VOLT RESOURCES LIMITED — Regulatory Filings 2016

Jan 10, 2016

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ASX ANNOUNCEMENT By e-lodgement 11 January 2016

EXCEPTIONAL SUPER JUMBO AND JUMBO FLAKE GRAPHITE METALLURGICAL RESULTS CONTINUE

Highlights:

• Results from diamond core flake size distribution, RC drilling grade and rock chip flake size distribution now received

• Exceptional flake size results from the first 3 of 9, diamond core holes confirming favourable mass distributions in the premium priced categories of Super Jumbo +600 microns, Jumbo +300 microns and Large +180 microns flake graphite

• Results from flake size distribution testing of graphite schist samples from Namangale 1, 2 and 3 show excellent results including up to 96.6% distribution in the Super Jumbo +500 microns, Jumbo +300 microns and Large +180 microns flake size categories

• RC assay results from Namangale 1 confirm wide intervals of mineralisation, over 3.2km of strike length currently drilled remaining open in all directions

• JORC modelling will be calculated on cut-off grade of 3.0% occurring as coherent zones with a mineralised schist unit with grades up to 16.0% TGC. JORC Resource results are imminent

• Discussions with a number of specialist companies with regards to initiating a Prefeasibility study (PFS) on the Namangale projects are now underway

• Mozambi is reviewing requests from potential off take partners and end user groups requesting sample product

Introduction

Mozambi Resources Limited (ASX: MOZ, “ Mozambi”, “the Company” ) is extremely pleased to announce exceptional metallurgical results from both the diamond and RC drilling campaign recently completed, noting Super Jumbo and Jumbo Flake mineralisation at Namangale 1, 2 and 3. The results highlighted outstanding distribution of up to 96.6% confirmed in categories of Super Jumbo, Jumbo and Large flake graphite and the RC drilling results auger well for the JORC resource. Initial metallurgical results at all three working areas indicate the graphite is easily liberated from the host rock at a coarse crush size of 1mm. RC drilling results have now been returned and confirm wide intervals of mineralisation over a strike length of 3.2km at Namangale 1 and resource modelling is indicating a substantial graphite resource is present at Namangale. Metallurgical test work of the diamond core is continuing with further results to be released as they come to hand.

Mozambi Chairman, Stephen Hunt commented, “The distribution results confirming Super Jumbo and Jumbo Flake graphite at Namangale deposits 1, 2 & 3 are a tremendous validation of the excitement that the Board has for the Namangale project. These excellent flake size results combined with the consistent mineralisation grade are essential to maximising revenue and enabling the fast tracking of this project into production.

Figure 1 shows the location of the Namangale Project tenements and the main graphite prospects that have been identified to date of the Company’s tenement package. Mozambi has continued to build on its dominant tenement position in the world-renowned graphite rich region of Tanzania.

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Figure 1 Location of the Namangale Project tenements

Namangale Chip Flake Size Distribution Results

Flake size distribution results from graphite schist samples from the Namangale 1, 2 and 3 deposits have returned exceptional flake size results with up to 37.9% Super Jumbo size of larger than 500µm and low proportions of fine and amorphous graphite. The best result from Namangale 2 returned a flake size distribution of 96.6% in the Large, Jumbo and Superjumbo categories.

Table 1 - Graphite Chip Flake Size Distributions Namangale

Flake Size	Flake Size Distribution (%)
Deposit	Namangale 1				Namangale 2	Namangale 3
(µm)	NMG01a	NMG01b	NMG02a	NMG02b	CWG01	CHG01	CHG02
> 500 (Super Jumbo)	35.6	25.8	13.4	23.1	29.4	29.0	37.9
300-500 (Jumbo)	16.9	48.1	47.2	25.0	44.7	37.7	39.0
180-300 (large)	19.4	17.9	23.1	18.5	22.5	21.6	14.8
150-180 (medium)	4.8	2.0	3.7	4.9	1.2	3.1	2.3
75-150 (fine)	9.9	4.1	7.8	12.2	1.6	6.0	4.0
-75 (amorphous)	13.5	2.1	4.8	16.2	0.7	2.6	2.0
Total	100.0	100.0	100.0	100.0	100.0	100.0	100.0

