Black Rock Mining Limited announce the completion of the Independent Technical Expert review of Module 1 and the Front- End Engineering Design (FEED) works and update of the eDFS (eDFS Update), which reconfirms the Tier 1 scale Mahenge Graphite Project (Mahenge or Project) in Tanzania, as a robust project with attractive forecast returns. All targeted outcomes were achieved by the FEED work for Module 1 which has been reviewed by an Independent Technical Expert (ITE). The ITE was selected from a shortlist of potential candidates based on discussions and feedback with potential project finance lenders.

Findings from the FEED work come against a backdrop of steady increases in the graphite price and an exceptionally strong supply-demand market outlook. One of the key differentiating features of Mahenge is its access to low-cost grid power in Tanzania. Grid power generation in Tanzania in 2022 is sourced from ~40% hydroelectric and 60% natural gas with the proportion of hydroelectricity expected to grow.

The nearby Julius Nyerere Hydro project is in construction and will have an installed capacity of 2,115 megawatts and is due to be commissioned in June 2024. As a result, graphite from Mahenge will have a very low carbon intensity compared to peers and is likely to have one of the lowest carbon footprints of any graphite project globally. The eDFS assumed the ~60km power line to Ifakara to connect Mahenge to grid power would be built in parallel with the commissioning of Module 2. However, given the elevated level of diesel prices and the substantial benefit to Project economics and green credentials, Black Rock is exploring options to bring forward the construction of the power line to align with first production from Module 1. Black Rock is in discussions with several parties to explore funding the USD 33 million power line project outside the Project.

Lithium-ion batteries contain 7-10x more graphite than lithium by volume and as the mainstream adoption of electric vehicles gathers pace, several experts are forecasting substantial deficits in graphite markets. The size of the natural flake graphite market in 2022 is a relatively modest 1.2mt and Benchmark Mineral Intelligence expects substantial graphite supply deficits over the next few years which provides a very promising outlook for graphite prices. By 2029, Benchmark expects the market deficits to exceed the entire graphite supply.