TALGA GROUP LTD — Investor Presentation 2014

Mar 23, 2014

ASX: TLG

24 MARCH, 2014�

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~~TALGA~~ R E S O U R C E S

Talga Resources Ltd ABN 32 138 405 419

1st Floor, 2 Richardson St, West Perth, WA 6005 T: +61 8 9481 6667 F: +61 8 9322 1935

www.talgaresources.com

Corporate Information

ASX Code TLG Shares on issue 105.1m Options (unlisted) 3.75m

Company Directors Keith Coughlan Non-Executive Chairman

MINES AND MONEY HONG KONG 2014 PRESENTATION

Talga Resources Limited (ASX:TLG) (“ Talga ” or “ the Company ”) is pleased to provide a copy of the presentation to be delivered today by Managing Director Mr Mark Thompson at the Bulks, Base and Industrial Minerals Day of the Mines and Money Hong Kong 2014 conference.

The presentation summarises Talga’s latest corporate information and focusses on it’s wholly owned graphite and graphene projects in Sweden. The presentation will be made available on the Company’s website www.talgaresources.com

The presentation details are as follows:

Date: Monday, 24[th] March 2014 Time: 9.55am Venue: S421, Level 4 Hong Kong Convention and Exhibition Centre

Further information on the Company’s development and divestment projects will be available at Talga’s booth E51 .

For further information, contact:

Mark Thompson

Mark Thompson Managing Director

Grant Mooney

Managing Director Talga Resources Ltd

Tel +61 (08) 9481 6667 Email admin@talgaresources.com

Non-Executive Director

ABOUT TALGA

Talga Resources Limited (Talga) (ASX: “TLG”) is a diversified mineral explorer and developer with a portfolio of 100% owned graphite, iron, copper/gold projects in Sweden and gold projects in Western Australia.

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ASX Code: TLG

The main focus is the development of graphite resources in northern Sweden utilising the advantages of exceptional grade deposits, low cost power, established quality infrastructure and short transport distance to high demand markets in Europe.

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 1

R E S O U R C E S MINES & MONEY HONG KONG 24 March 2013

Investor Presentation

*** Cover picture; graphite from outcrop, Nunasvaara.**

Forward Looking Statements and Disclaimer:

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This presentation has been prepared by Talga Resources Limited (ACN 138 405 419) (“Issuer”) for the sole purpose of providing an overview of its current prospects and proposed exploration and development strategy to recipients (“Recipient”). This presentation and its contents are provided to the Recipient in confidence and may not be reproduced or disclosed in whole or in part to any other person, without the written consent of the Issuer.

The presentation is based on information available to the Issuer as at the date of the presentation. The information contained in this presentation has not been verified by the Issuer nor has the Issuer conducted any due diligence in relation to that information. The presentation contains selected information and does not purport to be all inclusive or to contain all information that may be relevant to the Recipient. The Recipient acknowledges that circumstances may change and this presentation may become outdated as a result. The Issuer accepts no obligation to update or correct this presentation.

This document includes forward-looking statements. When used in this document, the words such as "could," “plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although the Issuer believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Issuer, its directors, employees or agents, advisers, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of the Issuer or its directors, employees or agents. Nothing in this Presentation is a promise or representation as to the future. Statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. The Issuer does not make any representation or warranty as to the accuracy of such statements or assumptions.

The information in this presentation does not take into account the investment objectives, financial situation and particular needs of any Recipient. The Recipient should not make an investment decision on the basis of this presentation alone and the Recipient should conduct its own independent investigation and assessment of the content of this presentation. Nothing in this presentation constitute financial product, investment, legal, tax or other advice. Nothing in this presentation should be construed as a solicitation to buy or sell any security or to engage or refrain from engaging in any dealing in any security.

