TALGA GROUP LTD — Capital/Financing Update 2021

Oct 25, 2021

ASX Release 26 October 2021 ASX:TLG

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Exploration Boosts Talga's Battery Mineral Projects in Sweden

• Large-scale geophysical surveys define new targets at Talga’s Vittangi Graphite Project and Aitik East Copper Project in northern Sweden

• Significant new graphite target defined at Vittangi adjacent to planned concentrator site with drill testing underway and second drill rig mobilised to site

Battery anode and advanced materials company Talga Group Ltd (“ Talga ” or “ the Company ”) is pleased to announce results of recent exploration activities conducted on its 100% owned graphite and copper projects in north Sweden ( ASX:TLG 20 July 2021 ).

Talga is building a vertically integrated, European-based operation to supply green Li-ion battery anode products directly to manufacturers and automotive OEMs. Talga aims to expand its supply base of battery raw materials to meet future capacity increases by pursuing exploration programs across its graphite and battery metal projects.

Airborne Geophysics Survey and Results

Talga recently completed over 1,000 line kilometres of high resolution airborne "SkyTEM" geophysical surveys across the Vittangi Graphite Project ("Vittangi") and Aitik East Copper Project ("Aitik East”)(see Figure 1). This was the first large scale geophysical survey completed by Talga in Sweden and it successfully mapped electrical conductivity, magnetic and radiometric data of the projects (see Appendix, Figure 5 and Table 1 for survey details).

Vittangi

The SkyTEM results show the greater Vittangi graphite-bearing units are more continuous than previously recognised and has identified new zones for follow up drilling. A significant new target is located approximately 500m to the southeast of the existing Nunasvaara North resource, where a strong ~600m long conductor occurs adjacent to the planned DFS concentrator site (see Figure 2).

Previous outcrop rock sampling in this area had returned grades of up to 36.0% graphite ( TLG:ASX 15 November 2012 ) however the area was thought to be a zone of discontinuous or faulted blocks. The SkyTEM results define the graphite unit to be far more cohesive and extensive than previously understood. This area, named Nunasvaara East (see Figure 2), is now considered a priority target which due to its location has high potential to favourably impact future development options.

Drilling at Nunasvaara East is now underway on 100m spaced sections as part of the extension stage of the Vittangi diamond drilling program ( TLG:ASX 30 August 2021 ). In addition, Talga added a second drill rig to complete testing of all target areas as planned by end of October 2021.

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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Aitik East

Talga’s Aitik East Project is prospective for large scale copper-gold mineralisation, similar to the 36Mt per annum Aitik mine 25km to the west (see Figure 4). Aitik East forms part of Talga’s non-core suite of 100% owned battery metals projects in Sweden ( ASX:TLG 9 May 2018 and ASX:TLG 11 October 2018 ).

The SkyTEM survey of Aitik East defined a weak, but discrete, conductive anomaly, modelled as approximately 200m long and starting 50m below surface (see Figure 4). The conductor is located ~1.7km north from a zone returning rock chip sample grades of up to 4.8% Copper, 1.2g/t Gold, 66g/t Silver in outcrop ( ASX:TLG 11 October 2018 ).

Next Steps

Diamond core assay results from the initial stages of the Vittangi drilling program ( TLG:ASX 30 August 2021 ) are expected in November 2021 and results from the

Figure 1 SkyTEM system airborne on Talga project.

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Nunasvaara East target are expected in December. Results will be released to the market as and when they are received and interpreted, along with next stage Vittangi drilling and resource work plans. Drilling is expected to re-commence in Q1 2022 targeting resource upgrading and expansion at the nearby Jalkunen graphite project.

Talga's strategies focus on graphite-based Li-ion battery anode development and production. The Aitik East conductor will undergo further modelling and interpretation for follow-up exploration activities including drilling, the timing of which will be determined in line with Talga’s corporate strategies for its non-graphite battery metal projects in Sweden.

Talga Managing Director, Mark Thompson, commented : “With rising European demand for EVs and therefore graphite anode products, it is exciting to see the Vittangi Graphite Project - our battery raw material source - continue to grow. Successful exploration allows us to better plan future scale-ups and fully realise the deposit’s potential for clean battery manufacturing. The new target at our Aitik East copper project is another positive development. Our Swedish battery metal projects provide additional avenues for Talga to deliver value across the European battery supply chain.”

