Oar Resources Limited provided an update on the results of preliminary metallurgical test work undertaken on historic drill core from the Company's 100% owned Oakdale Graphite Project on the Eyre Peninsula, South Australia. The test work has identified ultra-fine flake graphite, which is in demand and seeing price growth due to its suitability for production of spherical graphite used in battery manufacturing. Previous test work carried out on both the primary and oxide ores at Oakdale was undertaken on the premise of identifying the coarsest possible grind, which historically attracted higher prices.

The global growth in demand for battery minerals has provided the Company with an opportunity to recommence work on the project with a renewed focus on the fine sized graphite. Spherical graphite, also known as battery-grade graphite, is the product that is consumed as an anode in lithium-ion batteries. It is manufactured by processing high-grade flake graphite concentrate to an ultra-high purity product of more than 99.95% carbon content.

The resulting particle sizes need to be in the range of 10 to 25 microns for use as a battery anode material. Initial early-stage sighter test work has achieved encouraging TGC grades of 89.1% total graphitic carbon (TGC) with further flowsheet optimisation test work aimed at increasing the TGC grade to more than 95% TGC where it is suitable for refining into battery anode material (BAM). There was a significant portion (up to 58.9%) of ultrafine material, at less than 20 microns, in the sighter test work beneficiated concentrate.

OAR believes in conjunction with Independent Metallurgical Operations (IMO) that further test work can increase the final concentrate grade to greater than 95% to ensure it is suitable for refining into BAM. OAR sees the below steps as critical for developing a path towards confirming the potential of the Oakdale Graphite Project for use as BAM: Conduct beneficiation flowsheet development test work aimed at generating a >95% TGC final concentrate. Generate a bulk beneficiation concentrate (>5kg) for downstream test work.

Conduct downstream spheroinisation and refinery test work, preferably using non- hydrofluoric acid methods, to generate a final concentrate grade of >99.95% TGC. Conduct electrochemical test work to confirm the final refined concentrate is suitable as BAM. Conduct further work required to generate information for a study (scoping or pre- feasibility) followed by engaging suitable service providers to generate the study.

The Oakdale Graphite Project is listed as a Critical Minerals Project by the Federal Government and has been subject to extensive previous exploration by OAR, culminating in the definition of an initial Combined JORC 2012 Indicated and Inferred Mineral Resource Estimate (MRE) of 13.47Mt @ 3.3% TGC including 6.31Mt @ 4.7% TGC, and a Scoping Study2. The Company plans to undertake a new, extensive 5,000m aircore drilling campaign, with the aim of expanding the existing MRE which remains open along strike and at depth, and to provide addition fresh samples for the next stage of test work. The Company has received Program for Environment Protection and Rehabilitation (PEPR) approval from the Department of Energy and Mining of South Australia and has engaged the landholders in the Project area in preparation for the planned drilling program at Oakdale.

OAR's previous drilling at the Project totalled 330 aircore and 11 diamond drill holes over a combined 19,124 metres. New drill targets at the main Oakdale Prospect and the Oakdale East Prospect are indicated.