Syrah Resources Limited referred to its announcements on 23 December 2021 and 29 December 2021 regarding its offtake agreement with Tesla Inc. to supply natural graphite active anode material from its vertically integrated AAM production facility in Vidalia, USA. The AAM specifications in the Agreement have been updated and accordingly, the condition to the offtake obligation in the Agreement relating to agreement of final specifications of AAM by 31 December 2022 has been fulfilled. The final specifications are aligned with Syrah's planned AAM product from Vidalia that informed the final investment decision on the expansion of Vidalia's production capacity to 11.25ktpa AAM.

The offtake obligation remains conditional on Syrah achieving final qualification of AAM by no later than 31 May 2025. The Agreement may also be terminated if production has not started by 31 May 2024. Start of production of the 11.25ktpa AAM Vidalia facility is targeted in the September 2023 quarter.

Further to the 8ktpa AAM offtake obligation from the 11.25ktpa AAM Vidalia facility, Tesla has exercised its option to offtake an additional 17ktpa AAM from Vidalia at a fixed price and for an initial term of no less than four years, subject to the expansion of Vidalia's production capacity to 45ktpa AAM. Syrah will work towards finalizing the detailed terms of this additional offtake obligation in an offtake agreement. A Definitive Feasibility Study on the expansion of Vidalia's production capacity to at least 45ktpa AAM, inclusive of 11.25ktpa AAM, is underway.

Detailed engineering, procurement, and construction phases for the subsequent expansion of Vidalia will follow the DFS sequentially, subject to Syrah Board approval and customer and financing commitments.