Cobra Plains

Cobra Plains is the world’s fourth largest graphite resource

In February 2014, the Company’s announced its maiden Inferred Mineral Resource Estimate at the Cobra Plains at the Balama North project, as at 31 December 2014, the resource comprises 103 Million Tonnes (Mt) at an average grade of 5.2%TGC, containing 5.7Mt of graphitic carbon. By total tonnes, Cobra Plains is the world’s fourth largest graphite resource. This resource is classified as an Inferred Mineral Resource in accordance with the guidelines of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition) as reflected in Table 7 below.

Deposit Plains Classification Tonnes (Mt) Grade (TGC%) Contained Graphite (Mt)
Cobra Plains Inferred 103 5.2 5.7

Table 1. Cobra Plains Mineral Resource Estimate Table (reported above a 2% graphitic carbon cut-off grade)

Competent Person’s Statement
The information in this report that relates to Mineral Resource estimate at the Cobra Plains deposit on Balama North project is based on, and fairly represents, information and supporting documentation prepared by Mr Mark Drabble, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr Drabble is not a full-time employee of the Company. Mr Drabble is employed as Managing Principal at Optiro Pty. Ltd. and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)’. Mr Drabble has reviewed and approved for release this announcement as it relates to Mineral Resources and consents to the inclusion in this report the supporting information in the form and context as it appears.

Annual Review
The Company reported its maiden Mineral Resource at Cobra Plains on 26 February 2014. As a result of the annual review of the Company’s Cobra Plains resource there has been no change to the resources since it was first reported in 26 February 2014.

Governance of Cobra Plains Resource
The Company engages external consultants and Competent Persons (as required by the JORC Code) to prepare and calculate estimates of its Cobra Plains resource. These estimates and underlying assumptions are reviewed by the Board and Management for reasonableness and accuracy. The results of the Cobra Plains Mineral Resource estimates are then reported in accordance with the JORC Codes and other applicable rules. Where material changes occur during the year to a project, including the project’s size, title or exploration results or other technical information, then previous resource estimates and market disclosures are reviewed for completeness. The Company reviews its Cobra Plains Resource as at 31 December each year. Where a material change has occurred in the assumptions or data used in previously reported Cobra Plains Resource, a revised resource estimate will be prepared as part of the Annual review process.

The Company’s maiden Inferred Mineral Resource Estimate for Cobra Plains strengthens the Company’s belief that the Balama North Project hosts multiple substantial world class graphite deposits.