TALGA GROUP LTD — Capital/Financing Update 2021

Jul 19, 2021

ASX Release 20 July 2021

ASX:TLG

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Talga Supersizes Graphite Target in Sweden

• Growth strategy initiated across Talga's graphite projects in Sweden towards expanding resource base amid surging electric vehicle and battery demand

• New surveys substantially increase JORC Exploration Target at flagship Vittangi project to 170-200 million tonnes at 20-30% graphite (extending from existing Mineral Resources)

• Note that the potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource

• Major drill programs commencing at Vittangi, with other Talga graphite projects and regional targets to follow

Talga Group Ltd (“ Talga ” or “ the Company ”) ( ASX:TLG ) is pleased to provide an update on its natural graphite projects in Sweden, the raw material source for the Company’s Talnode[®] range of battery anode products and Talphene[®] range of graphene additives.

Access to suitable large-scale graphite mineral resources is key to Talga’s vertically integrated business model and the Company's Swedish deposits contain the largest and highest grade JORC Mineral Resources defined in Europe.

Considering the positive economics of the Vittangi Anode Project DFS ( ASX:TLG 1 July 2021 ) based solely on the 2.3Mt Nunasvaara South Ore Reserve, and as only a fraction of the mapped graphite has been drill tested to date, Talga has commenced growth initiatives to fully define the extent of its graphite deposits and better align future development with increased global battery anode demand.

As part of this ongoing work, the JORC Exploration Target estimate for the Company's flagship Vittangi Graphite Project (“Vittangi”) has been updated (Figure 1 and Table 1).

Figure 1 3D perspective of updated Vittangi Graphite Project Exploration Target.

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Talga Group Ltd ABN 32 138 405 419 ASX: TLG Germany: TGX USA: TLGRF 1st Floor, 2 Richardson St, West Perth 6005 Australia E: info@talgagroup.com T: +61 8 9481 6667 F: +61 8 9322 1935 W: www.talgagroup.com

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Commenting on the updated Exploration Target, Talga Managing Director Mark Thompson said: "The building blocks of more sustainable transport and a cleaner environment include battery materials and components, such as Talga's green graphite anodes. Recent customer feedback leads us to more fully define the true extent of our high-grade graphite resources in Sweden and explore the increased scale potential for global battery markets. By establishing this significant vertically integrated natural graphite anode business in Europe, we can clean up existing supply chains and be a positive high-technology addition to the regional economy."

Anode Market Growth

Worldwide lithium-ion (“Li-ion”) battery demand is rapidly increasing, with global battery manufacturing capacity in 2030 now set to exceed 3.8 tera-watt hours ("TWh") per annum, requiring >4,600,000 tonnes per annum ("tpa") of graphite anode [1] . By 2040 Benchmark Mineral Intelligence forecast total global Li-ion battery anode demand to exceed 8,400,000tpa [2] (Figure 2).

The growth in battery manufacturing capacity is closely related to the growth in electric vehicle (“EV”) manufacturing and sales. This is clearly evident in the EU, where EV sales rose rapidly during Q1 2021, recording an 88% increase on the previous year [3] . Europe is the world’s fastest growing region for Li-ion battery manufacturing and will require >750,000 tpa of new graphite anode supply by 2030 [2] .

To better plan future development and expansion roadmaps, Talga has begun growth initiatives to define the greater tonnage potential of its Swedish natural graphite deposits.

Vittangi Graphite Exploration Target

Talga completed new ground electromagnetic geophysical ("EM") surveys of graphite targets at Vittangi following the 2020 upgrade of the Vittangi graphite resource. The new EM surveys focussed on extensions of mapped graphite striking under shallow cover, and strong conductors were successfully defined coincident with the targeted zones (Figure 4 and Appendix).

The EM survey results have been reviewed in combination with prior Talga geochemical samples collected from the surface within the conductors, which averaged 26.2% graphite (“Cg”) (Figure 3) ( ASX:TLG 15 November 2012 ). Modelling of this data in conjunction with positive outcomes of the Niska underground mining scoping study have enabled a revised JORC-compliant Exploration Target estimate totalling 170-200Mt at 20-30% Cg at Vittangi. This is a significant increase from the previous 26-46Mt at 20-30% Cg ( ASX:TLG 17 September 2020 ).

