QUANTUM GRAPHITE LIMITED — Regulatory Filings 2014

Apr 23, 2014

ASIA PACIFIC I EUROPE I NORTH AMERICA

ASX ANNOUNCEMENT

ASX: VXL ASX: VXLO

24 April 2014

SALE OF UNMARKETABLE PARCELS - UPDATE

Valence Industries Limited (ASX: VXL & VXLO) (“Valence” or “the Company”) provides the following update on the share sale facility for holders of less than marketable parcels of the Company’s shares.

A total of 1,622 individual shareholders holding 630,563 shares that constituted less than a marketable parcel were eligible to take part in the sale process.

A total of 530,263 shares from 1,495 individual shareholders are available for sale. A total of 127 individual holders of unmarketable parcels holding 100,300 shares elected to retain their shareholding.

The Company has placed the sale shares with a broker to be sold at market price and the Company will pay all the costs of sale. At the completion of the sale process, the Company will issue proceeds to the individual shareholders for the number of their shares at the average price received for the sale shares.

By facilitating the sale of unmarketable parcels the Company expects to reduce the administrative costs associated with maintaining a large number of small shareholdings.

For further information, please contact:

Jaroslaw (Jarek) Kopias CFO & Company Secretary Valence Industries info@valenceindustries.com +61 8 8418 8564

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**About

Valence Industries**

Valence Industries (ASX:VXL) is the owner and operator of the only graphite manufacturing facilities in Australia located at Uley in South Australia near the regional centre of Port Lincoln. The Company is bringing existing infrastructure into production with a focus on global markets across multiple graphite product ranges. Graphite production will commence in early 2014, with plans for expanded production by the end of 2014.

Located only 23 kilometres from Port Lincoln, the regional centre for the Lower Eyre Peninsula in South Australia, Valence Industries’ Uley Graphite project is recognised as a significant area of graphite mineralisation, and one of the largest coarse flake graphite deposits in the world. The deposit contains disseminated, high-­‐grade flake graphite and the mineralisation is near surface, with the final manufactured graphite products recognised and purchased by many customers for its high quality.

The company holds two existing Mining Licences and two associated Retention Licences, along with an extensive Exploration Licence, for the conduct of its operations. In addition Valence Industries is in the fortunate position of owning the land on which its current and proposed expanded operations are conducted along with the extensive existing infrastructure.

**Manufacturing

A New Carbon Future**

The Company operates as an industrial manufacturer of high-­‐grade flake graphite products for distribution and sale to global markets. Valence Industries owns established processing facilities and infrastructure to manufacture a wide range of graphite product lines for multiple applications and multiple industries. The Company produces and sells its graphite products from its Uley Graphite facilities in regional South Australia for delivery to diversified markets for graphite in the Asia Pacific, Europe and North America.

As a vertically integrated manufacturer of specialist graphite product ranges Valence Industries’ branded products are designed to meet current and future customer demand. This program includes development of a significant VXL High Purity Graphite Facility program and a range of future Graphene applications.

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