Renascor Resources : Higher Yields and Higher Prices for Siviour Project

For personal use only

26 November 2021

Higher Yields and Higher Prices for

Siviour Purified Spherical Graphite

Highlights:

• Commercial-scaletesting of downstream milling equipment using Siviour Graphite Concentrates has delivered spherical graphite yields in excess of 60% (versus the 50% yield adopted in Renascor's Battery Anode Material Study1).
• Locked cycle tests using Renascor's eco-friendly purification process have confirmed the ability to exceed lithium-ionbattery anode purity specifications, with results of up to 99.99% Carbon (C) (versus anode industry standard of 99.95% C).
• Purified Spherical Graphite (PSG), which is used in the production of anodes for lithium-ion batteries, is experiencing substantial upward price improvement, with Fastmarkets reporting a +40% increase in the price of PSG over the last 12 months2.
• Good progress with POSCO, with confirmatory due diligence progressing well in conjunction with constructive discussions on commercial terms for strategic cooperation and offtake of 20,000 to 30,000tpa of PSG from Renascor's planned Battery Anode Material operation in South Australia.

Commenting on recent results, Renascor's Managing Director David Christensen stated:

"Our team continues to make great progress in rapidly advancing the development of the Siviour Battery Anode Material operation and moving closer to Renascor's objective to become a world leader in the sustainable production of a 100% Australian-made graphite product for use in lithium-ion battery anodes.

These favourable results come at a time of increasing demand for battery anode materials and strong growth in the price of Purified Spherical Graphite."

Renascor Resources Limited	Head	office:	Phone: + 61 8 8363 6989	1
ABN 90 135 531 341	36 North Terrace	Email: [e-mail]
	Kent Town, South Australia 5067	www.renascor.com.au

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ASX Release: Renascor Resources

26/11/21

Renascor Resources Limited (ASX: RNU) (Renascor) is pleased to announce positive results from advanced downstream mineral processing trials for Renascor's planned vertically integrated graphite mine and battery anode material manufacturing operation in South Australia (the Siviour Project).

The ongoing testwork has demonstrated that:

• Commercial-scalemilling of Siviour graphite concentrates can deliver yields (i.e., the amount of graphite concentrate converted into spherical graphite) in excess of 60%. This is well in excess of the 50% yield assumed for the Battery Anode Material Study3).
• Locked-Cyclepurification, designed to simulate continuous operating conditions using Renascor's eco-friendly purification process, can deliver PSG purity specification up to 99.99% Carbon (C) (versus anode industry standard of 99.95% C).

Purified Spherical Graphite Price

The positive technical results come against a backdrop of increasing upward pressure on the price of Purified Spherical Graphite (Figure 1), with the price reporting group Fastmarkets recently reporting a 40% increase in the price of Purified Spherical Graphite over the last 12 months to between US$3,100 and US$3,300 per tonne4.

Figure 1: Relative change in pricing for Purified Spherical Graphite (15 micron, FOB China)5.

POSCO Strategic Cooperation and Offtake

Renascor also continues to make good progress in relation to its Strategic Cooperation and Offtake MOU with POSCO6. Confirmatory due diligence commissioned by POSCO is underway, with negotiations continuing on the commercial terms for strategic cooperation and offtake of between 20,000 to 30,000tpa of PSG from Renascor's planned Battery Anode Material operation in South Australia.

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ASX Release: Renascor Resources

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FURTHER INFORMATION

Commercial-scale downstream milling equipment trials

The production of Purified Spherical Graphite requires that Graphite Concentrates are first mechanically shaped into a micronised spherical form before being purified for use in lithium-ion battery anodes.

To prepare for engineering design works for its planned PSG manufacturing facility, Renascor recently commenced milling trials on commercial-scale milling equipment designed to micronise and spheronise Siviour Graphite Concentrates.

A key objective of these mill trials is to maximise the amount of graphite that can be processed from Siviour Graphite Concentrates into a spherical form that meets the physical product specifications of Renascor's existing and potential additional offtake partners7.

Graphite Concentrates that meet these physical product specifications (including product size, particle size distribution, tap density and surface area), can be purified to battery-grade and sold as Purified Spherical Graphite. Achieving higher yields from the milling process results in the production of higher amounts of Purified Spherical Graphite and greater efficiencies and profitability.

For purposes of the Battery Anode Material Study, completed in July 20208, Renascor relied upon preliminary equipment trials using up to 60kg samples of Siviour Graphite Concentrates and a projected yield of 50%, which is in line with global industry norms.

The recent trials are being conducted on a larger-scale of up to 750kg of Siviour Graphite Concentrates per trial, using Siviour Graphite Concentrates produced from Renascor's recently completed large-scale pilot flotation program9. The milling trials have been designed to test the ability of selected milling equipment to meet the physical product specifications of both Renascor's existing and potential offtake partners.

