Epanko ‘Life of Mine’ Special Mining Licence Granted

ASX Release / 4 March 2025

Epanko ‘Life of Mine’ Special Mining Licence Granted

Major milestone in the development of Epanko and a key requirement for the financing process

EcoGraf Limited (ASX: EGR; FSE: FMK) is pleased to announce the granting of a life-of-mine Epanko Graphite Project (Epanko or the Project) Special Mining Licence (SML) by the Government of the United Republic of Tanzania on 3 March 2025.

Key Highlights

• SML provides certainty and is a key regulatory permit required in respect of the Epanko financing process
• SML733/2025 was granted on 3 March 2025 for 25 years
• The mining area is almost doubled from 9.6 km² to 18.9 km²
• The SML expanded area covers a continuous 5.5 km strike length of the Epanko graphite deposit where widths of the orebody averages 200m wide

Following signing of the Epanko Framework Agreement, the Government of Tanzania has undertaken a detailed evaluation of the Epanko development. EcoGraf wishes to acknowledge and thank Her Excellency, the President of Tanzania, Dr Samia Suluhu Hassan and Minister of Minerals Hon Anthony Mavunde for the support and approving the grant of the SML733/2025.

The SML application with Electromagnetic image (left). geological team at Mount Grafit Peak and FEED of processing plant

EcoGraf has mandated KfW IPEX-Bank to undertake advisory, structuring and arranging services to obtain import credit cover (UFK Cover) and arrange a senior debt facility (UFK Tranche) of up to US$105 million for the construction of the Epanko Graphite Project in Tanzania².

The new SML will be sufficient to allow for a multi-generational operation at an expanded production capacity, with plans underway to define a staged expansion pathway to achieve production and to meet the forecast growth in demand for natural graphite anode material for the global electric mobility and clean energy storage markets.

The SML covers the updated Epanko Mineral Resource of 290.8Mt at 7.2% TGC (comprised of 32.3Mt Measured, 55.7Mt Indicated and 202.8Mt Inferred)³, making Epanko the largest development-ready graphite Mineral Resource in Africa. The Epanko Ore Reserve is an industry-leading 82% of total Ore Reserves classified as Proven, delivering increased confidence on metallurgical factors such as process recoveries, flake size and concentrate grades which are key factors for pricing⁴.

EcoGraf has also outlined its plans to develop its Midstream development in Tanzania at the recent Tanzanian Mining and Investment Conference in Dar es Salaam. The Midstream facility will mechanical shape Epanko’s natural flake graphite through the proposed Mechanical Shaping Facility to Spherical Graphite (SPG). The Midstream development is an additional investment and supports the Tanzanian Ministry of Minerals ‘2030 Value-Addition’ strategy⁵. The updated capital and operating cost estimate is near completion based on the preferred location that provides significant clean-power and transport advantages.

The Midstream development is positioned to be the first graphite value-addition project in Tanzania and one of the first in Africa.  The Company is advancing sales interest and is gaining support from the EU Commission, following high level meetings in Europe, Tanzania and South Africa.

EcoGraf’s vertically integrated battery anode materials business which commences with high quality natural flake graphite from its Epanko Project is expected to provide significant customer cost and environmental benefits as outlined below.
 

EcoGraf HFfree^® BAM competitive and cost benefit advantages

This announcement is authorised for release by Andrew Spinks, Managing Director.

For further information, please contact:

INVESTORS 

Andrew Spinks  

Managing Director 

T: +61 8 6424 9002

Competent Person Statements

The information in this announcement that relates to Mineral Resources is based on, and fairly reflects, information compiled by Mr. David Williams and Mr. David Drabble. Mr. David Williams is a full-time employee of ERM and is a Member of the Australian Institute of Geoscientists (#4176)(RPGeo). Mr. David Drabble is a full-time employee of EcoGraf Ltd and is a Member of the Australasian Institute of Mining and Metallurgy (#307348). Mr David Williams and Mr David Drabble have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement on 11 March 2024 and all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Epanko Mineral Resource is comprised of 32.3Mt Measured, 55.7Mt Indicated and 202.8Mt Inferred resources.

The information in this announcement that relates to the Ore Reserve has been compiled by Mr Steve O'Grady. Mr O'Grady, who is a Member of the Australasian Institute of Mining and Metallurgy (#201545), is a fulltime employee of Intermine Engineering and produced the Mining Reserve estimate based on data and geological information supplied by Mr Williams. Mr O'Grady has sufficient experience that is relevant to the estimation, assessment, evaluation and economic extraction of Ore Reserve that he is undertaking to qualify as a Competent Person as defined in the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement on 25 July 2024 and all material assumptions and technical parameters underpinning the estimates, including production targets and forecast financial information derived from the production targets in the relevant market announcement continue to apply and have not materially changed. The Epanko Ore Reserve is comprised of 11.7Mt Proven and 2.6Mt Probable reserves.

About EcoGraf

EcoGraf is building a vertically integrated battery anode materials business to produce high purity graphite products for the lithium-ion battery and advanced manufacturing markets. Over US$30 million has been invested to date to create a highly attractive graphite business which includes:

• Epanko Graphite Mine in Tanzania;

• Mechanical Shaping Facility in Tanzania; and

• EcoGraf HFfree^® Purification Facilities located in close proximity to the electric vehicle, battery and anode manufacturers.

In Tanzania, the Company is developing the TanzGraphite natural flake graphite business, commencing with the Epanko Graphite Project, to provide a long-term, scalable supply of feedstock for EcoGraf^® battery anode material processing facilities, together with high quality large flake graphite products for specialised industrial applications.

In addition, the Company is finalising its planned location for its Mechanical Shaping Facility in Tanzania, which will manufacture natural flake graphite into spherical graphite (SPG). This mechanical micronising and spheronising is the first step in the conversion of high-quality flake graphite concentrate into battery grade anode material used in the production of lithium-ion batteries.

Using its environmentally superior EcoGraf HFfree^® purification technology, the Company will upgrade the SPG to produce 99.95%C high performance battery anode material to supply electric vehicle, battery and anode manufacturers in Asia, Europe and North America.

Battery recycling is critical to improving supply chain sustainability and the Company’s successful application of the EcoGraf^® purification process to recycle battery anode material provides it with a unique ability to support customers to reduce CO₂ emissions and lower battery costs.

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^[1] ASX announcement dated 15 August 2024

^[2] ASX announcement dated 29 November 2023

^[3] ASX announcement dated 11 March 2024

^[4] ASX announcement dated 25 July 2024

^[5]ASX presentation dated 27 November 2024