For further information please contact:

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

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Figure 2 Vittangi Graphite Project SkyTEM survey conductors with resource and target locations.

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Figure 3 Location of Talga’s graphite projects in northern Sweden

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Norway
Finland
Narvik
Kiruna
Vitangi
North Niska
Nunasvaara
20km
Jalkunen
Gällivare
Raitajärvi
Sweden
Luleå
Talga graphite deposit Major road/highway
City/major Town Railway
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Figure 4 Talga’s Aitik East project and SkyTEM anomaly location. See Fig 5 for survey location details.

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APPENDIX

Geophysical Surveys

At Talga's 100% owned graphite projects in north Sweden, ~2 billion year age semi-massive highly crystalline stratiform graphite mineralisation outcrops as 10-100m wide schist units beneath shallow moraine and interfluvial lowland. The graphite mineralisation is regional and stratigraphic in nature and correlatable over great distance. The graphite units are readily mappable as conductors using electromagnetic ("EM") geophysics.

In 2021 SkyTEM Surveys ApS (Denmark) were contracted by Talga AB to fly and process a high resolution EM, magnetic and radiometric survey across the Vittangi and Aitik East projects in north Sweden utilising SkyTEM's helicopter-borne SkyTEM312M system.

Quality control processes were applied as part of the data capture and Precision Geophysics Pty Ltd (Australia) completed initial data interpretation and reporting. See Table 1 and the JORC Table below for further details of the 2021 survey results in this release.

Exploration Target Model

The recent Vittangi graphite project DFS and Niska Scoping study concluded that an integrated graphite mine, concentrator and anode production facility is commercially positive ( ASX:TLG 7 December 2020 and ASX:TLG 1 July 2021 ). These studies were based on only a fraction of the existing defined JORC resources and ore reserves (market target constrained).

Given that the graphite units have not been closed off by drilling, they are open at depth and along strike of the existing JORC resources. Outcropping graphite units, returning up to 41.0% graphite in surface samples, have been mapped directly from these targets.

Talga exploration staff have compiled new and historic EM data and sampled and mapped the local and regional distribution of the graphite units 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 and the strike extent in between.

The Vittangi project JORC-compliant Exploration Target estimate is now 170-200Mt at 20-30% Cg, up from 26-46Mt at 20-30% Cg ( ASX:TLG 17 September 2020 ). See Table 4 for exploration target details.

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.

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Figure 5 SkyTEM survey flight lines and locations. Vittangi (top) and Aitik East (bottom).

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Table 1 Details of Helicopter-borne geophysical survey using the SkyTEM312 HP system.

Name	Spacing m	Direction (in-/tieline)	Number of Lines	Total Km
Vittangi	50 / 500	90 / 0 deg	148 / 11	724.8
Aitik East	50 / 100 (tie 1000)	95 / 5 deg	100 / 3	322.2
Total				1047.0

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 (ASX:TLG 17 September 2020). 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 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.

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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 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.

The Information in this announcement that relates to prior exploration results for the Vittangi graphite project is extracted from ASX announcements available to view on the Company’s website at www.talgagroup.com. The Company confirms that it is not aware of any new information or data that materially affects the exploration results included in the relevant original market announcements. The Company confirms that the form and context in which the Competent Person and Qualified Person’s findings are presented have not been materially modified from the relevant original market announcements.

The Information in this announcement that relates to prior exploration results for the Aitik East project is extracted from ASX announcements available to view on the Company’s website at www.talgagroup.com. The Company confirms that it is not aware of any new information or data that materially affects the exploration results included in the relevant original market announcements. The Company confirms that the form and context in which the Competent Person and Qualified Person’s findings are presented have not been materially modified from the relevant original market announcements.

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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 CODE, 2012 EDITION

Table 1 Section 1 Sampling Techniques and Data SkyTEM Survey, Talga AB, September 2021

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 30g 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.	• Assay type sampling does not apply to geophysical survey.
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.).	• No drilling applies to the exploration results of 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	• No drill sample recovery applies to this announcement

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
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.	• Electronic data logging involves the following steps: Filtering and processing of the laser altimeter heights and then DEM data is process received by subtraction of final filtered laser data from final processed GPS altitude data. • Logging is electronic and quantitative in nature. • This survey is comprised of 2 blocks containing a total of 1047.0 km flight lines, and infill lines. 724.8 km is flown at Vittangi and at Aitik, 322.2km of survey was completed.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representative nature to the 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.	• No assay sampling preparation applies.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control	• The airborne instrumentation comprising a SkyTEM312M system includes a time domain electromagnetic system, a magnetic data acquisition system and an auxiliary data acquisition system containing two inclinometers, two altimeters and three DGPS’. All instruments are mounted on a frame suspended ~40 m below the helicopter, the generator used to power the transmitter is suspended between the frame and the helicopter, ~30 m below the helicopter.