Results of Optical Microscopy Examination

Further Optical Microscopy results carried out by ALS Metallurgy based in Perth Western Australia from Namangale 1, confirm large flake sizes are present at Namangale 1 and are comparable to previously announced results from Namangale 2 and 3. ALS initially crushed the samples top pass through a 3.35mm screen and then screened the sample through a 1mm and 0.5mm screen. This process created three size fractions, which were individually examined. Images of graphite mineralisation from each of the size fractions are shown in Figures 2a-2c. The key findings were that the graphite flakes in the larger size fraction were unliberated from the host rock. Graphite flakes in the 1mm to 0.5mm size fraction were mostly liberated as can be seen in Figure 2b and frequently contained large graphite flakes up to 1,000 microns in size. In the sub 0.5mm fraction the graphite flakes were well liberated as can be seen in Figure 2c and frequently contained graphite flakes between 450 microns and 800 microns. These results were produced with no chemical processing and indicate mineralisation from this area has the potential to achieve excellent levels of graphite concentration using a low cost flotation separation without crushing to fine particle sizes or using chemical treatments.

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Figure 2a Sample from Namangale 1 Figure 2b sample from Namangale 1 showing Figure 2c sample from Namangale 1 showing showing unliberated graphite flakes mostly liberated graphite flakes up to 1000 well liberated graphite flakes microns in size

Metallurgical Results from Diamond Core Composites

Initial mass distribution results from the first 3 diamond core composites have been returned showing high mass proportions in the larger size fractions. The mass fractions are currently being assayed to determine the proportion of graphite contained in each size fraction.

Table 2 - Mass Distributions from Diamond Core Composites

	Namangale 1 NMDD0003 **11m-20m **	Namangale 1 NMDD0003 **11m-20m **	Namangale 2 CWDD0001 **24.05m-32.5m **	Namangale 2 CWDD0001 **24.05m-32.5m **	Namangale 3 BLDD0001 2.7m-19.7m	Namangale 3 BLDD0001 2.7m-19.7m
Size Fraction	Mass		Mass		Mass
	g	%	g	%	g	%
**+600µm **	251.43	53.16	145.71	44.49	237.43	49.74
**+300µm **	72.99	15.43	77.52	23.67	90.96	19.06
**+180µm **	49.63	10.49	37.11	11.33	54.06	11.33
**+75µm **	47.73	10.09	35.29	10.78	54.42	11.40
**-75µm **	51.2	10.82	31.86	9.73	40.43	8.47
Total	472.98	100.00	327.49	100.00	477.30	100.00

Results of RC Drilling and JORC Modelling

The results of RC drilling have now been returned and confirm wide intervals of graphite mineralisation is present over 3,200m in strike length and the deposit remains open in all directions. The results of the RC drilling program are highly encouraging and compare favourably to other large flake graphite deposits in Tanzania. Modelling of the results of the drilling is progressing well and the company expects to be in a position to announce its maiden JORC resource later in January. A table of significant intervals is shown in Appendix 1, while the location of the significant intervals are shown in Figures 3, 4 and 5.

