML 5562
RL 66 ML 5561 ML
5562
RL 67 Tailings
ULEY Pond
560000 565000
Uley Mine
ML 5561
ML 5562
RL 66 cross-section
RL 67 Fig.3
ULEY
EL 6224 Core
Plant shed
HOMESTEAD
SALT LAKE
6750
CACEY 3
officeSite
1
2
LEGEND
EM Target
Primary EM Target
Secondary EM Target
Exploration Lease
FISHERY Retention Lease
Mining Lease
Conservation and National Parks
Lincoln (CP) 0 500
N Lincoln (NP)Sleaford Mere (CP) KILOMETERS
0 1,250 2,500 5,000 Railway line Bridgewater Formatidune crest line_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ on calcarenite SIROTEM conductivity response (μV/A) _ _
Meters GDA94; MGA53 Road Mineral lease _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ML
Thin sandy soil with ironstone gravel
560000 565000 over weathered Proterozoic bedrock _ _ _ Retention lease_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ RL
2000378-005
HD SLEAFORD
HD ULEY
RL 66
RL 65
RL 67
1750
500
1750
1750
500
42503000
6750
1750
3000
1750
5500
500
5500
3000
3000
1750
1250
3000
55004250
3000 5500 4250
1750
1750
3000
4250
6150000 6150000
HD ULEY
6145000 6145000
HD LINCOLN
6140000 6140000
6135000 6135000
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Excluding the other mineralised envelopes within the larger exploration tenement (EL 6224) the Uley 2 Project is a multi generation project taking advantage of the large scale Uley Graphite Region.

Priority 1 Immediate Ore Reserve extension

• Uley 2 South 50m

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

• Target resource >5.5 million tonnes

Priority 2 Short Term Resource extension

• Uley 3 South

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

• Target resource >1.5 million tonnes

Priority 3 Medium Term Resource extension

• Uley 2 West geophysical anomaly target

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

• Target resource >10 million tonnes

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Uley 2/3 Classification Tonnes (kt)
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Uley 2/3 Classifcation	Tonnes (kt)
Measured Indicated	800 4,200
Inferred	2,200
7,200 @ 10.5% gC

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QUANTUM GRAPHITE

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• The Uley Graphite Region is defined by a series of highly mineralised envelopes generally known as Uley 2, 3, 4, 5, 6 and the historical Uley 1 and form part of the Greater Mikkira Graphite Province

• All Uley deposits are contained within the five contiguous mineral tenements (Table 1) held by the Company free of any royalty, joint venture or any other third-party interests

• The Company has an approved PEPR* for Uley 2 and there are no impediments to obtaining PEPR approvals throughout the Uley region

• The program to develop the near mine targets of Uley 3, 4, 5 and 6 consists of proven methods and processes for the Uley graphite resource type including;

• High resolution drone geophysics

• Wide spaced percussion or air core drilling

• Infill diamond drilling

• Metallurgical testwork

• Adopting a conservative approach to existing data including discounting the expected resource target by a 75% discount factor, the resulting minimum and maximum exploration target for Uley 3, 4, 5 and 6 is approximately 18 to 24 million tonnes

1 A mine life of 20 years relies upon 25% the announced Resource and 75% from Exploration Target

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563000E 563500E 564000E 564500E 565000E
ML5561
ML5562
EL6224
Legend
Mineral_Leases Complete Drill Collars
563000E
Uley 2 (Phase 1)
Retention_Leases
0 100 200 300 400 500 m Uley Graphite Region Uley 2 (Phase 2)
Historical Sirotem Anomaly Map (Uley 1, 2, 3, 4, 5, 6) EL 6224 Leases Uley 2 (Proposed)
Uley Drillhole Locations Historical
6149000N 6149000N
6148500N 6148500N
6148000N 6148000N
6147500N 6147500N
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	Resources (Mt)
Uley Deposits	Current Minimum Target Maximum Target
Uley 2/3	7.2 18.4 24.0
Uley 4	0 6.8 8.3
Uley 5	0 6.8 8.3
Uley 6	0 3.0 3.7

