Black Rock Mining : Quarterly Report & Cashflow

		ASX ANNOUNCEMENT
		28 July 2022
		JUNE 2022 QUARTERLY ACTIVITIES REPORT
only	HIGHLIGHTS
• Balance sheet strengthened following A$25M Placement completed with institutional
	and sophisticated investors
•	FEED workstreams significantly advanced with an independent technical review
	expected to be completed this quarter
• Ongoing positive engagement with customers and financial institutions with respect to
	debt financing activities; Targeting credit-approved debt term sheets in Q4 CY22
use	• Graphite prices for Mahenge's products held up well during the quarter, Benchmark
	Mineral Intelligence (BMI) expects graphite market to finish CY22 in deficit
	• Continued build-out of organisational capacity through key appointments:
		- Mr Paul Sims commenced in his role as Chief Financial Officer;
		- Mr James Doyle appointed Company Secretary; and
		- Board and CEO recruitment progressed for Tanzanian JV Co, Faru Graphite
		Corporation.
personal	• A$26.2M cash at bank as at 30 June 2022

Tanzanian graphite developer Black Rock Mining Limited (BKT: ASX) (Black Rock or the Company) is pleased

to provide an update on activities at its Mahenge Graphite Project (Mahenge) in Tanzania for the quarter ending 30 June 2022.

Mahenge Graphite Project

Front End Engineering Design (FEED)

FEED workstream was 95% complete at quarter end with remaining items subject to Independent Technical Expert (ITE) review. Workflow includes detailed engineering, cost estimation and development of Project Execution and Operational Readiness plans. ITE review of the technical work stream is expected to be completed this quarter.

The Company notes that delivery of certain long lead items of plant has increased over the last couple of quarters with potential impacts on schedule. A schedule optimisation process is underway which is expected to

Forbe finalised this quarter.

Sustainability

During the quarter the Company significantly advanced planning and initiation activities for the initial resettlement activities pursuant to the agreed Resettlement Action Plan (RAP) at Mahenge. As part of project development activities, Black Rock has agreed to acquire land proximal to mining operations. This has been well communicated to all stakeholders as part of ongoing community and Environmental, Social and Governance initiatives. Black Rock previously finalised field activities with Project Affected Persons associated with the Mahenge RAP (refer ASX Announcement 11 May 2020).

Resettlement activities are planned to occur in a staged manner with an initial focus on priority areas required for the mill, dry tailings storage and open pits for planned Modules One and Two. The total compensation

Black Rock Mining Ltd	Australian Office	Tanzanian Office	Directors
ACN 094 551 336	Level 1, 1 Walker Ave	Mahenge Resources Ltd	Richard Crookes	Chairman
ASX: BKT	West Perth WA 6005	Msasani Towers	John de Vries	Managing Director & CEO
	Ph: [phone]	Second floor Wing B	Gabriel Chiappini	Non-Executive Director
	E: [e-mail]	Dar es Salaam	Ian Murray	Non-Executive Director
		Ph [phone]
www.blackrockmining.com.au

ASX ANNOUNCEMENT

28 July 2022

package is US$7.9m including Top Ups required to meet IFC Performance Standards and Equator Principals - EP2 (Social Impact) and EP5 (Stakeholder Engagement). The Company is able to access work areas for early works 90 days after compensation has been paid. Subsequent to 30 June 2022, the Company announced it had commenced the RAP compensation process (see ASX announcement 25 July 2022).

onlyCorporatePlacement

On 16 May 2022, the Company announced that it had completed the issue of 104,166,667 ordinary shares to raise A$25M (before costs) at an issue price of A$0.24 per share (Placement). The Placement shares were issued pursuant to the Company's placement capacity under ASX Listing Rules 7.1 (16,864,131 Placement shares) and 7.1A (87,302,536 Placement shares).

The issue price of A$0.24 per share represented a:

• 12.7% discount to the last closing price of Black Rock shares on 3 May 2022 of A$0.275 per share; and
• 13.8% discount to 5-day volume weighted average of A$0.278 per share.

useProceeds from the Placement will be used to advance the development of Mahenge, including payment of resettlement compensation, early works program, the purchase of long lead items, and for general and corporate purposes. Shaw and Partners Limited and Aitken Mount Capital Partners acted as Joint Lead

Managers to the Placement, who were also supported by Petra Capital, Blue Ocean Equities and PAC Partners. personalDebt Financing Activities

Black Rock continued to make good progress on its debt financing activities during the quarter with several important milestones achieved. The Company is planning to maximise project debt and is targeting up to 50- 60% of project funding via traditional project finance which it is aiming to finalise over the next few months.

ITE reports for both the technical and environmental and social aspects of the project are nearing completion as is the expert's report on the graphite market. The ITE process is designed to meet the IFC Performance Standards and the Equator Principals as is required for international banks and multilateral institutions. This level of compliance with these internationally recognised ESG frameworks strongly differentiates the Company within the sector.

During the quarter, the Company also received a letter from the Mining Commission in Tanzania confirming a proval for foreign lenders to participate in the Mahenge debt financing process - a critical milestone for the Company.

ForAn encouraging number of lenders are actively engaged in the Mahenge debt financing process and have signed Confidentiality Agreements in anticipation of accessing the data room, which is expected to open this quarter. On the current schedule, the Company is aiming to have to have credit-approved debt term sheets in Q4 CY22.

Major construction activities are planned to commence in Q4 CY22 and the Company is targeting first production in Q1/Q2 CY24 on the eDFS construction schedule.