A total of 82 RC holes for a total of 4,472 metres have now been drilled at the Namangale 1, 2 and 3 prospects. The drilling targeted areas of outcropping graphite schist mineralisation occurring coincident with anomalies identified by ground EM surveys. Drilling was completed using vertical holes into the mineralisation at Namangale 1 and 3 with holes inclined 60 degrees to the south in Namangale 2. After drilling, all three deposits are interpreted to be gently undulating flat lying graphite schist units which accords with both the geological mapping and the results of the three EM surveys covering the deposits. A total of 10 diamond drill holes were also drilled for a total of 535.2m, twinning mineralised RC holes in order to obtain representative samples for metallurgical test work. JORC modelling will be calculated on medium to high grade assays with a 3% cut-off, received noting grades up to 16.0%

Geological maps of the Namangale 1, 2 and 3 deposits can be seen in Figures 3, 4 and 5 showing the location of the metallurgical samples and the drill hole collar locations for both the RC and Diamond drilling completed to date. All three deposits are interpreted to be generally flat lying with gently undulating folding with varying levels of outcrop.

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Figure 3 Geological Mapping and the Collar Location of the Drilled Completed at Namangale

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Figure 4 Geological Mapping and the Collar Location of the Drilled Completed at Namangale 2

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Figure 5 Geological Mapping and the Collar Location of the Drilled Completed at Namangale 3

Corporate

Mozambi Resources is reviewing requests from potential off take partners including end-user groups requesting sample product. A number of these requests have now been received and will be carefully reviewed by the Board.

In addition to this, the Company is currently in discussions with a number of specialist companies with regards to initiating a Pre-feasibility study (PFS) on the Namangale projects.

The market will be kept informed of any material developments with regards to these discussions.

Existing Infrastructure

Mozambi Resources enjoys excellent infrastructure, with the deep-water Mtwara Port only 140km from the Namangale Prospect. Power and sealed roads are available 10km from the deposit location. The existing sealed road connects all the way to port. Figure 9 shows the port, which has existing present capacity of 400,000 metric tonnes per annum and could handle up to 750,000 metric tonnes per annum with the same number of berths if additional equipment is put in place for handling containerised traffic[i] . The port is currently heavily underutilised, with only approximately 34% of its existing capacity being utilised[ii] .

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Figure 9 shows the deep-water Mtwara Port

Conclusion

The Board of Mozambi Resources considers the results to date continue to indicate that the Namangale Prospect is rapidly emerging as a potential world class graphite deposit. Wide intervals of graphite schist mineralisation have now been confirmed by drilling over extensive areas and initial metallurgical testing continues to produce excellent results. Mozambi is now focused on completing the Company’s maiden JORC Resource and proving up the potential of the project to produce high quality Jumbo and Super Jumbo flake graphite, which continues to attract premium pricing and very strong customer demand.

For and on behalf of Mozambi Resources Limited

Alan Armstrong Mozambi Resources Ltd Managing Director

Competent Person

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Matt Bull, a Competent Person who is a member of Australian Institute of Geoscientists. Mr Bull is a Director of Mozambi Resources. Mr Bull has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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’. Matt Bull consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

i http://www.tanzaniaports.com/index.php?option=com_content&view=article&id=131&Itemid=290

