EcoGraf Limited reported the results of its Epanko Graphite Project pre-development program and includes updated capital cost, operating cost, graphite pricing with all the material assumptions as detailed in the Bankable Feasibility Study. Epanko is positioned to become a world class graphite project located in Tanzania with the recent signing of the Epanko Framework Agreement which positions the Company to secure financing for a Final Investment Decision for the Project. The Company reported the outstanding results from a pre-development program it has undertaken to build on the extensive Bankable Feasibility Study (BFS), completed in 2017 and which was subjected to rigorous due diligence by bank appointed Independent Engineers, SRK Consulting (UK) Limited (SRK Consulting). In completing its Independent Engineer's Report, SRK confirmed that: all technical areas of the proposed Epanko development have been significantly advanced to conform with the requirements of international project financing standards; and the Environmental and Social Management Planning and supporting impact assessments conform to relevant Tanzanian legislation, International Finance Corporation (‘IFC'). Performance Standards and World Bank Group Environmental Health and Safety Guidelines. The results of the Epanko program position the Project to be a potential world class new graphite development, commencing with Stage 1 with the intention to expand and match the rapid growth forecast for battery graphite to support the global transition to clean energy. On 18 April 2023, the Company announced that it had signed the Epanko Framework Agreement with the Government of Tanzania for the development and operation of the Project. The signing of a Framework Agreement at the newly built State House in Dodoma occurred on 17 April 2023 and was attended by President Samia Suluhu Hassan, Minister of Minerals Dotto Biteko, Regional and District Commissioners, Epanko community leaders and representatives from the German and US Embassies. Signing of the Framework Agreement is a major milestone in the Company's plans to develop a new world class natural graphite operation in Tanzania. As part of the pre-development program, EcoGraf completed various metallurgical evaluation
studies to optimise the mine schedule and process flowsheet. This program identified a number of value adding opportunities for the Stage 1 development: Oxide first strategy Oxide ore requires minimal drill and blasting, minimal crushing/primary milling and uses less reagents compared to Fresh ore. Prioritising the Oxide ore also defers the sulphide circuit and dedicated lined tailings cell that is proposed for processing of the Fresh ore. The Oxide first strategy will see Oxide ore treated for the first eleven (11) years of operations and will result in: Concentrate production at 73,000 tpa once ramp up is complete. This will be achieved for very modest incremental capital expenditure of USD 4 million. Following depletion of Oxide ore, operations will revert to processing of Fresh ore at a production rate of 60,000 tpa from the Stage 1 plant. Subject to completion of planned drilling and resource evaluation which will target Oxide ore there is the strong opportunity to continue processing oxide ore at a 73,000 tpa production rate. Deferral of approximately USD 6 million in capital costs that have been provisionally provided for the Fresh ore sulphide flotation circuit and lined sulphide tailings pond. This expenditure is now deferred for approximately 10 years, with scope for further deferral subject to the delineating additional oxide ore. Lower operating costs associated with reduced drill and blast costs, reduced crushing and milling costs and reduced reagent costs. The Oxide only ore feed does not require the use of sulphide flotation reagents.