Black Rock Mining Ltd	Australian Office	Tanzanian Office	Directors
ACN 094 551 336	Level 1, 1 Walker Ave	Mahenge Resources Ltd	Richard Crookes	Chairman
ASX: BKT	West Perth WA 6005	Msasani Towers	John de Vries	Managing Director & CEO
	Ph: [phone]	Second floor Wing B	Gabriel Chiappini	Non-Executive Director
	E: [e-mail]	Dar es Salaam	Ian Murray	Non-Executive Director
		Ph [phone]
www.blackrockmining.com.au

ASX ANNOUNCEMENT

28 July 2022

Market Outlook for Graphite - Expected to finish CY22 in deficit

Ongoing strong demand growth for battery products continued to support the graphite market in Q2 CY22, tempered somewhat by weakening demand for steel due to slowing industrial demand. Benchmark Mineral Intelligence (BMI) still expects the graphite market to finish CY22 in deficit which is expected to be positive for

onlythe outlook for graphite prices.

Chinese graphite supply stalled during the quarter due COVID-19 shutdowns and environmental inspections

a d closures in China. Forecast market deficits in CY22 could also be exacerbated by supply disruptions in Mozambique and further disruptions in China due to ongoing COVID-19, unresolved environmental constraints and availability of grid power.

The Company notes that some flake from qualified brands at the smaller end of the market (+100 mesh) is currently being redirected from large flake applications to be milled down for anode supply. Size distribution usewithin the Chinese supply chain suggests this will be an incremental supply solution with overall demand

continuing at double digit growth rates.

During Q2 CY22, BMI revised its flake graphite concentrate prices up by 8.2% on average, with battery pressures setting -100 mesh pricing on course to the mid-US$700s/tonne level in H2, the highest price for the grade since 2018.

personalHigher feedstock pricing and robust anode utilization rates are now expected to see spherical graphite prices (10 micron, 99.95% C) climb to US$3,450/tonne in 2022 and $3,925 in 2023.

Graphite prices holding up well

Unlike most commodity prices, graphite prices held firm over the last quarter and prices for all of Mahenge's target products were either flat or up in RMB terms over the last 3 months. However, the USD strengthened against the RMB by ~5% during the quarter, which led to a modest softening of graphite concentrate prices in USD terms as shown in the charts below.

For

Figure 1 - Graphite pricing by Mahenge product	Figure 2 - Consolidated Mahenge basket pricing
(last 12 months)	(last 12 months)

Black Rock Mining Ltd	Australian Office	Tanzanian Office	Directors
ACN 094 551 336	Level 1, 1 Walker Ave	Mahenge Resources Ltd	Richard Crookes	Chairman
ASX: BKT	West Perth WA 6005	Msasani Towers	John de Vries	Managing Director & CEO
	Ph: [phone]	Second floor Wing B	Gabriel Chiappini	Non-Executive Director
	E: [e-mail]	Dar es Salaam	Ian Murray	Non-Executive Director
		Ph [phone]
www.blackrockmining.com.au

ASX ANNOUNCEMENT

28 July 2022

Investor Events

During the quarter, the Company attended a number of investor events to deliver updates on the outlook for graphite as electrification of transport continues to drive market demand for Graphite.

use only		Figure 4 - MD/CEO John de Vries presenting at
Figure 3 - MD/CEO John de Vries presenting at the
Credit Suisse Australia Forum for Energy security	the Paydirt Africa Unlocked Conference
personal	amidst ESG transition (June, Sydney)	(June, Perth)

Activities in Tanzania

Black Rock would like to acknowledge the tremendous work by Tanzanian President, Samia Suluhu Hassan, who was recently selected in the "100 Most Influential People of 2022" list by Time.

Since taking office in March 2021, President Hassan has made a significant difference to Tanzania, in particular with respect to opening a dialogue with the mining, business, and investment communities to drive positive and mutual outcomes for the people of Tanzania.

Black Rock is fortunate to have secured a joint-venture working partnership with the Tanzanian Government to develop the world-

Forclass Mahenge Graphite mine.

Congratulations to President Samia Suluhu Hassan for this well deserved recognition.

Black Rock Mining Ltd	Australian Office	Tanzanian Office	Directors
ACN 094 551 336	Level 1, 1 Walker Ave	Mahenge Resources Ltd	Richard Crookes	Chairman
ASX: BKT	West Perth WA 6005	Msasani Towers	John de Vries	Managing Director & CEO
	Ph: [phone]	Second floor Wing B	Gabriel Chiappini	Non-Executive Director
	E: [e-mail]	Dar es Salaam	Ian Murray	Non-Executive Director
		Ph [phone]
www.blackrockmining.com.au

		ASX ANNOUNCEMENT
		28 July 2022
only
Figure 5 - MD/CEO John de Vries on site at Mahenge	Figure 6 - MD/CEO John de Vries receiving a
use	during the quarter	briefing form the Mahenge project team
personalFor	Figure 7 - MD/CEO John de Vries presenting a	Figure 8 - Government officials undertaking a
	project update to local village leaders	Mahenge site visit during the quarter

Key Management Changes

During the quarter, the Company welcomed Mr Paul Sims and Mr James Doyle to roles of Chief Financial Officer and Company Secretary, respectively.

Black Rock Mining Ltd	Australian Office	Tanzanian Office	Directors
ACN 094 551 336	Level 1, 1 Walker Ave	Mahenge Resources Ltd	Richard Crookes	Chairman
ASX: BKT	West Perth WA 6005	Msasani Towers	John de Vries	Managing Director & CEO
	Ph: [phone]	Second floor Wing B	Gabriel Chiappini	Non-Executive Director
	E: [e-mail]	Dar es Salaam	Ian Murray	Non-Executive Director
		Ph [phone]
www.blackrockmining.com.au