QUANTUM GRAPHITE LIMITED — Regulatory Filings 2015

Jun 11, 2015

ASIA PACIFIC I EUROPE I NORTH AMERICA

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12 JUNE 2015

ASX: VXL & VXLO

AUSTRALIAN STOCK EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

PROCESS WATER MANAGEMENT UPGRADES

• Regulatory approval received for modified process water management systems

• Allows greater operational efficiency at Uley Graphite[TM]

• Key step in completion of production commissioning program

• Combined production and process water commissioning commences today

Valence Industries (the Company ) is pleased to advise it has received regulatory approval for a modified process water pond system at its Uley Graphite[TM] facilities to be operated in accordance with the existing PEPR (Program for Environment Protection and Rehabilitation).

The modified system allows the Uley Graphite[TM] operations to achieve greater efficiency by increased clarification, recycling and reuse of water in the processing operations, in line with regulatory preferences.

The modifications have been accommodated in the current engineering work schedule (refer ASX announcement 7 May 2015) and are a key step in completion of commissioning. The work required for immediate operations has permitted production commissioning to commence today combining the completed process water pond facilities and the existing plant.

The Company, in conjunction with its external engineering consultants, expects to make further improvements to the tailings storage and water reclaim systems. These further improvements, subject to regulatory approvals, are expected to lead to additional operational efficiencies as Valence Industries completes commissioning and ramps up production and export sales of graphite.

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

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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.

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