First Graphite : 17-03-2016: Exceptional High Grade Graphite Intercept

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17 March 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 Denis Geldard Chris Banasik Company Secretary Peter R. Youd Email: [e-mail] Website: www.firstgraphite.com.au ASX Symbol FGR, FGROA, FGROB

Exceptional High Grade Graphite Intercept Impressive width enhances project economics Highlights Intersection of 1.72m of high grade vein graphite over 2.81m. Most significant intercept from any FGR drilling program and it is likely the most significant reported graphite intersection in Sri Lankan modern history. Drill hole was designed to test previously undrilled areas of the Aluketiya mining licence, currently being developed for production. The width of the intercept suggests that Aluketiya will be a significant production area. Previously reported assays on Aluketiya drill samples have returned Total Graphitic Carbon (TGC) grades of up to 99.3%.1 First Graphite Limited (ASX: FGR) is pleased to advise it has achieved significant widths in drill intercepts on its Aluketiya mining licence in southern Sri Lanka. The holes in the diagram below are testing unexplored zones down dip and along strike from shaft "H" and "J". The intersection occurred at a depth of approximately 84m vertical in a drill hole designed to test depth to 240m. These results are highly encouraging and show that the potential for significant strike extent as well as vein width is likely with more drilling. Mr McGuckin, Managing Director, said "This is an excellent result for First Graphite, confirming our confidence in the quality of the graphite veins on the Aluketiya licence. The real significance is the mining width that quality of intercept will support. The wider the orebody the lower the unit cost of vein graphite mined. This width greatly exceeds any of our modelling or expectations. Looking at this another way, in gold-speak this intercept is the equivalent of about 180 gram dirt".

Hole ID	Collar E (Local)	Collar N (local)	Collar rL (local)	Dip	Azimuth	Depth From	Depth To	Comment
ALK13	2011.2	1994.1	115.0	45.0	9.0	to be drilled
ALK14	2011.2	1994.1	115.0	45.0	329.0	to be drilled
ALK15	2011.2	1994.1	115.0	45.0	305.0	to be drilled
ALK16	2011.2	1994.1	115.0	45.0	270.0	to be drilled
ALK17	2116.4	1842.1	94.5	45.0	305.0	100.78	100.84	6 cm vein of graphite
ALK18	2116.4	1842.1	94.5	45.0	322.0	116.68	119.93	25cm vein (including 10cm core loss)
117.31	117.64	32cm vein
118.34	119.45	115cm vein
ALK19	2116.4	1842.1	94.5	45.0	335.0	to be drilled
ALK20	2116.4	1842.1	94.5	45.0	354.0	to be drilled

1 ASX release 28 January 2015

Two holes of the current eight hole program have been drilled to date. ALK18 intersected three zones of mineralisation earlier than expected but the zones of mineralisation comprised a total of 1.72metres of graphite within a 2.8m interval of core. Drill hole ALK17 intersected a 6 centimetre vein earlier than the interpreted location.

Figure 1: Drill plan at Aluketiya showing drill hole ALK18

Holes ALK 18 to ALK 20 are designed to test below the previously drilled ALK09 hole, which had numerous veinlets in the higher "crackle" zone.

Intersection 250mm - some core loss

Intersection 320mm

Intersection 1,150mm - to Box 28

Intersection 1,150mm - from Box 27

Figure 2: Core from drill hole ALK18- boxes 27 and 28

Aluketiya Development

Shaft sinking and headframe construction is advancing on Shaft H. Development work is progressing on Shaft J as can be seen from the photographs above.