Sarytogan Graphite Limited reported that bulk graphite concentrate manufacture has commenced at the UVR-FIA GmbH laboratory (UVR- FIA) in Germany using a 240kg sample sourced from the Company's 100% owned Sarytogan Graphite project. Graphite from the Sarytogan project presents as a premium micro-crystalline graphite which is well suited to a future-facing battery anode product strategy. The exceptionally high-grade 209Mt @ 28.5% Total Graphitic Carbon (TGC) Inferred Mineral Resource gives the future mining economics a significant head start.

The first processing step is to concentrate the graphite using grinding and flotation to a graphite purity of around 84% TGC1. This was first developed by Australian Laboratory Independent Metallurgical Operations Pty Ltd. (IMO) and has since been replicated by German graphite experts Pro-Graphite GmbH (Pro- Graphite). The graphite concentrate was then purified by Pro-Graphite achieving the breakthrough graphite purity of 99.70% TGC using either alkaline roasting or chemical purification independently.

Combining both purification methods in series achieved 99.87% TGC. Achieving these purity levels using industry standard methods has substantially increased the Company's confidence in its product strategy of cracking into the high-value battery anode market looks achievable. A readily traded product known as Uncoated Spheroidized Graphite is tracked by commodity price forecasters as trading around USD 3,000/t, a significant value-added premium on flake graphite products that trade between US$600/t and USD 1,200/t. The spheroidization improves battery performance with low irreversible capacity loss and long service life.

Due to the low tap density, high charging is achievable delivering higher energy density. All of the test work on graphite from the Sarytogan project to date has been undertaken on a bench scale beginning with sample masses of 0.5-1kg. At this scale, there is insufficient graphite concentrate for multiple rounds of purification or for the physical process of spheroidizing the graphite.

One round of spheroidization optimisation requires approximately 5kg of graphite concentrate. UVR-FIA have been contracted to manufacture the bulk graphite concentrate. UVR-FIA is a German laboratory specialising in the research, development, and small-scale production in the field of mechanical process engineering and preparation of mineral resources.

The work will be conducted in their impressive 1,600m2 technical centre, 20m in height. 240kg of Sarytogan Graphite has been delivered to UVR-FIA. UVR-FIA will homogenise the graphite and split into 4 equal portions of 60kg.

This has been identified as the most economical scale to manufacture the required graphite concentrate. Approximately 27kg of graphite concentrate is expected from each batch. Initially one batch will be run, which will be more than sufficient for further chemical purification and physical spheroidization.

Three subsequent batches may be called to meet ongoing growth in sample demands. The bulk flotation program will run through quarter 2, 2023 to then feed into the spheroidization program in quarter 3, 2023 ahead of battery performance tests in quarter 4 2023.