The project overlies a prominent 20km wide zone consisting of a folded assemblage of graphite and quartz-feldspar schists (<60% graphite), quartzite and marble units, with lesser intercalated amphibolite and leucogneiss. This zone, termed the Ampanihy Belt is a core component of the Neoproterozoic Graphite System. The belt is interpreted as a ductile shear zone accreted from rocks of volcanic and sedimentary origins.

The Maniry Graphite Project consists of multiple folded graphitic schists and gneiss strata with a surficially exposed strike length of 500-1000m. The Razafy deposit is located on the north-west limb of the Maniry Graphite Project and is comprised of three parallel lenses of graphitic mineralisation. The Razafy graphite mineralisation occurs as disseminated flakes within a quartzfeldspar-sillimanite schist.

The structural setting of the NW Razafy area is complex. The geological interpretation of the graphitic lenses is based on local outcrop mapping, trench logging and assay data and drillholes and take into account the presence of faults.

Graphite is hosted within graphitic schists and granulites.

Trenches have been used with success in early exploration stages and for the adjacent Razafy deposit to confirm the strike continuity. Nine trenches confirm the position of the NW Razafy lenses at surface.

A high-grade core was interpreted at a +12% TGC for one of the East lenses.

The weathered horizon (oxide) can easily be interpreted from the sulphur depletion observed in the assay data. The oxide horizon is approximately 20m thick.

The Mineral Resource is limited to the NW Razafy deposit.

The NW Razafy deposit comprises two sets of graphitic lenses -East and West.

The East lenses have a 400m and 200m strike length, the West lenses have a 260m and 190m strike length. Downdip extension of the grade envelope solids varies between 40m and 50m from the last drillhole on the section. The lenses extend toa maximum of 65m below surface.

The NW Razafy block model extents 1,100m along strike, 710m across strikeand 85m at depth.

The potential mining method is considered to be open pit mining.

Six scheduling scenarios were run based on a 500 kt/y ore production rate and a staged expansion from 500 kt/y to 1 Mt/y ore production rate with a combination of pit shells based on both indicated and inferred resources and indicated resource only. The production schedule adopted for the study was based on the staged ore production rate 500 kt/y to 1 Mt/y comprising indicated resources only resulting in a 14-year mine life.

Contract mining using small equipment.

No Project waste dumps required – waste to be used 100% on tailings dam development and subsequent lifts.

- subscription is required.

The basic process flowsheet proposed to treat the Maniry ore will include:

• Crushing and grinding.

• Coarse and fine flotation with the screening of coarse material followed by inter-stage re-grind milling of the undersize to improve liberation and product purity.

• Concentrate dewatering by thickening, filtration and drying.

• Screening and bagging plant to produce the final products.

• Stage 2 project expansion involves the installing of a second equivalent processing plant module:
- Stage 1 comprising a 0.5 Mt/y plant;
- Stage 2 comprising an identical 0.5 Mt/y plant to be constructed adjacent to the Stage 1 plant increasing capacity to 1.0 Mt/y.

The Stage 2 plant construction to be completed in year 3 commencing operation in year 4, with a resulting mine life based on the current indicated resource of 14 years.

Both stages to be independent with no significant capital pre-investment in Stage 1.