The majority of this estimate is proximal along strike and down dip from Talga’s existing Vittangi JORC (2012) graphite resources of 19.5Mt @ 24.0% Cg (Table 2 and Figures 1, 3), demonstrating significant potential for additional expansion of Talga’s anode source material inventory. Additional targets are located along the mapped graphite units around the greater Nunasvaara Dome area.

Table 1 Vittangi Anode Project Exploration Target.

2021 Exploration Target Vittangi Graphite Project	2021 Exploration Target Vittangi Graphite Project	2021 Exploration Target Vittangi Graphite Project
Tonnage Range (low-high)	170Mt	200Mt
Grade Range (low-high)	20% Cg	30% Cg

Note that the potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

---

1 Benchmark Mineral Intelligence, Lithium Ion Ba5ery Megafactory Assessment, June 2021

2 Benchmark Mineral Intelligence, Talga - Market EvaluaBon For Graphite, May 2021

3 Rho MoBon, EV & Ba5ery Quarterly Outlook Q2 2021

4 ASX:TLG 7 Dec 2020, PosiBve Niska Scoping Study Outlines Pathway to Globally Significant Ba5ery Anode ProducBon

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Figure 2 Global lithium-ion battery anode demand forecast (adapted from Benchmark Mineral Intelligence).

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Drilling and Exploration Programs to Commence

An extensive program of diamond core drilling is scheduled to commence at Vittangi on 29 July, with expanded work program approvals received and drill rig secured. The staged 69 hole diamond drilling program totalling ~8,000m will test down-dip extensions of the current JORC Resources as well as shallow subcrop targets between Nunasvaara North and Niska South (“North Ridge"). Drill assay results will commence being received in the fourth quarter. Geotechnical, hydrogeological, waste rock and measured resource drilling is also planned at Nunasvaara South in readiness for mine production.

Further drilling is planned over the balance of the Vittangi Exploration Target in stages over the next 12-18 months, along with drill testing of nearby regional targets owned by Talga.

Drilling aimed to expand the current Jalkunen Graphite Project resource base is scheduled to commence in the northern winter January-March 2022, to be followed by a planned scoping study and subsequent exploitation licence application. Jalkunen lies approximately 70km by road southeast of Vittangi (Figure 5). A review of the Jalkunen JORC Exploration Target is underway and will be reported when complete.

A detailed airborne electromagnetic survey (‘SKYTEM’) is planned to commence at Vittangi before the end of July, to further define and integrate the graphite units and depth extensions for drilling. The SKYTEM survey will also be extended to Talga's Aitik East project where outcrops of coppergold-silver-molybdenum and lithium minerals have been previously identified and warrant further investigation.

Authorised for release by the Board of Directors of Talga Group Ltd.

For further information please contact:

Mark Thompson Managing Director Talga Group Ltd T: +61 (0) 8 9481 6667

Nikki Löf Group Communications Manager Talga Group Ltd T: +61 (0) 8 9481 6667

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Figure 3 Vittangi Graphite Project Exploration Target Locations.

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APPENDIX

Geophysical Surveys

At Talga's 100% owned Vittangi and Jalkunen Projects in north Sweden, ~2 billion year age finegrained graphite schist outcrops or subcrops as high grade 15-80m wide units beneath shallow moraine and interfluvial lowland. The graphite mineralisation is regional and stratigraphic in nature and correlatable over great distance; over 15km at Vittangi and 50km away at Jalkunen.

The graphite units are readily mappable and sampled at surface, or where covered defined as conductors using electromagnetic ("EM") geophysics. During the 1980’s, the SGU conducted airborne EM surveys which covered large extents of northern Sweden, including all of Talga’s exploration licences. The EM data in the western part of Vittangi is shown in Figure 4. It can clearly be seen that the graphite mineralisation gave a strong response to the EM survey.

Whilst the regional EM surveys are useful to pinpoint areas of interest, it is necessary to conduct ground-based EM surveys to more accurately map out the position, thickness, dip and depth below moraine surface of the graphite mineralisation prior to drilling to ensure accurately positioned collars.

Talga has conducted three ground-based EM surveys in the area, during 2014, 2019 and 2020, along with extensive drilling and trial open cut mining. The position of these surveys can be seen in Figure 4. See the JORC Table below for further details of the 2020 EM survey results in this release.

