Castle Minerals Limited (ASX: CDT) ('Castle' or the 'Company') advises that a 35-hole, 4,100m RC drilling campaign to increase the recently delivered maiden JORC Code (2012) Mineral Resource Estimate ('MRE') of 15.6Mt at 9.0% TGC containing 1.41Mt of graphite has commenced at its flagship Kambale Graphite Project, Ghana ('Project')(Table 1)(Figs 1 and 2. Photo 1).

A primary aim of the programme will be to infill drill a considerable volume of mineralisation that did not qualify to be included in the maiden MRE. This includes mineralisation intersected by the successful firstpass testing of several HLEM geophysical survey conductors (red shaded area in Fig 1). The drilling will also look to extend along strike and to depth several of the well delineated graphitic lenses. Drilling results are expected to be available in August whereupon an updated MRE will be undertaken by independent consultants, Palaris Australia Pty Ltd

Castle Managing Director, Stephen Stone, commented 'Castle is excited to be a participant in the rapidly evolving electric vehicle and stationary battery industry of which graphite is a critical input as the world moves to achieve mandated clean energy targets. We are looking to rapidly position the Kambale Graphite Project as a credible option for the delivery of a fine flake concentrate into a market for which a major supply deficit is widely predicted. We are confident that the 35-hole, 4,100m RC drilling programme that has just commenced, our third in the past 18 months, will materially increase the Mineral Resource Estimate of 15.6Mt at 9.0% TGC containing 1.41Mt of graphite to underpin a planned scoping study.'

Geology

The Kambale graphite deposit was identified in the 1960s by Russian geologists prospecting for manganese. They undertook a programme of trenching and drilled 25 holes to a maximum depth of 25m. The mineralisation consists of north-east trending, sub-parallel zones of meta-sediment which is host to the graphitic schists. The Lower Proterozoic Birimian (2.2Ma) meta sedimentary rocks, namely phyllites, and quartz - biotite schists, generally trend north-easterly and dip between 50o and 75o to the north west. The schists are hosted mainly in granodiorite. The genesis of the flake graphite in Kambale is believed to be the result of high-grade metamorphism (amphibolite-granulite facies) which has converted trapped amorphous carbon into the characteristic fine crystalline layers.

Social licence

Castle management has over 14 years of successfully operating in Ghana and in particular its Upper West region. It has established an excellent reputation for its pro-active commitment to community engagement, local employment and training and the promotion of youth and women's development initiatives whilst carefully managing community expectations. It has instituted best practise health and safety regimes and maintains the highest environmental operating standards whilst operating as ethically and sustainably as possible. Prior to embarking on any specific exploration programme the Company's Ghanaian team conducts comprehensive discussions and information sessions with all stakeholders to fully inform them as to the Company's activities and to identify sites of cultural, religious, social and economic sensitivity and to appropriately mitigate any matters of concern. Compensation for access and any disruptions caused is provided in close consultation with landowners with all site disturbances rehabilitated immediately after use

Graphite market

The graphite market is diverse across industrial, metallurgical, chemical and specialised areas with each sector requiring graphite concentrates with specific qualities. Deposit type, size and geometry, flake size, flake shape, grade, impurities, capital and operating costs, ability to be refined, proximity to specific markets, supply logistics, jurisdiction, fiscal regime and many other factors all combine to determine the commercial viability of a particular deposit. The current medium to long term outlook for the broader graphite concentrates market is one of escalating demand and a looming supply deficit driven in particular by its use in the fast-growing EV battery and stationary power storage sectors. At present, there is no viable high-volume viable substitute for graphite. There is an increasing proportion of natural graphite, over high CO2 generating synthetic graphite, being used in battery anode manufacture which also requires a fine flake graphite as the primary raw material. Hence, prices for fine flake graphite concentrates have shown a firming of late although markets remain generally opaque. The reader is directed to numerous recent publications, conference proceedings, market research papers and corporate websites of companies engaged in graphite exploration, project development or production for informed commentary and analysis of the graphite market

Contact:

Tel: +61 (0)418 804 564

Cautionary Statement

All of Castle's projects in Australia are considered to be of grass roots or of relatively early-stage exploration status. There has been insufficient exploration to define a Mineral Resource. No Competent Person has done sufficient work in accordance with JORC Code 2012 to conclusively determine or to estimate in what quantities gold or other minerals are present. It is possible that following further evaluation and/or exploration work that the confidence in the information used to identify areas of interest may be reduced when reported under JORC Code (2012

Forward Looking Statement

Statements regarding Castle's plans, forecasts and projections with respect to its mineral properties and programmes are forward-looking statements. There can be no assurance that Castle's plans for development of its mineral properties will proceed. There can be no assurance that Castle will be able to confirm the presence of Mineral Resources or Ore Reserves, that any mineralisation will prove to be economic or that a mine will be successfully developed on any of Castle's mineral properties. The performance of Castle may be influenced by a number of factors which are outside the control of the Company, its Directors, staff or contractors

Competent Persons Statements

The scientific and technical information in this Report that relates to the geology of the deposits and exploration results is based on information compiled by Mr Stephen Stone, who is Managing Director of Castle Minerals Limited. Mr Stone is a Member of the Australian Institute of Mining and Metallurgy 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'.

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