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	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.	• Control DGPS base stations were placed at a location of maximum possible view to satellites and away from metallic objects that could influence the GPS antenna. GPS processing involves a Precise Point Positioning (PPP) setup using the L2 band of the GPS rover. The PPP process eliminates the need of base station data and the improved precision obtained during the post-processing is based on correction and precision files which can be downloaded during the processing steps. DGPS base station data is only acquired for backup and was not used in the processing on this survey. • The base station magnetometer was placed in a location of low magnetic gradient, away from electrical transmission lines and moving metallic objects, such as motor vehicles and aircraft. involves the following steps: Filtering and processing of the laser altimeter height as described and DEM data received by subtraction of final filtered laser data from final processed GPS altitude data.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• The SkyTEM312M system setup is a dual moment configuration containing a High Moment (HM) with a peak moment of ~950,000 NIA and a Low Moment (LM) with a peak moment of ~3,000 NIA. • Data from two GPS receivers are recorded by the EM data acquisition system while a third GPS is recorded by the magnetic data acquisition system. • The GPS systems are used for time stamping, positioning, and correlation of the EM and magnetic datasets. • All recorded data are marked with a time stamp used to link the different data types. • To verify the performance of the SkyTEM312M system calibration and waveform repetition are carried out on site. • The SkyTEM312M system has been calibrated at the Danish National Reference site. • Calibration includes measurements of the transmitter survey data repeated at a range of altitudes at the reference site. The instrumentation can reproduce the reference site with the same set of calibration parameters independent of the flight altitude. All processed data are corrected according to the calibration parameters. • Final processing of the magnetic data involves the application of traditional corrections to compensate for diurnal variation effects. Geosoft magnetic data

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
		processing tools are applied as follows: Processing of static magnetic data acquired on the magnetic base station, Processing and filtering of airborne magnetic data, Standard corrections to compensate the diurnal variation, IGRF correction, Micro levelling and Gridding. • Micro-levelling of magnetic data occurs after applying the IGRF corrections to the magnetic data. Micro-levelling was applied as a standard procedure. The outcome of processed magnetic data after all corrections and levelling is the Residual Magnetic Field (RMF). Total magnetic intensity (TMI) is recalculated to an altitude as flown at a fixed level (0 m) by adding the IGRF regional field back to RMF on a fixed date for each individualpoint.
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 estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Grid system is Swedish Coordinate system UTM34N, re-projected to SWEREF99. • Topographic control has been established by deployment of GPS base stations. • Topographic control is to cm precision. • A digital elevation model (DEM) has been calculated by subtracting the filtered laser altimeter data from the GPS elevation. All steps related to the DEM are carried out Geosoft.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• The survey lines have a line spacing of 50 m in a E-W direction. The tie lines have a line spacing of 500 m in a N-S direction • The coordinate system UTM Zone UTM34N (WGS84) was used throughout this report, and in the data delivery. • The nominal terrain clearance of the transmitter is 30 - 40 m, with an increase over forests, power lines, or any other obstacles or hazards. The safe flying height during the survey is always based on the pilot’s assessment of risk and deviations from nominal values are at the discretion of the pilot. The nominal production airspeed was 70-110 kph for a flat topography with no wind. This may vary in areas of rugged terrain and/or windy conditions. • The GPS has been processed using the Waypoint GrafNav GPS processing tool. The standard airborne settings have been used. • The ground speed, altitude, latitude and longitude from the processed DGPS’ are imported into Geosoft and merged into the final database where the coordinates are converted into UTM Zone34N (WGS84) and a low pass filter of 3.0 sec is applied. • involves the following steps: Filtering and processing of the laser altimeter height as described above and DEM data received by

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
		subtraction of final filtered laser data from final processed GPS altitude data.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• Flight lines are approximately across strike for the Vittangi graphite mineralisation. • Orientation relative to possible mineralisation trend at Aitik is not known.
Sample security	• The measures taken to ensure sample security.	• The complete dataset of the SkyTEM survey is delivered as a Geosoft database (GDB) and a Geosoft xyz file, which can be used as input for further processing and gridding and as input to inversion and interpretation software.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• The result of a spatially constrained inversion (SCI) is delivered as a Geosoft database (GDB), Geosoft and xyz containing the modelled layer conductivity’s in SWERF99 into Maptek Vulcan TM, to integrate these data with existing drilling and assay.