ii http://allafrica.com/stories/201407211545.html

Appendix 1 Significant Intercepts from Namangale Drilling Program

Hole ID	Easting	Northing	Dip/Azi	RL	Depth	From	To	Interval	TGC
NMRC0001	517279	8861794	-90/0	323	85	0	73	73	5.0
Including						0	9	9	7.5
NMRC0002	517159	8861899	-90/0	298	78	10	31	21	5.0
Including						24	31	7	6.4
And						35	40	5	5.0
And						44	55	11	5.5
Including						44	51	7	6.6
And						68	78	10	4.8
NMRC0003	517038	8862004	-90/0	324	100	33	100	67	5.2
including						43	52	9	8.6
NMRC0004	516917	8862109	-90/0	306	94	33	39	6	5.1
And						61	73	12	5.1
And						83	90	7	5.3
NMRC0005	516796	8862214	-90/0	297	49	3	11	8	4.8
NMRC0007						18	28	10	5.3
NMRC0008	517521	8861584	-90/0	314	28	0	9	9	5.3
And						11	15	4	5.6
NMRC0009	517642	8861479	-90/0	328	82	2	12	10	4.3
NMRC0010	517762	8861374	-90/0	310	43	7	33	26	6.4
Including						7	20	13	7.8
Including						25	33	8	7.1
NMRC0011	517883	8861269	-90/0	310	16	0	4	4	7.2
NMRC0013	517491	8862145	-90/0	328	73	3	64	61	5.1
NMRC0014	517602	8862043	-90/0	312	37	19	26	7	4.0
NMRC0015	517723	8861938	-90/0	307	49	17	24	7	5.0
NMRC0016	517840	8861830	-90/0	325	64	14	25	11	4.7
NMRC0017	517359	8862255	-90/0	334	40	4	12	8	3.5
NMRC0018	517241	8862352	-90/0	330	61	6	44	38	5.0
Including						7	16	9	6.7
And						51	55	4	5.0
NMRC0019	517122	8862473	-90/0	314	52	0	20	20	5.1
NMRC0020	517014	8862564	-90/0	314	30	7	20	13	5.7
Including						9	14	5	6.3
NMRC0021	517144	8861388	-90/0	321	82	13	82	69	5.6
Including						32	48	16	8.2
Including						52	62	10	7.4
NMRC0022	517024	8861490	-90/0	282	94	9	68	59	5.0

Including						57	66	9	7.4
And						76	93	17	6.0
Including						84	91	7	7.1
NMRC0023	516897	8861591	**-90/0 **	300	49	13	31	18	4.8
NMRC0024	517259	8861287	**-90/0 **	307	34	1	10	9	3.3
NMRC0027	517623	8860971	**-90/0 **	300	49	0	5	5	3.6
NMRC0028	517745	8860855	**-90/0 **	322	43	14	27	13	4.0
NMRC0031	518101	8860546	-90/0	320	82	22	32	10	4.0
And						78	82	4	5.4
NMRC0035	517494	8860573	-90/0	309	70	0	8	8	5.0
NMRC0039	516875	8861085	-90/0	312	81	15	27	12	6.3
Including						17	26	9	7.2
And						38	65	27	5.3
Including						45	52	7	6.1
Including						54	60	6	6.8
NMRC0040	516755	8861190	-90/0	317	61	15	33	18	6.0
Including						15	24	9	6.5
And						44	53	9	5.1
NMRC0041	516634	8861295	-90/0	310	88	41	59	18	5.5
And						77	88	11	7.0
Including						80	88	8	7.7
NMRC0042	516513	8861400	-90/0	300	64	8	24	16	5.8
Including						11	20	9	6.7
NMRC0046	516775	8861702	-90/0	306	52	15	24	9	5.9
And						33	44	11	5.1
NMRC0049	516794	8860680	-90/0	300	73	10	73	63	5.6
Including						11	19	8	6.5
Including						23	38	15	6.1
Including						59	71	12	6.1
NMRC0050	516920	8860521	-90/0	233	73	10	26	16	6.5
Including						11	20	9	7.1
And						31	69	38	6.1
Including						32	42	10	8.1
Including						50	62	12	6.7
NMRC0051	517285	8860205	-90/0	322	67	6	17	11	5.8
And						20	28	8	5.0
And						50	62	12	4.9
NMRC0052						1	5	4	5.1
And						12	19	7	5.1
NMRC0054	516912	8860015	-90/0	300	55	37	53	16	5.0
NMRC0055	517132	8859807	-90/0	289	55	3	18	15	5.5
Including						8	14	6	6.8
NMRC0057	516410	8860429	-90/0	297	79	7	24	17	5.0

