Downstream Testwork Shows High Quality Graphite

Metallurgical Composite Sample:

The sample was a composite of 24 Hand Auger (HA) and Push Tube (PT) holes drilled in 2022 in the Kingfisher pit.

All drilling samples within the pit shell were added to the composite resulting in a sample of 2,498kg.

Specifically, the composite sample consisted of selected rutile mineralised zones from holes, NSHA0009, 0010, 0056, 0060, 0061, 0074, 0119, 0311, 0343, 0344, 0345, 0350 and NSPT 0011, 0013, 0014, 0015, 0017, 0020, 0021, 0023, 0024, 0025, 0026, 0027.

The following workflow was used to generate a pre-concentrate graphite feed at AML:

·       Wet screen at 2mm to remove oversize

·       Two stage cyclone separation at a cut size of 45µm to remove -45µm material

·       Pass +45µm -2mm (sand) fraction through Up Current Classifier (UCC)

·       Pass UCC O/F through cyclone at cut point of 45µm

·       Pass UCC O/F cyclone U/F (fine) over MG12 Mineral Technologies Spiral

·       Pass UCC U/F (coarse) over MG12 Mineral Technologies Spiral

·       Spiral cons are combined for further processing.

Fine and coarse gravity tailing samples contain approximately 75%-80% of the graphite present in the feed sample. The majority of the graphite lost is contained in the -45µm fines.

Placer Consulting (Placer) Resource Geologists have reviewed Standard Operating Procedures (SOPs) for the collection of HA and PT drill samples and found them to be fit for purpose.

Drilling and sampling activities are supervised by a suitably qualified Company geologist who is present at all times. All bulk 1-metre drill samples are geologically logged by the geologist at the drill site.

The primary metallurgical composite sample is considered representative for this style of mineralisation.

HA drilling was used to obtain 1-metre samples. The bulk metallurgical sample was a composite of selected samples from routine resource drilling.

Existing rutile and graphite exploration results were used to determine the 1-metre intervals suitable to contribute to the two bulk sample composites.

Hand-auger drilling is completed with 75mm diameter enclosed spiral bits with 1-metrelong steel rods.  Each 1m of drill sample is collected into separate sample bags and set aside.  The auger bits and flights are cleaned between each metre of sampling to avoid contamination.  

Placer has reviewed SOPs for hand-auger drilling and found them to be fit for purpose and support the resource classifications as applied to the MRE.

The configuration of drilling and nature of materials encountered results in negligible sample loss or contamination. 

Samples are assessed visually for recoveries. Overall, recovery is good. Drilling is ceased when recoveries become poor generally once the water table has been encountered.

Auger drilling samples are actively assessed by the geologist onsite for recoveries and contamination.

The Company's trained geologists supervise auger drilling on a 1 team 1 geologist basis and are responsible for monitoring all aspects of the drilling and sampling process.

No bias related to preferential loss or gain of different materials has occurred.

All individual 1-metre auger intervals are geologically logged, recording relevant

data to a set template using company codes.

All logging includes lithological features and estimates of basic mineralogy. Logging is generally qualitative.

100% of samples are geologically logged.

Not applicable - no core drilling conducted.

Primary individual 1-metre samples from all HA and PT holes drilled are sun dried, homogenised and riffle split.

Metallurgical Composite Sample:

1-metre intervals selected for the 2,498kg metallurgical sample were divided into weathering units.

MOTT and PSAP material were combined and homogenised in preparation for dispatch to Australian laboratory Intertek for TGC assay.

Per Australian import quarantine requirements the contributing SOIL/FERP material from within 2m of surface was kept separate to undergo quarantine heat treatment at Intertek Laboratory on arrival into Australia.   

The two sub samples (SOIL/FERP and MOTT/PSAP) were then dispatched from Intertek to AML Laboratory (AML). AML sub-sampled and assayed the individual lithologies prior to combining and homogenising the sample in preparation for test-work.

The sample preparation techniques and QA/QC protocols are considered appropriate for the nature of this test-work.

The sampling best represents the material in situ.

The sample size is considered appropriate for the nature of the test-work.

Metallurgical Composite Sample:

The following workflow was used to generate a graphite product;

o    Coarse and fine rougher graphite flotation

o    Polishing grind of coarse and fine rougher graphite concentrate

o    Cleaner flotation of coarse and fine graphite

o    Cleaner concentrate sizing at 180µm

o    Regrind of separate +180µm/-180µm fractions

o    Three stage recleaner flotation of +180µm/-180µm fractions

Acceptable levels of accuracy and precision have been established. No handheld methods are used for quantitative determination.

Acceptable levels of accuracy and precision have been established in the preparation of the bulk sample composites.

No drilling intersections are being reported.

All data was collected initially on paper logging sheets and codified to the Company's templates. This data was hand entered to spreadsheets and validated by Company geologists.

A Trimble R2 Differential GPS is used to pick up the collars. Daily capture at a registered reference marker ensures equipment remains in calibration.

No downhole surveying is completed. Given the vertical nature and shallow depths of the holes, drill hole deviation is not considered to significantly affect the downhole location of samples.

WGS84 UTM Zone 36 South.

DGPS pickups are considered to be high quality topographic control measures.

Metallurgical Composite Sample: The hand-auger holes contributing to this metallurgical were selected from pit area Kingfisher and broadly represent early years of mining as contemplated in the PFS (Approximately the first three years).

It is deemed that these holes should be broadly representative of the

mineralisation style in the general area.

Not applicable, no Mineral Resource or Ore Reserve estimations are covered by new data in this report. 

Metallurgical Composite Sample:

The sample was composited as described under Sampling Techniques in this Table.

No bias attributable to orientation of sampling has been identified.

All holes were drilled vertically as the nature of the mineralisation is horizontal. No bias attributable to orientation of drilling has been identified.

Samples are stored in secure storage from the time of drilling, through gathering, compositing and analysis.  The samples are sealed as soon as site preparation is complete.  

A reputable international transport company with shipment tracking enables a chain of custody to be maintained while the samples move from Malawi to Australia or Malawi to Johannesburg. Samples are again securely stored once they arrive and are processed at Australian laboratories. A reputable domestic courier company manages the movement of samples within Perth, Australia.  

At each point of the sample workflow the samples are inspected by a company representative to monitor sample condition. Each laboratory confirms the integrity of the samples upon receipt.   

It is considered by the Company that industry best practice methods have been employed at all stages of the exploration.

Malawi Field and Laboratory visits have been completed by Richard Stockwell in May 2022. A high standard of operation, procedure and personnel was observed and reported.