VOLT RESOURCES LIMITED — Interim / Quarterly Report 2021

Jan 28, 2021

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ASX ANNOUNCEMENT

By e-lodgement 29 January 2021

Quarterly Activities Report to 31 December 2020

Highlights:

• Guinea Gold Projects corporate and exploration activities undertaken during the quarter:

• Power auger drilling programme comprised of 759 auger holes for a total of 11,385 metres planned for the Nzima, Kouroussa and Konsolon permits

• Clearing of access tracks and drill pads commenced to provide access for the auger drilling rigs

• Two robust power auger rigs manufactured and arrived at site midJanuary 2021

• The auger drilling programme is planned to commence late January 2021

• Following the progressive conversion of reconnaissance permits to exploration permits, the Guinea gold projects now comprise four exploration permits (Fadougou, Nzima, Kouroussa and Konsolon) and two reconnaissance permits (Kouroussa West and Monebo)

• Successful $1,565k capital raising completed

• Development funding due diligence and discussions commenced with two new African development banks

Flake graphite and gold development company Volt Resources Limited ( ASX: VRC ) (“ Volt ” or the “ Company is pleased to report on the Company’s activities for the quarter ended 31 December 2020.

December Quarter Activities Overview

The quarter saw activity in relation to Volt’s gold exploration programme whilst continuing funding activities to advance to the development stage of its Bunyu Graphite Project in Tanzania. The gold exploration progress includes the conversion of another reconnaissance permit to an exploration permit, development of the auger drilling programme and the manufacture and delivery of two power auger rigs jointly with another company.

The Company remains focused on the two stage development of its wholly-owned Bunyu Graphite Project in Tanzania and continued with project development funding discussions during the quarter.

During the December 2020 quarter, Volt successfully completed a $1.565 million capital raising to fund the next phase of the exploration programmes for the Guinea gold projects and to provide working capital for Volt’s Tanzanian graphite project and meet corporate costs.

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

Gold Projects - Guinea

The three Guinea gold projects, Kouroussa, Mandiana and Konsolon, are comprised of six permits (“Permits”) with a total area of 388km[2] in the prolific Siguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.

Exploration activities

During the quarter the manufacture of two jointly funded power auger rigs was completed with the auger rigs in transit to Guinea by the quarter end. A Guinea based third party company will operate and maintain the auger rigs which will be utilised for auger drilling programmes being undertaken by Volt and the other joint funding company. It is expected this arrangement will significantly lower the costs for the auger drilling programmes across the three gold projects.

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Auger rigs being loaded for shipping to Guinea

The power auger drilling average hole depth is 15 metres and the shallow drilling is to test the gold mineralization identified during the reconnaissance grab sampling programme undertaken earlier this year on the Nzima and Kouroussa permits and test the historical soil sampling results over Konsolon[1] . The results from the auger drilling programme will be used to plan the hole locations for the AC/RC drilling programme to follow.

The power auger programmes will involve a total of 11,385 metres of drilling. Due to the extended delivery time for the new auger rigs to arrive at site, the auger drilling programme is now planned to commence in late January 2021. Phase 1 at Nzima and Kouroussa will have a grid of 200m line spacing by 100m drill hole spacing and phase 2 will be infill drilling at a line spacing of 100m by 50m drill hole spacing. At Konsolon, phase 1 auger drilling will be undertaken at a grid of 400m line spacing by 100m drill hole spacing followed by phase 2 with infill drilling at 200m line spacing with drill hole spacing of 100m.

The table below is a summary of the total holes and total metres planned for each exploration permit.

Permit	Number of holes	Planned metres
Konsolon	465	6,975
Kouroussa	88	1,320
Nzima	206	3,090

1 Refer to ASX announcement dated 23 July 2020 titled “Guinea Gold Projects Exploration Update”. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document.

During the December 2020 quarter work was undertaken to develop an auger drilling plan for the newly converted Fadougou exploration permit.

Exploration Permits

In October 2020 the Company converted one more permit (Fadougou) from a reconnaissance permit to an exploration permit. The conversion of the permit increased the number of granted exploration permits to four (Fadougou, Konsolon, Kouroussa and Nzima) and leaves only two permits (Kouroussa West and Monebo) to be converted. Conversion of the remaining reconnaissance permits is in progress.

