Sarytogan Graphite Limited provided an update on metallurgical test work for the Sarytogan Graphite Deposit in Central Kazakhstan. The company's Australian laboratory partners Independent Metallurgical Operations Pty Ltd. (IMO) is progressing metallurgical test work at Metallurgy Pty Ltd. mineral processing laboratory in Perth, Western Australia. A master composite sample was blended from samples collected from 6 diamond drill holes across the Northern Graphite Zone of the Sarytogan Graphite Deposit.

Through multiple flotation and grinding stages, the sample was upgraded to 81.3% Total Graphitic Carbon (TGC) with 88% recovery. The flotation concentrate was then further upgraded with a low-temperature caustic-roast, a weak sulphuric acid wash and a final calcine step to 92.1% TGC purity at a recovery of 80%. The cumulative recovery of both process steps currently stands at 70%.

The remaining diluent is almost exclusively silica; 7.3% silica, 0.6% other. This indicates that the alumino-silicate minerals such as andalusite and muscovite have been effectively leached. It provides a focus for the next step of optimisation of the caustic roast conditions to target the remaining quartz.

This may include moderate temperatures for shorter duration. Sarytogan is confident that further optimisation will yield positive results as historical test work achieved 98.6% graphite purity via a similar flowsheet consisting of flotation, sintering, and leaching with weak 5% sulphuric acid. The premium fine sizing of the Sarytogan graphite supports a preferred pathway towards high- value spherical graphite products for the lithium-ion battery market.

96% of the concentrate from these initial tests passes a 20 micron wet screen and visual inspection of Scanning Electron Microscope (SEM) images indicates the modal size is below 10 microns. Whilst the 20th century graphite market was focused on flake size, the new paradigm for premium pricing is for finer spherical graphite products that are required for lithium-ion batteries. For example, 90-93% carbon at a small flake size of minus150 micron attracts US$598/t and 94-95% carbon at a large flake size of plus 180 micron attracts US$1,190/t (Source: Benchmark Mineral Intelligence, September 2022).

21st century graphite market growth is being led by the lithium-ion battery sector which is set to become the largest graphite market within a few years. In this market, it is the finer-sized value- added spherical graphite products at a 99.95% carbon specification that attract even higher prices. For example, uncoated spherical graphite at a size of 20 micron attracts US$2,920/t and the finer 10-micron uncoated spherical graphite attracts a premium US$3,330/t. Further work is required on the Sarytogan graphite samples to demonstrate spheroidization and thermal or chemical purification to the required 99.95% carbon specification.

Sarytogan notes that several larger ASX listed graphite companies are also pursuing a value- adding fine spherical graphite product strategy including Talga Resources Ltd. and Renascor Resources Ltd. Both these companies have more advanced projects having completed Definitive Feasibility Studies on Measured and Indicated Mineral Resources. Sarytogan is looking to be a "fast follower" of this strategy. Sarytogan also has the potential to make flake graphite products as ribbons of graphite are commonly observed in thin sections.

The flotation test work to date has focused on grinding to finer sizes to liberate the minerals in pursuit of higher levels of graphite purity. This approach will be further tested with German laboratory partners.