Photographs, maps, charts, diagrams and schematic drawings appearing in this presentation are owned by and have been prepared by or commissioned by the Issuer, unless otherwise stated. Maps and diagrams used in the presentation are illustrative only and may not be drawn to scale. Unless otherwise stated, all data contained in charts, graphs and tables is based on information available at the date of this presentation. By accepting this presentation the Recipient agrees to be bound by the foregoing statements.

2

Executive Summary

• ‣[Talga Resources Ltd (“Talga”) is a ] [mineral exploration ][&] [ development ][company ] listed on the Australian Stock Exchange (“ASX”) since July 2010.

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• [owns][ multiple ] [graphite][, ] [iron ore][ and ] [copper][/] [gold]

• ‣[The Company ] [wholly] projects in Sweden gained through the acquisition of a Teck Resources subsidiary in 2012, as well as Australian gold assets owned since listing.[and ]

• ‣[Talga’s Swedish assets include the ] [world’s highest grade graphite resource][1] iron deposits with combined total JORC mineral resources[1 ] of 235.6Mt located adjacent to existing infrastructure.

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• [focus][ is to develop the ] [graphite][ deposits due to their lower cost ]

• ‣[The ] [prime] capital ‘footprint’, exceptional location and outlook for graphite demand.

• ‣[Upcoming material catalysts include results from upscaling ] [breakthrough ] graphene production option , preliminary economic studies utilising dual divestments .

• graphite/graphene focus and further finance expected from

• 1 See appendices for details of JORC (2004) resources and www.techmetalsresearch.com for world graphite resources grade comparison.

3

Corporate Overview - ASX:TLG

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Board of Directors Keith Coughlan Non-executive Chairman Mark Thompson Managing Director Grant Mooney Non-executive Director

Capitalisation Summary at 21/3/2014 Ordinary Shares 105.1M Unlisted Options[1] 3.75M Cash (approx, at 21/3/2014) $1.7M Debt $0.0M Market Capitalisation (full diluted @ $0.13) $14.1M

Share Price 12 months to 18/3/2014 ASX:TLG

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Top Shareholders (+3%) at 21/3/2014 Lateral Minerals Pty Ltd (M. Thompson) 8.8% Two Tops Pty Ltd 4.5% Yandal Investments Pty Ltd 3.4%

Top 20 own 45%

• 1 2.75m @ 40c director exp 30.11.2014, 0.5m @ 35c employee exp 21.7.2015, 0.5m @ 45c employee exp 3.10.2016

4

Talga’s Graphite Projects

• ‣ 100% ownership of five graphite projects with multiple deposits offering the full range of market size .

• specifications

• ‣ Two advanced stage projects in the development . These are drilled to JORC Indicated status

• pipeline and preliminary economic studies are underway; • Nunasvaara is a microcrystalline flake deposit with

• the highest resource grade in the world . It is located within the Vittangi project.

• Raitajärvi is a coarse flake deposit with 49% of flake classified large to jumbo size.

• ‣ Piteå is our third high priority project; At an earlier stage of drilling but exceptionally well located and contains predominantly XL-size (jumbo) flake graphite.

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5

Talga projects proximal to established mining, milling and transport infrastructure

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To Narvik
Magnetite
Concentrator
Magnetite
Concentrator
Kiruna magnetite mine and mill owned by LKAB.
Photo©Fredric Alm/LKAB
Magnetite
Concentrator
Magnetite
Proposed Railway
Extension
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Magnetite
Concentrator
To Luleå
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Svappavaara magnetite mine and mill owned by LKAB. Photo©Fredric Alm/LKAB

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Magnetite
Concentrator
Kaunisvaara magnetite mine and mill owned by Northlands AB.
Photo©Northlands AB
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Combined total JORC Inferred Resources[*] JORC Inferred and Indicated Resource. See following pages and Appendix for resource classification details.

6

What is Graphite?

• ‣ Graphite is a crystalline form of carbon that most commonly forms when carbon-rich rocks undergo metamorphism (pressure/temperature induced change).

• ‣ Graphite (the mineral) consists of parallel sheets of carbon atoms in a hexagonal lattice. The individual sheets, one or .

