Black Rock Mining : Annual Report to Shareholders

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2021

02 CHIEF EXECUTIVE OFFICER'S REPORT

07 DIRECTORS' REPORT

1. AUDITOR'S INDEPENDENCE DECLARATION CONSOLIDATED STATEMENT OF PROFIT OR LOSS
2. AND OTHER COMPREHENSIVE INCOME
3. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
4. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
5. CONSOLIDATED STATEMENT OF CASH FLOWS
6. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. DIRECTORS' DECLARATION
2. INDEPENDENT AUDITOR'S REPORT

51 ADDITIONAL ASX INFORMATION

BLACK ROCK MINING LIMITED

ABN: 59 094 551 336

CORPORATE DIRECTORY

DIRECTORS	Richard Crookes
	Non-Executive Chairman
	John de Vries
	Chief Executive Officer, Managing Director
	Ian Murray
	Non- Executive Director
	Gabriel Chiappini
	Non-Executive Director
COMPANY	Gabriel Chiappini
SECRETARY
PRINCIPAL	45 Ventnor Street,
PLACE OF	West Perth Western Australia, 6005
BUSINESS AND
REGISTERED	T: [phone]
OFFICE	F: [phone]
	www.blackrockmining.com.au
AUDITOR	Deloitte Touche Tohmatsu
	Tower 2, Brookfield Place
	123 St Georges Terrace
	Perth Western Australia, 6000
	T: [phone]
	F: [phone]
SHARE	Computershare Investor Services Pty Ltd
REGISTRY	Level 11, 172 St Georges Terrace
	Perth Western Australia, 6000
	T: [phone]
	F: [phone]
	E: [e-mail]
STOCK	The Company's shares are quoted on the
EXCHANGE	Australian Securities Exchange (ASX).
LISTING
The Home Exchange is Perth.
ASX CODE	BKT - ordinary shares

1. SNAPSHOT OF THE

MAHENGE	US$1.2B
GRAPHITE
MINE		Post-tax, ungeared real NPV10
			US$1,301/t
			Basket graphite price	45%
			(net FOB)
US$116M	Post-tax, ungeared,
Phase 1 development capex	real IRR

350ktpa 83ktpa

Phase 4 output	Phase 1 output
(4Mtpa ROM)
(1Mtpa ROM)

US$494/t

LOM All-In-Sustaining-Cost

95 - 99%+ TGC purity

59% +80 mesh, 41% -80

Concentrate product

26 years

Initial operating life

SIMPLE OPEN PIT MINE DEVELOPMENT WITH OUTSTANDING FORECAST RETURNS

Following release of the Enhanced Definitive Feasibility Study (eDFS) on the Mahenge Graphite Project in July 2019 (see Black Rock ASX release dated 25 July 2019, Mahenge Enhanced DFS with Executive Summary), Black Rock confirms that it is not aware of any new data or information that materially affects the results of the eDFS. All financial forecasts, material assumptions and technical parameters, including in the estimation of Mineral Resources or Ore Reserves, underpinning the estimates in the eDFS continue to apply and have not materially changed. The estimated Ore Reserves and Mineral Resources underpinning the production and financial forecasts in the eDFS were prepared by Competent Persons in accordance with the requirements in Appendix 5A (JORC Code).

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	2021 ANNUAL REPORT

CHIEF EXECUTIVE OFFICER'S REPORT

Mahenge Graphite Project The demand for Graphite is entering an unprecedented period as the world focuses on the production of minerals, to meet the growing demand for clean energy technologies. Decarbonisation of the planet, will put a spotlight on mining and ultimately those that will participate in the long term, will be climate-smart and be part of value chains that are sustainable and green.

Black Rock Mining's Mahenge Graphite Mine will be one of them.

Mahenge's 212 million tonne Mineral Resource makes it the 4th largest graphite resource in the world1. Its green credentials are driven by geology and geography, which is hard to replicate. Favourable geology sees that the Graphite Resource has very low impurities which means it can produce very high purity (up to 99% TGC1), without the need for typical acid interference. In fact, the Mahenge Graphite concentrate is processed using a conventional water-based flotation method.

The mine is supported by good access to key infrastructure. The geography delivers Grid Power, Rail, Airstrip, Water and Tailings disposal (dry stack) logistics advantages with processing through Dar es Salaam high volume container port.

1 Refer ASX Announcement 25th July 2019 - Mahenge DFS Enhanced with Summary

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	2021 ANNUAL REPORT

Partners and Customers

The Company's strategy has been clear from our inception in terms of how and where we intend to participate in the global Graphite supply chain. We are solely upstream focused, and this means that we are miners.

"We mine, they make" -

I've used this term extensively to demonstrate this strategy.

Once mined, Graphite is processed over several steps before it makes its way into the hands of manufacturers who can take the processed material and "make" products. These products will have a significant contribution to a cleaner future. Graphite is used in many applications from electric vehicles to fire-proof building cladding. The well established downstream infrastructure and supply chains that make these products are highly capital intensive and bespoke. Our decision to

play in the upstream space is underpinned by the geological and geographical advantages of Mahenge - in other words, the Mahenge Graphite Mine stands up on its own as a low cost, high margin operation.

Black Rock Mining does not need a downstream operation to work.

With our focus on the "mine", the quality of downstream partners and customers is therefore critical to our business model. Over the year, we have developed our strategic

alliance with Korea's POSCO Group ("POSCO"), one of the world's largest producers of battery anode material and a major participant in the global Lithium-ion Battery industry. The Company completed detailed due diligence work, regulatory approvals, supply chain testing, and extensive qualification activities including commercial-scale pilot plant sampling and product quality assurance. This culminated in POSCO completing the US$7.5m, 15% equity investment in Black Rock Mining, with POSCO now being both a cornerstone commercial customer and shareholder. Importantly, commercial and technical qualification with POSCO, represents absolute validation that Black Rock Mining has a real product to sell, into a real customer market, which is supported by a price deck that reconciles with

our project economics. Positive discussions continue with respect to POSCO providing a prepayment financing facility of up to US$20m.

Graphite is used in many applications from electric vehicles to fire-proof building cladding. The well established downstream infrastructure and supply chains that make these products are highly capital intensive and bespoke.

03	BLACK ROCK MINING LIMITED
	2021 ANNUAL REPORT