The graphite rich paragneiss is present at surface over 8.7 kilometers with an average width of 300m and up to 1,000m wide. The graphite rich paragneiss is hosted within the Archean Kénéma Man domain, consisting with granulitic and migmatitic gneiss with subordinate granitoides and relic supracrustal belts, which are metamorphosed to granulitic facies.

The Lola Graphite occurrence is a natural flake occurrence within a paragneiss.

The graphite mineralisation is located within the strongly sheared paragneiss, the shearing mechanism may have played a role as containing and constraining the graphite mineralisation within the paragneiss.

The first 20m or so of the deposit is well weathered (lateralized) freeing graphite flakes from the silicate gangue and allowing for easy grinding with an optimal recovery of large and jumbo flakes. Graphite mineralisation continues at depth within the non-weathered paragneiss.

Graphite mineralization is well exposed at surface on its entire strike length with sample grades ranging from trace to up to 20% of large flakes and often seen in higher concentration agglomerates.

The mining method selected for the Project is a conventional operation with articulated haul trucks and loading shovels.

The mineralized material and waste rock will be loaded into articulated haul trucks with excavators. The mineralized material is part of saprolitic rock and overburden, a weathering of the bedrock surface that does not require drilling and blasting. This material will be hauled roughly 4 km from the north pit area, 6.5 km from the central pit area and 8 km from the south pit area to the primary crusher, and the waste rock will be hauled to the dump.

To properly manage water infiltration into the pit, a sump will be established at the lowest point on the pit floor. Water collected in this sump will be pumped to a collection point at surface.

The mine will operate year-round, seven (7) days per week, twenty (20) hours per day (2 shifts, 10 hours each). Since the mill will operate seven (7) days per week, a run of mine stockpile will be maintained to provide a constant supply of feed to the crusher. During the days when the mine is not operating (for technical or weather reasons), the crusher will be fed by the front-end loader from the stockpile. The mine fleet requirements and manpower are based on this work schedule.

The Lola mineral resources, contained mostly within three areas, are intended to be mined by surface operations.

It is estimated that approximately 20.7 Mt of mineralized material is extractable over a 16-year mine life.

The current plan is to mine the north area for a little more than nine (9) years of operation, continue in the central area for four (4) years, and finish in the area further south during the last three (3) years.

DRA/Met-Chem used an overall pit slope of 30° for the final pit walls. The final pit wall includes a 6.9 m catch bench, six (6) m high benches and accounts for a 60° face angle. A minimum mining width of 30 m has been considered for in-pit design for working areas.

The ramps and haul roads were designed with an overall width of 15.5 m. For double lane traffic, industry practice indicates the running surface width to be a minimum of 2.5 times the width of the largest truck. The overall width of a 40-tonne articulated haul truck is 3.9 m which results in a running surface of 9.75 m. The allowance for berms and ditches increases the overall haul road width to 15.5 m. A maximum ramp grade of eight (8) % was used. This grade is acceptable for a 40-tonne articulated haul truck.

During the mining operation, material at the mineralization and waste rock contacts will not be separated perfectly. This effect is accounted for as either dilution, mining recovery or a combination of both. A mining recovery of 98 % has been applied to account for this. In other words, it was assumed that two (2) % of the mineralized material within the pit will be sent to the waste dump rather than the plant.

Three (3) pits have been designed for the Lola deposit. The north pit is approximately 1,640 m long and 350 m wide at surface, with a maximum pit depth of 37 m. The central pit is approximately 1,880 m long and 470 m wide at surface, with a maximum pit depth of 31, and the south pit is approximately 840 m long and 360 m wide at surface, with a maximum pit depth of 52 m. The total surface for each area is roughly 42.5 ha, 45.5 ha, and 15.6 ha, respectively.

The pits include 20,716 kilotonnes (kt) of mineralized material at a diluted average Cg grade of 4.43%, and the strip ratio is approximately 0.39:1. 1,376 kt of overburden and 6,786 kt of waste rock are included in the pit. The proportion of mineralized material classified as Inferred Mineral Resources that are contained within this pit shell is 13.4 %.

The processing plant consists of a crushing area and a concentrator where material beneficiation and concentrate dewatering, screening, and packaging takes place.

The concentrator will produce a graphite concentrate containing 94% Cg and above from the run-of-mine material. The process flowsheet includes crushing, scrubbing and grinding, rougher flotation, polishing and cleaner flotation. The back-end of the concentrator includes tailings and concentrate thickening, concentrate filtration, and drying, dry screening and bagging, and material handling.

All the tailings from the concentrator will be thickened and pumped to the tailings pond. Substantial reclaim of the tailings pond water has been considered in the process design to minimise fresh water makeup to the concentrator.

Graphite concentrate quality is measured with flake size and purity. The design of the processing plant will target minimizing the graphite flakes degradation and production of the high-grade graphite concentrate. All nominal throughput rates are based on the production of 50,000 dry metric tonnes of 94.23 %Cg concentrate. average weight recovery of 3.7 % and average graphite overall recovery of 79.25 % is used for design. These figures are based on the applicable results of the test work completed to date. The design criteria will progress as the new test work data becomes available.

The crushing plant and the concentrator will operate 24 hours per day, seven (7) days per week, 52 weeks per year. The crushing plant will operate at 90 % as the mineral sizers selected for that duty have a run-time factor higher than 90 % as per the equipment supplier information. The concentrator run-time is 90 %, typical for graphite processing facility operations.

Concentrator feed throughput has been established at an average rate of 3,702 dry tonnes per day or a nominal throughput rate of 171.4 dry metric tonnes of material per hour.