Quantum Graphite Limited announced the first phase of the thermal purification results of the test work program conducted jointly by INEMET, ProTherm Systems and QSP. A reference to Uley flake samples in this announcement is a reference to Uley +195 (purity of 95% graphitic carbon and mesh size of 150 microns). The test work program highlighted the benefits of Uley flake's relatively clean geochemistry for use as anode material in Li-ion batteries, especially the lack of any material heavy element impurities.

Outside Titanium (Ti) with a concentration of 224 parts per million (ppm) or 0.0224%, the presence of any other heavy element fell below the detectable limits of the test equipment. The results confirm within the sensitivity levels of the test equipment that: Impurity boiling point excellent indicator of impurity removal - There is an excellent correlation between predicted impurity element removal and actual removal of these elements based on the applicable boiling point data for Uley flake impurities; Efficiency of purification utilising heat treatment - Impurity removal efficiency (IRE) utilising heat threatment is estimated to achieve 95% removal of impurity elements; Thermal treatment results at 2,200°C - Thermal treatment of Uley flake samples at a temperature of 2,200°C eliminated all impurities with a boiling point of up to 2,200°C and achieved a purity of 97.59% graphitic carbon (gC); Predicted thermal treatment results at 3,000°C - Based on the correlation of boiling point data, thermal treatment at 3,000°C of Uley flake samples is predicted to achieve a purity ranging from 99.50% gC (80% IRE) to 99.86% gC (95% IRE). Thermal Treatment at 2,200°C: Following the thermal treatment conducted at INEMET's Freiburg facility.

The most prevalent impurity elements were Sulphur (S), Aluminium (Al), Calcium (Ca), Iron (Fe), and Silicon (Si) with each reported as a percentage (%) and representing more than 95% of all impurities. The remaining, typically very low concentration elements were reported in parts per million (ppm), equivalent to grammes per tonne (g/t). Thermal Treatment at 3,000°C - Predicted Graphite Purity: The results from thermal treatment at 2,200°C indicate an excellent correlation between predicted removal of impurity element and actual removal of these elements based on the applicable boiling point data for particular impurities.

If the Uley graphite samples are subjected to thermal treatment at 3,000°C, the removal of the majority of impurity elements, with the exception of titanium (Ti) is reasonably expected. A summary of predicted Uley flake samples purity following thermal purification at 3,000°C, for various impurity removal `efficiency' factors, is presented in Table 2. Four efficiency factors have been considered, 80%, 85%, 90%, and 95%. Since no process is completely efficient, a 100% efficiency factor has been excluded from the purity predictions.