17 July 2014

TANZANIAN MINERAL SANDS DEMERGER AND SPIN-OFF

Syrah Resources Limited (ASX: "SYR" or "the Company") advises that as previously reported to the ASX several times over the past two years, Syrah has been investigating ways to add shareholder value by a joint venture, selling or spinning off its Tanzanian exploration properties. This includes the mineral sand assets (North Tanga, South Tanga, Bagamoyo and Fungoni), the Mbinga nickel project, the Nachingwea graphite prospect and coal prospectivity at Shikula.

The Company now plans to hold an Extraordinary General Meeting in August to request shareholder approval to demerge the assets through a distribution to shareholders. This will be followed as quickly as possible by seeking a listing on the ASX through an Initial Public Offering with a priority period for existing Syrah shareholders. The expected value of the new company, Jacana Minerals Limited, at listing is expected to be less than $20 million after a proposed raising of about $8 million.

Further details regarding the proposed transaction will be released at a later date.

Paul Kehoe Managing Director Syrah Resources Ltd

Mobile contact - + 61 3 414156288

Email - p.kehoe@syrahresources.com.aU

Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street

Melbourne 3000 Australia Ph: 03 96707264

ASX Code SYR

Current Corporate Structure

Ordinary Shares

Issued Shares: 162,580,614

Options

Exercisable at $0.26: 2,414,467

Exercisable at $2.21: 50,000

Exercisable at $2.90: 250,000

Exercisable at $3.87: 1,000,000

Exercisable at $5.50 500,000

Major Shareholders

Directors 22.28% Citicorp Nom PL 12.68% HSBC Custody Nom Aus Ltd 7.06% Copper Strike Ltd 6.77% National Nom Ltd 6.28% Gasmere PL 4.00%

Board of Directors

Mr Tom Eadie

Non-Executive Chairman

Mr Paul Kehoe

Managing Director

Mr Tolga Kumova

Executive Director

Mr Rhett Brans

Non-Executive Director

Ms Melanie Leydin

Company Secretary

Key Project

Balama Graphite Project (Mozambique) Balama is the largest and one of the highest grade flake graphite and vanadium projects globally.

www.syrahresources.com.au

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