Blencowe Resources Plc, in collaboration with its Chinese partner Jilin New Technology Graphite Co. (“Jilin”), announces the near completion of processing 600 tonnes of raw material from the Orom-Cross graphite project in Uganda. This commercial scale testing in China has been crucial for accelerating product qualification, avoiding the necessity for an expensive pilot-scale graphite processing facility on site.

Key Points:

•  Completion of processing the 600-tonne bulk sample is expected by the end of June, with results anticipated shortly thereafter.

•   Excellent yields and recoveries achieved so far underscore the high purity and quality characteristics of Orom-Cross graphite.

•  Approximately 30 tonnes of graphite concentrate are anticipated, providing a substantial sample size for testing by tier-1 offtakers interested in the product.

•  The majority of the small flake concentrate will be forwarded to Blencowe’s SPG processing partner for further refinement.

•  This process will yield approximately 10 tonnes of 99.95% uncoated SPG (spheronised purified graphite), the battery-ready product sought by OEMs for testing prior to entering into offtake agreements.

Jilin, a prominent graphite processing firm in Asia, has deep familiarity with Orom-Cross graphite from both current and prior testing initiatives. In 2023, Jilin successfully processed a 100-ton bulk sample into concentrate for Blencowe, and has recently concluded processing a 600-ton bulk sample over the last quarter.

The yields and recovery rates achieved so far have been outstanding, underscoring the high purity and overall quality of Orom-Cross graphite. The ongoing program is on track to conclude within the next week, producing an estimated 30 tonnes of graphite concentrate with 95-97% LOI, comprising a mix of 55% small flake and 45% large flake. Following completion, Blencowe will possess significant quantities of both small flake and large flake concentrate for subsequent testing and evaluation.

Once product testing concludes, the final products will be made available to potential buyers. Most of the small flake concentrate will be sent to Blencowe’s SPG processing partner for additional processing, aiming to produce approximately 10 tonnes of 99.95% uncoated spheronised purified graphite (SPG), a product ready for battery applications that OEMs require for testing before finalizing offtake agreements.

Blencowe has already signed its initial MOU for offtake of the large flake concentrate. Through completing these upcoming stages, the company expects to secure additional MOUs with prominent global buyers of graphite products, aiming to establish offtake agreements for the entire production output from the Orom-Cross project.

Executive Chairman Cameron Pearce remarked, "We are nearing the completion of our 600-tonne bulk sample processing, marking a crucial milestone in our DFS journey. The outstanding results so far underscore the exceptional quality and potential of our Orom-Cross graphite.

As we move into the next phase, our focus remains on delivering high-quality, battery-ready graphite products that meet the rigorous requirements of our potential tier-1 offtakers and OEMs. These partners are seeking premium-grade products to secure their long-term supply chains amid the increasing demand, especially from the automotive industry for electric vehicle batteries.

Successfully demonstrating the quality of our final product at a commercial scale at this early stage not only enhances our standing in the industry but also lays the groundwork for significant commercial progress with offtakers and downstream partners. We are eager to provide further positive updates as we work towards our goal of becoming a leading supplier of high-purity graphite."