EPANKO GRAPHITE PROJECT ASX:KNL FSE:FMK D I S C L A I M E R - - PowerPoint PPT Presentation

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EPANKO GRAPHITE PROJECT ASX:KNL FSE:FMK D I S C L A I M E R - - PowerPoint PPT Presentation

EPANKO GRAPHITE PROJECT ASX:KNL FSE:FMK D I S C L A I M E R Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or solicit to purchase, any securities. Such offer can be made


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EPANKO GRAPHITE PROJECT

ASX:KNL FSE:FMK

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D I S C L A I M E R

Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or solicit to purchase, any securities. Such offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirements. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. Forward looking Statements Various statements in this presentation constitute statements relating to intentions, future acts and events. Such statements are generally classified as “forward looking statements” and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. The company gives no assurances that the anticipated results, performance or achievements expressed or implied in these forward looking statements will be achieved. Competent Person The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Spinks, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to

  • time. Andrew Spinks is a director of Kibaran Resources Limited and has sufficient experience which is relevant to the style of mineralisation

and type of deposit under consideration and to the activity which he is undertaking 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”. Andrew Spinks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resources is based on information compiled by Mr David Williams, a Competent Person, who is a Member of The Australasian Institute of Mining and Metallurgy. David Williams is employed by CSA Global Pty Ltd, an independent consulting company. Mr Williams has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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”. David Williams consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Ore Reserve has been compiled by Mr Steve O'Grady. Mr O'Grady, who is a Member of the Australasian Institute of Mining and Metallurgy, is a full time employee of Intermine Engineering and produced the Mining Reserve estimate based on data and geological information supplied by Mr Williams. Mr O'Grady has sufficient experience that is relevant to the estimation, assessment, evaluation and economic extraction of Ore Reserve that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr O'Grady consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.

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L A T E S T N E W S - G E R M A N Y V I S I O N

ELECTRIC VEHICLES – 23 MAY 2017 Daimler announces acceleration of electric car plans by 3 years, will spend $11 billion on 10 models by 2022

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A B O U T G R A P H I T E A N D F U T U R E D E M A N D

Major Raw Material for Battery Technologies Lithium-Ion Battery GRAPHITE : An industrial mineral with unique physical and chemical properties which includes superior thermal and electrical conductivity Electric Vehicle (‘EV’) Solar Panels to Energy Storage Systems (‘ESS’)

G R A P H I T E F O R L I T H I U M I O N B A T T E R I E S

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O U R V I S I O N O U R V I S I O N

“To become a major producer of high-value, premium quality large flake graphite in Tanzania as a long-term stable supplier of graphite for the high growth battery market”

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  • Debt Financing requires Bankable Feasibility Study completed

to the highest technical and financial standards complies with stringent IFC Equator Principles for Social & Environmental

  • Upgraded BFS expanded production case to 60ktpa
  • Comprehensive announcement expected Q2

O V E R V I E W – T H E C A S E F O R K I B A R A N

Epanko is positioned as one

  • f the most

advanced graphite projects globally

  • Offtake and sales agreements secured with blue-chip European

and Japanese Groups

  • Strategy matches the “reality” of prevailing graphite markets

Robust marketing strategy

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Epanko is positioned as one

  • f the most

advanced graphite projects globally

  • Offtake and sales agreements secured with blue-chip European

and Japanese Groups

  • Strategy matches the “reality” of prevailing graphite markets
  • Battery Grade Feasibility Study underway
  • Project economics do not include product sales into the high

growth lithium-ion battery markets

Robust marketing strategy Growth

  • pportunities to

enhance project returns

O V E R V I E W – T H E C A S E F O R K I B A R A N

  • Debt Financing requires Bankable Feasibility Study completed

to the highest technical and financial standards complies with stringent IFC Equator Principles for Social & Environmental

  • Upgraded BFS expanded production case to 60ktpa
  • Comprehensive announcement expected Q2
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B I N D I N G O F F T A K E A N D S A L E S A G R E E M E N T E R I G H T O F F T A K E P A R T N E R S F O R D E V E L O P M E N T I N G R O W I N G M A R K E T S

