QUANTUM GRAPHITE LIMITED — Regulatory Filings 2015

Jul 13, 2015

ASIA PACIFIC I EUROPE I THE AMERICAS

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14 JULY 2015

ASX: VXL & VXLO

AUSTRALIAN STOCK EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

NEW OPEN PIT PRE-STRIP COMMENCED

• Uley Pit 2 Mining Pre-Strip commenced

• Graphite visible near surface

• Pre-strip material used for tailings construction

• New Open Pit mining to commence in late 2015

Valence Industries (the ‘Company’) is pleased to provide an update on operations at its Uley Graphite[TM] site in South Australia.

The removal of overburden from Uley Pit 2 has commenced at site. This preparatory work on Uley Pit 2 has exposed clearly delineated areas of visible graphite mineralisation near surface at the northern end of the new pit. The pre-stripping of Uley Pit 2 has also confirmed the ease of mining of the graphite host material.

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Uley Pit 2 – Pre-Strip and Overburden Removal

The Company is pleased to have been able to utilise overburden material removed from the prestrip for the construction of the walls of the new tailings storage facility. The re-use of overburden will result in cost savings for the tailings facility.

The Company is continuing to process existing stockpiles with an average contained graphite of 6.3%. The transition to higher grade 12.1% run of mine material from the new open pit in coming months will allow increased output from the existing plant.

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For further information, please contact:

Investor enquiries:	Media enquiries:
Christopher S. Darby	Rebecca Lawson
CEO & Managing Director	Associate Director, Media & Capital Partners
info@valenceindustries.com	Rebecca.lawson@mcpartners.com.au
+61 8 8215 6400	+61 433 216 269

Forward Looking Statements

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Valence Industries Limited (Valence Industries) are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’ or ‘intends’ and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the company, its directors and management of Valence Industries, that could cause Valence Industries’ actual results to differ materially from the results expressed or anticipated in these statements.

Valence Industries cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Valence Industries does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law.

Valence Industries 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 since the announcements previously released as “Valence Doubles Existing ROM Stockpiles” (6/8/14) and “Major Increase to Graphite Ore Reserve and Mine Life” (14/5/15).

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