• few atoms in thickness, are called graphene

• ‣ Graphite has an exceptionally high melting point, and very high thermal and electrical conductivity as well as other remarkable properties that make it useful for a large range of applications.

• ‣ It can be synthesised from petroleum coke but the process is very energy intensive and costly compared to the production of natural graphite by mining.

• ‣ Recovering graphite by mining involves normal open cut or underground methods followed by crush/grind and flotation similar to base metal deposits. Further purification, chemical and shaping may be required to form an end product.

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Schematic of carbon atoms crystallising to graphite video
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Graphite drillcore at Talga’s Nunasvaara project in Sweden.
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7

Volume Comparison of Natural Graphite Market

Natural graphite market

• ‣ Natural graphite demand is about 1.1Mt/yr, a volume similar to Nickel, with total value approximately US$1B/yr.

• ‣ Graphite is most commonly sold as a concentrate by private contract and therefore prices are not transparent. Industry prices are surveyed and published by Industrial Minerals magazine.

• ‣ Consumption is diverse with significant markets in steel production and refractories (50%), batteries, automotive parts and lubricants.

• ‣ Graphite price is determined by particle (flake) size, carbon content (purity) and in some products; shape . Most natural graphite is sold to traders who upsell to refiners/purifiers, polishers and shapers before it is retailed to end user.

• ‣ Graphite is finding new markets from new uses in products as diverse as insulation panels and battery/energy technologies. .

• There is up to 10x more graphite than lithium in a Li-ion battery

• ‣ China and Brazil supply >80% world graphite.

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Tonnes
Annum
1,300,000
Ni
1,100,000
Cg
GRAPHITE
900,000
700,000
500,000
300,000
Mo
REE
100,000
Li
Natural graphite concentrate.
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8

• New Demand Driver More graphite than lithium

• 10 x in a Li-ion Battery.

• ‣ Graphite is a significant component of many types of battery , particularly Li-ion.

• ‣ Commonly there is 10x more graphite than lithium in a Li-ion battery anode.

• ‣ Rapid growth ; global graphite-rich anode materials market US$500M (2012), up from US$375M (2011)*.

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Nunasvaara graphite in drillcore
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Internals of Li-ion Battery

• ‣ Electric vehicles can use up to 100kg graphite per vehicle in batteries alone.

• ‣ Increases in mobility of energy, green power storage and graphene mean graphite is a commodity in tune with big themes; energy and technology materials.

*IDC Energy Insights “Business Strategy: Lithium Ion Manufacturing Global ”

9

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Price settling well above historic levels; exceeding trend.
4
First
Column
X
X
X
X
X X
After record prices in 2011-12 graphite prices declined
but have stabilised far above long term historical
Realised graphite prices across all sizes have exceeded
levels has settled over
. Note that price for large flake
those forecast at end of 2012, suggesting future base
50% higher than historic in real terms and amorphous
case
price trends may also surprise on upside
over 100% higher than long term averages.
appendix for further price/market data.
ACTUAL SEPT 2013
ACTUAL MAR 2014
12 13 13 13 14
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Realised graphite prices across all sizes have exceeded those forecast at end of 2012, suggesting future base case price trends may also surprise on upside . See appendix for further price/market data.

10

Europe Natural Graphite Imports

EU zone graphite consumption

• ‣ EU consumes 20% of world’s natural graphite production, and imports 95% of its needs (vast majority from China).

• ‣ EU has classified graphite as a “ critical raw material ”. ‣ Graphite consumers looking for reliable and quality supply outside of China.

• ‣ Sweden is a currently major supplier of iron ore, copper, minerals to the EU markets and is a

• gold and other .

• historic graphite producer

• ‣ Graphite deposits in Sweden can enjoy a distinct order / delivery time advantage compared to China and other jurisdictions.