Exploration Target Model

The recent Niska Scoping study at Vittangi concluded that underground mining is a cost effective extractive method for the project, with life of mine operating costs similar to open pit methods ( ASX:TLG 7 December 2020 ). Given that the graphite units plunge near vertical, and have not been closed off by drilling, they are open at depth. EM surveys indicate significant conductors along strike of the existing JORC resources and outcropping graphite units, including those that have returned up to 41.0% graphite in surface samples directly from the targets.

Talga exploration staff have compiled new and historic EM data, and sampled and mapped the local and regional distribution of these conductors to review total tonnage potential by way of JORC Exploration Target estimates. Additionally, deeper graphite targets present down-dip of the drilled resources of Nunasvaara South, Nunasvaara North, Niska South and Niska North, with mineralisation extending below the JORC 2012 resources (“Deep Extensional”) and the strike extent in between (“Shallow Subcrop”).

In this work, the Exploration Target is modelled predominantly as vertical to sub-vertical, with a total strike length of 7.5 km after excluding 2.5km of zones striking beneath rivers or areas where mining is not deemed favourable, from bedrock surface to RL -95m (~350m average depth below surface), at average widths of 20-25m and a bulk density of 2.7 g/cm[3] .

The revised Vittangi project JORC-compliant Exploration Target estimate is now 170-200Mt at 20-30% Cg, previously 26-46Mt at 20-30% Cg ( ASX:TLG 17 September 2020 ).

See Table 1 for summary exploration target and Figure 1 and 3 for locations.

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Table 2 Total Vittangi Project Graphite Mineral Resources.

Deposit	Resource Category	Tonnage (t)	Graphite (% Cg)	Contained Graphite (t)
Nunasvaara South	Indicated	8,600,000	24.8	2,132,800
	Inferred	1,900,000	22.5	427,700
Nunasvaara North	Indicated	1,800,000	29.4	529,200
	Inferred	2,600,000	14.8	385,000
Niska North	Indicated	4,160,000	25.8	1,074,528
Niska South	Indicated	480,000	25.8	123,696
Total	Indicated & Inferred	19,500,000	24.0	4,672,700

• Note: 1. Due to rounding totals may not reconcile exactly.

2. Ore tonnes rounded to nearest hundred thousand tonnes.

3. Nunasvaara and Niska Resources at 10%Cg cut-off, as at 17 September 2020.

4. The Nunasvaara graphite MRE was disclosed on 17 September 2020 in accordance with the 2012 JORC Code. The Niska graphite MRE was disclosed in October 2019 in accordance with the 2012 JORC Code (ASX:TLG 15 October 2019). 5. The total for the Vittangi Graphite Project has increased to 19.5Mt at 24.0%Cg from the previous

• 16.9Mt at 25.6%Cg due to restatement of the Nunasvaara Resources and changes discussed above.

Table 3 Vittangi Project Nunasvaara Probable Ore Reserve Statement.

Deposit	Reserve Category	Tonnage (t)	Graphite (% Cg)	Contained Graphite (t)
Nunasvaara South	Proven	0	0	0
	Probable	2,260,140	24.1	544,693
Total		2,260,140	24.1	544,693

• Note: 1. Due to rounding totals may not reconcile exactly.

2. The Nunasvaara Ore Reserve was disclosed in July 2021 in accordance with the 2012 JORC Code (ASX:TLG 1 July 2021).

Table 4 Talga Total Graphite Mineral Resources

Deposit	Resource Category	Tonnage (Mt)	Graphite (% Cg)	Contained Graphite (Mt)
Vittangi	Indicated Inferred	15	25.7	3.9
		4.5	18.3	0.8
Jalkunen	Inferred	31.5	14.9	4.7
Raitajärvi	Indicated Inferred	3.4	7.3	0.2
		0.9	6.4	0.1
Total	Indicated & Inferred	55.3	17.5	9.7

• Note: 1. Due to rounding totals may not reconcile exactly.

2. Mineral Resources are inclusive of Ore Reserves.

3. Mineral Resources are reported at various cut-off grades: Nunasvaara and Niska 10%Cg, Jalkunen 5%Cg and Raitajärvi 5%Cg.

4. Mineral Resources rounded to nearest hundred thousand tonnes.

5. The Nunasvaara Mineral Resource was disclosed in September 2020 in accordance with the 2012 JORC Code (ASX:TLG 17 September 2020).

5. The Niska Mineral Resource was disclosed in October 2019 in accordance with the 2012 JORC Code (ASX:TLG 15 October 2019).

6. The Jalkunen Project Mineral Resource was disclosed in August 2015 in accordance with the 2012 JORC Code (ASX:TLG 27 August 2015).

