Quantum Graphite Limited announced that further to its announcements regarding the long duration energy storage pilot project, the Company provided the further information by way of update. A critical step in the pilot plant project is the ultra-high temperature test work to be undertaken by INEMET in respect of various specifications of Uley 2 coarse flake graphite. This flake is the main raw material required by the Quantum Sunlands Partnership (QSP) to manufacture the thermal energy storage media to be fitted within the Sunlands Co.

energy storage cells. The Uley 2 flake samples have been received by INEMET and are now being prepared for commencement of the initial test work next week. As announced, QSP and its project engineers completed the main test work methodologies in May 2022.

These methodologies have now been further refined with INEMET and will include thermal treatment cycles of Uley 2 flake at temperatures reaching 2,200°C. The results of this test work will deliver valuable data to QSP for the purpose of optimising the energy storage media. One of the significant benefits of the results of this test work is the potential application of this data to the advanced processing of Uley 2 flake to increase its purity and thereby significantly increase the prices the Company's products can achieve in the market. QSP estimates that initial results should be available by mid-August 2022.