McIntosh – Graphite

Graphite is the largest component in a Lithium-Ion Battery and requires the largest production increase of any battery mineral

Location Benefits

  • Emperor & Longtom comprise ~92% of the McIntosh resource
  • Emperor ranks in the top quartile for flake size distribution globally, with over 85% in the high value large flake size (+80 Mesh)
  • 81% of Resource is in the higher confidence Indicated category
  • Metallurgical test work produced 98% TGC concentrate by simple flotation
  • Confirmed ultrahigh purity flake with 5N purity ‘easily’ achievable
  • Ample core available for further metallurgical test work

Globally Significant Flake Size Distribution

Ultrahigh Purity Advantages

Easily Purified to 5N (99.999% C) Nuclear Grade Purity

Impurities occur on the flake surface, as opposed to being trapped in the flake

Making it amenable to “light” purification methods

Light purification results in lower environmental impact downstream process

Lower cost of purification

Ability to produce Nuclear Purity means targeting of the highest value graphite products up to US$30,000/t

Low-cost purification + high value markets = High Margin

Battery Anode Test Work

  • Purity of 99.999% far exceeds the 99.95% required for battery anode material, allowing targeting of premium advanced battery markets – up to $22,000/t

Only flake graphite with 99.95% purity can be used in batteries, however, the critical question is: What impurities exist in the remaining 0.05%?

  • At McIntosh, all critical battery impurities were reduced magnitudes lower than advanced lithium-ion battery anode requirements after light purification (Table
HXG ASX Announcement 16 Aug 2017 – Battery Anode Test Work Table
  • No Hydrofluoric Acid required to purify – HF Free
  • Material is easily micronised, spheroinised & milled

HXG ASX Announcement 11 Dec 2018 – Critical Battery Impurities Table

Resource Expansion

*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource as determined by JORC 2012 guidelines.