(,000t/annum) Industrial Minerals 2012 Report Data Subset 1+2

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1-2 Days
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11

• Advantages of Northern Sweden for Mining

• ‣ Ranked No.1 mining jurisdiction in world by Fraser Institute 2013-14 ‣ Corporate tax rate 22% , Mineral Production tax 0.2% ‣ Established bulk commodity infrastructure with open access rail, road and ports ‣ Low cost power from hydroelectricity and nuclear grid

• ‣ Well established mining province with highly skilled workforce and support industries -

• ‣ Hosts world class mineral deposits but remains under-explored relative to peers as foreign mineral ownership only allowed since 1992

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The ‘Aitik’ Cu-Au mine, northern Sweden. Owner; Boliden. Milling 36Mt annum ore.
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12

Road through Nunasvaara project

Logistics Advantages

• ‣ Talga’s projects located proximal to high quality sealed roads .

• and open-access heavy haulage railway

• ‣ Direct road and rail link to via Öresund Europe markets

• bridge and tunnel. No shipping required.

• ‣ cost Major advantage on delivery compared to shipments from other jurisdictions.

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Road through Raitajärvi project
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Öresund Bridge road/rail tunnel linking Sweden to mainland Europe
Photo Mark Thompson/Talga Oct 2012
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13

• Vittangi Project - Nunasvaara Graphite

• ‣ World’s highest grade JORC/NI43-101 resource[1] of (ASX:TLG 8 Nov 2012) 7.6Mt @ 24.4% graphite (“Cg”) (see appendix).

• ‣ Resource mineralisation from surface to 165m depth and remains open . Average true width 20m over 1.2km strike and remains open.

• ‣ Graphite unit hosted within atypically low metamorphic grade volcanic greenstones with potentially unique mineralogy. Robust outcropping high grade resource makes low-cost potential in both amorphous to fine graphite and bulk graphene market.

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Section 1800N
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Talga Resources Nunasvaara Mineral Resource[[1]] (10% Cg lower cut-off grade) JORC 2004 Tonnes Grade Contained Classification (Mt) (%Cg) Graphite (tonnes) Indicated 5.6 24.6 1,377,600 Inferred 2.0 24.0 480,000 Total 7.6 24.4 1,857,600

Nunasvaara Mineral Resource[[1]] (10% Cg lower cut-off grade)

• Growth potential and logistics advantages

• ‣ 15km strike . Graphite unit is mapped by Swedish Geological Survey over

• ‣ . Surface sampling by Talga along the outcropping unit averaged 26.2% Cg with grades up to 46.7% Cg

• ‣ Less than 8% of graphite unit drill tested to date.

‣ Development advantages of exceptional grade , open-pit bulk mining option, low-cost grid power and nearby road/rail/port options (3km to road, 25km to rail).

• ‣ Preliminary economic studies underway. Stage 1 pit optimisation and work . mine design completed

• Product specification studies, metallurgy and final economic inputs are pending. Results expected Q2-Q3 2014 after graphene upscaling tests included.

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Kiruna Iron Mine
Svappavaara Iron Mine
NUNASVAARA
RESOURCE
Graphite Unit open
15km strike
Railhead
Sealed
Highway
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Graphene Development Option

On 19 Feb 2014 Talga announced exceptional results from graphene testwork on Nunasvaara graphite. Key conclusions of the testwork include:

• ‣ Unoxidised graphene can be directly and rapidly liberated from unprocessed , unpurified Nunasvaara graphite ore in a one-step no

• environmentally friendly process i.e. crushing/grinding, sonication, microwaving, purification required.

• ‣ Nunasvaara ore has extraordinary physical properties that enable the extraction to the . process and that may be unique deposit

• ‣ Quality of graphene produced is outstanding and comparable to graphene made from synthetic routes (>99.9% C precursors).

• ‣ Processing method suits upscaling to bulk production and produces graphite/graphene at a ratio of approximately 9 to 1 respectively.

• ‣ Next stage tests will confirm graphite/graphene yields, particle size/ distribution, graphite recovery/purity, process upscalability and scoping study level opex/capex costs.