						48	63	15	4.0
NMRC0060	516024	8860239	-90/60	298	46	4	7	3	4.7
NMRC0061	517615	8862553	-90/60	326	49	17	34	17	3.5
CWRC0003	500960	8830513	-60/210	598	31	7	11	4	3.9
CWRC0004	501005	8830583	-60/210	625	60	24	27	3	3.9
And						29	31	2	6.9
And						32	34	2	3.6
CWRC0005	501044	8830647	-60/210	613	64	35	40	5	5.0
CWRC0006	501085	8830712	-60/210	639	88	39	44	5	5.0
CWRC0007	500739	8830921	-60/210	629	64	46	49	3	4.0
CWRC0008	500699	8830853	-60/210	613	49	21	29	8	4.9
Including						24	29	2	5.9
CWRC0009	500657	8830770	-60/210	606	58	2	4	2	6.0
CWRC0014	500785	8831002	-60/210	630	52	16	19	3	5.2
CWRC0016	501355	8830388	-60/210	611	76	58	68	10	3.4
CWRC0017	501316	8830321	-60/210	632	73	42	48	6	3.7
And						54	57	3	3.4

JORC Code, 2012 Edition Table 1

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Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	 Nature and quality of sampling (eg cut	Sampling was carried out using RC
techniques	channels, random chips, or specific	Drilling using 1m samples. The full
	specialised industry standard measurement	1m interval was collected before
	tools appropriate to the minerals under	being weighed then riffle spilt into
	investigation, such as down hole gamma	samples weighing approximately
	sondes, or handheld XRF instruments, etc).	1.5kg.
	These examples should not be taken as	All samples were geologically logged
	limiting the broad meaning of sampling.	by a suitably qualified geologist and
	 Include reference to measures taken to	mineralized intercepts selected for
	ensure sample representivity and the	assay at SGS in Johannesburg
	appropriate calibration of any measurement	South Africa.
	tools or systems used.	For the diamond core samples sent
	 Aspects of the determination of	for flake size analysis the core was
	mineralisation that are Material to the Public	logged for material type and
	Report.	mineralized zones sampled
	 In cases where ‘industry standard’ work has	according to material type. These
	been done this would be relatively simple	were then crushed to 1mm and then
	(eg ‘reverse circulation drilling was used to	split into the respective size fractions
	obtain 1 m samples from which 3 kg was	Assay data for each of the size
	pulverised to produce a 30 g charge for fire	fractions is still outstanding.
	assay’). In other cases more explanation	For the rock chip samples used for
	may be required, such as where there is	metallurgical test work, mineralized
	coarse gold that has inherent sampling	samples were selected over
	problems. Unusual commodities or	outcropping areas of each of the
	mineralisation types (eg submarine	deposits. 2-3kg samples were then
	nodules) may warrant disclosure of detailed	crushed to 1mm and split into the
	information.	respective size fractions and assayed
		to determine the proportion of
		graphite in each size fraction.
Drilling	 Drill type (eg core, reverse circulation,	RC Drilling is being conducted by
techniques	open-hole hammer, rotary air blast, auger,	JCIL Drill. Bit diameter was 4.5
	Bangka, sonic, etc) and details (eg core	inches face sampling bit.
	diameter, triple or standard tube, depth of	Diamond Drilling was conducted by
	diamond tails, face-sampling bit or other	JCIL drill using HQ core diameter
	type, whether core is oriented and if so, by	triple tube.
	what method, etc).
Drill sample	 Method of recording and assessing core	RC Recovery was recorded by
recovery	and chip sample recoveries and results	weighing the recovered sample
	assessed.	before splitting. Sample size was
	 Measures taken to maximise sample	found to be consistent.
	recovery and ensure representative nature	Diamond drill recovery was excellent
	of the samples.	as is therefore not expected to
	 Whether a relationship exists between	influence grade.
	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	Logging was carried out on each of
	geologically and geotechnically logged to a	the samples including lithology,
	level of detail to support appropriate Mineral	amount of weathering by a suitably
	Resource estimation, mining studies and	qualified geologist.
	metallurgical studies.	Data is initially conducted on paper
	 Whether logging isqualitative or	loggingsheets and is then