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• Beyond the Uley region, the exploration plan is directed at the multi-decade District Mine Strategy focussing on the Homestead, Salt Lake, Casey and Fishery mineralised envelopes defined by the geophysical anomalies shown in Figure 1

• Access is excellent and stakeholder and environmental activities have commenced

• The exploration workflow developed to identify large scale graphite targets prioritises historic geophysical anomalies on the basis of size, intensity, synergies of location, environment sensitivity and stakeholder engagement together with;

• Costeaning/pitting

• First pass drilling, mainly air core and RC

• Follow up RC drilling

• Diamond drilling

• Expected exploration target to significantly exceed aggregate Uley region resource estimate

2 A mine life of 50 years relies upon 10% the announced Reserve and 90% from the Exploration Target

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• Program for Environmental Protection and Rehabilitation

QUANTUM GRAPHITE

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TIED RAW MATERIAL SUPPLY ex AUSTRALIA

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Uley 2/3 Uley 2/3 Uley 2/3
Uley 6 [2] Uley 4 [2] Uley 5 [2]
Stage 1 Stage 2 [1] Stage 3 [2]
Mine Life years 5.5 5.0 9.0 3.3 7.0 7.0
Raw Material
100 150 150 150 150 150
Production ktpa
Capital USDm 135 55 35 65 165 165
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Table 3 summarises the capital costs requirement for Uley 2/3 Resource Expansion Plan and the additional mine life attained from the Near Term Mine Strategy. It does not include the capital costs or the additional mine life of more than 50 years from the execution of the District Mine Strategy.

Order of development follows the order set out in Table 3.

The Uley 2/3 development represents the progressive expansion of the initial project. The additional capital requirements of USD55m and USD35m for Stage 2 and 3 respectively will be deployed for environmentals, including the duplication of the tailings storage facility and the upgrade of certain water reticulation infrastructure. This capital will be required no earlier than the commencement of Year 4 of the Uley 2/3 mine life following the increase in production to 150 ktpa. Uley 6 represents the potential to utilise the pre-existing Uley 2/3 mine process plant with the only capital requirements being the further expansion of the tailings storage facility.

Uley 4 and Uley 5 each represent new mine developments with the potential for the respective development to occur concurrently, thereby delivering production of 300 ktpa for a mine life of at least 7 years.

LOGISTICS USA

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Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Raw Material Imports ktpa 100 100 150 150 300 300
Inventory ktpa 100 100 150 150 300 300
Capital USDm 42 28 30
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Table 4 summarises the capital requirements for the logistics facility. This facility consists of a series of discrete warehouse and inventory management structures designed to maintain an environment free of contamination and specific moisture levels.

The logistics requirement is confined to the US based needs to hold raw material and product inventory and does not include the cost of land.

The specified capital does not include amounts required for adding screening, spheronizing and packaging capacity.

A feature of the supply of HPG is that a level of inventory will need to be maintained as a reserve for key customers especially those requiring their supply for tier one Li-ion batteries and the manufacture of isostatic graphite. The expansion requirements in Years 3 and 5 will be driven by an increase in the annual refinery production. Year 5 can be deferred if the annual refinery production does not exceed 150 ktpa.

The headcount for the logistics facility will be dependent on the proportion of annual production that is exported. The minimum head count is expected to be 26 excluding trucking.

REFINING USA

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1.
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 2.
3.
Production HPG ktpa 100 150 150 150 150 150
Capital USDm 86 48 55
4.
Headcount
133 133 182 182 210 210
USA (average)
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The capital costs exclude land acquisition costs.

Capital requirements are limited to the construction of a facility that delivers 100 ktpa of HPG of which 50% may be spheronized for the Li-ion battery market. The additional capital requirements in Years 3 and 5 are confined to the construction of two further modules to the refinery to increase production to 300 ktpa.

If production is maintained at 150 ktpa the Year 5 capital amount is not required.

