Tanzania's Next Major Graphite Mine Nears Production

• Walkabout Resources is progressing with the Lindi Jumbo project as it moves through the construction phases. The Lindi Jumbo project is known for its high-grade graphite and is set to be a game-changer for the Tanzanian mining industry.
• There's a significant interest in exploration and mining in Tanzania currently. The Lindi Jumbo project is fully funded, marking the first foreign debt into the Tanzanian mining industry in the past 20 years.
• The Lindi Jumbo project boasts the highest reserve grade of any undeveloped project in Africa with a low capital cost. The project emphasizes the larger flake graphite, though it can service the entire spectrum of the graphite industry.
• With ongoing development, the Lindi Jumbo mine is expected to be commissioned by the end of the year, positioning it as Tanzania's next graphite producer.

Walkabout Resources Limited (ASX: WKT) is poised to become Tanzania's next major graphite producer. The company's 100%-owned Lindi Jumbo project, located in the southeast of the country, is on track to commence commissioning before the end of 2023. With construction over 90% complete, Lindi Jumbo will be the first major new mine development in Tanzania in over a decade. It will also be the highest-grade undeveloped graphite project in Africa.

Lindi Jumbo boasts a number of key advantages for investors:

• Fully funded to production with low forecast operating costs
• Unique high-grade, large flake deposit
• Compelling project economics with high-margin potential
• Significant opportunities for resource expansion and production growth
• First foreign debt funding in Tanzanian mining for 20 years secured

High-Grade Large Flake Deposit Drives Robust Economics

The Lindi Jumbo deposit has a standout combination of high grades and large flake size that makes it a rare find globally. With an average grade of 16% TGC, Lindi Jumbo contains the highest reserve grade of any undeveloped graphite project in Africa.

Approximately 75% of the concentrate will be larger than 180 microns, making Lindi Jumbo one of only a handful of major flake graphite development projects worldwide.

The high average grade results in low operating costs, forecast to be in the lowest quartile globally. This gives Lindi Jumbo a significant competitive advantage and resilient operating margins across the commodity cycle.

Fully Funded to Production

In August 2022, Walkabout secured a US$20 million debt facility to fully fund Lindi Jumbo through to production. With no additional equity financing required, this removes a key funding risk for shareholders.

The debt facility is provided by UK-based mining fund AMCI, marking the first foreign debt investment into Tanzania's mining sector in over 20 years.

This demonstrates renewed international funding confidence in the country and paves the way for further foreign investment.

Construction Over 90% Complete

The process plant, civil works and other infrastructure at Lindi Jumbo are now over 90% complete. Current activities are focused on erecting the concentrator buildings and processing equipment. First ore for commissioning is stockpiled on site ready to feed the plant by the end of 2023. With an offtake agreement already secured with Wogen Pacific, Walkabout will receive payment upon loading of the first shipment, providing immediate cash flow.

The processing plant has been designed with surplus capacity, allowing the company to increase production by 50% to 60,000 tonnes per year without additional capex. There is also substantial resource expansion potential, with the deposit open along strike and at depth. The current 24-year mine life also only accounts for 30% of the total JORC resource, providing scope to upgrade resource categories and expand the mine plan over time.

In addition, the 8 million tonne low-grade stockpile will enable at least a further 24 years of processing well beyond the current mine life.

Proven Technical Team with Local Experience

Walkabout can draw on extensive African and graphite development experience within its technical team. CEO Andrew Cunningham has over 15 years' experience across sub-Saharan Africa, predominantly focused on exploration and development projects. The company's patient and persistent approach has successfully navigated a challenging funding environment. Its strategy of maintaining a small and efficient operation has now positioned Lindi Jumbo on the cusp of production.

Tanzania has undergone significant development in recent years to support its mining and energy industries. The country provides stable long-term mining legislation and policy environment. The Lindi Jumbo area has seen substantial infrastructure investment, including new power transmission lines and port expansions. This provides the project with excellent access to grid power, water and transport logistics.

As Tanzania's next graphite producer, Lindi Jumbo will showcase the potential of the country's mining sector to the world. It represents an exciting first step in unlocking Tanzania's significant graphite resources.

With construction on schedule, strong forecast economics and a clear pathway to cash flow, Lindi Jumbo presents as a compelling near-term production opportunity in the graphite sector. The project's robust fundamentals and experienced management team make Walkabout Resources a stock to watch as commissioning draws closer.

The Investment Thesis for Walkabout Resources

• Robust project economics - With low forecast operating costs driven by its high grade resource, Lindi Jumbo is projected to have strong operating margins and be in the global lowest cost quartile for graphite production. This provides resilience across commodity cycles.
• Near-term production - With construction over 90% complete, Lindi Jumbo is on track to commence commissioning within months. This provides a clear pathway to cash flow in the near future.
• Strong demand fundamentals - Graphite demand is forecast to grow robustly driven by the lithium-ion battery and electric vehicle revolution. This should support prices and Lindi Jumbo's margins.
• Significant expansion potential - The processing plant and resource allow for substantial production growth over time to meet rising demand. Expansion capex is expected to be low.
• Proven team - Walkabout's experienced African development team provides investors confidence in the company's ability to successfully deliver Lindi Jumbo into production.
• Funding secured - With full debt funding secured, Lindi Jumbo has cleared a major hurdle and removed equity dilution risks for current shareholders.
• Strong forecast returns - Lindi Jumbo is projected to generate high operating cash margins, providing investors potential for attractive returns on investment.
• Supportive jurisdiction - Tanzania offers a stable and supportive mining jurisdiction, with improving infrastructure in the project area.

With its near-term cash flow potential, forecast low operating costs and significant expansion upside, Lindi Jumbo offers investors an exciting exposure to the growing graphite market. Its execution risks are now low with funding and construction secured. This could provide investors with robust leveraged returns as the project is commissioned and production ramps up.