International Graphite: Maiden drilling program intersects significant new zone of graphite at the Springdale Graphite Project

19 July 2022

HIGHLIGHTS

RC drilling of exploration target SDW_1 intersects multiple zones of graphite mineralisation next to International Graphite’s (ASX:IG6) Springdale mineral resource, in Western Australia.

-          Initial reverse circulation (RC) drill testing of high priority target (SDW_1), adjacent to the Company’s existing Springdale graphite resource, has intersected multiple zones of shallow graphite mineralisation over a strike length of up to 700m.

-          The initial 9-hole (715m) drilling program highlights the potential for significant new discoveries close to the existing Springdale mineral resource (Inferred Mineral Resource Estimate of 15.6Mt @ 6% TGC, including a high-grade component of 2.6Mt @17.5% TGC).

-          Importantly, this drilling supports the exploration targeting criteria confirming the use of airborne electromagnetic survey data (AEM) which clearly identifies highly conductive graphite mineralisation. SDW_1 is the first of 7 high priority targets that will be tested.

-          Samples have been submitted for laboratory processing. Assays are pending.

-          Resource evaluation diamond drilling is underway and will be expanded with the addition of the RC drill rig within the next week.

RC and diamond drilling programs are progressing well at International Graphite’s Springdale Graphite Project, near Hopetoun, Western Australia.

The drilling campaign aims to upgrade and expand the existing resource from inferred to indicated status, and to conduct initial testing of a number of high-priority exploration targets located within 2.5km of the Springdale mineral resource (Inferred Mineral Resource Estimate of 15.6Mt @ 6% TGC, including a high-grade component of 2.6Mt @17.5% TGC).[i] Refer to Table 3 for detail.

Additional information relating to the drilling program is detailed in the JORC Table 1 in Appendix 1.

COMMENT

International Graphite Executive Chairman Phil Hearse said the Company was buoyed by the early results and the potential for Springdale to become a significant supply of critical graphite in the future.

“Springdale is the lynchpin in our vision to be the first sovereign mine to market battery graphite producer with operations wholly contained in Western Australia,” Mr Hearse said.

“We are building on Australia’s reputation for engineering excellence and its appeal as one of the best resource provinces in the world to invest.

“The drilling is building our confidence and understanding of the size and quality of the Springdale mineral resource. Initial results are very promising and support the positive indicators received from past aeromagnetic surveying.

“Early testwork has shown potential for graphite from Springdale to be highly suitable for battery anode material[ii] and samples from the current drilling program will be used to expand our metallurgical investigation and for future feasibility study assessment.

“In parallel, our team is pushing ahead with the establishment of our downstream facilities at Collie and is heavily involved in equipment installation and planning to commission the pilot plant.

Figure 1: International Graphite project location plan

KEY POINTS – Collie R&D and Pilot Plant Facility

-          Plant fitout is progressing at the new industrial premises International Graphite has leased in Collie, Western Australia.

-          Research and development equipment including a micronising (impact mill) and spheronising (shaper) is being assembled ready for commissioning.

-          Building services are in place and procurement is underway for additional power distribution and air systems services.

-          Storage and materials handling systems specifications are being finalised

Figure 2: R&D equipment installation at Collie

KEY POINTS – Springdale drilling program

-          The current drilling program comprises 54 RC drillholes (3,300m) and 12 diamond holes (900m) to infill the existing Springdale mineral resource, provide additional samples for ongoing metallurgical testwork, and data for initial geotechnical assessments and mine planning. In addition, 37 RC holes (3,000m) will be drilled to test a number of high priority exploration targets (Figure 3).

Figure 3: Drill collar for current and planned drilling

Figure 4: RC drill samples with graphite intersections highlighted

-          The SDW_1 Target is located approximately 500m immediately west of the Springdale mineral resource and has been defined by a distinct conductor identified in airborne electromagnetic survey data (AEM). To date, 9 RC drill holes for 715m have been completed over a strike length of at least 700m to provide an initial test of this target (Table 1). Based on visual assessment, each hole has successfully intersected multiple zones of graphite mineralisation with widths of single zones up to 32m wide (Figure 4 and Table 2). No assay data is yet available.

-          Importantly, this drilling supports the exploration targeting criteria that confirms airborne electromagnetic survey data (AEM) which clearly identifies the highly conductive graphite mineralisation.

-          AEM is a highly effective exploration technique used to identify and define conductive zones and is particularly suited for high resolution targeting of graphite mineralisation.

Figure 5: Airborne electromagnetic survey image showing conductive material

in relation to resource areas and new targets.

-          SDW_1 is the first of at least 7 high priority exploration targets within 2.5km of the main Springdale resource that will be tested with ongoing RC drilling programs (Figure 5).

-          Resource evaluation diamond drilling is currently underway on the Western Domain of the Springdale mineral resource. This program will be accelerated by the addition of the RC drill rig within the next week.

Table 1: Drill Collar Data (GDA94 MGAz51)

Table 2: Significant Graphite Intervals – visual estimates

Table 3: Springdale Graphite Mineral Resource Estimate Summary

Competent Persons Statement

The information in this announcement which relates to exploration targets, exploration results or mineral resources is based on information compiled by Mr. Darren Sparks and reviewed by Mr. Peter Langworthy. Mr. Sparks is the Principal Consultant and fulltime employee of OMNI GeoX Pty Ltd. He is a member of the Australian Institute of Geoscientists (“AIG”). Mr. Sparks and Mr. Langworthy have 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 Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). Mr. Sparks and Mr. Langworthy consents to the inclusion of the information in this announcement in the form and context in which it appears.

The Competent Person confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

This announcement has been authorised for release by the Board of Directors of International Graphite.

Phil Hearse

Executive Chairman

For more information please contact:

Robert Hodby

CFO/Company Secretary

[email protected]

+61 407 770 183

Marie Howarth

Media & Communication

[email protected]

+61 412 111 962

About International Graphite

International Graphite is an emerging supplier of processed graphite products, including battery anode material, for the global electric vehicle and renewable energy markets.

The Company is developing a sovereign Australian ‘mine to market’ capability, with integrated operations wholly located in Western Australia. The Company intends to build on Australia’s reputation for technical excellence and outstanding ESG performance with future mining and graphite concentrate production from its 100% owned Springdale Graphite Project and commercial scale downstream processing at Collie. International Graphite is listed on the Australian Securities Exchange (ASX: IG6) and Tradegate and Frankfurt Stock Exchange (FWB: H99, WKN: A3DJY5) and is a member of the European Battery Alliance (EBA250) and European Raw Minerals Alliance (ERMA).

[i] See ASX Announcement_Springdale Exploration Update 30 May 2022

[ii] See ASX Announcement_IG6 Makes ASX Debut 7 April 2022