Completion of Updated BFS Provides Robust Financials for Project Financing
EcoGraf Limited (“EcoGraf” or “the Company”) (ASX: EGR; FSE: FMK) is pleased to announce the completion of its updated Bankable Feasibility Study (“BFS” or “Study”) for its Epanko Graphite Project (“Epanko” or the “Project”) in Tanzania.
HIGHLIGHTS The BFS is based on a production rate of 73,000 tonnes per annum (tpa) for the first 15 years, supporting increased demand and based on an updated Ore Reserve of 16.7 Mt at 8.2 % total graphite carbon (TGC) and includes 7.1 Mt in Proven and 9.6 Mt in Probable Ore Reserves Key BFS results: Pre-tax NPV10%: US$516M Internal rate of return IRR: 31.1 % Capital comprises construction and establishment costs (real 2025)1 of US$181.2M and Resettlement Action Plan (RAP) costs of US$18.1M (including contingencies) Annual EBITDA (real 2025): US$85.7M Finance results based on LOM basket price of US$1,746/t (real 2025) Study confirms 21.7 % increase in plant throughput to 73,000 tpa Independent Engineers Review (“IER”) confirmed all technical areas have been significantly advanced to conform with the requirements of international project financing standards and Global Industry Standard on Tailings Management (“GISTM”) Follows the completion of the Project’s Environmental & Social Management Planning, ensuring the supporting impact assessments conform to relevant Tanzanian legislation, IFC Performance Standards and World Bank Group Environmental Health and Safety Guidelines2 Debt financing program in advanced stage under the leadership of KfW IPEX-Bank (KfW) Executed marketing strategy with binding offtake and in-principle sales agreements in place covering production of 40,000 tpa with existing partners and leading diversified industrial corporation based in Germany, ThyssenKrupp Metallurgical Products GmbH3. A further 20,000 tpa offtake is expected to convert into binding sales and offtake agreement once in production and supporting future expansion Epanko competitive technical advantage to be tier-1 lowest cost new supply for the growing ex-China graphite market with global leading ESG credentials Project benefits from grid power and proximity to established transport corridor for market access that has been supported and funded through the European Commission Epanko development fully covered under the current single Special Mining Licence (“SML”) Epanko Expansion Study potential for three further stages to take production to 390,000 tpa within 10 years4, driven by rising global battery anode demand from new global supply chains Positions Epanko to become Africa’s largest planned graphite producer, with future expansions tied to downstream HFfree® purification facilities in North America, Europe and Asia to meet growing EV and lithium-ion battery demand Global graphite demand forecast to overtake projected supply from 2026 compounded by increased use of natural graphite in Lithium-ion battery market for e-mobility and energy storage China announced last month further restriction on exports of a wide range of dual?use goods to Japan, citing national security concerns. Dual-use goods to Japan includes graphite Epanko Stage 2 130,000 tpa expansion planning underway with demand supported by own downstream development discussions with potential offtakers4 The BFS has demonstrated a highly robust business case for a 73,000 tpa operation at Epanko having been completed in parallel with the IER. As a result, the final BFS has been substantially enhanced and de-risked the Project’s development. EcoGraf Managing Director Andrew Spinks commented: “The combination of the market leading quality of the Epanko Resource, with the completion of one of the most rigorous technical due-diligence programs, cements Epanko as a world-class graphite project, poised for development. The Company is now positioned well to take advantage of the forecasted huge growth in graphite demand, on the back of the increased electric vehicle and energy storage battery boom. The planned Tanzanian Midstream and end-user located Downstream processing plants are expected to provide the Company with significant growth and substantial cash flow generation. This is the result of tremendous teamwork from our board, management team and consultants and I wish to take the opportunity to thank them as we have established an industry leading low-cost vertically integrated HFfree battery anode business. This will create significant value for stakeholders which includes the Tanzanian Government, communities in the Ulanga district, industry partners and our shareholders.” BANKABLE FEASIBILITY STUDY SUMMARY During the past 24 months, the Company has embarked on an intensive program of technical work designed to optimise the Project to best suit the current market demand as well as address pre-existing comments from the IER. Much of the updates to technical work centred around the changes in regulations relating to the storage of tailings, following the creation of GISTM in 2020, which the Company is now pleased to be fully compliant. On this basis, the final BFS has been completed with a high degree of scrutiny, to ensure it satisfies the level of risk appetite that is seen from high-quality debt financing banks in leading financing jurisdictions. The IER concluded that: All additional pre-signing work required by the IER has been completed, delivering a full update of the 2017 BFS5, and 2023 partial update6. Designs are now compliant with all required international standards, as set out by KfW, including GISTM. Achieving this positive outcome is the catalyst for moving forward to the completion of the KfW debt financing for Epanko. Epanko development will support EcoGraf’s HFfree® integrated business and will deliver one of the lowest-cost, high-quality, and sustainable solutions, leveraging off its high-quality Epanko graphite, including: Epanko’s fine graphite concentrate (-100 mesh) will be shaped at the Company’s Tanzanian value-addition Midstream Facility, then purified at global EcoGraf HFfree® sites, supporting its multi-hub growth strategy7 Strong financial metrics for a single and initial 25,000 tpa purification facility based on capital and operating costs for a US location7: Initial capital