Armadale Capital Plc announced an update on its Mahenge Liandu Project in Tanzania. The Company continues to focus on finalising the structure of the Government of Tanzania's 16% free carried interest of the Project and on securing project funding to allow the commencement of commercial production at the Project. While securing funding continues to remain challenging in the resources sector, strong global demand for high quality graphite remains.

Discussions continue to progress with the Government of Tanzania regarding the framework and structure for their 16% carried interest. The Company is hopeful this will be finalised in conjunction with project funding. The Company is continuing the baseline environmental monitoring on site and has continued to work on the transport logistics planning for the Project.

However, work on the FEED study has been scaled back in light of the challenging market conditions in order to preserve funds available on achieving development funding. The Company is continuing the baseline environmental monitoring on site and has continued to work on the transport logistics planning for the Project. However, work on the FEED study has been scaled back in light of the challenging market conditions in order to preserve funds available on achieving development funding.

The Companyis continuing discussions with several potential financiers regarding the debt funding required for Project development. Continued strong demand fundamentals for graphite remain in place and there is projected to be an increasing demand as production of electric vehicles continues to increase. Graphite prices remain substantially above the prices used in the Company's feasibility study and the Board believes that these pricing levels will continue to be robust due to expected demand from the electric vehicle sector.

Discussions with potential offtake partners continue.