VOLT RESOURCES LIMITED — Capital/Financing Update 2021

Apr 26, 2021

==> picture [315 x 87] intentionally omitted <==

ASX ANNOUNCEMENT

By e-lodgement

27 April 2021

Binding Share Purchase Agreements Signed to Acquire 70% Shareholding in European Graphite Producer

Highlights

• Volt has entered into binding Share Purchase Agreements to acquire a 70% interest in the Zavalievsky Graphite business located in the Ukraine

• The completion of the acquisition will position Volt significantly ahead of most of its peer graphite companies to become a graphite producer without the usual greenfield financing and development risk

• Key features of the Zavalievsky Graphite business include:

• Production of graphite products to supply traditional European industrial markets including refractories, electrodes, lubricants, gaskets/seals, brake linings, etc.

• Potential to become a producer of spherical purified graphite for Li-ion battery anode market in the near term

• Other existing and potential positive cash flow generating mineral products from the graphite mine, including production of crushed rock for use in road construction and concrete as well as industrial grade garnet

• Excellent transport infrastructure with direct access to road and rail, nearby river transport and ocean freight through the main Ukraine port of Odessa

• Low labour costs, grid power, ample potable water and good communications

• Experienced technical, operations and marketing personnel

3457-8120-3220v1Volt Resources Ltd ACN 106 353 253 Level 25, 108 St George’s Terrace, Perth WA 6000 Telephone: +61 (0)8 9486 7788

• The Zavalievsky Graphite business also has a 79% interest in 636 hectares of land upon which the mine, processing plant, other buildings and facilities are located

• Opportunity to become a key participant in the European EV battery value chain leveraging the benefits of membership of the European Battery Alliance

• Total purchase price of US$7.6 million, payable in two equal amounts

• Acquisition remains subject to completion of satisfactory due diligence enquiries

Graphite and gold explorer and developer Volt Resources Limited ( ASX: VRC ) (“ Volt” or the “Company” ) is pleased to advise it has signed binding Share Purchase Agreements to acquire a 70% interest in the Zavalievsky group of companies (“ ZG Group ”). The graphite mine and processing facilities are located adjacent to the town of Zavallya, approximately 280 kilometres south of the Ukraine capital Kyiv and 230 kilometres north of the main port of Odessa.

Volt Managing Director, Trevor Matthews commented “The signing of the binding Share Purchase Agreements is a significant step forward for Volt in its ambition to be a graphite producer.

The acquisition of a controlling interest in the ZG Group positions Volt years ahead of its peer graphite companies and without the usual development risks associated with a greenfield project.”

“As previously stated by Volt’s Chairman, Asimwe Kabunga, this is a rare opportunity to acquire an existing graphite business located in Europe at a fraction of the development cost of a new project.

Following Volt’s recently announced membership of the European Battery Alliance providing Volt with access to business development opportunities and a business investment platform, the ZG Group acquisition has the potential to make Volt a key participant in the supply of graphite and battery anode materials into the growing European market with excellent access to other markets in the USA and Middle East.”

Advantages of the proposed transaction for Volt

The acquisition of a controlling 70% interest in the ZG Group would immediately transform Volt into one of the few ASX-listed graphite producers.

Importantly, the Zavalievsky Graphite business has the following significant advantages for Volt:

• Located in Eastern Europe, the Zavalievsky Graphite business is in close proximity to key markets with significant developments in Lithium-ion Battery (“ LIB ”) facilities planned to service the European based car makers and renewable energy sector.

• Plans to produce battery anode material using existing graphite production to become a fully integrated supplier to LIB cell makers based in Europe

• Makes graphite products across the range and has the potential to significantly increase its large flake production.

• Produces a high value “green” purified 99.5% TGC (total graphitic content) product.

• Long life multi-decade producing mine that has further exploration upside.

• Existing customer base and graphite product supply chains which Volt expects to be able to leverage off in developing its existing Bunyu graphite project in Tanzania.

• Excellent transport infrastructure covering road, rail, river and sea freight combined with reliable grid power, ample potable ground water supply and good communications.