investment (including contingency) of US$95M Pre-tax NPV10 of US$282M and IRR of 42 % Annual EBITDA of US$42M Process Operating Cost of US$478/t A comparable purification facility is planned for Europe, with Germany as the primary focus. Preliminary engineering indicates lower capital costs and a slight increase in operating costs compared to a US facility, resulting in similar financial metrics. TECHNICAL With the support of over 13,000 m of drilling, together with a holistic approach including geophysics, structural geology and metallurgy, has resulted in the definition of the largest development-ready graphite Mineral Resource in Africa, totalling 290.8 Mt at 7.2 % TGC for 21.0 Mt of contained graphite (announced to ASX on 11 March 2024, refer Table 3). This Mineral Resource formed the basis for the declaration of the updated Ore Reserve and the BFS (refer Table 1). The large size of the Mineral Resource allows mining to be exclusively focused on Oxide ore for the first 15 years (as shown in Figure 1 below), bringing with it various advantages including greater throughput, lower mining costs and simpler tailings handling. Figure 1 – Epanko Stage 1 LOM Processing plant Feed Historical drilling, together with new data from the 2023 and 2024 drilling programs testwork, provided samples and data for metallurgical, hydrological and geotechnical studies as well as the design and optimisation of new mining pits and a new mining schedule. Further testwork and data was derived from bulk samples, including the most recent Western Zone Oxide sample which has run through a pilot plant in South Africa, generating data for the optimisation of the Project’s process plant flowsheet. As part of the Epanko Front-End Engineering Design (“FEED”)9, METC-PaulSam JV utilised this mining and processing data to refine designs for the mine processing flowsheet and optimise the overall mine configuration to provide the most effective and efficient operating plan for Epanko. This has included additional studies for all required infrastructure, associated access roads and mine site facilities. UPDATED ORE RESERVE In support of the BFS, an updated Ore Reserve has been declared, totalling 16.7 Mt at 8.2 % TGC for 1.37MT of contained graphite (refer Table 1 below). The Epanko Ore Reserve was estimated from the March 2024 Mineral Resource estimates8 (refer Table 3) whilst factoring in the level of confidence in the Mineral Resource as well as considering relevant modifying factors and material assumptions. The updated Ore Reserve confirms a 10% increase in contained graphite from the previous Ore Reserve10 (previous Ore Reserve 14.3Mt at 8.8% TGC for 1.25Mt of contained graphite). The Ore Reserve is based on Measured and Indicated Resources only. No Inferred Mineral Resources have been included in the Ore Reserve. Table 1 – 2026 Ore Reserve Statement for the Epanko Deposit
JORC Classification | PROVED | PROBABLE | TOTAL |
Tonnes
(Mt) | Grade
(% TGC) | Cont.
(Kt) | Tonnes
(Mt) | Grade
(% TGC) | Cont
(Kt) | Tonnes
(Mt) | Grade
(% TGC) | Cont
(Kt) |
| Oxide | 4.9 | 8.8 | 437 | 8.3 | 7.9 | 659 | 13.3 | 8.2 | 1,095 |
| Transitional | 1.0 | 7.9 | 76 | 0.6 | 7.9 | 46 | 1.5 | 7.9 | 121 |
| Fresh | 1.2 | 8.3 | 103 | 0.7 | 8.4 | 56 | 1.9 | 8.3 | 159 |
| Total | 7.1 | 8.6 | 615 | 9.6 | 7.9 | 761 | 16.7 | 8.2 | 1,376 |
Notes for Table 1: Cut-off grade applied Eastern Zone is 5% TGC; Cut-off grade applied Western Zone is 6.25% TGC. For LG processed in Yr 20 -22, Eastern Zone cut-off grade is 3.5%TGC and Western Zone cut-off grade is 4% TGC. Tonnage figures contained within Table 1 have been rounded to nearest 100,000. % TGC grades are rounded to 1 decimal figure. Abbreviations used: Mt = 1,000,000 tonnes, Kt = 1,000 tonnes. Rounding errors may occur in tables. Crucially for project financing and debt repayment, the first 10 years of production are covered by Ore Reserves that are comprised of 57% Proved material, the highest confidence classification of Ore Reserves, together with the remaining 43% Probable material. This continues to support the Company’s belief that a high proportion of Proved material in an Industrial Mineral’s Ore Reserve, is essential to derisk a project. The high standard of technical work completed for the Project has helped deliver this high proportion of Proved material within the Epanko Ore Reserve. SOCIAL, ENVIRONMENTAL AND SAFETY Delivering a socially and environmentally responsible project is fundamental for the Company and financing partners. In doing so, EcoGraf will ensure that Tanzania and the local community benefit from a positive project legacy, both during construction, production and following closure. In parallel to the IER, the Project’s social and environmental work was subjected to an equally robust program of due diligence by KfW appointed E&S Independent Expert (“ESIE”), which was concluded earlier in the year2. During the past three years, extensive field work was completed, to build on and update the environmental and social studies produced for the 2017 BFS which included a complete update of the Resettlement Action Plan (“RAP”), which was recently completed and submitted to KfW and ESIE11. In addition to the RAP, an environmental and social management system was developed in-line with IFC Performance Standards and World Bank Equator Principles. These will form the basis of the implementation of all environmental and social work programs throughout construction and operation, as well as informing contractors on their obligations when operating within the Project. Figure 2 – History of Community and Social Support KEY OUTCOMES The BFS took the 2017 – 60,000 tpa case and developed it into a 73,000 tpa Stage 1 development, without the need for the expansion of the process plant. The 21.7 % increase in throughput was solely derived from a revision of the approach to mining, where only Oxide Ore is processed for the first 15 years of the operation, allowing greater throughput and both mining and processing cost advantages. Pre-production capital costs are estimated to be US$181.2M and RAP costs of US$18.1M (including contingencies). Capital cost estimates were re-quoted to reflect 2025 market prices and monetary terms. The first 10 years of processing shows a C1 Free-On-Board (“FOB”) operating cost of US$544/t and an All In Sustaining Cost (“AISC”) of US$639/t (both real 2025). Operating cost estimates were re-quoted to reflect Q1 2025 market prices and monetary terms. Table 2 – Summary of BFS Outcomes
