The Balama Central comprises two prospects named Lennox and Byron which are composed of relatively simple geology with interpreted steeply dipping northwest host lithologies. The graphite forms as a result of high grade (amphibolite) metamorphism of organic carbonaceous matter.

Mining at Balama Central will be completed with standard truck and excavator methods. Drill and blast of the fresh material will be required. Pit designs for Lennox and Byron were based on Whittle pit optimisations for each deposit considering project specific unit costs, prices, recoveries and geotechnical inputs. The pit optimisations were constrained within the limits of the Indicated Resources for each deposit. The current design for the Lennox pit extends to a depth of approximately 90m, whilst the current design for Byron pit extends to a depth of approximately 135m deep. Each pit will have a single waste dump, located to the east of each excavation. Pit ramps will be oriented to ensure that both ore and waste haulage distances are minimized. Long-term ore stockpiles will be located between each pit and the ROM pad.

A mining schedule was completed based on the processing plant target production of ~58 ktpa of TGC concentrate at 96% TGC and practical mining constraints. A 75% ramp-up was applied in the first year. To enhance early cashflow, the target feed grade to the plant will average 12.5% TGC. This is maintained for 29 years before reducing.

The cut-off grade was determined through the application of project unit operating costs and recoveries. The recoveries were determined by deposit scale geometallurgical assessment of samples representative of the variable lithology types, oxidation and TGC% grade ranges. The marginal cut off estimated to be 3.4% TGC for the weathered material, and 2.9% TGC for the fresh material. An elevated cut-off grade of 6% TGC was selected as it produced sufficient mine life.

Material between the marginal cut-off and 6% TGC will be placed on a mineralised waste dump, separate from the main waste dumps.

The Mineral Resource to Ore Reserve conversion is 74% based on Probable Ore Reserves over Indicated Mineral Resources at a 6% TGC cut-off grade.

The Balama Central process plant will process run of mine (ROM) ore at an average rate of 480,000tpa at over 12.5% TGC to produce 58,000 tpa of dry graphite concentrate with a grade of +96% total graphitic carbon (TGC). The flowsheet has been developed based on the results of extensive test work performed on various samples. Battery Minerals expects that the Balama Central process plant will comprise of the following:

• ROM pad, designated stockpile areas and ability to blend ore on pad.
• Primary jaw crusher and crushed ore stockpile (COS).
• Primary closed-circuit rod mill.
• Rougher flotation.
• Concentrate regrinding and concentrate cleaning.
• Concentrate filtration.
• Concentrate drying, screening, and bagging.
• Tails thickening and disposal.
• Water and Air services.
• Reagents.