• An experienced workforce which can assist with training, commissioning and ramp-up for the Bunyu development. This is a key risk for financiers and could materially assist the ability to finance the Company’s Bunyu graphite project development.

• Potential to generate material cashflow which could make Volt internally funded for corporate costs and working capital into the future.

• Co-products of quarry stone for the domestic market and garnet for the European market that could generate material cash flow for relatively low capital and operating cost leveraging the synergies from the graphite business infrastructure and experienced mining and processing staff.

• A 79% interest in 636 hectares of freehold land, with the mine, processing plant and other buildings and facilities located on that land.

Battery Anode Materials

The ZG Group has current plans to install a processing plant and equipment in order to commence production of spheronised purified graphite (“ SPG ”) for the European LIB anode market within the next 12 months. The Zavalievsky mine’s strategic location for the future supply of SPG to the European markets has already attracted interest from LIB cell manufacturers and major car makers.

Further information regarding the ZG Group can be obtained from Volt’s ASX announcement “ Proposed Acquisition of a 70% Shareholding in European Graphite Producer ” dated 5 February 2021 as well as the ZG Group’s website https://zvgraphit.com.ua/ A drone video of the mine and processing facilities and the local area and township of Zavallya can be viewed at - - https://voltresources.com/zavalievsky graphite acquisition/

Share Purchase Agreements

Volt has signed binding Share Purchase Agreements (“ SPAs ”) with existing shareholders of the ZG Group to acquire a 70% interest in each of the companies comprising the ZG Group, namely:

• Zavalievsky Graphite LLC - processing plant buildings, processing plant, mining equipment, power sub-station and distribution

• Stone Found LLC – crushed granite operations and plant

• Graphite Invest LLC – holds a 70% interest in PJC Zavalievsky Graphite Kombinat – mine, land, main administration office building. It is this entity that holds a 79% interest in the 636 hectares of freehold land on which the Zavalievsky mine, processing plant and other related buildings and facilities are located.

Under the SPAs, the existing shareholders have agreed to sell to Volt 70% of the total issued equity in each ZG Group company for an aggregate purchase price of US$7.6 million payable in two instalments of US$3.8 million. The first instalment is due on completion of the transaction, with the second instalment due 6 months thereafter.

Completion of the transaction remains subject to satisfactory completion of Volt’s due diligence enquiries by 14 May 2021 (or such later date as the parties may agree). To date the Company has not identified anything from the due diligence enquiries that would prevent the transaction from completing.

During this period, Volt intends to finalise its arrangements to fund the first instalment of US$3.8 million of the proposed US$7.6 million purchase price for the acquisition of the 70% interest in the ZG Group, which may be equity, debt or a combination of the two.

The Company considers this transaction as a logical and value accretive step as it transitions from a graphite explorer and developer into a graphite producer. Volt also intends to continue to progress the exploration and development of its wholly-owned Bunyu Graphite Project in Tanzania and its Guinea Gold Projects in Guinea, West Africa.

Volt will continue to keep shareholders informed of all material developments in relation to this transaction.

-ENDS-

This announcement was authorised for release by the Board of Volt Resources Ltd.

For further information please contact:

Trevor Matthews Managing Director Tel: +61 8 9486 7788

==> picture [31 x 33] intentionally omitted <==

Follow us on Twitter @ASXVolt

About Volt Resources Limited

Volt Resources Limited (“Volt”) is a graphite and gold exploration and development company listed on the Australian Stock Exchange under the ASX code VRC. Volt is currently focused on the exploration and development of its whollyowned Bunyu Graphite Project in Tanzania, as well as the creation of a new gold exploration and development business through leveraging the Company’s existing extensive networks in Africa.

The Bunyu Graphite Project is ideally located near to critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara 140km from the Project. In 2018, Volt reported the completion of the Feasibility Study (“FS”) into the Stage 1 development of the Bunyu Graphite Project. The Stage 1 development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products[1] . A key objective of the Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project at Bunyu.

The Guinea Gold Projects which comprise 6 permits in Guinea, West Africa having a total area of 348km. The projects are located in the prolific Siguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.

1 Refer to Volt’s ASX announcement titled “Positive Stage 1 Feasibility Study Bunyu Graphite Project” dated 31 July 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.