| Parameter1 | Unit | Value |
| Graphite Production | Kt | 1,389.1 |
| Pre-tax NPV10 | US$M | 516.0 |
| Pre-tax IRR | % | 31.1 |
PROJECT FINANCING The Company continues to progress a structured project financing strategy for the Epanko Graphite Project, with the objective of establishing an appropriate mix of senior debt, equity funding and potential strategic participation. The approach is designed to reflect standard project financing practice for international mineral development projects and to meet the requirements of lenders, regulators and prospective equity investors. The debt financing program is at an advanced stage under the leadership of KfW IPEX?Bank (“KfW”), which is arranging up to US$105 million in senior debt under the German Government’s Untied Loan Guarantee (“UFK”) program to support construction of the 73,000 tpa Stage 1 development, under an existing mandate with the Company. Completion of the IER Report and the extensive environmental and social due?diligence program has positioned Epanko to meet all major international project finance standards, including the IFC Performance Standards, Equator Principles, GISTM, and World Bank Environmental, Health and Safety Guidelines. As part of ongoing engagement with the KfW Group, the Company has also been invited to assess a range of development?related financing instruments administered by KfW DEG and KfW Development. These mechanisms, subject to eligibility and further assessment, may offer opportunities to support community, environmental or infrastructure initiatives associated with the Project. In parallel with the debt financing activities, the Company is advancing a structured equity strategy intended to complement the proposed senior debt facility. Engagement is ongoing with: Existing and prospective offtake partners, who seek long?term access to high?purity graphite feedstock; Industry participants across the graphite value chain, including Midstream and Downstream processors; Government agencies regarding grant?funding programs relevant to critical mineral supply chains; Global graphite and battery supply chain groups evaluating potential strategic involvement; and Institutional investors with a focus on energy transition and critical minerals. Figure 3 – EcoGraf & KfW Meeting in Sydney & KfW Epanko Site Inspection, Tanzania BANKABLE FEASIBILITY STUDY PROGRAM AND RESULTS SCOPE OF WORK METC-PaulSam JV completed the BFS based on the upgraded Mineral Resource Estimate undertaken by ERM, updated Ore Reserves by Intermine Engineers and the excellent results from the extensive metallurgical testwork. Conservative pricing estimates for flake graphite fractions were adopted by EcoGraf using both current pricing and forecast demand via a composite model based on pricing by Benchmark Mineral Intelligent (“BMI”) and Fastmarkets. The BFS capital and operating cost estimates are to a level of accuracy of ±10-15%. The Environmental and Social Planning aspects of the BFS were completed to conform with IFC Performance Standards and World Bank Group Environmental Health and Safety Guidelines, a condition for accessing project financing for projects in emerging market jurisdictions like the Epanko debt financing from KfW. The significant work program over the last 24 months is summarised below: Geotechnical drilling, test pitting, sampling and testwork for key infrastructure; Update of the tailings storage facility design to align with GISTM; Update of Mineral Resource and mining Ore Reserves, with 40% increase in drilled Mineral Resources; New pit designs and optimisations for expanded production; Further metallurgical studies to provide better definition on the variability in weathering and mineralogical difference in ore type; Engineering design for tailings storage, roads, power and infrastructure; Revised processing plant layout and flowsheet optimisation; A FEED study that included retendering of capital equipment for the 73,000 tpa design; Additional social and environmental baseline studies; Update Social, Environmental and Safety management plans; Continued Stakeholder Engagement; Completion of 2025 RAP Report and RAP implementation early-works; New capital and operating cost estimates for scope change to 73,000 tpa of product; Update of road survey and safety study; Independent pricing from BMI and Fastmarkets; and Project development and marketing program securing further sales support. Epanko Current Mineral Resource estimate Table 3 – Mineral Resource Estimate for the Epanko Deposit >5.5 %TGC8.
| JORC Classification | Tonnage
(Mt) | Grade
(%TGC) | Contained Graphite
(Kt) |
| Measured | 32.3 | 7.8 | 2,500 |
| Indicated | 55.7 | 7.5 | 4,200 |
| Measured + Indicated | 88.0 | 7.6 | 6,710 |
| Inferred | 202.8 | 7.2 | 14,310 |
| Total | 290.8 | 7.2 | 21,010 |
Notes for Table: Tonnage figures contained within Table 3 have been rounded to nearest 100,000. % TGC grades are rounded to 1 decimal figure. Abbreviations used: Mt = 1,000,000 tonnes, Kt = 1,000 tonnes. Rounding errors may occur in tables. Figure 4 – Epanko Project Location Map STUDY TEAM The BFS was managed by METC-PaulSam JV utilising industry leading experts in relevant disciplines including: METC-PaulSam Study Manager and Engineering Design ERM (CSA Global) Mineral Resource and Geology Knight Piésold Hydrology and Infrastructure ECG Engineering HV Power Transmission and Electrical Engineering Independent Metallurgical Operations Metallurgy Intermine Engineers Mining and Ore Reserves George Orr & Associates Geotechnical Mine Design Royal Freight Transportation planning and road safety assessment Dhamana Consulting Resettlement planning, stakeholder engagement program, E&S risk assessment and development of ESMPs PML (Tanzania) Registered land surveys and valuers Bowmans (Tanzania) Legal advisors for land access and resettlement programs City Engineering EIA consultants Mine Earth Consulting Mine closure planning All consultants have previously worked on African based projects, including Tanzania.