Results to date have included yields in excess of 60% of spherical graphite, consisting of both a primary spherical graphite that meets a standard size specification (d50 = 16 microns), as well as a finer spherical graphite product (d50 = 10 microns). In both cases, the physical product specifications have been achieved.

The trials will continue through the current quarter, with the results to be incorporated into final equipment selection and engineering design works for Renascor's planned PSG manufacturing facility.

Locked-cycle purification trials

Following the milling and micronisation process, Renascor's planned downstream operation will purify Siviour spheronised graphite through an eco-friendly purification process that avoids the use of hydrofluoric acid (HF), which is generally used in Chinese PSG operations. Instead, Renascor will use less environmentally harmful reagents to purify spheronised graphite to battery grade for use in in lithium- ion battery anodes.

Earlier this year, Renascor completed bench-scale optimisation purification trials with German battery mineral consultancy group Dorfner Analysenzentrum und Anlagenplanungsgesellschaft mbH (Dorfner ANZAPLAN)10.

Dorfner ANZAPLAN is a leading consultancy and engineering company with particular experience in battery minerals. Dorfner ANZAPLAN's graphite expertise includes testing, developing, piloting and

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ASX Release: Renascor Resources

26/11/21

adapting mineral processing parameters to purify graphite concentrates to lithium-ion battery grade levels of +99.95% C.

As part of these earlier trials, Renascor used sulfuric acid as the primary leaching reagent, rather than hydrochloric acid, which was adopted as part the Battery Anode Material Study11. The earlier bench- scale trials consistently met or exceeded lithium-ion battery anode purity specifications, with results of up to 99.99% Carbon (C) (versus anode industry standard of 99.95% C). Further, these results were achieved with a decreased consumption of sulfuric acid, as compared to previous trials using hydrochloric acid.

To enable detailed engineering works for its purification circuit, Renascor recently commenced locked cycle tests adopting the flowsheet parameters used in the recent trials. The locked cycle flotation tests differ from the previous bench scale tests by more closely approximating processing conditions by including recycle streams in a closed circuit and permitting a more accurate calculation of mass-water balance and other process design criteria necessary for competing detailed engineering design.

The locked cycle tests are being undertaken by Dorfner ANZAPLAN, in collaboration with Renascor's external engineering advisors Wave International.

Preliminary results from the locked cycle tests have confirmed that the optimised purification circuit can meet or exceed lithium-ion battery anode purity specifications, with results of up to 99.99% C.

The trials are expected to be completed later this quarter, with the results to be used in for engineering design works for the purification circuit of the planned PSG manufacturing facility.

Competent Person Statement

The information in this document that relates to exploration activities and exploration results is based on information compiled and reviewed by Mr G.W. McConachy who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr McConachy is a director of the Company. Mr McConachy has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr McConachy consents to the inclusion in the report of the matters based on the reviewed information in the form and context in which it appears.

This ASX announcement has been approved by Renascor's Board of Directors and authorised for release by Renascor's Managing Director David Christensen.

For further information, please contact:

David Christensen Managing Director [phone] [e-mail]

• See Renascor ASX announcement dated 1 July 2020.

• https://www.fastmarkets.com/commodity-price/graphite-spherical-99-95-c-15-microns-fob-china-mb-gra-0036.
  3 See Renascor ASX announcement dated 1 July 2020.
  4 https://www.fastmarkets.com/commodity-price/graphite-spherical-99-95-c-15-microns-fob-china-mb-gra-0036 and https://www.indmin.com/Article/4017117/Flake-amorphous-and-spherical-graphite-prices-surge-on-high-costs-and-solid-demand.html Pricing refers to a 15 micron, 99.95% product, a product specification that is comparable to a standard specification from Renascor's existing offtake partners. Note also that the most recent reported price refers to a price range (between US$3,100 and US$3,300).
  5 https://www.fastmarkets.com/commodity-price/graphite-spherical-99-95-c-15-microns-fob-china-mb-gra-0036

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ASX Release: Renascor Resources

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• See Renascor ASX announcement dated 25 August 2021

• Renascor has entered into four non-binding memoranda of understanding for up to 60,000tpa of PSG, comprised of up to 30,000tpa to South Korean conglomerate POSCO and up to 10,000tpa to each of Japan-based trading company Hanwa Co. Ltd. and Chinese anode companies Shanxi Minguang New Material Technology Co. Ltd and Jiangxi Zhengtuo New Energy Technology Co. Ltd. See Renascor ASX announcements dated 25 August 2021, 25 March 2021, 11 February 2021 and 29 September 2021.
  8 See Renascor ASX announcement dated 1 July 2020.
  9 See Renascor ASX announcement dated 31 August 2021.
  10 See Renascor ASX announcement dated 28 May 2021 and 1 July 2021. 11 See Renascor ASX announcement dated 1 July 2020.

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