Volt Resources Limited: Feasibility Study Update for Bunyu Graphite Project Stage 1, Tanzania, delivers significantly improved economics

Highlights

- Key objectives of Stage 1 development are to establish Bunyu Graphite Project (Bunyu) as a world-class supplier of graphite products, grow Volt’s existing natural flake graphite business, provide cashflow, and establish infrastructure in support of the development of the significantly larger Stage 2 expansion project

- Stage 1 is based on a mining and processing plant throughput rate of 400,000 tonnes per annum (tpa) of ore to produce on average 24,780 tpa of graphite products, positioning Volt as a dominant participant in the global flake graphite market

- Stage 1 Feasibility Study Update delivers highly favourable NPV, IRR, and Payback Period, with new values representing significant improvements relative to the metrics of the 2018 feasibility study:

Pre-tax NPV 7.5% of US$58.9M
Pre-tax IRR of 31.5%
Payback period (before tax) of 2.9 years

- Stage 1 development has optimized infrastructure, utilities, and mine development works to minimize the initial capital expenditure required, resulting in start-up capital cost estimate of US$33.1M

- The mine life for Stage 1 increases from 7.1 to 13.7 years, with an average FOB operating cost of US$670 per tonne. Total EBITDA of US$169.6M over the 13.7-year Stage 1 project period, with an average annual EBITDA of US$12.4M

- The Company executed two binding offtake agreements in 2023 for substantially all natural flake graphite coarse and fine product from Stage 1 for the first 5 years with the option to extend a further 5 years

- Development schedule of 12 months to first ore production is achieved through purchase of long lead items during the Front End Engineering Design phase of work

- Stage 1 FS Update provides a current estimate of what the Bunyu Project will cost to deliver and its economic returns, combined with important updated project information, essential to advance discussions with potential investors and lenders

Graphite producer and natural graphite anode developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to report the results of the completed Stage 1 Feasibility Study Update for the Company’s Bunyu Graphite Project located in Tanzania.

Board and Management Commentary

Volt’s Executive Chairman, Asimwe Kabunga, stated

“The delivery of an updated Stage 1 Feasibility Study is a key step towards unlocking the considerable underlying value of our world-class Bunyu Project. Once funding is obtained, the Company will proceed with rapid execution leading to the start of production.”

Volt’s Chief Executive Officer and Managing Director, Prashant Chintawar, commented

Volt is pleased to present Feasibility Study Update for Bunyu Graphite Project Stage 1, Tanzania. We thank our team, partners and consultants who have worked diligently on this project to deliver significantly improved economics. Despite widespread inflationary pressures across the industry, Volt has not only successfully kept capital expenditure and operating costs under control relative to the 2018 study but has also dramatically improved project financials.

The Stage 1 graphite project is intended to be established with a modest capital expenditure, and allow Volt to develop the necessary infrastructure, start graphite production at a rate of 24,780 tonnes per annum, generate initial revenues, and establish Bunyu as a world-class supplier of graphite products, particularly to the rapidly growing battery anode / electric vehicle market.

The updated capex value is $US33.1M, which will establish a project with a 13.7-year period, almost double that of the previous study. This underwrites a project delivering total EBITDA over the period of US$169.6M, an IRR (before tax) of 31.5%, an NPV (before tax) of US$58.9M and a payback period (before tax) of 2.9 years. These metrics are significantly improved across the board, which is a terrific achievement given the changed macro backdrop.

This modest capital requirement and strong project financials, in conjunction with the two binding offtakes announced earlier this year, and a strong long-term graphite demand profile, all position Volt well for securing Stage 1 financing, and further reinforces this two-stage approach to development and commercialisation.

Having commissioned Bunyu Stage 1, Volt intends to move to Stage 2 later this decade with the goal of leveraging the platform established by Stage 1, and Bunyu’s status as one of the largest graphite resources globally, to dramatically scale production from 24,780 to 170,000 tonnes per annum and help meet the forecasted global increase in demand for graphite products.

We thank investors for their patience in delivering this updated Stage 1 Feasibility study, and thank all parties involved in delivering such as positive outcome. Volt now looks forward to finalising financing and preparing to move into the development phase.

Link to the original press release: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02696972-6A1163041?access_token=83ff96335c2d45a094df02a206a39ff4

-ENDS-

This announcement was authorised for release by the Board of Volt Resources Ltd.

Contacts

For further information, please contact:

Prashant Chintawar

Chief Executive Officer Managing Director

Email: [email protected]

Alex Cowie

Investor Relations

Email: [email protected]

About Volt Resources Limited

Volt Resources Limited (“Volt”) is critical minerals and battery material company listed on the Australian Stock Exchange under the ASX code VRC. We are a graphite producer and an emerging natural graphite anode (a key component of lithium-ion batteries) producer. Volt has a 70% interest in the Zavalievsky Graphite (ZG) business in Ukraine. The ZG mine and processing facilities have been in operation since 1934 and are near key markets with significant developments in lithium-ion battery production. ZG benefits from an existing customer base and graphite product supply chains based on excellent transport infrastructure covering road, rail, river, and sea freight combined with reliable grid power, ample potable ground water supply and good communications [[]1].

Volt acquired three licence applications that are prospective for lithium-borate mineralisation. The licence applications are in respect to a total area of 291km2, located in Serbia and are west and south-west of the Serbian capital, Belgrade [[]2].

Volt is progressing the development of its large wholly owned Bunyu Graphite Project in Tanzania. The Bunyu Graphite Project is ideally located near to critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara 140km from the Project. In 2018, Volt reported the completion of the Feasibility Study (“FS”) into the Stage 1 development of the Bunyu Graphite Project. The Stage 1 development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products [[]3]. A key objective of the Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project at Bunyu.

Competent Person Statement

The information in this document that relates to Mineral Resources is based upon information compiled by Mrs Christine Standing who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mrs Standing is an employee of Optiro Pty Ltd (now Snowden Optiro) and has sufficient experience relevant to the style of mineralisation, the type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mrs Standing consents to the inclusion in the report of a summary based upon her information in the form and context in which it appears.

The information in this document that relates to Ore Reserves was compiled by Mr Ross Cheyne who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Cheyne is a Director of Principal Consultant with Orelogy Consulting Pty Ltd and has sufficient experience relevant to the style of mineralisation, the type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Cheyne consents to the inclusion in the report of a summary based upon his information in the form and context in which it appears.

[[][1] Refer to Volt’s ASX announcements titled “Volt to Acquire European Graphite Business following Completion of Due Diligence” dated 14 May 2021 and “Completion of the ZG Group Transaction Following Execution of New Convertible Securities Facility” dated 26 July 2021.

[[][2] Refer to Volt’s ASX announcement titled “Strategic European Lithium Acquisition – Jadar North” dated 18 November 2021.

[[][3] Refer to Volt’s ASX announcement titled “Positive Stage 1 Feasibility Study Bunyu Graphite Project” dated 31 July 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.