MINING Mining operations will commence at the East Pit, extracting higher grade Oxide Ore for the first two years of production. Mining then moves to the West Pit for Years 3 to 15, to conclude the Oxide phase of the operation. Years 16 to 20 are focused on the Transitional and Fresh Ore, initially from the higher-grade East Pit for Years 15 to 17, followed by the West Pit. The Ore Reserve will be exhausted by the end of Year 20 and then low grade Oxide stockpiles will be available for processing beyond this point. Epanko benefits greatly from the terrain of the Project site, where the ridge-like nature of the Western Zone mineralisation, results in the need to mine minimal quantities of waste; delivering a LOM strip ratio of 0.86:1 (waste to ore). Epanko will be mined using conventional open pit methods, with minimal drill and blast required for the Oxide mining, due to its soft, free-dig nature. A conservative 20 % requirement for drill and blast in the Oxide has been budgeted in the BFS, presenting a cost saving opportunity if less is required. The mining fleet will comprise of a 50 t backhoe excavator and 35 t off-highway haul trucks operated by a mining contractor. The majority of the LOM tonnes come from the West Pit, where mining initially involves the removal of the Oxide material from the top of the ridgeline, along a strike length of almost 2,700 m. The widest point is approximately 300 m wide and has a maximum pit depth of 85 m below original surface. The East Pit goes to a maximum depth below original surface of 60 m, has a north-south strike extent of 370 m and an east-west width of 280 m. Figure 5 – Epanko Field Exploration Activities Figure 6 – Epanko BFS Site Layout PROCESSING AND METALLURGY The processing plant design is based on an 850,000 tpa crushing, grinding and flotation processing plant treating Oxide ore which will be the predominant feed for at least the first 15 years, to produce 73,000 tpa of graphite concentrate product. Following depletion of the Oxide ore, Transitional and Fresh ore will be processed at a lower rate of 720,000 tpa producing 60,000 tpa of graphite concentrate product. Low grade West Oxide ore (approximately 5.1 % TGC) will be stockpiled and processing deferred till the end of the mining schedule. Ore will be processed at the processing plant, as shown in Figure 7 and consisting of: A conventional two stage crushing circuit with a jaw crusher as the primary crusher and a cone crusher as the secondary crusher; A single stage rod mill (grinding to 710 microns) in closed circuit with a screen; A rougher flotation stage; Regrinding of the rougher tailings; Scavenger flotation; Primary cleaning and polishing of rougher/scavenger concentrate; Four stage cleaning flotation; Dewatering of the graphite; Concentrating the graphite in a pressure filter; Drying of the concentrate in a rotary dryer; and Dry screening of graphite product into saleable size fractions. Following the transition to Fresh ore, the process plant tailings will have the option to pass through a sulphide flotation circuit, based on the classification of feed material being processed. The flotation circuit is allowed for in the circuit design, but installation will be deferred until later in the Project life. Subsequently, feed material with non-sulphide containing tailings will bypass the sulphide flotation circuit. Feed material with sulphide-containing tailings will be directed to the sulphide flotation circuit where sulphide containing tailings will be separated and deposited in a dedicated lined cell. Figure 7 – Epanko Process Plant Route The Epanko flowsheet is based on the results of extensive metallurgical testwork including comminution, variability and locked cycle testing. Results from the testwork completed for the 2017 BFS have been reinforced by additional metallurgical programs undertaken over the past two years. The 2024 variability work demonstrated the ability for the proposed flowsheet to deliver relatively consistent concentrate grades and recovery across all ore types, including low and high grade material, Oxide, Transitional and Fresh ore, as well as higher clay zones, low sulphide zones and other mineralogical variations. These results and extensive testwork significantly de-risk the Project by providing confidence that orebody variability will not impede expected production performance. Metallurgical results from the various Ore types have been incorporated into the production schedule to define expected product throughput over the LOM. Table 4 – Epanko life of mine flake size distribution (weighted)
| Name | Micron | Mesh | Mass (%) | Carbon Grade (%) |
| Jumbo | >300 | >50 | 19 | 97.5 |
| Large | >180 | >80 | 31 | 96.5 |
| Medium | >150 | >100 | 13 | 96.0 |
| Small | <150 | <100 | 37 | 95.5 |
Notes for Table 4. 1mm=1000 micron and fixed carbon content determined by Loss on Ignition method (LOI) The Project delivers a significant proportion of total concentrate production at the >100 mesh size fractions, which carries with it elevated product pricing. Across the LOM, 63% of concentrate production is > 100 mesh or 150 microns. One of Epanko’s standout attributes is the high carbon grade of the product, with LOM carbon grades of 97.5% achieved largest size fraction of >50 mesh. This higher purity product carries a price premium above the standard 94 % carbon benchmark, with material below this grade suffering from a significant drop-off in value. This is due to the higher purity material delivering performance advantages when used in lithium-ion batteries, as well as being lower in impurities that can be detrimental to the graphite’s performance. Figure 8 – Flake graphite price premium for higher carbon grade and flake size The higher carbon grades also reflect the lower level of impurities, and Epanko’s product grades are marked by lower Iron (Fe), Silica (Si) and Sulphur (S), providing a further sales marketing advantage. The Company’s testwork programs with customer qualification has demonstrated the very favourable particles size distribution of < 100 mesh product size material with its very low silica (Si) content, making it an ideal feedstock for the battery anode market. INFRASTRUCTURE Tailings Storage Facility The waste output (tailings) from the flotation process will be pumped from the processing plant to a tailings storage facility (“TSF”), consisting of two cells, the Sulphide Tailings Cell and the Main Tailings Cell. Tailings will be delivered through a high-density polyethylene (“HDPE”) pipe running between the process plant and the TSF. The pipe alignment will drain to a catch pond to reduce the risk of uncontrolled discharge if the pipeline were to fail. Tailings will be discharged into the TSF Main Tailings Cell by sub-aerial deposition methods and deposition to the Sulphide Tailings Cell will be sub-aqueous with the cell flooded at all times to reduce the risk of oxidisation. The TSF design will support the life of the development and there is significant scope to support both an extension and further expansion of the Project. Power The Project is estimated to have a maximum demand of 2.8 MW, with an average load of 2.4 MW and an energy consumption of 20.8 GWhr/year, most of which is needed to supply the graphite processing plant. A new 220 kV transmission line is planned from Ifakara to Mahenge and a power supply agreement (“PSA”) is