• Term sheet signed for US$25m term loan and US$5m equity •...

• Term sheet signed for US$25m term loan and US$5m equity • US$25m term loan is for 3 years at an interest rate of 10%pa • RCF to subscribe for US$5m (~AUD$6.7m) in proposed placement • Proceeds will be used for construction of the Montepuez graphite project Battery Minerals Limited (ASX: BAT) is pleased to advise that it has taken another significant step to ensuring its Montepuez graphite project is fully-funded through a US$30m debt and equity package agreed with Resource Capital Funds (RCF).

The debt and equity package is subject (amongst other conditions) to Battery Minerals raising a further minimum ~AUD$28.3m via issue of new equity. Battery Minerals Managing Director David Flanagan said the debt and equity package marked a significant milestone for the Company as it starts the countdown to production and cashflow.

“We are particularly pleased that an investor of the calibre and experience of RCF wished to invest in us and they had confidence in the team, as we strive to be producing graphite concentrate and generating substantial cashflow in less than a year,” Mr. Flanagan said. RCF Term Loan and Equity Subscription Pursuant to the term sheet, subject to the satisfaction of certain conditions precedent:

• Battery Minerals will borrow US$25mil from Resource Capital Fund VII L.P., at an interest rate of 10% per annum. Battery Minerals will pay an Establishment Fee of 2% and, subject to shareholder approval, grant approximately 333mil, five year options exercisable at 10 cents each; and • Resource Capital Fund VII L.P. will subscribe for US$5m worth of Battery Minerals fully paid ordinary shares (Shares) at a price per share equal to the lowest price at which Shares are issued between execution of the RCF term sheet and completion of the RCF equity subscription (being the lowest price at which shares are issued as allowed under the moratorium referred to in Appendix 1), and on equivalent and no less favourable terms and conditions as offered to investors under such issue.