Table 1 Section 2 Reporting of Exploration Results

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The Nunasvaara South deposit is located on licence Nunasvaara nr 2 and the Nunasvaara North, Nunasvaara East, Niska South and Niska North prospects located on Vittangi nr 2. All Vittangi project licences are owned 100% by the Company’s Swedish subsidiary, Talga AB. The Aitik East Project comprises exploration licence Suorravaara nr 4 owned 100% by the Company’s Swedish subsidiary, Talga Battery Metals AB. • The licences are wholly-owned by the Company and are located in semi forested areas. The area is used for seasonal grazing by local indigenous Sami reindeer herders. The Natura 2000 registered Torne River is located approximately 1km to the south of the current MRE for Nunasvaara South. • The licences are in good standing with the local miningauthority, Bergsstaten.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Graphite was first identified at Vittangi in 1898 and has received occasional exploration by private parties and the Swedish Geological Survey since that time. In the early 1980s, LKAB completed diamond drilling and test mining at Nunasvaara South and since then, the area has been explored by Anglo American and Teck Cominco for copper and base metals. • Copper, gold, silver and molybdenum mineralisation at Aitik East has been previously sampled and noted by Boliden, and held by Phelps Dodge in 2003 and by Norsve Resources PLC in 2012 but it is not known what exploration work if any was completed by either company.
Geology	• Deposit type, geological setting and style of mineralisation.	• The mineralisation at Vittangi comprises two sub-vertical, lithologically continuous units of semi-massive highly crystalline stratiform graphite mineralisation containing up to 50% graphitic carbon. The units range in thickness from ~10-100m. The hanging-wall is comprised of mafic volcano- clastics and tuffaceous units and the footwall is a mafic intrusive (dolerite- gabbro). The graphite units are regionally extensive over many kilometres and are interpreted to have developed in a shallow freshwater basin in the early Proterozoic (Circa 2.0 billion years). Subsequent deformation and domal intrusives have metamorphosed and tilted the units to the sub-vertical orientations present today. The majority of the graphite at Nunasvaara is veryfinegrained, highlycrystalline and very

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
		high grade. Metallurgical testwork and studies completed by the Company show a range of commercial graphite and graphene based products can be produced. • Mineralisation at Aitik East has been described as bornite, azurite, malachite, chalcopyrite and chalcocite and minor molybdenite hosted within intermediate volcanic porphyries, volcanoclastics and agglomerates. Lithium mineralisation is also hosted within tourmaline-bearing (elbaite) pegmatites within the volcanic host rocks.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all 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.	• No drillhole locations are used in this report • Prior drilling has been comprehensively reported in previous ASX releases related to the drilling results at Nunasvaara South, Nunasvaara North and Niska deposits.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and 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.	• Assay results are not reported. • Intercept assay results are not reported. • No metal equivalents are reported

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	• The geometry of the graphite mineralisation at Nunasvaara South, Nunasvaara North and Niska is well understood and the mapped flight survey has been completed near perpendicular to the strike of the mineralisation. • The geometry of any mineralisation at Aitik East is not known and orientation of the survey was best knowledge and appropriate for this stage.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• Diagrams are incorporated in the text.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• The report provides the total information available to date and is considered to represent a balanced report.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• Previous exploration results, including all drilling results and previous JORC Indicated and Inferred Mineral Resource Estimates, Probable Ore Reserve and a DFS for Nunasvaara South have been previously reported. Geochemical and other relevant exploration results have been previously reported for Aitik East.
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• At Vittangi further drilling of graphite targets along strike and deeper targets underneath the current resources are currently active, as is trial mining and anode product qualification production. At Aitik East further analysis of results is being undertaken to decide further work. • Diagrams highlighting the areas and targets for drill testing are included in this and previous reports.