planned to be signed with TANESCO to connect the Project to the TANESCO power grid via a new 33 kV powerline that will run from Epanko to the new Mahenge substation. The power will be 100% sourced from low-cost hydropower. Water Process water supply for the main process will be sourced from the TSF supernatant pond and the water diversion dam and stored in the process water ponds located at the process plant. Potable water supply will be sourced from groundwater treated by Multi-Media Filtration (“MMF”). An 80m³ per day MMF plant will be installed at the processing plant and a 20 m³ per day MMF plant will be installed in the water services area of the accommodation village. Accommodation A 600-man camp will be established for all site-based personnel during construction and operations. The accommodation village will be constructed using modular prefabricated panel units transported to site in a flat-pack configuration and installed onto a concrete slab on the ground. All buildings will be single storey. Modular flat-pack units reduce the transport costs to site and allow for the bulk of fabrication to take place off site. The village will be a self-contained facility independent from the main plant and managed by an independent camp management company. Logistics The Epanko site can be accessed from the existing national road network to the chosen export port of Dar es Salaam. The BFS assumes road haulage to the port of Dar es Salaam in bulk bags, however, as production increases, via potential future expansion phases3, a combined road-rail link may be utilised. Epanko is located approximately 75 km from the Ifakara rail siding which links to Dar es Salaam. Figure 9 – Epanko Site Location Graphite product will be shipped from the port of Dar es Salaam. The port of Dar es Salaam has a total quay length of about 2,000 m, with eleven deep-water berths. The port has an estimated capacity of 3.1 Mt general cargo, 1 Mt container cargo and 6.0 Mt of liquid bulk cargo with 7 deep water berths. The port serves the landlocked countries of Malawi, Zambia, Democratic Republic of Congo, Burundi, Rwanda and Uganda, and is an established minerals export facility. In October 2023, DP World signed a 30-year concession agreement with the Tanzania Ports Authority (“TPA”) to operate and modernise the multi-purpose Dar es Salaam Port, Terminal 1, berths 1 to 713. Since taking control, DP World have implemented several programs to improve the efficiency of the port, which have had a significant positive impact on reducing container ship waiting times. REGULATORY, SOCIAL AND ENVIRONMENTAL The entire mine site for the BFS is contained within a single SML (SML 733/2025), which covers a total area of 18.48 km2 . The SML was granted in 2025 with an initial mine life of 18 years, with the right to extend to 25 years or beyond subject to the potential future mine life of the Ore Reserves2. The SML covers the previous mining licence plus the two former prospecting licences to the south. This larger SML will support potential future expansion and extension of the Project life. Within the SML is an area defined as the RAP Area, which total 6.9 km and will be the subject of the Epanko RAP and host all mine site infrastructure. The IFC Performance Standards and World Bank Equator Principles are recognised as the global standard for assessing and managing environmental and social risks for projects domiciled in emerging markets. These guidelines have been adopted by leading financial institutions worldwide, including KfW and compliance is a pre-requisite by all development banks and other leading international financial institutions for project financing. In 2022, EcoGraf completed a gap analysis on the work done for the 2017 BFS, to identify areas relating to environmental and social compliance that required further work. Over the past three years, the Company has conducted a complete update of the RAP as well as various additional baseline environmental and social field surveys. Results from all of these have contributed to updates of impact assessments, management plans and on-going baseline monitoring programs. Consistent with the Project’s social management framework and Tanzanian local content regulations, EcoGraf expects operations to create up to approximately 200 local Tanzanian jobs, with more than 95% of permanent operational roles planned to be filled by Tanzanian nationals. EcoGraf places a strong emphasis on compliance with local content requirements and the development of local workforce capability. Further enhancement of the pre-existing Environmental and Social documentation including completion of ESIA, RPF, Stakeholder Engagement Plan and the comprehensive suite of Environmental and Social Management Plans has been a critical element of the BFS, as shown below. Environmental Management Plans EMP01 Air Quality and GHG Management Plan EMP02 Noise and Vibration Management Plan EMP03 Water Resources and Erosion Control Management Plan EMP04 Biodiversity Ecosystems and Land Use EMP05 Waste Management Plan EMP06 Materials Management Plan EMP07 Tailings Storage Facility Operating Manual EMP08 Soils, Erosion and Land Use Management Plan EMP09 Acid and Metalliferous Drainage Management Plan EMP10 Pest and Weed Management Plan EMP11 Climate Change/GHG Management Plan EMP12 Emergency Preparedness and Response Plan Social Management Plans RPF Resettlement Policy Framework SMP01 Stakeholder Engagement Plan SMP02 Community Health, Safety & Security (CHSS) Management Plan SMP03 Artisanal and Small-Scale Mining Interface Management Plan SMP04 Traffic and Road Safety Management Plan SMP05 Cultural Heritage Management Plan SMP06 Labour and Working Conditions Management Plan SMP07 Social Development Plan SMP08 Gender Based Violence and Harassment Management Plan SMP09 Gender Management Plan SMP10 Human Rights Management Plan SMP11 Supply Chain Management Plan The mine area impacts the Epanko hamlets of Epanko A, Kazimoto, Itatila, Mbera, Epanko B and Luli. Resettlement planning activities have been significantly progressed during the last 24 months, culminating in the recent completion of the 2025 RAP Report11. Following the completion of the RAP planning stage, the Company has now moved into the early stages of RAP implementation. A Mine Closure Plan (“MCP”) was developed by Mine Earth Consulting in 2024 in accordance with the requirements of the Tanzanian Ministry of Minerals ‘Mine Closure Guidelines’ (2019). The main aim of the rehabilitation will be to re-establish a long-term stable landform which can be handed back to the local population. Reestablishing a surface cover of verdant vegetation will reduce the potential for adverse environmental impact such as dust generation and rainfall erosion, as well as improving aesthetics. Rehabilitation trials will be undertaken during operation to determine the most effective method to cap and rehabilitate the surface of the TSF as well as how to best rehabilitate the waste rock dumps and other areas of disturbance. The final closure and rehabilitation plan will be developed in consultation and with input of the local population and government during the mining operations. PROJECT IMPLEMENTATION SCHEDULE A Project execution schedule has been developed as part of the BFS. The schedule presented outlines the planned construction and commissioning activities following