Lindi Jumbo Project On Track to Become Tanzania's Next Graphite Mine

• Walkabout Resources is fully funded with a recent debt funding of 20 to 25 million GBP, marking the first foreign debt into Tanzanian mining in 20 years.
• Lindi Jumbo project is a unique high-grade graphite resource with a compelling economic profile.
• The project is expected to commission by the end of the year, contributing to Tanzania's mining industry growth.

About Walkabout Resources

Walkabout Resources' Lindi Jumbo project in southern Tanzania is on schedule to start commissioning by the end of 2023, positioning it to become the country's next operating graphite mine. Led by a management team with over 20 years of experience successfully developing projects in Tanzania and Africa, Lindi Jumbo offers investors a near-term production opportunity with compelling economics.

Highlights:

• Fully funded to production with first revenues expected in 2023
• Forecast lowest operating costs for a new graphite project
• Construction over 90% complete and within revised budget
• Offtake secured for first 5 years of production
• Debt financing secured, first of its kind in Tanzania in 20 years

Near-Term Production in Tanzania

Walkabout Resources has been developing the Lindi Jumbo project since acquiring it in 2015, obtaining mining licenses in 2017. After some delays due to funding challenges, construction is now over 90% complete. With earthworks and civil works nearing completion, the current focus is erecting the concentrator and drying buildings.

The processing plant has been designed for an initial capacity of 34,000 tonnes per year of graphite concentrate, with excess capacity to allow future expansion. The project team expects to begin commissioning activities by the fourth quarter of 2023. First production will mark Tanzania's first major new mine development in over a decade.

Fully Funded to Production

An important recent milestone was the securing of US$20-25 million in debt financing from the UK Export Finance agency. This is the first foreign debt financing for a Tanzanian mining project in 20 years. It provides the remaining capital required to complete construction and start operations.

In addition to the debt financing, Lindi Jumbo has an offtake agreement with Wogen for the first 5 years of production. This includes a US$3.2 million working capital facility upon product loading that helps fund operations. The fully funded position derisks execution and enables first revenues in 2023.

Compelling Economics

Lindi Jumbo is designed as a long-life, high margin operation, with a focus on large flake graphite products rather than battery applications. The project has an 18% TGC reserve grade, more than double most peers, and forecast operating costs of US$386 per tonne placing it in the lowest quartile globally.

Initial mine life is approximately 24 years based on current reserves, with excellent potential for resource expansion from near-mine targets. The estimated pre-production capital cost including working capital is US$34 million, with current estimates just 4% over original budget despite inflationary pressures and delays.

The combination of high grades, low costs and large/jumbo flakes that attract premium pricing underpins an economically robust project. Additionally, the fixed price construction contracts have helped insulate Lindi Jumbo from global inflation.

Optimized Plant Design

The processing plant has been engineered specifically for Lindi Jumbo's unique mineralization. With an average flake size distribution of 75% greater than 180 microns in situ, the plant is designed to optimize recovery of these high value large and jumbo flakes.

Compact and efficient by industry standards, the plant comprises a five stage crushing and flotation circuit with integrated attritioning. Total footprint covers just 30,000 square meters. The adjacent tailings storage facility provides capacity for the 24 year initial mine life.

In addition to maximizing recovery of the coarse flakes, the plant's 34,000 tpa capacity has potential to be expanded to 50,000 tonnes with no additional capex. Further optimization could boost production to 60,000 tonnes per annum. This provides flexibility to incrementally grow production to meet market demand.

World-Class Graphite at Lindi Jumbo

The Lindi Jumbo deposit stands out for its high grades, large flakes and simple mineralogy. With an average in situ grade over 16% TGC, it is a world class graphite deposit by grade. Approximately 80% of the flakes are classed as jumbo, large or medium (over 300 microns), underlying the strategy to focus on maximizing recovery of the coarser fractions demanded by expanders, refractories and crucibles.

The graphite mineralization is hosted in surface weatheredzones, resulting in easy liberation of flakes during processing. Metallurgical testwork has repeatedly confirmed Lindi Jumbo's ability to produce a high quality concentrate, grading on average 96% TGC at coarse grind sizes. Feedback from potential offtake partners highlights the outstanding quality.

Furthermore, Lindi Jumbo's graphite has applications across all market segments. While about 25% of production is in the finer fractions potentially suitable for batteries, the economics are not dependent on sales to this still emerging sector. Sales agreements already in place confirm strong demand for the coarser material.

Supportive Operating Environment

Tanzania is a mining friendly jurisdiction with a long history of graphite production dating back over 100 years. Existing infrastructure including roads, power and deep water ports provides ready access to global markets. The regional development related to recently discovered offshore gas reserves is further enhancing logistics and power availability in the area.

From an ESG perspective, Lindi Jumbo has strong community and government support. As the first major mining investment in southern Tanzania in recent times, the mine will bring new jobs and opportunities for local businesses. Walkabout also has initiatives planned around training, education and agricultural development that aim to ensure sustainable benefits.

Proven Team to Deliver

The Walkabout management team has deep experience successfully exploring, permitting and developing mining projects across Africa. Leveraging this background, they adopted an approach for Lindi Jumbo that emphasized modest upfront capex, high margins and a relatively simple flowsheet in order to reduce funding hurdles and investment risk. This strategy, combined with strong government backing, has enabled the project to reach the construction phase despite a challenging funding environment.

With financing now secured and an experienced mine development team, Lindi Jumbo is on schedule to complete commissioning over the coming months. First production in 2023 will mark a major milestone for Tanzania's mining sector and position Walkabout as the country's next graphite producer. For investors, it presents a compelling near-term production opportunity with robust economics, limited execution risk and significant potential upside.

Reasons to Invest

Near-term production potential

• Construction is over 90% complete, with commissioning on track for late 2023. This provides a clear pathway to first revenues in the near future.
• Limited projects globally are at a similar advanced stage, giving Lindi Jumbo a first-mover advantage in bringing new supply online. This could allow it to benefit from forecast graphite demand growth.

Robust project economics

• Exceptionally high grade resource (18% TGC) results in low operating costs, forecast to be in the lowest quartile globally.
• Focus on maximizing recovery of high value large/jumbo flakes enhances profit margins. These coarse flakes command premium pricing.
• Conservative 24 year mine life with expansion potential provides cash flow visibility. Additional resources can extend operations.

Proven and experienced management

• Walkabout's technical team has successfully built and operated mines across Africa and Tanzania specifically. Their experience derisks execution.
• Adopted strategies to minimize upfront capex and simplify the flowsheet in order to reduce funding challenges.

Supportive jurisdiction

• Tanzania has a long history and culture of graphite mining. Recent regulatory changes have created a more attractive investment environment.
• Excellent infrastructure provides easy access to export markets for graphite concentrate.
• Strong community and government support for Lindi Jumbo. Will bring jobs and opportunities.

Attractive valuation upside

• Currently valued at a modest AUD $50 million market capitalisation despite near-term production.
• Comparable development projects are valued considerably higher, indicating potential re-rating as Lindi Jumbo transitions to producer status.

In summary, Lindi Jumbo offers investors a rare opportunity to gain exposure to an advanced, high grade graphite project on the cusp of production, with a proven team, low costs and significant valuation upside.