7. The Raitajärvi Project Mineral Resource was disclosed in August 2013 in accordance with the 2004 JORC Code (ASX:TLG 26 August 2013).

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Figure 4 Vittangi Project (Western Portion) SGU airborne electromagnetic survey image with Talga ground (Slingram) EM surveys 2014-2020.

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Figure 5 Talga Swedish Graphite Project locations.

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Competent Persons Statement

The information in this document that relates to the exploration results and the exploration target is based on information compiled by Albert Thamm. Mr Thamm is a consultant to the Company and a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy (Membership No.203217). Mr Thamm has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken 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 (JORC Code). Mr Thamm consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Thamm does not hold securities (directly or indirectly) in the Company.

The Niska Mineral Resource was first reported in the Company’s announcement dated 15 October 2019 titled ‘Talga Substantially Increases Flagship Graphite Resource Size, Grade and Status’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed.

The Nunasvaara Mineral Resource was reported in the Company’s announcement dated 20 September 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed.

The Nunasvaara Ore Reserve statement was first reported in the Company’s announcement dated 1 July 2021 titled ‘Robust Vittangi Anode Project DFS’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Reserve estimate in the previous market announcement continue to apply and have not materially changed.

The Jalkunen Mineral Resource estimate was first reported in the Company’s announcement dated 27 August 2015 titled ‘Talga Trebles Total Graphite Resource to Global Scale’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed.

The Raitajärvi Mineral Resource estimate was first reported in the Company’s announcement dated 26 August 2013 titled ‘500% Increase to 307,300 Tonnes Contained Graphite in New Resource Upgrade for Talga’s Swedish Project’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed.

The Company first reported the production targets and forecast financial information referred to in this announcement in accordance with Listing Rules 5.16 and 5.17 in its announcement titled 'Robust Vittangi Anode Project DFS' dated 1 July 2021. The Company confirms that all material assumptions underpinning those production targets and forecast financial information derived from those production targets continue to apply and have not materially changed.

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About Talga

Talga Group Ltd (ASX:TLG) is building a European battery anode and graphene additives supply chain, to offer advanced materials critical to its customers’ innovation and the shift towards a more sustainable world. Vertical integration, including ownership of several high-grade Swedish graphite projects, provides security of supply and creates long-lasting value for stakeholders.

Company website: www.talgagroup.com

Forward-Looking Statements & Disclaimer

Statements in this document regarding the Company's business or proposed business, which are not historical facts, are forward-looking statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements.

This announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular investments to particular persons.

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JORC 2012 Tables

Section 1 Sampling Techniques and Data

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Sampling techniques • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. • Drillhole sampling is not relevant to this announcement • The EM survey was carried out with an EMAC (SGU) slingram with a measurement frequency of 18 kHz and a coil separation of 60 m. • The nominal survey configuration was with horizontal co-planar coils. The terrain in the area is in general gentle and no elevation or slope measurements were therefore regarded necessary. The coils were held in the same plane in sloping terrain by aiming. No post processing topographic corrections were necessary due to this arrangement. Station separation was 20 metres.
Drilling techniques • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). • Drilling techniques are not relevant to this announcement.
Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. • Drillhole sampling recovery is not relevant to this announcement.
Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length and percentage of the relevant intersections logged. • Core logging is not relevant to this announcement. • Slingram is a pair of moving transmitter and receiver coils at surface, connected by a cable at a fixed distance, normally 40m or 60m, with penetration depths corresponding to half the coil space. The oscillating primary field from the transmitter coil induces electrical currents in the subsurface that in turn, generates a secondary magnetic field which is picked up by the receiver coil. This secondary magnetic field is further divided into in-phase (real) and quadrature (imaginary) components, which is dependent on the subsurface electrical conductivity distribution and can be related to e.g. mineralisation and fracture zones. • The interpretation of this data is mainly qualitative and an estimation of the thickness and dip of the conductive zone can be made from observation of the shape of the anomaly. • A total of 3,360m of lines were surveyed over 13 spaced profiles.