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Table 5 summarises the capital requirements for refining the raw material to produce HPG and SPG. The additional capital requirements ensure the seamless addition of modules and associated infrastructure as raw material supply increases.

1 Additional mine life of 5 years relies upon 50% the announced Resource and 50% from Exploration Target

2 These mine life extensions are wholly reliant upon 100% from Exploration Target

*PG = Purified graphite at 99.9% gC

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SPG = Spheronized purified graphite at 99.9% gC HPG = High purified graphite

*KTPA = Kilo-Tonnes Per Annum

• Program for Environmental Protection and Rehabilitation

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This presentation includes certain statements that may be deemed forward-looking statements. All statements in these presentation materials (other than statements of historical facts) which address future production and revenues, reserve and resource potential, exploration activities and exploration targets and potential events or developments that any of the Companies herein expect, are forward-looking statements. Such forward-looking statements may include, without limitation: (i) estimates of future 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 Companies’ assets, properties, projects or metals to those of other companies.

The potential quantity and grade of an exploration target is conceptual in nature, there has been insufficient exploration to determine a mineral resource and there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be realised.

Although the forward-looking statements contained herein 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 forwardlooking 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 Companies expressly disclaim 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 any of the Companies referred to in this presentation 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 Companies are encouraged to obtain separate and independent advice with regard to any investment. By accepting the presentation materials, the recipient acknowledges that these materials represent general summary information only.

The nature of the market including prices, demand and production, changes in existing technologies and the emergence of new technologies may give rise to new information or data that materially affects the information included in this announcement and the Companies cannot confirm 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 Companies, 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.

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The results contained herein should not be considered a profit forecast or production forecast. It is a technical and economic study of the potential viability of developing Uley 2 by constructing a mine, process plant and related facilities to produce saleable flake graphite concentrate, including for sale by export. The reports referred to in this document are based on the necessary technical and preliminary economic assessments sufficient to support the estimation of Ore Reserves and provide assurance of the potential economic development case at this stage.

The production target referred to in this document is based on Proved and Probable Resources for the mine life as set out in the JORC 2012 Ore Reserve Estimate. In accordance with the proposed mine plan forming part of this report, production will be derived exclusively from Proved and Probable Resources.

Subject to the update of the capital and operating costs set out in this document, the material assumptions included within the JORC 2012 Ore Reserve Estimate continue to apply.

While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated will be achieved. To achieve the potential mine development outcomes indicated in this document, project funding will be required and investors should note that there is no certainty that the Company will be able to raise project funding. The Company has developed a funding structure and concluded that it has a reasonable basis for providing the forward-looking statements included in this document and previous announcements to the market relating to funding. It is of the view that it has a reasonable basis to expect it will be able to fund the development of Uley 2 under the funding structure developed by the Company or alternative or additional funding options to those previously disclosed to the market.

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Some of the statements contained in this report are forward looking statements. Forward looking statements include but are not limited to, statements concerning estimates of tonnages, expected costs, statements relating to the advancement of Uley 2 and other statements which are not historical facts. When used in this report, and on other published information of the company, the words such as “aim”, “could”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements. Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements include the potential that Uley 2 may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the company.

The company is pleased to present this document in a fair and balanced way and believes that it has a reasonable basis for making the forward-looking statements in this document, including with respect to any mining of mineralised material, modifying factors, production targets and operating costs estimates.

This document has been compiled by the Company from information contained within the reports referred to throughout this document.

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The information in this announcement is based on, and fairly represents, information and supporting documentation prepared by Mr Michael Montgomery, a competent person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Montgomery is a consultant to Quantum Graphite Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Montgomery consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The Company also refers to the Competent Persons Statements included within the JORC 2012 reports referred to in this document and defined in the Glossary of Terms. These reports are:

(a) JORC 2012 Ore Reserve Estimate

(b) JORC 2012 Mineral Resources Estimates

(c) JORC 2012 Metallurgical Testwork