In Guinea, reconnaissance permits are granted for up to 6 months to conduct reconnaissance style exploration activities such as geochemical sampling and geological mapping.

An exploration permit is longer-term with a three-year initial term and two 2-year renewals permitted for up to 7 years in total. Advanced exploration activities including auger, RC and diamond drilling are permitted on exploration permits.

The granting of exploration permits is a significant step forward as it allows the Company to undertake drilling programmes on those permits following the completion of drill targeting activities such as desktop geological and data reviews, soil sampling and analysis.

The table below shows the list of Guinea Gold Project permits, their type and current status.

Project	Permit	Reconnaissance Permit Number	Exploration Permit Number	Type	Status
Mandiana	Nzima	22872	22980	Exploration Permit	Granted
	Monebo	22874		Reconnaissance Permit	To be converted to explorationpermit
Kouroussa	Kouroussa	22871	22982	Exploration Permit	Granted
	Fadougou	22870	22981	Exploration Permit	Granted
	Kouroussa West	22873		Reconnaissance Permit	To be converted to explorationpermit
Konsolon	Konsolon		22800	Exploration Permit	Granted

Bunyu Graphite Project - Tanzania

The Company remains focused on the two stage development of its wholly-owned Bunyu Graphite Project in Tanzania. The Bunyu Graphite Project is ideally located near to critical transport infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara 140km to the south east.

Development Funding

The Company has continued with Bunyu Stage 1 funding discussions despite the disruption experienced with the COVID-19 pandemic, changes in work arrangements and international travel restrictions. Advanced discussions continue with a leading African development bank on a debt funding proposal with two more African development banks commencing due diligence and discussions regarding funding for the Bunyu Project during the quarter.

The Company’s Mauritian Note Offer was extended at the start of the December 2020 quarter with an offer closing date of 24 December 2020. The Company was unable to raise funds from the Note Offer and elected not to prepare a new application and prospectus to extend the Note offer.

Exploration and Development Activities

The Company did not undertake any substantive mineral exploration, mine development or mining production activities during the quarter on the Bunyu Graphite Project.

Luiri Hills Gold Project - Zambia

At the commencement of the December 2020 quarter Volt announced it would not proceed with the proposed acquisition of an interest in the Luiri Hills Gold Project and terminated discussions with the project’s vendors.

Mineral Tenements

The schedule of the Company’s interest in mining tenements as at 31 December 2020 follows.

All tenements within Tanzania are held by Volt Graphite Tanzania Plc, a wholly owned subsidiary of Volt Resources Ltd. Tenements in Guinea are held by two subsidiary companies, KB Gold SARLU and Novo Mines SARLU.

Project	Location	Tenement Number	Change in Holding Status During the Quarter	VRC Beneficial Interest
Volt Tanzania Graphite Plc KB Gold SARLU Novo Mines SARLU	Tanzania – Masasi District	ML 591/2018	None	100%
	Tanzania – Masasi District	ML 592/2018	None	100%
	Tanzania - Nachingwea, Ruangwa & Masasi Districts	PL 10643/2015	Renewal in progress	100%
	Tanzania - Ruangwa & Masasi Districts	PL 10644/2015	Renewal in progress	100%
	Tanzania - Newala & Masasi Districts	PL 10667/2015	Renewal in progress	100%
	Tanzania - Newala, Ruangwa & Masasi Districts	PL 10668/2015	Renewal in progress	100%
	Tanzania - Ruangwa & Lindi Districts	PL 10717/2015	Renewal in progress	100%
	Tanzania - Masasi District	PL 10788/2016	None	100%
	Tanzania – Masasi District	PL 13207/2018	Application – no change#	100%
	Tanzania – Masasi District	PL 13208/2018	Application – no change#	100%
	Guinea - Nzima	EP 22980	None	100%
	Guinea - Monebo	RP 22874	None	100%
	Guinea - Kouroussa	EP 22982	None	100%
	Guinea - Fadougou	EP 22981	Converted from a reconnaissance permit to an exploration permit	100%
	Guinea - Kouroussa West	RP 22873	None	100%
	Guinea - Konsolon	EP 22800	None	100%

Prospecting Licence Applications PL 13207/2018 and PL 13208/2018 are for 100% of the remaining area covered by PL 10718/2015 which ceased on the granting of the two Mining Licenses over a portion of the previously held prospecting license tenement area.

The Company is not a party to any farm-in or farm-out agreements.

