22 February 2022

Tirupati Graphite plc

('Tirupati' or the 'Company')

Tirupati Graphene and Mintech Research Centre builds strong new business pipeline following delivery of its first commercial contract

Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist graphite and graphene company developing sustainable new age materials, is pleased to announce that, following the initial announcement on 29 January 2021, Tirupati Graphene and Mintech Research Centre ('TGMRC') which is owned by Tirupati Speciality Graphite Private Limited ('TSG'), with which  the Company has a binding acquisition agreement subject to regulatory approvals, has now successfully developed a mineral processing technology solution for Optiva Resources Limited ('ORL') a UK registered mining company.

Highlights:

·    TGMRC has successfully developed a two-stage processing technology solution for ORL to implement at its Marela Project in Guinea

·     The process will enhance ORL's extraction of Vanadium, Titanium, Magnetite ('TVM') at Marela and process these into saleable concentrates and end products

·    Having previously received an upfront fee, TSG will now receive a success fee of 5% equity in ORL being 4,578,175 equity shares and an equal number of transferable warrants with three-year life

·     The Company notes that prior to success of technology development for which TGMRC was engaged, ORL raised its last round of pre-IPO equity capital at £0.03 per equity share in 2021, using which as a multiple the value of the equity TSG will receive is £137,345

·    TGMRC and ORL are currently negotiating on an agreement to engage around further services and will provide further updates as appropriate

Further TGMRC Updates:

·   TGMRC has now manufactured its revolutionary aluminium-graphene composite at relative scale to enable extensive tests which are currently underway

·   Regular manufacturing of Graphite Oxide and Reduced Graphite Oxide is now being undertaken at TGMRC for supply to prospective customers for ongoing product trails in applications ranging from concrete to composite materials and coatings

·   TGMRC has also been working on and completed a number of other mineral processing technology development projects including:

§ Optimisation study for Arcelor Mittal Nippon Steel's 10 million ton per annum iron ore beneficiation plant to enhance the quality and recovery of concentrate and reduce tailings losses;

§ Recovering of iron values from tailing slimes for JSW Bhushan Steel & Power's iron ore beneficiation plant; and

§ Mineralogical, Beneficiation, Rheological, and Pelletisation Studies of Iron Ore Fines and banded hematite quartzite (BHQ) iron ores, and more

·    Various additional projects are in the pipeline for a range of mineral process technology development and optimisation studies for a range of minerals

·    TGMRC is poised to achieve net operating earnings in the current financial year, its first year since its establishment, and expect these activities to be earnings enhancing in FY23 for the Company

Details of the ORL Agreement

As announced on 29 January 2021, TGMRC received an upfront fee from ORL and now, having successfully developed the process, will receive a success fee amounting to 4,578,175  equity shares of ORL and an equivalent number of share warrants with 50% of  these warrants being exercised at the first raise price going forward and  50% to be issued at ORL's IPO price if ORL lists on a recognised exchange before end of June 2022 and if not they will be priced at the same price as the first 50%. The warrants have a three-year life from the date of issue.

Shishir Poddar, Executive Chairman of Tirupati Graphite, said:

"We are delighted that TGMRC has successfully developed this processing solution which will enable our client to unlock the full potential of its Marela TVM project in Guinea.

"TGMRC has demonstrated that it is able to provide beneficial mineral processing technology solutions as well as the technological needs required to develop new age materials.

"Building on this success and the pipeline of activity currently underway with blue chip clients, we expect TGMRC to be an earning unit standalone."

Charles Douglas-Hamilton, Technical Director of Optiva Resources Ltd., said:

"Optiva Resources is very pleased with the work carried out by TGMRC to produce a saleable mixed ilmenite-magnetite concentrate from the TVM laterites at Marela.

"ORL is now negotiating with TGMRC to advance the work to bulk sample pilot scale tests to further optimise mineral processing to extract vanadium, titanium and iron products from Marela. We commend the TGMRC team for their achievements to date. This is an exciting time for ORL's shareholders and we look forward to working with TGMRC to further realise the full potential of the Marela Project."

Enquiries:  

https://www.tirupatigraphite.co.uk/  

About Tirupati Graphite Plc

Tirupati Graphite Plc is the specialist graphite and graphene company developing sustainable new age materials.  With a unique set of properties, graphite has diverse applications with multiple growth streams and graphene forms the new generation of 2D and advanced materials. The Company places a special emphasis on "green" applications, including renewable energy and energy efficiency, energy storage, thermal management, and advanced materials development, and is committed to ensuring its operations are sustainable as well. 

The Company's operations include primary mining and processing in Madagascar, where the Company operates two key projects, Sahamamy and Vatomina; 3,000 tpa of high-quality flake graphite concentrate with up to 96% purity is currently being produced and sold to customers globally, with an additional 9,000 tpa capacity expected to be commissioned soon, planned to increase to 84,000 tpa by 2024 as per the Company's modular medium-term development plan. 

In India, through Tirupati Speciality Graphite Private Limited ('TSG'), with whom the Company has a binding acquisition agreement subject to regulatory approvals, Tirupati is developing a suite of speciality graphite for use in hi-tech applications like lithium-ion batteries, fire retardants, thermal management, and composites. Its current operations include the 1,200 tpa Patalganga Project, focused on manufacturing the Company's trademarked expandable graphite products CARBOFLAMEX® and GrafEN 45545™. TSG is further expanding the Patalganga Project to 4,800 tpa and developing the 30,000 tpa specialty graphite project in two 15,000 tpa modules which will include capabilities to manufacture high-purity, expandable, micronized and spherical graphite and using its unique green processing technologies for the manufacturing of these advanced materials. 

TSG has also established and continues to develop the Tirupati Graphene and Mintech Research Centre, a state-of-the-art R&D centre focussed on manufacturing graphene, developing its applications and advanced materials using graphene, and further providing environmentally friendly technologies consultancy for mineral processing.