1

JORC Code, 2012 Edition Table 1

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Criteria	JORC Code explanation	Commentary
	quantitative in nature. Core (or costean,	transferred to excel logging sheets
	channel, etc) photography.	Logging is semi-quantitative based
	 The total length and percentage of the	on visual estimation.
	relevant intersections logged.
Sub-	 If core, whether cut or sawn and whether	RC samples were taken at 1m
sampling	quarter, half or all core taken.	intervals and then split into 1.5kg
techniques	 If non-core, whether riffled, tube sampled,	samples with a reference sample
and sample	rotary split, etc and whether sampled wet or	also taken.
preparation	dry.	All RC intervals were geologically
	 For all sample types, the nature, quality and	logged and mineralized intervals
	appropriateness of the sample preparation	selected for sampling at SGS in
	technique.	Johannesburg
	 Quality control procedures adopted for all	Duplicate samples were taken at a
	sub-sampling stages to maximise	ratio of 1 in 20 by retaining the final
	representivity of samples.	riffle split
	 Measures taken to ensure that the sampling	QC measures also include blank
	is representative of the in situ material	samples and certified standards both
	collected, including for instance results for	of which are inserted at a ratio of
	field duplicate/second-half sampling.	1:20. SGS also has its own internal
	 Whether sample sizes are appropriate to	QA/QC controls to ensure assay
	the grain size of the material being	quality
	sampled.	All sampling was carefully supervised
		with ticket books containing pre-
		numbered tickets placed in the
		sample bag and double checked
		against the ticket stubs and field
		sample sheets to guard against mix
		ups
Quality of	 The nature, quality and appropriateness of	Blanks, duplicated and certified
assay data	the assaying and laboratory procedures	standards were inserted by the
and	used and whether the technique is	company at a ratio of 1:20.
laboratory	considered partial or total.	The samples were sent to Mwanza in
tests	 For geophysical tools, spectrometers,	Tanzania for sample preparation
	handheld XRF instruments, etc, the	before being were sent to South
	parameters used in determining the	Africa for analysis for Total Graphitic
	analysis including instrument make and	Carbon (TGC) using the method
	model, reading times, calibrations factors	GRAP_CSA05V LECO Total Carbon
	applied and their derivation, etc.	The TGC analysis has been carried
	 Nature of quality control procedures	out by an industry accepted and
	adopted (eg standards, blanks, duplicates,	recognized laboratory - SGS
	external laboratory checks) and whether	TGC is the most appropriate method
	acceptable levels of accuracy (ie lack of	of Analysis for graphitic carbon.
	bias) and precision have been established.	SGS inserted its own standards and
		blanks.
Verification	 The verification of significant intersections	Data was recorded by the sampling
of sampling	by either independent or alternative	geologist and stored in the
and assaying	company personnel.	company’s master spreadsheet. The
	 The use of twinned holes.	samples are transported to the SGS
	 Documentation of primary data, data entry	Lab in Mwanza for initial preparation
	procedures, data verification, data storage	before SGS transported for Assay at
	(physical and electronic) protocols.	their lab in Johannesburg, South
	 Discuss any adjustment to assay data.	Africa.
		Twin holes were completed to test
		the repeatability of the RC assay
		results however results from the

