TALGA GROUP LTD — Capital/Financing Update 2021

Mar 7, 2021

ASX Release 8 March 2021 ASX:TLG

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Talga's Graphene Ship Coating Reaches Key Milestone in Sea Trials

• World’s largest graphene application successfully weathers 1st year of commercial sea trials on hull of 33,000 tonne cargo ship

• Talga's Graphene-additive Talcoat[®] product proves tough in 15 months of highly corrosive, real world conditions using environmentally friendly and sustainable Swedish graphite feedstock

• Talcoat[®] enhanced coatings offer potential to inhibit corrosion without use of current metals and chemicals toxic to the environment - sea trials are ongoing

Battery anode and graphene company Talga Group Ltd (“ Talga ” or “ the Company ”) ( ASX:TLG ) is pleased to provide an update on the commercial scale trials of its Talcoat[®] graphene additive for marine coatings.

The Talcoat[®] -enhanced primer coating was first applied to a 33,000t container ship late in 2019 ( ASX:TLG 4 Nov 2019 ) in the world’s largest single application of graphene. The commercial scale trial was later extended to include a second similar sized container ship ( ASX:TLG 17 Dec 2019 ). On the first ship, Robin 1 (previously Algarrobo), visual inspection over 15 months service indicates the Talcoat[®] product is matching or exceeding commercial standard.

Commenting on the milestone, Talga Managing Director Mr Mark Thompson said : " We are very pleased to see this large scale demonstration of Talga's graphene successfully working in the tough conditions of commercial shipping. Additionally, as we can now produce our graphene as a by-product of our battery anode manufacturing process, we are demonstrating a global leading lowcost and scalable graphene additive supply for large volume industrial products. "

Figure 1. The 33,000t cargo ship Robin 1 (previously Algarrobo) recently docking in UK port

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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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Figure 2. Port-side Talcoat[®] application area and reference area after 15 months service on Robin 1

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Due to travel and access restrictions, including change in ownership of the two cargo ships, detailed physical testing of Robin 1 and review of the second ship coating is yet to be completed. Further testing is expected to commence when access is reinstated, meanwhile the sea trials of Talga's graphene coating on both ships continue during the ships’ active service.

Next Steps

The positive results and growing market interest has encouraged Talga to extend the range of its graphene Talcoat[®] products, which focus on replacing toxic chemicals and metals [1] with more environmentally friendly carbon-based graphene.

Talcoat[®] products now in various stages of development include large volume applications in antifoul marine coatings, barrier coatings for packaging, anti-bacterial coatings for metals and plastics, and anti-corrosion coatings for large volume metal parts/fasteners. Updates across completed work in these application areas are to follow as development progresses.

Authorised for release by:

Dean Scarparolo Company Secretary Talga Group Ltd T: +61 (0) 8 9481 6667

For further information please contact:

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

Nikki Löf Marketing & Investor Relations Coordinator Talga Group Ltd T: +61 (0) 8 9481 6667

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1 https://wwf.panda.org/discover/our_focus/oceans_practice/problems/shipping/antifouling_paints/

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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