RENASCOR RESOURCES LIMITED — Capital/Financing Update 2016

Nov 9, 2016

ASX Announcement 10 November 2016

99% TGC Product from Simple Flotation at Siviour

• Product grades of 99% Total Graphitic Carbon (TGC) from simple flotation without chemical or thermal purification
• Production of high purity 99% TGC flake concentrate from Siviour suggests potential suitability for high value lithium ion battery market and other high purity applications
• Next step metallurgical work to include comprehensive tests to optimise purity, flake size and recoveries for purposes of pre-feasibility study
• Graphite industry specialists BatteryLimits appointed to manage first stage of prefeasibility study and oversee mineral processing tests

Renascor Resources (ASX: RNU) is pleased to announce significant progress in mineral processing tests on its Siviour Graphite Project, with the production of high purity 99% graphite flake concentrates.

Metallurgical tests completed by ALS Metallurgy in Adelaide have achieved concentrates of 99% TGC from simple flotation without chemical or thermal purification. The test work, performed on core obtained from diamond hole SIV035, achieved high purity results with high recoveries of 91%.

The results suggest the potential to produce a high purity product through a conventional, low cost milling and flotation process. Flake graphite concentrates produced at very high purity levels command premium pricing and are increasingly in demand for several growing market segments, including lithium-ion batteries for electric vehicles and stationary storage generated from renewable energy.

The recent test work also simultaneously produced jumbo (+300 microns) graphite concentrates at 94% TGC, confirming the further suitability of Siviour to produce concentrates in higher value coarse flake sizes. Upcoming work is designed to obtain high purity concentrates across all flake sizes.

Commenting of the recent metallurgical results, Managing Director David Christensen stated:

"Today's announcement further supports Renascor's strategy of becoming a low-cost producer of high quality graphite products. In limited laboratory scale tests, we have confirmed the ability to produce key high value graphite concentrates, while maintaining high recoveries with a low cost milling and flotation process. As we move on to more comprehensive mineral processing tests to optimise purity, flake size and recoveries, the results to date suggest ample scope for Siviour to become a cost-competitive producer of premiumpriced graphite concentrates".

Renascor's mineral processing work to date at Siviour has consisted of a preliminary examination of samples from diamond core hole SIV035, which is located within the Siviour Indicated Resource. See Figure 1 (next page).

1

This follows test work performed in 2014 on samples from a historical core hole (CRD090), located approximately 1.5km southeast of the Siviour Indicated Resource (as previously reported in RNU ASX release dated 6 December 2015).

The recent work on SIV035 was designed to assess whether conventional metallurgical techniques could produce marketable graphite products from the Siviour mineralised body. While the results of these tests provide preliminary support for the potential of Siviour to produce graphite concentrates in the ultra purity and coarse flake graphite segments, these tests should not be viewed as being representative of final product specifications, which will be dependent on completing more comprehensive testing of representative material from the Siviour deposit.

Figure 1. Siviour Graphite Deposit showing location of holes SIV035 and CRD090 over electromagnetic conductive zones

Renascor is now commencing a more comprehensive mineral processing test program on a collation of mineralisation considered reasonably representative of what would be mined in Siviour's first ten years of mine life. This test program will consist of a series of tests designed to optimise flow sheet parameters in preparation for a pre-feasibility study.

Graphite industry specialists BatteryLimits has been appointed to manage the first stage of the prefeasibility study and to oversee continued mineral processing tests.

Background information

The Siviour Graphite Deposit, located in South Australia's Eyre Peninsula (see Figure 2), is currently Australia's largest reported graphite deposit, with a Mineral Resource estimate of 60.8 million tonnes @ 7.8% TGC for 4.7 million tonnes of contained graphite, including higher-grade mineralisation of 22.2 million tonnes @ 10.0% TGC for 2.2 million tonnes of contained graphite.

Category	Tonnes ofmineralisation(millions)	TGC	Tonnes ofcontainedgraphite (millions)
Indicated	33.4	8.2%	2.7
Inferred	27.4	7.3%	2.0
Total	60.8	7.8%	4.7

Note: Cut-off grade of 3% TGC

Siviour is part of Renascor's Arno Graphite. Renascor has the right to acquire the project through an option agreement between Eyre Peninsula Minerals Pty Ltd (EPM) and Ausmin Development Pty Ltd (Ausmin). Renascor currently owns 49% of EPM and has now exercised its option to acquire the remaining 51% of EPM by issuing (subject to shareholder approval at Renascor's upcoming Annual General Meeting) 42,068,684 ordinary shares and 15,000,000 options (exercisable at $0.05 per option). EPM's option to acquire the project is exercisable upon completing a bankable feasibility study in relation to the commercial development of graphite by issuing to the owners of Ausmin a 22% equity interest in a listed vehicle holding the project. See RNU ASX release dated 1 September 2016.

Figure 2. Siviour Graphite Deposit, showing location and significant nearby graphite deposits

Competent Person's Statement – Exploration Results

The results reported herein, insofar as they relate to exploration activities and exploration results, are based on information provided to and reviewed by Mr G.W. McConachy (Fellow of the Australasian Institute of Mining and Metallurgy) who is a director of the Company. Mr McConachy has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr McConachy consents to the inclusion in the report of the matters based on the reviewed information in the form and context in which it appears. This report may contain forward-looking statements. Any forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, or expectations to differ materially from the results expressed or implied in the forward-looking statements.

FOR FURTHER INFORMATION, PLEASE CONTACT:

David Christensen Angelo Gaudio

Managing Director

Company Secretary

+61 8 8363 6989 info@renascor.com.au