site access and assumes EcoGraf Board approval of development, which is dependent on finalisation of the Project financial arrangements. As commencement of construction activities is linked to that approval, the start date and corresponding milestone dates may vary; however, the underlying construction durations and sequencing remain as currently planned. The schedule provides for a 22-month construction period from the date of site access to the commencement of ramp up. The timeline is based on specific design requirements, preliminary vendor-nominated manufacturing and delivery periods, and the Company’s in-house experience with similar projects. Figure 10 – Project Timeline PRODUCT SPECIFICATION, SALES AND MARKETING The high proportion of > 100 mesh flake size product and high carbon grade of the Epanko products allows EcoGraf to sell product into established markets, often at a price premium due to the superior quality compared to the established industry benchmark. EcoGraf has secured pre-production offtake agreements and in-principle sales – which are expected to be converted into binding sales and offtake agreements – with ThyssenKrupp, a European trading group, POSCO and others, covering 82.2 % of Epanko production once nameplate capacity has been reached. Extensive product analysis has been completed by these parties as well as several others which are in active discussions with the Company to sign additional sales agreements. Product specifications including carbon content and sizing have been developed in discussions with our offtake partners and discussions with established graphite users and traders across both industrial and battery markets. The average carbon content of Epanko product envisaged by the BFS is > 96 % carbon grade across 4 size fractions to meet market demand which is currently dominated by traditional industries and is expected to maintain the majority of market share during the initial years of production. Epanko competitive technical advantage supports it to become a tier-1 lowest cost new supply for the growing ex-China graphite market with global leading ESG credentials. EPANKO PRICING The Company engaged two leading industrial minerals forecasters; BMI and Fastmarkets. To ensure representativity, a composite model was developed based on these two forecasts, together with relevant adjustments to price to reflect higher carbon contents for each size fraction and blended European and Chinese pricing to reflect to the destination of each offtake. All prices are based on a CIF basis. The assumed LOM basket price for Epanko, on a CIF basis, is US$ 1,746/t (real 2025) in the BFS and represents a 48% increase vs. 2017 BFS basket price of US$ 1,181 /t. GRAPHITE DEMAND Demand for natural battery graphite is increasing strongly, driven by the rapid expansion of lithium-ion batteries used in EVs and energy storage systems in North America, Europe and Asia. As electrification accelerates across the transport and energy sectors, lithium batteries are becoming central to this transition, placing increasing strategic importance on developing new technologies and sustainable supply channels. Global graphite demand is forecast to overtake projected supply from 2026 due to: graphite required for lithium battery e-mobility and clean energy storage applications; an increased proportion of natural graphite used in lithium battery anodes; and growing supply chain security issues (geopolitical tensions, Chinese export controls, trade tariffs). As a result, a shortfall in the natural flake graphite market is expected in the second half of this decade. Figure 11 – Flake graphite supply and demand Source: Benchmark Mineral Intelligence, 2024 CAPITAL AND OPERATING COSTS Pre-production capital costs are estimated to be US$181.2M and RAP costs of US$18.1M (including contingencies). The pre-production capital cost estimates were re-quoted to reflect current market prices and show the increase in costs seen globally by not only the mining sector, but most industrial sectors. Compared to the 2017 BFS, the execution model has reverted to an EPCM approach. The estimate includes all the necessary costs associated with process engineering, design engineering and drafting, procurement, construction and construction management, commissioning of the process facility and associated infrastructure, mining establishment, first fills of plant reagents and consumables, spare parts and working capital required to design, procure, construct and commission all the facilities required to establish the Project. Table 5 – Capital cost estimate summary (real 2025)
| Section Description | Total US$M |
| Construction Management and Operation Camp | 10.6 |
| Construction and Mining Camp | 3.0 |
| EPCM Cost | 15.4 |
| Mining Early Works | 1.7 |
| Mobile Equipment | 1.9 |
| Off-Site Services | 8.9 |
| Operational Readiness | 6.3 |
| Owner's Team Cost | 12.3 |
| Processing Plant | 71.3 |
| Site Services | 2.0 |
| TSF Stage 1 | 14.4 |
| Contingency | 22.8 |
| TOTAL | 181.2 |
The Total RAP costs, including contingency, is estimated to be US$18.1M which will form the basis of the implementation of all environmental and social work programs throughout construction and operation, as well as informing contractors on their obligations when operating within the Project. There is a requirement for capital expenditure over the life of the Project that is not covered by the general maintenance provisions within the operating cost estimate. These sustaining and deferred capital, including closure costs, are US$54.2M and US$22.8M, respectively (real 2025). Processing operating costs have been determined based on treatment rates of 850,000 tpa for Oxide ore and 720,000 tpa for Transitional and Fresh ore. The estimates have been based on a P80 grind size of 710 µm, operation 24 hours per day and 365 days per year with a milling circuit direct operating hours of 8,000 per annum. The throughput rates have been used as the basis for developing comparative operating costs. The operating costs have been compiled from a variety of sources, including: Budget quotations received from suppliers; METC database of prices for consumables; Manning levels, wages and salaries provided by EcoGraf; Administration costs derived from information provided by EcoGraf; Reagent consumptions derived from testwork results; Modelling and calculation of crushing and grinding energy and consumables, using ore characteristics measured during the testwork; and First principle estimates based on typical operating data. The LOM operating cost summary below is based on parameters outlined in the Process Design Criteria, LOM production schedule including grid power supply and all processing costs associated with producing graphite concentrate. Table 6 – Operating cost estimate summary (US$/t Concentrate Sold FOB Dar es Salaam, real 2025)
| | LOM | First 10-Years of Processing |
| Mining | 122 | 136 |
| Processing | 240 | 222 |
| Transport & Port Charges | 125 | 125 |
| General & Administration | 66 | 62 |
| C1 Cost FOB Dar es Salaam | 553 | 544 |
| Royalties & Levies | 58 | 59 |
| Sustaining Capital | 39 | 36 |
| All In Sustaining Cost | 651 | 639 |
Notes for table – rounding errors may occur. Key operating outcomes of the Epanko Project are reported in the table below. Table 7 – Key operating metric summary
| Input | Unit | 2025 BFS |
