BlackRock Mining's World-Class Tanzanian Graphite Project On Track for Near-Term Production

• Black Rock Mining owns a world-class graphite ore body in Tanzania, with a substantial resource of 200 million tons and a high-grade ore at 8.5%. Their ore produces a clean concentrate in demand by building channels to market.
• Black Rock Mining has a unique business model in Tanzania, delivering low carbon intensity and sits at the bottom of the cost curve. They have a critical partnership with POSCO, a major anode producer outside China, for off-take agreements.
• Government agreements, including a special mining license framework agreement, are in place to support Black Rock Mining's operations in Tanzania, with a 30% tax rate, 4% royalty, and 16% free carried interest.
• The company is confident about securing financing and emphasizes its experienced team, ESG compliance, and strong infrastructure access, positioning it well for success in the graphite market.

About BlackRock Mining

BlackRock Mining's CEO John DeVries recently presented an update on the company's Mahenge graphite project in Tanzania at the Africa Down Under conference. He outlined how BlackRock is progressing towards bringing this large, high-quality graphite deposit into production to supply key markets.

Strong Progress Across All Areas

BlackRock has made strong advances over the past year across key areas - financing, off-take agreements, government approvals, technical optimization, and environment and social governance (ESG) standards. This de-risks the project and strengthens the investment case.

The company is working towards securing debt financing and expects to announce terms sheets soon. BlackRock has a high-caliber board and management team to drive financing and development. This includes experts in fields like mining, engineering and ESG.

BlackRock's strategic partner Posco, a leading anode producer, continues to show its confidence in the project. Posco recently signed an additional memorandum of understanding (MOU) to potentially purchase more graphite concentrate from the second module.

On the approvals front, BlackRock has cemented agreements with the Tanzanian government that provide a clear framework for developing the project. This includes a Special Mining License and Framework Agreement.

The technical team continues optimization work to ensure smooth commissioning and ramp-up. There is also upside potential from further exploration.

World-Class Deposit in a Tier One Location

Mahenge contains a very large, high-grade graphite deposit with 200 million tonnes at 8.5% total graphitic carbon for 17 million tonnes of contained graphite.

Metallurgical test work has shown it can produce a very pure graphite concentrate, with 70% being a large flake above 100 mesh. This captures strong prices above the benchmark level.

The project enjoys first-quartile costs due to excellent infrastructure like nearby hydropower, rail and a container port. The favorable geology and mining method also contribute to low costs.

Initial production will be around 90,000 tonnes per annum, with the potential to expand output to 350,000 tonnes per annum. Mahenge's scale, quality and cost position make it globally significant.

Robust Economics and Strong Financial Returns

An independent expert has validated the impressive financial metrics for Mahenge's initial Stage One production:

• NPV of US$1.4 billion
• IRR of 45%
• EBITDA of US$182 million per annum
• CAPEX of US$258 million
• OPEX of US$583 per tonne
• Basket price estimated at US$1,700 per tonne

This translates into outstanding investment returns. The project can generate US$3 of revenue for every US$1 of costs.

The large production scale combines with low costs to deliver a substantial EBITDA of US$182 million per year. This high-margin operation can repay debt quickly.

With an initial 26-year mine life, Mahenge provides a long-term cash flow stream. The modular design also allows staged expansions aligned with market growth.

Supplying High Growth Markets

Graphite demand is forecast to grow rapidly driven by the lithium-ion battery and renewable energy sectors. This year may see a deficit emerge in the graphite market.

Posco's offtake agreement for 30,000 tonnes per annum from Stage One gives BlackRock a strategic partner and guaranteed customer. Posco aims to increase its exposure to graphite as it invests heavily in the battery supply chain.

BlackRock is also well positioned to supply graphite into North America and Europe as they implement policies to increase EV adoption and build resilient supply chains for critical minerals like graphite.

Near-Term Development Timeline

BlackRock has set an ambitious but achievable timeline to move through financing, construction and production:

• Finalize debt financing packages in early 2023
• Complete detailed engineering by mid-2023
• Start early works construction in mid-2023
• Commission plant and first production in late 2024

The successful delivery of this schedule can catalyze a positive re-rating as BlackRock transitions to developer status.

Mahenge: A World-Class Investment Opportunity

BlackRock Managing Director John DeVries summarized why Mahenge represents an outstanding opportunity for investors:

“It's a great project. You don't get them this big and this good very often. The infrastructure gives us a cost advantage. The team has the experience to deliver. The strategic partnership with Posco validates the project. Modular expansion aligns with market growth. It all comes together into a very compelling investment case."

The progress made over the past year has systematically de-risked the project. Mahenge offers investors a world-class graphite asset with robust economics. As BlackRock moves into development, Mahenge is primed to begin realizing its full value for shareholders.

Here are some of the key reasons why BlackRock Mining's Mahenge graphite project could be a good investment opportunity:

• Large, high-quality deposit: The deposit contains 17 million tonnes of high-grade graphite, providing scale and long mine life. The graphite is very pure, commanding premium pricing.
• Tier one location: Excellent infrastructure like nearby hydropower, rail and port provides low operating costs and ESG benefits. Location in a stable mining jurisdiction.
• Strong financial returns: Impressive NPV of $1.4 billion, IRR of 45%, and estimated annual EBITDA of $182 million. Generates $3 in revenue for every $1 of costs.
• Strategic partner validated: Offtake agreement with major graphite end-user Posco validates quality and market demand. Posco investing heavily across the battery supply chain.
• Growing market: Graphite demand is forecast to increase substantially driven by lithium-ion batteries and renewable energy. Potential for supply deficit emerging.
• Clear development timeline: Permitting is largely in place, initial production is targeted for late 2024. On track to become a producer.
• Experienced team: Proven management and board with expertise in financing and building projects and operating mines.
• Modular expansions: Staged growth aligned with projected rising graphite demand optimizes capital efficiency.
• Re-rating potential: Advancing to producer status can catalyze increased valuations. Currently undervalued compared to peers.

The Mahenge project checks all the boxes - large scale, low costs, strong financials, robust demand outlook, and experienced developers. As BlackRock de-risks the project, the company's valuation should re-rate substantially higher. This is a promising opportunity for graphite exposure.