EcoGraf : Positive Response to Proposed US$60m Epanko Debt Financing

Positive Response to Proposed US$60m

Epanko Debt Financing

EcoGraf Limited (ACN 117 330 757) ("EcoGraf" or the "Company") (ASX: EGR) is pleased to report encouraging progress to secure Tanzanian Government approval for the KfW IPEX-Bank US$60 million Epanko Graphite Mine ("Epanko") debt financing proposal. KfW IPEX-Bank is part of KfW, the development bank of the Federal Republic of Germany and one of the world's largest development financiers.

Following discussions with the Tanzanian Ministry of Minerals, Mining Commission, Ministry of Finance and the Bank of Tanzania, KfW IPEX-Bank and the Company have developed a debt financing structure that fully complies with Tanzania's new mineral legislation relating to banking arrangements and will enable construction of the long-life, high quality Epanko flake graphite operation.

After conducting further joint briefings with KfW IPEX-Bank to present the proposed financing arrangements to the Government of Tanzania and its wholly-owned development bank, TIB Development Bank, the Company has received confirmation from TIB Development Bank that it would like to progress the Epanko funding transaction.

The next steps will involve completion of due diligence processes, preparation of loan documentation and formal approvals from the Governments of Germany and Tanzania.

Epanko to Make a Significant Contribution to Tanzania

EcoGraf has invested over US$20m in Tanzania over the last 7 years to prepare Epanko for construction, including:

• • Completion of a bankable feasibility study for an initial 60,000 tonne per year operation. The study was led by GR Engineering Services Limited and involved input from contractors and consultants in Tanzania and overseas. It confirmed that Epanko will be a highly profitable, long-life and scalable new graphite mining operation.

• • Receipt of Environmental Approval.

• • Grant of Mining Licence.

• • Receipt of approval for Relocation Action Plan that involves new housing, school, church and medical dispensary for affected persons.

• • Rigorous due diligence completed by SRK Consulting (UK) during the Independent Engineer's Review, confirming that the bankable feasibility study adequately addresses all technical aspects of the proposed development and the social and environmental planning aspects satisfy International Finance Corporation Performance Standards and World Bank Group Environmental, Health and Safety Guidelines.

• • Sales contracts for export of graphite products to Europe and Asia.

Epanko is forecast to expand over time to meet growing market demand for battery graphite and is expected to operate for 40-50 years. Financial modelling indicates that over that time, economic benefits of over US$3 billion will accrue to Tanzania, through employment, procurement, royalties, taxes and dividends. Over 95% of the 300 permanent staff will be Tanzanian, with an estimated 4,500 indirect jobs to be supported by the operation.

Sector Leading ESG Credentials

The Epanko bankable feasibility study social and environmental planning programs have been conducted in compliance with the Equator Principles, a globally recognised risk management framework adopted by leading financial institutions for assessing and managing social and environmental risks in new developments.

Achieving this standard and satisfying International Finance Corporation Performance Standards and World Bank Group Environmental, Health and Safety Guidelines is critical to securing international financing support for the new development and reflects EcoGraf's commitment to ensuring the highest level of Environmental, Social and Governance operating standards.

Epanko will provide inter-generational economic and social benefits for the regional community near Mahenge in Tanzania and will support Tanzania's positive industrialisation progress.

Epanko Enhancement Studies

In conjunction with the financing process, EcoGraf will also be undertaking Epanko enhancement studies in relation to:

• • defining the potential for 'fresh rock' graphite within the Epanko resource to deliver a high purity 99% carbon graphite without additional processing. Metallurgical testwork indicates that this Epanko material will provide an excellent long-term feedstock for EcoGraf™ battery anode material and is expected to lead to a reduction in purification reagents and production costs.

• • evaluating the benefits of low-impact, continuous mining methods at Epanko through the use of proven surface mining equipment.

A summary of the Epanko bankable feasibility study outcomes is attached to this announcement.

This announcement is authorised for release by Andrew Spinks, Managing Director.

For further information, please contact:

INVESTORS

Andrew Spinks Managing Director T: +61 8 6424 9002

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ENGINEERING CLEAN ENERGY

Epanko Bankable Feasibility Study Summary

ASX: EGR FSE: FMK

March 2021www.ecograf.com.au

Disclaimer

Securities Disclaimer

This presentation is for informational purposes only and does not constitute an offer to sell, or solicit to purchase, any securities. Such offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirements. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.

Forward looking statements

Various statements in this document constitute statements relating to intentions, future acts and events. Such statements are generally classified as "forward looking statements" and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. The Company gives no assurances that the anticipated results, performance or achievements expressed or implied in these forward-looking statements will be achieved.

Production targets and financial information

Information in relation to the feasibility study conducted on the production of battery graphite using the Company's EcoGraf technology, including production targets and forecast financial information derived from the production targets, included in this document is extracted from an ASX announcement dated 5 December 2017 "Battery Graphite Pilot Plant", as updated on 17 April 2019 "EcoGraf Delivers Downstream Development" and 5 November 2020 "Completion of EcoGraf™ Processing Facility Development Report", available atwww.ecograf.com.au and www.asx.com.au. The Company confirms that all material assumptions underpinning the production targets and forecast financial information derived from the production targets set out in the announcement released on 5 December 2017, as updated on 17 April 2019 and 5 November 2020 continue to apply and have not materially changed.

Information in this document relating to the Bankable Feasibility Study conducted on the Epanko Graphite Project, including production targets and forecast financial information derived from the production targets, included in this document is extracted from an ASX announcement dated 21 June 2017 "Updated Bankable Feasibility Study" available atwww.ecograf.com.au and www.asx.com.au. The Company confirms that all material assumptions underpinning the production targets and forecast financial information derived from the production targets set out in the announcement released on 21 June 2017 continue to apply and have not materially changed.

Competent persons

Any information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Spinks, who is a Member of the Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. Andrew Spinks is a director of EcoGraf Limited 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 Exploration Results, Mineral Resources and Ore Reserves". Andrew Spinks consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

Information in this document that relates to Mineral Resources is based on information compiled by Mr David Williams, a Competent Person, who is a Member of the Australasian Institute of Mining and Metallurgy. David Williams is employed by CSA Global Pty Ltd, an independent consulting company 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 Exploration Results, Mineral Resources and Ore Reserves". David Williams consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

Information in this document that relates to Ore Reserves has been compiled by Mr Steve O'Grady, who is a Member of the Australasian Institute of Mining and Metallurgy. Steve O'Grady is a full-time employee of Intermine Engineering and produced the Mining Reserve estimate based on data and geological information supplied by Mr Williams. Mr O'Grady has sufficient experience which is relevant to the estimation, assessment and evaluation of the economic extraction of the Ore Reserve that 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". Steve O'Grady consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

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