| Development period | weeks | 72 |
| Mine life | years | 22* |
| Average annual throughput (Oxide) | t | 850,000 |
| Strip ratio | waste to ore | 0.86:1 |
| Average feed grade | % TGC | 8.3 |
| Graphite recovery | % | 97.2 |
| Average product carbon grade | % | 96 |
| Graphite production (Oxide) | t | 73,000 |
*The SML (SML 733/2025) is granted for an initial 18 years with a right to extend to 25 years (subject to regulatory approvals). The 22-year LOM in this BFS assumes the SML term is extended/renewed in accordance with applicable regulatory processes. FINANCIAL OUTCOMES Key financial return outcomes of the Epanko Project are reported in the table below. Table 8 – Key financial parameters
| Input | Unit | 2025 BFS |
| Average product price | US$/t CIF, real 2025 | 1,746 |
| Pre-tax geared NPV10 | US$M | 516 |
| Pre-tax geared IRR | % | 31.1 |
| Post tax geared NPV10 | US$M | 350 |
| Post tax geared IRR | % | 27.0 |
Notes for table – Corporate taxation rate 30% and Financing assumption 39% debt. PROJECT OPPORTUNITIES This BFS covered the Stage 1 development of Epanko, with initial production of 73,000 tpa of graphite concentrate. Opportunities exist beyond this to increase and extend production. Further savings exist on implementation due to the conservative approach taken to design and costings. Additionally, Project economics do not include product sales into the high growth lithium-ion battery markets through downstream processing. Opportunities that exist include, but not limited to: Improved Transitional Ore definition to reduce the conservative assumption that it is all handled as Fresh Ore and process the weathered portion of this ore type as Oxide; Pit geotechnical review to assess opportunity to steepen pit walls from the current conservative approach, improving access to the high grade Ore zones in the East Pit and lowering the overall pit strip ratios; Expansion of mining capacity via additional stages of development up to 390,000 tpa4; Extension of the Mineral Resource for an additional 2 km of strike length further south; Further exploration of potential high grade geophysical anomalies identified. Figure 12 – Epanko West Pit – Isometric Pit Design & Geology 3D render of the Epanko West Pit with geological model, including the grey graphitic schist unit of the Western Zone Figure 13 – East Pit high grade opportunities Notes for Figure 13 – Mineral Resource block model coloured; Red = Measured, Green = Indicated and Blue = Inferred. The table below outlines the proposed additional three stages for combined production of 390,000 tpa4. Table 9 – Potential future expansion scenarios3
| | Production Scenario |
| Phase | Staged | Cumulative |
| Stage 1 | 73 ktpa | 73 ktpa |
| Stage 2 | 73 ktpa | 130 ktpa |
| Stage 3 | 130 ktpa | 260 ktpa |
| Stage 4 | 130 ktpa | 390 ktpa |
The staged expansion cases (including the potential to reach 390,000 tpa) are conceptual and illustrative only, do not constitute production targets for the purposes of ASX Listing Rule 5.16 and are not the basis for the forecast financial information disclosed in this announcement. Figure 14 – Potential future expansion – first 10-years ramp-up4 Summary of Ore Reserves and Reporting Criteria (Summary of Information Required by ASX Listing Rule 5.9.1) In accordance with ASX Listing Rule 5.9.1, and in addition to further information included in this announcement, including Appendix 1- JORC Table 1, the Company provides the following information: Material Assumptions: The Ore Reserves are based on key modifying factors that include analysis, designs, schedules and cost estimates of the Epanko BFS that describes the development of the Epanko Graphite Project over a 22-year Project life. Material assumptions of the Study include: Estimation of Mineral Resources reported in accordance with the JORC Code including: geological interpretation based on lithological and structuring logging of reverse circulation and diamond drilling samples; interpretation and estimation was undertaken using Micromine, Datamine and GeoAccess; a cut-off grade of 5.5% TGC was used to report the Mineral Resource Estimate; and mine designs and mining schedules based on geotechnical drilling, logging, rock strength and shear strength analysis. The Mineral Ore Reserve estimate has been reported in accordance with the JORC Code including: a cut-off grades of 5.00% TGC for the East zone, 6.25% TGC for the Western zone and 2.6% for processing; mining dilution and ore loss factors where applied based on weathering and expected influence of blasting in these profiles; geotechnical parameters applied to the mine designs based on investigations by George Orr and Associates; the Ore Reserve as constrained by detailed pit designs; mining equipment determined from experienced Mining contractors. The processing plant design has been developed by experienced design engineers to support the flowsheet and the predicted recovery, throughput and production estimates. This work was based on extensive metallurgical testwork and on a range of grades between 5% TGC and 8.9% TGC to determine whether there is any variability of recovery to concentrate in the differing weathering and mineralogical zones of each deposit. In addition, two locked cycle tests were completed to determine ultimate recoveries from the East and West fresh material. Environmental and social impact assessment and management plans have been developed. Designs for valley fill dams and waste dumps based on a mine life of 25 years and incorporated strategies for both subsurface, surface and decant water management. The infrastructure requirements have been defined by specialist engineers. Grid power cost assumptions have been based on quotes from TANESCO (Tanzania national power authority). The concentrate will be transported by truck on a public site access road, to be constructed, before connecting to the main road network at Mahenge and then to Dar Es Salaam port for export. The detailed designs discussed above have been used as the basis for capital and operating cost estimates derived from first principles, estimates and vendor quotes. Classification criteria: The Ore Reserves comprises Measured and Indicated Mineral Resources only. The Study includes some Inferred Resources which are mined incidentally with the Measured and Indicated Resources and treated as waste for scheduling purposes. Mining Method: Mining Method: Graphite ore will be mined from two open cut pits which will be developed at the Western Zone and Eastern Zone. These are approximately one kilometre apart and lie near the northern boundary of the Mining License area. The Western Zone consists of mining a strike length of 2,700m along the top of the ridge to a depth of 85m in the south, and the Eastern Zone sits partially over a hill within a small valley and will be mined to a depth of 60m and the pit will have a strike extent of 370 m. Mining will be by a conventional drill and blast, truck and shovel operation, using a mining contractor. Blasting will be required in both the West Pit and the East Pit, however 80 % of Oxide Ore is classified as free dig. Ore will be loaded onto trucks and transported to the Run-Of-Mine Pad (“ROM Pad”). Waste rock will be transported by trucks to the waste rock storage facility. The height of the mining benches is determined according to physical characteristics of the mineralisation. It