Quantum Graphite Limited announced the completion of the design of the pilot thermal energy storage and power generation system. The test work results provided the necessary data to finalise the design of the pilot TES cells. The procurement stage of the pilot project is sheduled to commence as soon as QSP and ProTherm shortlist key vendors and approve contractual arrangements.

Subject to finalising these arrangements, construction is expected to commence by the end of this quarter. Sunlands Co.'s TES technology is a long duration energy storage storage solution that delivers one of the few paths to decarbonisation of electricity grid networks by the retrofitting of coal fired power stations. LDES technology is considered the critical solution for the conversion of intermittent renewable energy to round the clock dispatchable baseload generation.

QSP is the exclusive global manufacturer of the flake graphite based thermal storage media, the main component of TES cells. QSP contractual arrangements with Sunlands Co. require it to deliver the manufactured Uley Media to Sunlands Co.

as specified to meet TES cell production schedules. Based on the current prices for competing products to Uley Media and the current flake graphite market conditions: QSP's expected prices for Uley Media is likely to exceed $3,500; and QSP's expected margin on Uley Media will be twice that of the Company's margin on the sale of its flake products. TES cells utilise renewable energy to store heat at ultra-high temperatures.

This heat is delivered to a power station's existing steam turbine generators which dispatch base load generation to the grid network.