23-09-2016: Successful DHTEM survey and Operational Update

23 September 2016 First Graphite Limited ACN 007 870 760 ABN 50 007 870 760 Registered Office Suite 3 9 Hampden Road Nedlands WA 6009 Tel [phone] Fax [phone] Directors Warwick Grigor Craig McGuckin Peter R. Youd Chris Banasik Company Secretary Peter R. Youd Email: [e-mail] Website: www.firstgraphite.com.au ASX Symbol FGR, FGROA, FGROB

Completion of successful DHTEM survey and Operational Update First survey of its kind conducted in Sri Lanka First Graphite (ASX: FGR) is pleased to report on the completion of downhole electromagnetic (DHTEM) surveys at its Aluketiya and Pandeniya projects. Highlights Confirmation of extent of graphite mineralisation observed in geological logging Identification of potential graphite mineralisation not intersected by previous drilling Off hole anomalies in ALK11 and ALK28 show further potential mineralisation close to Aluketiya's Shaft H Proof of concept with the first ever use of DHTEM in Sri Lanka Mine shafts at Aluketiya and Pandeniya progressing DHTEM Graphite is an excellent conductor of electricity, a property which makes it highly amenable to exploration using electrical techniques. Surface and airborne electromagnetic techniques have been used previously by FGR and other companies to search for graphite in Sri Lanka. The limitation of these techniques is that while presence of graphite can be determined, DHTEM can predict the location of veins in three dimensions. GEM geophysics provided the field data acquisition services and Southern Geoscience provided the survey planning and data interpretation for the surveys conducted in August 2016.

Aluketiya

Eight diamond drill holes, that have been drilled by FGR over the previous 12 months, were surveyed. Table 1 below summarises the observed graphite mineralisation in all of the holes.

Figure 1: Showing the Aluketiya project with drill hole traces and transmitter loop locations

Hole ID	E_SLK	N_SLK	E_Local	N_Local	rL_Loca l	Dip	Azimut h	Dept h	Depth From	Depth To	Comment
ALK11	13459 0	13646 2	2030.4	1875.2	97	55	345	75	48.55 48.80 49.29	48.70 49.10 49.43	15 cm vein 30 cm vein 14 cm vein
ALK13	13456 1	13657 4	2009.7	1995.4	115	45	9	185.2	23.10 23.72 25.65 46.33	23.36 23.88 25.90 46.73	26 cm vein 16 cm vein 25 cm vein 40 cm vein
ALK14	13456 1	13657 4	2009.7	1995.4	115	45	328	206.5	No significant intersection observed
ALK15	13456 1	13657 4	2009.7	1995.4	115	45	305	149	34.65 34.76 75.78 77.14 78.64	34.70 34.85 75.98 77.23 79.04	5 cm vein 9 cm vein 20 cm vein 9 cm vein 40 cm vein
ALK17	13467 3	13642 4	2116.4	1842.1	94.5	45	305	240.8	100.78 101.41 102.70 108.56 208.94	100.84 101.41 5 102.70 5 108.57 208.94 4	6 cm vein .05 cm vein .05 cm vein 1 cm vein .04 cm vein
ALK18	13467 3	13642 4	2116.4	1842.1	94.5	45	322	237.2	116.68 117.31 118.34	116.82 117.65 119.49	15 cm vein 34 cm vein 115 cm vein
ALK19	13467 3	13642 4	2116.4	1842.1	94.5	45	335	200.5	No significant intersection observed
ALK28	13459 2	13649 7	2042.2	1927.1	108.3	45	149	135.4	26.55	26.85	30 cm vein

Table 1: Aluketiya Drill Results

The results of the DHTEM for drill holes ALK11, ALK17, ALK18, ALK19 and ALK28 are depicted in Figure 2 which shows the orientation of the conductors in both plan view and section view.

Figure 2: Plan and Section Views DHTEM ALK 11, 17, 18, 19 and 28

The results of the DHTEM for drill holes ALK13, ALK14 and ALK15 are depicted in Figure 3 which shows the orientation of the conductors in both plan view and section view.

Figure 3: Plan and Section Views DHTEM ALK 13, 14 and 15