CRITERIA	JORC CODE EXPLANATION	JORC CODE EXPLANATION	COMMENTARY	COMMENTARY
Sub-	•	If core, whether cut or sawn and whether quarter, half or all core taken.	•	Core sub-sampling and sample preparation is not relevant to this
sampling	•	If non-core, whether riffled, tube sampled, rotary split,		announcement.
techniques		etc. and whether sampled wet or dry.
and sample	•	For all sample types, the nature, quality and appropriateness of the sample preparation technique.
preparation	•	Quality control procedures adopted for all sub-
		sampling stages to maximise representivity of
		samples.
	•	Measures taken to ensure that the sampling is
		representative of the in-situ material collected, including
		for instance results for field duplicate/second- half
		sampling.
	•	Whether sample sizes are appropriate to the grain size
		of the material being sampled.
Quality of assay data	•	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	•	Assay and assay data and laboratory testing is not relevant to this announcement.
and	•	For geophysical tools, spectrometers, handheld XRF
laboratory		instruments, etc., the parameters used in determining the analysis including instrument make and model,
tests		reading times, calibrations factors applied and their
		derivation, etc.
	•	Nature of quality control procedures adopted (e.g.
		standards, blanks, duplicates, external laboratory
		checks) and whether acceptable levels of accuracy
		(i.e. lack of bias) and precision have been established.
Verification of	• •	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes.	• •	No assay data is relevant Geophysical data was logged at 20m stations, then at 10m intervals on breaks
sampling and	•	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	•	and anomaly changes while survey active and mobile. No drillholes thus no twinning.
assaying	•	Discuss any adjustment to assay data.	•	External verification undertaken by external consultant and CP.
Location of data points	•	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource	•	The station separation was 20 meters (and at 10m anomaly gradients).
		estimation.	•	Survey by GPS with 3-4m accuracy
	•	Specification of the grid system used.		expected, on Swedish Grid SWEREF99
	•	Quality and adequacy of topographic control.		TM.
Data spacing	• •	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade	•	The station separation was 20 meters (and at 10m anomaly gradients)
and		continuity appropriate for the Mineral Resource and
distribution		Ore Reserve estimation procedure(s) and classifications applied.
	•	Whether sample compositing has been applied.
Orientation of data in	•	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit	•	Profiles are broadly perpendicular or near perpendicular to strike.
relation to		type.
geological	•	If the relationship between the drilling orientation and the orientation of key mineralised structures is
structure		considered to have introduced a sampling bias, this
		should be assessed and reported if material.

CRITERIA	JORC CODE EXPLANATION	JORC CODE EXPLANATION	COMMENTARY	COMMENTARY
Sample	•	The measures taken to ensure sample security.	•	Data and IP is held securely on Talga AB servers.
security
Audits or	•	The results of any audits or reviews of sampling	•	Data reviews of the exploration
reviews		techniques and data.		techniques and data have been
				completed by the CP. Results have been
				reviewed internally by the company and
				no issues have been identified.

Section 2 Reporting of Exploration Results

CRITERIA	JORC CODE EXPLANATION	JORC CODE EXPLANATION	COMMENTARY	COMMENTARY
Mineral	•	Type, reference name/number, location and	•	The Vittangi Project is located on
tenement and		ownership including agreements or material issues with third parties such as joint ventures,		licences Nunasvaara nr2, Vittangi nr2 owned 100% by the Company’s
land tenure		partnerships, overriding royalties, native title		Swedish subsidiary, Talga AB. A net
status		interests, historical sites, wilderness or national park and environmental settings.		smelter return royalty of 1% is payable to SA Targeted Investing Corp, a
	•	The security of the tenure held at the time of		subsidiary of Canadian company
		reporting along with any known impediments		Sandstorm Gold Ltd, and 2% to Phelps
		to obtaining a licence to operate in the area.		Dodge Exploration Corp, subsequently
				acquired by Freeport-McMoRan Copper
				& Gold Inc.
			•	The licences are wholly owned by Talga
				and are located in sub-Arctic forested
				areas. The area is used for seasonal
				grazing by local indigenous Sami
				reindeer herders.
			•	The licences are in good standing with
				no known impediments.
Exploration done by other	•	Acknowledgment and appraisal of exploration by other parties.	•	Graphite was first identified at Nunasvaara in the early 1900’s and has been extensively explored since that
parties				time. In the early 1980’s LKAB
				completed diamond drilling and test
				mining at Nunasvaara.
			•	More recently the area has been
				explored by Anglo American and Teck
				Cominco for copper and base metals
				prospectivity
			•	Recently the SGU published Lynch et.al
				2018 the “Geology lithostratigraphy_and
				petrogenesis of c 2.14 Ga greenstones
				in the Nunasvaara and Masugnsbyn
				areas northernmost Sweden” a
				comprehensive review of the geology
Geology	•	Deposit type, geological setting and style of mineralisation.	•	The graphite mineralisation at the Vittangi Project is a sub-vertical, ~20-
				100m wide lithologically continuous unit
				of very fine grained, dark-grey to black
				graphite containing 10-50% graphitic
				carbon. The hangingwall is comprised of
				volcanoclastics and tuffaceous units
				and the footwall to the mineralisation is a
				mafic intrusive (gabbros and dolerites).
				The graphite units are regionally
				extensive over many kilometers and are
				interpreted to have developed in a
				shallow fresh water basin in the early
				Proterozoic (Circa 2.0 billion years).
			•	Subsequent deformation, isoclinal
				folding and high angle faulting, possibly
				related to regional domal intrusive
				bodies have metamorphosed and tilted
				the units to the sub-vertical orientations
				present today.
			•	The graphite at the Vittangi Project is
				very fine grained, very high grade and
				biogenic in origin.
			•	Metallurgical testwork completed by the
				Company shows battery-grade graphite
				and graphene products can be
				produced.

