EcoGraf : EGR – Strategic Agreement with South Korean Battery Recycler

ENGINEERED FOR PERFORMANCE

12 OCTOBER 2020

ASX: EGR

Agreement with Leading Lithium-ion Battery Recycler located in South Korea

SUNGEEL HITECH STRATEGICALLY POSITIONED IN SOUTH KOREAN BATTERY

SUPPLY CHAIN

EcoGraf Limited (EcoGraf or the Company) (ASX: EGR) is pleased to announce it has signed a Memorandum of Understanding (MoU) with SungEel Hitech Co. Ltd ('SungEel') to evaluate the EcoGrafTM proprietary purification process to recover and re-usehigh-purity battery carbon anode material from production scrap and 'black mass' from lithium-ion battery materials produced at their South Korean plant.

SungEel is one of the major lithium-ion battery recycling companies and is well connected to the South Korean lithium-ion battery supply chain, which includes both EV and battery manufacturers. SungEel currently process 24,000 tonnes of lithium-ion battery materials per year, with plans to increase to 56,000 tonnes per year, through their South Korean hydrometallurgical plant to recover cathode metals which include Ni, Co, Cu, Mn and Li. The processed material contains approximately 22% carbon anode material.

The agreement sets out a staged recycling program to recover the carbon anode and re-use the material in industrial applications, including lithium-ion battery market. If initial results are positive, SungEel will use their South Korean connections to assist in securing a strategic supply chain partner to support and participate in the product development and engineering phase to establish an carbon anode recycling facility.

EcoGraf is pleased to support SungEel to achieve greater battery recycling by recovering the carbon anode materials. The Company expects to tailor and customise the EcoGrafTM flowsheet to minimise impurities remaining after their hydrometallurgical process.

Closing the carbon loop to achieve greater battery recycling has the potential to contribute to lowering both the battery unit cost and carbon emissions for the EV market. Battery recycling is gaining greater importance with leading EV and lithium-ion battery manufacturers.

Figure 1 - Collaboration with supply chain participants is critical to develop closed loop battery manufacturing for carbon anode materials.

EcoGraf Limited	ABN: 15 117 330 757	Managing Director
Level 1/18 Richardson Street	E: [e-mail]	Andrew Spinks
West Perth WA 6005	www.ecograf.com.au	T: [phone]

This announcement is authorised for release by Andrew Spinks, Managing Director.

For further information, please contact:

INVESTORS

Andrew Spinks

Managing Director

1. [phone]

ENGINEERING CLEAN ENERGY

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About EcoGraf

Founded on a commitment to innovation and sustainability, EcoGraf is building a vertically integrated business to produce high purity graphite for the lithium-ion battery market.

The new state-of-the-art processing facility in Western Australia will manufacture spherical graphite products for export to Asia, Europe and North America using a superior, environmentally responsible purification technology to provide customers with sustainably produced, high performance battery anode graphite. In time the battery graphite production base will be expanded to include additional facilities in Europe and North America to support the global transition to clean, renewable energy in the coming decade.

In addition, the Company's breakthrough recovery of graphite from recycled batteries using its EcoGrafTM process will enable the recycling industry to reduce battery waste and use recycled graphite to improve battery lifecycle efficiency.

To complement the battery graphite operations, EcoGraf is also developing the TanzGraphite natural flake graphite business, commencing with the Epanko Graphite Project, which will supply additional feedstock for the spherical graphite processing facilities and provide customers with a long term supply of high quality graphite products for industrial applications such as refractories, recarburisers and lubricants.

EcoGraf, a unique vertically integrated graphite business, positioned for the future of clean energy.

A video fly-through of this new facility is available online at the following link:

https://www.ecograf.com.au/#home-video

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