• ‣ Potential to be lowest cost producer of bulk graphene for additive market polymers, metals, cement, conductive inks, 3D print materials.

TEM of Nunasvaara graphene

• Graphene Market Growing fast, massive research and development funding

‣ Exponential growth apparent in graphene patents a proxy for growing use.

‣ Market in infancy with most being used in government and private research institutions towards finalising applications.

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• ‣ As for graphite, different applications require different qualities of graphene i.e. particle size and purity. High technology applications may require single, high purity sheets, while additives to polymers (plastics), inks, metals, concrete and other bulk markets may use multi-layer nanoplatelets.

• ‣ Predictions of the value of graphene markets in 2020 range widely from approximately $140M to more than $1B depending on source.

• ‣ Over $2.5B in graphene research funding has been launched in the EU (Sweden) alone in last 12 months.

From Intellectual Property Office UK, Graphene Patent Landscape 2013

17

• Graphene Supply Chain

• Talga has major and unique potential in low cost bulk supply.

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Raw Raw
Graphite Graphite
OreOre
Talga Resources
Purified
Graphite
Concentrate
Mason Graphite
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Diagram adapted from source http://www.graphenetracker.com/invest/

18

Raitajärvi Graphite Project

• ‣ located 2km from the Överkalix - Advantageously Övertorneå and 25km to ,

• Highway grid power .

• town and railway, 130km to port

• ‣ Current total JORC 2004 resource[1] of 4.3Mt @ 7.1% Cg, open and less than 25% of EM anomaly drill tested .

• ‣ A high proportion of resource is coarse flake. 87% >100 micron (“µm”) and 49% >200µm .

• ‣ Historic metallurgical tests produced graphite concentrate grading 90-94% C from simple (unoptimised) flotation and 99% C in basic enrichment test.

• ‣ Targeting 10-20,000t/annum capable deposit to be second producer for Talga. Scoping study planned to commence after Nunasvaara complete.

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Övertorneå Town
RAITAJÄRVI
RESOURCE
EM anomaly/Graphite Unit
To Ports
Railhead
Sealed Highway
Grid Power
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Raitajärvi Mineral Resource[1] (5% Cg lower cut-off)

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JORC 2004 Tonnes Grade Contained
Classification (Mt) (%Cg) Graphite (t)
Indicated 3.4 7.3 246,400
Inferred 0.9 6.4 60,900
Total 4.3 7.1 307,300
Raitajärvi graphite flake size
< 100µm 100-200µm 200-400µm >400µm
13% 38% 38% 11%
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19

Piteå Jumbo Flake Project

• ‣ 3 historic drillholes targeting base metals intercepted coarse flake graphite within a 4 x 1km EM anomaly.

• ‣ 80% of flake graphite at Piteå exceeds 300 µm size i.e. 80% +50 mesh, aka “jumbo”.

• ‣ Such large flake graphite is premium product for spherical graphite production and commands higher prices (>$1700/t, see Appendix).

• ‣ Blue sky growth project located on sealed road 50km from port of Piteå and adjacent to grid power.

• ‣ Location and size advantages worth exploring. ‣ Plan to expand target zone and drill test in 2014

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Luleå Town
and Port
Piteå Town
and Port
50km to port/rail
Sealed Highway
Grid Power
Railway
Railway
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Coarse flake graphite present in historic drill core from the Piteå
project stored at the SGU. Hole ÖNU89001, 44.2m depth.
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20

• Talga’s Graphite Development Advantages

• ‣ Highest grade JORC/NI43-101 graphite resource in world.

• ‣ Located on road and rail routes to major markets. ‣ Advanced stage PEAS underway; further major drilling not required.

• ‣ Low cost capex and bottom of production cost curve expected. ‣ Massive growth profile ; dominant land position on drilled EU graphite deposits. -

• ‣ Highly ranked low risk mining and corporate jurisdiction, Sweden. ‣ Unique low-cost graphene production option can add massive value.