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F U N D I N G S T R A T E G Y - S U P P O R T I V E P A R T N E R S

Epanko (Large Flake)

  • Specialist financier for the German and

European export industry

  • Africa’s largest investment bank
  • German Government loan guarantee
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S U P P O R T E D B Y E X I S T I N G I N F R A S T R U C T U R E

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Kilombero Bridge 2016 Kilombero Bridge 2017

K I L O M B E R O B R I D G E C O M P L E T E D

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JORC Classification Tonnage (Mt) Contained Graphite (t) Measured 7.5 738,900 Indicated 12.8 1,280,000 Inferred 10.4 1,030,600 Total 30.7 3,049,500 A SUBSTANTIAL AMOUNT OF GRAPHITE MINERALISATION EXISTS WITHIN THE REPORTED MINERAL RESOURCE AT LOWER TGC CUT-OFF GRADE AT 5% TGC. THERE ARE 113.3MT AT 7.2 %TGC FOR 8.1MT OF CONTAINED GRAPHITE.

ASX announcement 31st MARCH 2017

MINERAL RESOURCE 30.7 MILLION TONNES AT 9.9% TGC FOR 3 MILLION TONNES GRAPHITE

J O R C C O M P L I A N T - M I N E R A L R E S O U R C E

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DRILLED AREAS EXTENSIONS TO EAST ZONE

V T E M - E N O R M O U S C O N D U C T I V E B O D Y

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W E S T E R N Z O N E

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S I M P L E M I N E R A L O G Y - C H E E T A H T E X T U R E S

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  • High level of independent testwork to support BFS including pilot scale and

200t bulk sample testwork S I M P L E & L O W C O S T P R O C E S S

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B O T H G R A D E & F L A K E S I Z E A L L O W E P A N K O T O S E L L I N T O A L L M A R K E T S E P A N K O

H A S T H E F L E X I B I L I T Y T O A C C E S S H I G H V A L U E S

Epanko has both grade and flake size distribution Bubble size = Average annual production target (ktpa graphite concentrate) Source: Company exchange releases

Nachu (MNS.ASX) Epanko (KNL.ASX) Duwi (SVM.ASX) Balama (SYR.ASX) Montepuez (BAT.ASX) Namangale (VRC.ASX) Mahenge (BKT.ASX) 0% 2% 4% 6% 8% 10% 12% 14% 0% 20% 40% 60% 80% 100%

In-situ resource grade (%TGC) Large flake (>150 microns) product (% total prod)

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M A R K E T I N G S T R A T E G Y O U T S I D E O F C H I N A A N

  • Europe is the largest refractory market
  • Japan and Korea is the largest battery graphite market
  • USA an emerging market
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G L O B A L D E M A N D F O R F L A K E G R A P H I T E R I G H T O F F T A K E P A R T N E R S F O R D E V E L O P M E N T I N G R O W I N G M A R K E T S

REGION END-USE Asia Europe North America South America Others TOTAL Refractories 225 46 15 30 8 324 Foundries 28 20 15 12 4 79 Batteries 57 4 5 4 1 71 Friction 10 5 3 1 1 20 Lubricants 10 3 2 1 1 17 Expandable and Others 36 14 14 20 5 81 Total (kt)* 366 92 54 68 20 600

  • Epanko production matched to demand and targeting growth markets
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G L O B A L D E M A N D F O R F L A K E G R A P H I T E R I G H T O F F T A K E P A R T N E R S F O R D E V E L O P M E N T I N G R O W I N G M A R K E T S

REGION END-USE Asia Europe North America South America Others TOTAL Refractories 225 46 15 30 8 324 Foundries 28 20 15 12 4 79 Batteries 57 4 5 4 1 71 Friction 10 5 3 1 1 20 Lubricants 10 3 2 1 1 17 Expandable and Others 36 14 14 20 5 81 Total (kt)* 366 92 54 68 20 600

  • Epanko production matched to demand and targeting growth markets
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  • Production of Battery graphite for anode battery market can add

significant value

  • Feasibility study commenced by GR Engineering with results expected

Q2-2017

  • Discussions underway for distribution of by-product from spherical

graphite production B A T T E R Y G R A D E G R A P H I T E – F E A S I B I L I T Y S P H E R I C A L G R A P H I T E D E V E L O P M E N T

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Natural Flake Graphite for Lithium Ion Batteries

Currently 100 % of Battery Grade Graphite is produced in China!

