Mahefedok Deposit

Systematic exploration activities were focused over the Mahefadok prospect since 2014 and results obtained from exploration work (including geological mapping, ground geophysical surveys, pitting, trenching and sampling), confirm that the Mahefadok prospect contains significant Regolith-Hosted Flake Graphite Mineralisation over approx. 1.8 km in strike length. The deposit remains open at depth and along strike.

Trial mining commenced in early January 2016 at the northern extension of the Mahefadok deposit, and to date a total of ~10,000 tonnes of material has been mined, with product sold to existing customers.

Recent drilling (~2,300 meters) provided highly encouraging preliminary results with significant intercepts of soft easily mineable saprolite mineralisation along the entire 2.8 km strike of the Mahefedok Deposit. All drill holes demonstrated graphite mineralisation and a large number of holes returned significant mineralised intercepts above recent trial mining head grades at Mahefedok.