is assumed that a 5 m working bench height will be maintained with free dig or blasted material excavated in two discrete flitches, each nominally of 2.5 m height to minimise dilution and to maximise ore recovery. To accommodate the 73,000tpa of graphite product, the mine schedule will target a Run-Of-Mine (“ROM”) feed of 850,000 tpa when feeding Oxide ore. This will drop to 60,000 tpa and 720,000 tpa respectively when feeding Transitional and Fresh Ore. The cut-off grade applied is based on the profitability of the Resource block after modifying factors and the metallurgical and mass recovery are applied to the in-situ TGC grade. The nominal cut-off grade for processing is around 2.6 % TGC. However, to maintain concentrate output, a raised cut-off grade of 6.25 % TGC for the Western zone and 5 % TGC for the Eastern zone has been applied to ensure that the concentrate production target of 73 kt per year is achieved for an Oxide ore feed rate of 840 kt per year and 60 kt per year is achieved for a Fresh ore feed rate of 720 kt per year. Mining dilution and ore loss factors were applied based on weathering and the expected influence of blasting in these profiles. Metallurgical recovery was applied according to the weathering profiles. Geotechnical parameters applied to the designs are based on investigations by George Orr and Associates. The detailed mine designs have been reviewed by George Orr and Associates. Processing Method: The design is based on an 850,000 tpa flotation processing plant treating Oxide ore which will be the predominate feed for the first 15 years, to produce 73,000 tpa of graphite product and Transitional and Fresh ore will be processed at a rate of 720,000 tpa, producing 60,000 tpa of graphite product for the remainder of the Project life. Low-grade West Oxide ore (~ 1.5 Mt at 5.1% TGC) will be stockpiled and processing deferred till the end of the mining schedule. Ore will be processed through the processing plant which will consist of: A conventional two stage crushing circuit with a jaw crusher as the primary crusher and a cone crusher as the secondary crusher; A single stage rod mill (grinding to 710 microns) in closed circuit with a screen; A rougher flotation stage; Regrinding of the rougher tailings; Scavenger flotation; Primary cleaning and polishing of rougher/scavenger concentrate; Four stage cleaning flotation; Dewatering of the graphite; Concentrating the graphite in a pressure filter; Drying of the concentrate in a rotary dryer; Dry screening of graphite product into saleable size fractions. Final product bagging. Testwork carried out on composite samples and ore variability samples demonstrate outstanding grade and recovery of graphite in final concentrate with no deleterious elements. Road transport of the mine concentrate from the Epanko mine site to Dar es Salaam will be through Ifakara, to Morogoro and then onto the logistic supplier’s yard in Dar es Salaam. The concentrate bulk bags are then packed into containers for export. The transport route between the Project Site and the port of Dar es Salaam is a major part of the operations for the Project. EGR undertook an independent study that assessed the route suitable for the transportation of concentrate from site to the Dar Es Salaam Port. Estimation Methodology: Revenue is calculated as the concentrate price less royalties, less fixed and variable costs to produce and transport the product to the point of sale. Process plant feed from the mining schedule provided a head grade that was modelled through the processing plant and used to model costs and revenue over the life of the Project. The forecast 2025 Graphite baseline price used in the financial model was based on a composite model of forecasts from BMI and Fastmarkets, together with relevant adjustments to price to reflect higher carbon contents for each size fraction and blended European and Chinese pricing to reflect to the destination of each offtake. The NPV is derived from post royalty, debt and equity funded nominal cash flows using a 10% discount rate. Mining licence: The Epanko Graphite Project is located within the special mining license granted by the Government of Tanzania. Figure 15 – Epanko Mineral Processing Plant and Video Figure 16 – Epanko Geology, Ulanga Tanzania Notes and References 1 All BFS financials are reported as nominal, unless flagged as Real. 2 Refer ASX announcement dated 17 March 2025 titled “Completion of Major Epanko Environmental and Social Program” 3 Refer ASX announcement dated 25 August 2015 titled “Off-take Agreement with ThyssenKrupp” 4 Refer ASX announcement dated 12 November 2025 titled “Epanko Expansion Supports HFfree Downstream Facilities” 5 Refer ASX announcement dated 21 June 2017 titled “Updated Bankable Feasibility Study” 6 Refer ASX announcement dated 28 April 2023 titled “Epanko Pre-Development Program Delivers Outstanding Results” 7 Refer ASX announcement dated 13 August 2025 titled “HFfree Delivers Industry-Leading Low Cost and NPV of US$282M” 8 Refer ASX announcement dated 11 March 2024 titled “127% increase in Epanko Mineral Resource” 9 Refer ASX announcement dated 21 October 2024 titled “Epanko Front-End Engineering Design Completed” 10 Refer ASX announcement dated 25 July 2024 titled “Updated Epanko Ore Reserve” 11 Refer ASX announcement dated 22 October 2025 titled “Completion of Epanko Resettlement Action Plan” 12 Refer ASX announcement dated 8 December 2025 titled “KfW IPEX-Bank Debt Financing Program & Due Diligence Update” 13 Refer https://www.dpworld.com/en/news/dp-world-signs-30-year-concession-to-operate-multi-purpose-dar-es-salaam-port-in-tanzania 14 Refer ASX announcement dated 4 March 2025 titled "Epanko 'Life of Mine' Special Mining Licence Granted" This announcement is authorised for release by Andrew Spinks, Managing Director. For further information, please contact: INVESTORS Andrew Spinks Managing Director T: +61 8 6424 9002 Forward looking statements Statements relating to the estimated or expected future production, operating results, cash flows and costs and financial condition of the Company’s planned work at the projects and the expected results of such work are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, forecasts, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfil projections/expectations and realise the perceived potential of the Company's projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of minerals and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company's projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of minerals and other risks and uncertainties. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and assumptions on which these statements are based. The forward-looking statements are based on information available to the Company as at the date of this announcement. Except as required by law or regulation (including the ASX Listing Rules), none of the Company, its representatives or advisers undertakes any obligation to provide any additional or updated information whether as a result of a change in expectations or assumptions, new information, future events or results or otherwise. Competent Person Statement – Ore Reserves The information in this report that relates to the Ore Reserve has been compiled by Mr Steve O'Grady. Mr O'Grady, who is a Member of the Australasian Institute of Mining and Metallurgy (#