B A T T E R Y G R A D E ( S P H E R I C A L ) G R A P H I T E

Conversion of flake graphite with 95% purity into spherical graphite with 99,95% purity required

Natural Flake Graphite Battery Grade (Spherical) Graphite

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B A T T E R Y ( S P H E R I C A L ) G R A P H I T E D E M A N D

“Tesla together with Panasonic, and Korean LG Chem and Samsung SDI are developing the world’s largest gigafactories outside China for the growing EV battery market”

35GWh 7GWh

20 40 60 80 100 120 140 160 180 200 2014 2016 2018 2020 2022 2024 2026 TONNES (KT)

Expected consumption of spherical natural graphite for battery market (Source: ProGraphite)

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E P A N K O B A T T E R Y ( S P H E R I C A L ) G R A P H I T E

Measure Unit Outcome Particle size distribution D10 (micron) 10.3 D50 (micron) 15.0 D90 (micron) 22.1 D0027 (nm) 0.3356 Tap Density (g/cc) 0.98 BET m²/g 7.4 Reversible Capacity mAh/g 367 Irreversible Capacity at mAh/g 5 Fe ppm 12 Si ppm 19 Ash Content % 0.01 Moisture Content % 0.01

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T H E R I G H T T E A M T O A D V A N C E E P A N K O

CAPITAL STRUCTURE (KNL:ASX, FMK:FSE)

Shares on Issue 243.2m Share Price (31 January 2017) $0.16 Market Capitalisation $38.9m Net Cash (31 March 2017) $4.5m Unlisted Options – Various Expiries & Exercise Prices 12.1m Top 20 Shareholders 41.5%

SHAREHOLDER BASE BOARD & KEY MANAGEMENT A STRONG MIX OF MINING, COMMERICAL AND GRAPHITE EXPERIENCE Robert Pett (Non-Executive Chairman)

Minerals Economist with over 30 years’ experience in developing resources and mines in Australia and Africa. Founding Chairman of Resolute Mining

Andrew Spinks (Managing Director)

Geologist with over 25 years’ experience. Expertise in exploration, mining and management across a range of commodities and geographies.

Grant Pierce OAM (Executive Director)

Mining engineer, over 25 years’ experience. Order of Australia Medal 2003 for social development in rural Tanzania.

Christoph Frey (Non-Executive Director)

German-based graphite industry professional with over 20 years’ graphite experience in Russia, Europe, Africa and China. Direct experience in battery grade graphite.

John Condi (Non-Executive Director)

Member CPA with 14 years of experience in developing, acquiring and managing publicly listed businesses.

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N E W S F L O W T O D R I V E V A L U E

UPGRADED BFS TO 60KTPA DEBT FINANCING FURTHER AGREEMENTS BATTERY GRADE FEASIBILITY

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  • Epanko high quality graphite concentrate
  • Value-add strategies to produce a premium spherical graphite

product for the global battery market

I N V E S T M E N T C A S E F O R K I B A R A N R K I B A R A N PRODUCT

  • Tanzania – an established mining jurisdiction and infrastructure
  • Technical and social and environmental work to Equator

Principles highest standards as required to secure bank finance

  • Offtake and sales agreements secured blue-chip partners –

ThyssenKrupp AG + Sojitz + EGT

  • Debt finance providers – KfW-IPEX Bank + Nedbank

PROJECT PARTNERS PEOPLE

  • Proven Management team with a track record

Well positioned to be a significant graphite producer

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EPANKO GRAPHITE PROJECT

ASX:KNL