2

JORC Code, 2012 Edition Table 1

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Criteria	JORC Code explanation	Commentary
		Diamond core sampling are still
		outstanding.
		No adjustments were made to the
		assay data
Location of	 Accuracy and quality of surveys used to	 Digital GPS survey was used to
data points	locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	precisely identify the position of all drill-hole collars (xy horizontal error of 1-2 meters) and reported using
	 Specification of the grid system used.  Quality and adequacy of topographic	ARC 1960 grid and UTM datum zone 37 south.
	control.
Data spacing	 Data spacing for reporting of Exploration	Drill spacing was mostly carried out
and	Results.	on a pattern of 400m by 160m with
distribution	 Whether the data spacing and distribution is	some areas of wider spacing of 800m
	sufficient to establish the degree of	by 320m at Namangale 1
	geological and grade continuity appropriate	Drill spacing at Namangale 2 was
	for the Mineral Resource and Ore Reserve	carried out on 400m by 80m
	estimation procedure(s) and classifications	Two Diamond holes were drilled at
	applied.	80m spacing at Namangale 3
	 Whether sample compositing has been	Data spacing is considered close
	applied.	enough to establish a good degree of
		geological confidence and will be
		used to calculate a JORC compliant
		Resource.
		No compositing has been applied for
		the RC drilling
		Diamond drilling was used to twin
		two holes at Namangale 1 and 2.Two
		holes 80 meters apart were used to
		target outcropping mineralisation at
		Namangale 3. The Core was cut into
		Quarters and samples for TGC in
		one meter intervals to compare with
		the adjacent RC twin holes. The
		results of these samples are still
		outstanding. Metallurgical sampling
		was carried out compositing the
		mineralized intervals.
Orientation	 Whether the orientation of sampling	Surface mapping and interpretation
of data in	achieves unbiased sampling of possible	of ground EM data was used to orient
relation to	structures and the extent to which this is	the drill lines to get the most
geological	known, considering the deposit type.	unbiased sampling of the
structure	 If the relationship between the drilling	mineralisation.
	orientation and the orientation of key	Drilling was planned to intersect the
	mineralised structures is considered to	mineralization as close as possible to
	have introduced a sampling bias, this	right angles. Results indicate the drill
	should be assessed and reported if	holes intersect the mineralisation at
	material.	between 70-90 degrees.
Sample	 The measures taken to ensure sample	Transportation is carried out by
security	security.	company staff driving the samples to
		the preparation Lab in Mwanza
		directly from site
Audits or	 The results of any audits or reviews of	No audits or reviews have yet been
reviews	sampling techniques and data.	under taken

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JORC Code, 2012 Edition Table 1

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number,	 The prospecting license PL10644
tenement and land tenure status	location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical	containing the Namangale 2 deposit was granted on the 9th of July 2015 for a period of four years for the exploration of Graphite. The area covered by the
	sites, wilderness or national park	prospecting licenses is 198.02km2.
	and environmental settings.	PL10644 License is situated in the Ruangwa
	 The security of the tenure held at	and Masasi districts. The PL Straddle the
	the time of reporting along with any known impediments to obtaining a licence to operate in the area.	boundary of the Lindi and Mtwara regions of south-east Tanzania. While the prospecting license PL10718 containing the
		Namangale 1 Prospect was granted on the
		18th of July 2015 for a period of four years
		for the exploration of Graphite. The area
		covered by the prospecting license is
		239.17km2. The License is situated in the
		Ruangwa District The License is located
		within the Lindi region of south-east
		Tanzania. While the prospecting license
		PL10717 containing the Namangale 3
		Prospect was granted on the 18thof
		September 2015 for a period of four years
		for the exploration of graphite. The area
		covered by the prospecting license is
		located within the Mtwara region of south
		east Tanzania. The area covered by this
		prospecting license is 142.84km2
		 The PL’s are held by Nachi Resources Ltd,
		which in turn is 100% owned by Mozambi
		Resources. The surface area is
		administered by the Government as native
		title. The area is rural, with wilderness
		areas and subsistence farming occurring on
		the PL’s. The Tenements are subject to a
		3% royalty on production to the previous
		owners of Nachi Resources, which can be
		reduced to 1.5% under an agreement with
		the previous owner. There are no other
		known issues that may affect the tenure.
Exploration	 Acknowledgment and appraisal of	There is no written record of previous
done by other	exploration by other parties.	exploration available for this area known to
parties		Mozambi Resources, The location of some
		graphite outcrops on the PL’s was known
		by the previous owners.