Drill hole		•	A summary of all information material to the	•	No new drillhole	information is relevant	information is relevant	information is relevant
Information			understanding of the exploration results including a tabulation of the following information for all		to this announcement.
			Material drill holes:
			o easting and northing of the drill hole collar
			o elevation or RL (Reduced Level –
			elevation above sea level in metres) of the
			drill hole collar
			o dip and azimuth of the hole
			o down hole length and interception depth
			o hole length.
		•	If the exclusion of this information is justified on
			the basis that the information is not Material and
			this exclusion does not detract from the
			understanding of the report, the Competent
			Person should clearly explain why this is the case.
Data	•		In reporting Exploration Results, weighting	•	Drill data aggregation methods are not
aggregation			averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and		relevant to this announcement.
methods			cut-off grades are usually Material and should be
			stated.
	•		Where aggregate intercepts incorporate short
			lengths of high-grade results and longer lengths of
			low-grade results, the procedure used for such
			aggregation should be stated and some typical
			examples of such aggregations should be shown in
			detail.
	•		The assumptions used for any reporting of metal
			equivalent values should be clearly stated.
Relationship between	• •		These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to	•	The geometry of the graphite mineralisation at the Vittangi Project is quite well understood and all prior drilling
mineralisation			the drill hole angle is known, its nature should be		has been completed perpendicular to
widths and	•		reported. If it is not known and only the down hole lengths are	•	the strike of the mineralisation. The main hangingwall graphite unit is
intercept			reported, there should be a clear statement to this		sub-vertical/vertical and appears to have
lengths			effect (e.g. ‘down hole length, true width not known’).	•	a variable dip (~80-90°). There is no drilling intercepts in this
					announcement.
Diagrams		•	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for	•	Appropriate maps and have been included in the text of this
			any significant discovery being reported These		announcement.
			should include, but not be limited to a plan view of
			drill hole collar locations and appropriate sectional
			views.

Balanced		•	Where comprehensive reporting of all Exploration	•	Representative geophysical sections
reporting			Results is not practicable, representative reporting of both low and high grades and/or widths should		and the target are mapped.
			be practiced to avoid misleading reporting of
			Exploration Results.
Other		•	Other exploration data, if meaningful and material,	•	A substantial amount of work has been
substantive			should be reported including (but not limited to): geological observations; geophysical survey		completed at the Vittangi Project by both historic explorers and more recently by
exploration			results; geochemical survey results; bulk samples		Talga. Work has included geophysical
data			– size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical		surveys, rock chip sampling, MMI soil sampling, trenching, diamond drilling,
			and rock characteristics; potential deleterious or		metallurgical testwork, trial mining and
			contaminating substances.		anode sample production. A DFS and
					Probable Ore Reserve for the
					Nunasvaara South deposit was
					published in 2021 by the Company.
Further work	•		The nature and scale of planned further work (e.g.	•	Diamond drilling is planned to determine
			tests for lateral extensions or depth extensions or		proof of concept and test for lateral
			large-scale step-out drilling).		extensions and depth extensions from
		•	Diagrams clearly highlighting the areas of possible		current resources.
			extensions, including the main geological
			interpretations and future drilling areas, provided
			this information is not commercially sensitive.