• Catalysts/Events

• ‣ Confirmation of dual graphite/graphene process upscaling.

• ‣ Scoping study results with dual graphite/graphene focus. ‣ Strategic partnerships and non-core asset divestments funding options.

21

Divestment Projects - Iron Ore (Sweden)

Talga is divesting all non-core projects to focus on graphite. The most advanced divestment project is Masugnsbyn and additional JORC resources[1] exist at Vittangi. Total JORC resource[1] inventory of 236Mt @ 30.7% Fe, with further growth targets defined (see Appendix). .

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Relatively simple and proven processing of the magnetite ore is expected to deliver a high quality concentrate at coarse grain sizes. Preliminary test confirms >69% Fe concentrate.

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Proximal to road and open access rail infrastructure, which connect to several open access ports currently loading Panamax to Cape-sized vessels.

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• Located close to European and Middle East iron ore markets. Deposits situated between two magnetite concentrators belonging to LKAB and Northlands; toll treatment potential.

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*Fe or Femag, both refer to the calculated iron grade which is total iron less forms of iron other than magnetite (sulphides, silicates etc). Photo Mark Thompson/Talga Feb 2012

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Svappavaara magnetite mine and mill owned by LKAB, approximately 30km by road from the Vittangi project and 60km from Masugnsbyn project. Photo©Fredric Alm/LKAB.

22

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Divestment - Kiskama Cu/Au (Sweden) Large Iron Oxide Copper-Gold (“ IOCG ”) mineralisation system. Pre-1992 drilling by government agencies included 101 drillholes for and . 13,836m. Only 27% assayed for Cu less than 2% assayed for Au - shallow wide of Significant , intercepts copper gold including: 42m at 0.49% Cu, 0.07g/t Au including 10m at 1.23% Cu, 0.16g/t Au (from 20m, hole 80004) 21m at 1.02% Cu, 0.25g/t Au including 6m at 1.98% Cu, 0.54g/t Au (from 16m, hole 77001).

Drill focus only 1km strike ; remains open in all directions. A further 7km of strike remains largely untested and forms high priority target zone. Proximal to to Aitik railway links , Europe’s largest operating copper-gold mine[2] (resource[1] 2,760 Mt @ 0.17% Cu, 0.1g/t Au ). Potential toll treatment opportunity. See ASX:TLG 10 Feb 2014 for details. Gold specimens from Talga Talga project

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Breccia-hosted magnetitehematite-sulphide mineralisation from Kiskama deposit (view 10cm).

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Divestment Project - Gold The company wholly owns multiple gold projects in Australia which consist of early to advanced exploration-stage projects with very high grades of gold in surface sampling and drilling. Highlights to date include drilling intercepts of 7m @ 14.4g/t Au and 3m @ 24.8g/t Au at Talga Talga , and the discovery of gold-tellurium-bismuth zones in the Ghooli dome at Bullfinch and 0.2% Bi . , where surface samples return up to 107.5g/t Te, 34.6g/t Au The next steps on the projects are further drilling towards defining resources and bulk sampling to advance the near-surface gold towards short term production. The projects are 100% owned , and several projects are within trucking distance (70km) to operating gold mills . Divestment/JV opportunity

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Wimmer&Financial& Disclaimer To get further information or register interest in a divestment project contact: Mark Thompson - Managing Director 1st Floor, 2 Richardson St West Perth WA 6005 Australia Tel +61 89481 6667 admin@talgaresources.com www.talgaresources.com ASX: TLG

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25

Appendices

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TALGA RESOURCES LTD

Talga Asset Structure and JORC (2004) Resources*

100%

1 Note: This information was prepared and first disclosed under the JORC code 2004. It has not been updated since to comply with the JORC code 2012 on the basis that the information has not materially changed since it was last reported. The Company is not aware of any new information or data that materially affects the information included in the previous announcement and that all of the previous assumptions and technical parameters underpinning the estimates in the previous announcement have not materially changed.