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JORC Code, 2012 Edition Table 1

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Criteria	JORC Code explanation	Commentary
Geology	 Deposit type, geological setting	 The exploration targets occur in the
	and style of mineralisation.	basement rocks of the Mozambique belt
		system which principally comprise
		metamorphic rocks ranging from schist to
		gneisses including marbles, amphibolites,
		graphitic schist, mica and kyanite schist,
		acid gneisses, hornblende, biotite and
		garnet gneisses, quartzites, granulites, and
		pegmatite veins.Initial exploration has
		focused on areas where there no overlying
		younger sedimentary sequences remaining.
Drill hole	 A summary of all information	A summary of this information including;
Information	material to the understanding of	eastings and northings of drill hole collars,
	the exploration results including a	RL, dip/azimuth, down hole length and hole
	tabulation of the following	length are provided in tables Appendix 1.
	information for all Material drill	Maps for each of the deposits are shown in
	holes:	figures 3, 4 and 5 which show the location
	o easting and northing of the drill	of all of the samples reported in this
	hole collar	announcement over the mapped geology of
	o elevation or RL (Reduced Level	each of the deposits.
	– 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,	All RC results are from 1m sampling and no
aggregation	weighting averaging techniques,	weighting was applied.
methods	maximum and/or minimum grade	Cut-off grade of 3% was used, where the
	truncations (eg cutting of high	interval contained lower grades zones this
	grades) and cut-off grades are	was not removed and incorporated into the
	usually Material and should be	significant intercept.
	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.

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JORC Code, 2012 Edition

Table 1

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Criteria	JORC Code explanation	Commentary
Relationship	 These relationships are particularly	Drill lines are planned to be as close as
between	important in the reporting of	possible to right angles to the mapped
mineralisation	Exploration Results.	mineralization.
widths and	 If the geometry of the	The width of mineralization ranges from
intercept	mineralisation with respect to the	close to 100% of the intercepts to
lengths	drill hole angle is known, its nature	approximately 85% of the interval as the
	should be reported.	mineralization is gently folded. Closer
	 If it is not known and only the down	spaced drilling is required to find the exact
	hole lengths are reported, there	relationship.
	should be a clear statement to this
	effect (eg ‘down hole length, true
	_width not known’). _
Diagrams	 Appropriate maps and sections	A drill-hole plan is provided in Figures 3,4
	(with scales) and tabulations of	and 5 showing the relationship between the
	intercepts should be included for	assay results.
	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.
Balanced	 Where comprehensive reporting of	All significant intercepts are reported,
reporting	all Exploration Results is not	mineralisation less than 3% is not
	practicable, representative	considered material given the Resource
	reporting of both low and high	cut-off grade is 3%
	grades and/or widths should be
	practiced to avoid misleading
	reporting of Exploration Results.
Other	 Other exploration data, if	Previous results from Namangale 1, 2 and
substantive	meaningful and material, should be	3 include Ground EM surveys, mapping,
exploration	reported including (but not limited	trenching, rock chip sampling all of the
data	to): geological observations;	results of this work were previously
	geophysical survey results;	reported. The announcement also includes
	geochemical survey results; bulk	a simplified geological map of the area
	samples – size and method of	showing all significant intercepts.
	treatment; metallurgical test
	results; bulk density, groundwater,
	geotechnical and rock
	characteristics; potential
	deleterious or contaminating
	substances.
Further work	 The nature and scale of planned	A Resource estimate is currently being
	further work (eg tests for lateral	carried out based of the results of the
	extensions or depth extensions or	current drilling program reported in this
	large-scale step-out drilling).	announcement. Further work is expected to
	 Diagrams clearly highlighting the	include infill drilling to upgrade the category
	areas of possible extensions,	of the Resource as well as further diamond
	including the main geological	drilling to obtain more representative
	interpretations and future drilling	samples for metallurgical test work.
	areas, provided this information is
	not commercially sensitive.

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