Capital Raising

The Company successfully raised A$1,565,000 (before costs) to assist with funding the next phase of the exploration programmes on the Guinea gold projects and to provide working capital for Volt’s Tanzanian graphite project and meet corporate costs.

The capital raising was completed through the placement of 142,272,728 new fully paid ordinary shares at A$0.011 per share ( Placement ) together with 71,136,364 unlisted attaching options with an exercise price of A$0.022 and a maturity date 36 months from the date of issue (with each investor to receive one option for every two shares subscribed for under the Placement).

Volt’s Chairman, Asimwe Kabunga, subscribed for $500,000 of the placement shares through his private company, Kabunga Holdings Pty Ltd. Shareholder approval for the issue of shares and options to Mr Kabunga’s private company was received at the Company’s Annual General Meeting.

Annual General Meeting

At the Company’s Annual General Meeting held on 30 November 2020, all resolutions presented to shareholders were approved by a poll.

Organisation Changes

On 22 October 2020 the Company announced the appointment of Mr David Sumich to the dual role of Chief Operating Officer and Chief Financial Officer.

Mr Sumich brings to the Company over 25 years’ experience in the mining industry, having held senior leadership and executive positions with ASX listed entities, and additionally, he has held numerous financial consulting and advisory roles covering corporate finance, capital raising and accounting.

Cash Position and Summary of Expenditure Incurred on Activities

The Company finished the 31 December 2020 quarter with $283k in cash. The Company is planning to undertake a capital raising during the March 2021 quarter.

With the Company having completed all of the activities to move the Bunyu Graphite Project to its development ready status, Volt continues to be focussed on securing the funding for the Stage 1 development. Volt is also undertaking a targeted exploration programme in Guinea as discussed above.

The Company spent $474k on exploration and evaluation activities during the quarter predominantly on the Guinea project activities described above. No expenditure was incurred on development or production activities during the quarter.

Related Party Payments

During the quarter $192k was paid in respect of prior periods accrued Non-Executive Director fees and Managing Director fees. Following the change in employment arrangements for the Managing Director on 1 May 2020, employment termination payments of $122k were paid during the December 2020 quarter.

Management Commentary

Volt Resources Managing Director Trevor Matthews said: “The Company has been actively progressing the manufacture and delivery to site of the auger rigs to commence the early stage exploration programme on its highly prospective grass roots exploration projects in Guinea.

The increased interest by African development banks for Bunyu funding is a positive sign and reflects recent improvement in graphite prices and the positive outlook for battery minerals generally.”

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

-ENDS-

For further information please contact: Trevor Matthews Managing Director Tel: +61 8 9486 7788

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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 wholly-owned 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[2] . 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.

2 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.

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

Name of entity	Name of entity	Name of entity
VOLT RESOURCES LIMITED
ABN 28 106 353 253	Quarter ended (“current quarter”)
	31 December 2020
Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- - - - (324) (388) - - (13) - - -	- - - - (356) (437) - - (13) - 8 -
	(725)	(798)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - (52) (474) 127 -	- - (52) (517) - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - -
	(399)	(569)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	1,565 - - (98) - (77) - - -	1,565 - - (98) - (81) - - -
	1,390	1,386
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	18 (725) (399) 1,390	265 (798) (569) 1,386

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	(1)	(1)
	283	283
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	283	18
	283	18
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 318 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.		318

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities 1,603 1,603 Credit standby arrangements - - Other (please specify) - - Total financing facilities 1,603 1,603 Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		1,603	1,603
		-	-
		-	-
		1,603	1,603
	7.1 An 18mth loan of US$700,000 (A$1,140,000) was received per the ASX announcement of 24 June 2019 with repayment due at maturity of US$1,050,000. The Company has agreed with the lender an extension of the loan maturity to end February 2021.

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (725) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (474) Total relevant outgoings (item 8.1 + item 8.2) (1,199) Cash and cash equivalents at quarter end (item 4.6) 283 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 283 Estimated quarters of funding available (item 8.6 divided by item 8.3) 0.24 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(725) (474) (1,199) 283 -
		283
	Answer: Yes
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: Yes. Entity is planning to complete a capital raising during the March 2021 quarter.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Yes. Entity is planning to complete a capital raising during the March 2021 quarter.

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 29 January 2021

Authorised by: The Board of Volt Resources Limited

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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