Talga Mining Pty Ltd

100%

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the estimates in the previous announcement have not materially changed.
Swedish Branch
100% 100%
IRON
GRAPHITE
Iron Mineral Resources @ 20% Fe lower cut-off July 2013
Tonnes Grade
Nunasvaara Graphite Mineral Resource @ 10% Cg lower cut-off Nov 2012
Deposit JORC Category
(Mt) %Fe
Tonnes Graphite
Classification
Vathanvaara 51.2 36.0 Inferred Resource
(Mt) (%Cg)
Kuusi Nunasvaara 46.1 28.7 Inferred Resource
Indicated 5.6 24.6
Mänty Vathanvaara 16.3 31.0 Inferred Resource
Inferred 2.0 24.0
Sorvivuoma 5.5 38.3 Inferred Resource
Total 7.6 24.4
Jänkkä 4.5 33.0 Inferred Resource
Raitajärvi Graphite Mineral Resource @ 5% Cg lower cut-off Aug 2013
Masugnsbyn 87.0 28.3 Indicated Resource
Tonnes Graphite
Classification Masugnsbyn 25.0 29.5 Inferred Resource
(Mt) (%Cg)
Total 235.6 30.7
Indicated 3.4 7.3
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Nunasvaara Graphite Mineral Resource @ 10% Cg lower cut-off Nov 2012

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Tonnes Graphite
Classification
(Mt) (%Cg)
Indicated 5.6 24.6
Inferred 2.0 24.0
Total 7.6 24.4
Raitajärvi Graphite Mineral Resource @ 5% Cg lower cut-off Aug 2013
Tonnes Graphite
Classification
(Mt) (%Cg)
Indicated 3.4 7.3
Inferred 0.9 6.4
Total 4.3 7.1
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26

Appendices

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Trade Name microns US Mesh Size
<10 na
Amorphous/Ultrafine
Amorphous/Fine 10-75 -200
Small 75-150 200-100
Medium 150-180 100-80
Large 180-300 80-50
XL/Jumbo >300 50+
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Source: Industrial Minerals Natural Graphite Report 2012 cross referencing various sources. Many terms are proprietary or mixed use; there are few if any industry standards in naming principles.

Common natural graphite concentrate product sizes, grades and prices

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Size Size Purity Quote
(microns) US Mesh % C US $/tonne
300+ 50+ 94-97 >1700
94-97 1275
180-300 80-50
90 1125
94-97 1100
150-180 100-80 90 950
85-87 750
94-97 900
75-150 200-100
90 775
-75 -200 80-85 525
----- End of picture text -----

Source: Industrial Minerals Magazine Feb 2014. Most prices FCL, CIF European Port.

Note prices averaged from low-high range and selected as common commercial products where natural graphite sold as concentrate. Many specialty grades with much higher prices are traded but do not represent the bulk of market demand.

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References & Qualified Persons

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1 Resource Note: All Talga owned resources referred to in this report are based on information prepared and first disclosed under the JORC code 2004. They have not been updated since to comply with the JORC code 2012 on the basis that the information has not materially changed since it was last reported. The Company is not aware of any new information or data that materially affects the information included in the previous announcement and that all of the previous assumptions and technical parameters underpinning the estimates in the previous announcement have not materially changed.

Kiskama IOCG References

1 Boliden Annual Report 2012 resource statement as of Dec 31st 2012 2 Boliden corporate website

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled and reviewed by Mr Darren Griggs and Mr Mark Thompson, who are members of the Australian Institute of Geoscientists. Mr Griggs, a consultant, and Mr Thompson, an employee of the Company, both have sufficient experience which is relevant to the activity which is being 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 Griggs and Mr Thompson consent to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this report that relates to Resource Estimation is based on information compiled and reviewed by Mr Simon Coxhell of CoxsRocks Pty Ltd. Mr Coxhell is a consultant to the Company and a member of the Australian Institute of Mining and Metallurgy. Mr Coxhell has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this document and to the activity which he is undertaking 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 Coxhell consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

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