Ann: Tanzanian Update on Mahenge Graphite Project, page-5

from MNS, which seems consistent with what both KNL & BKT announced about the export of concentrates provisions:

BKT said:

Graphite is normally traded as a concentrate, and is used for input into many different manufacturing processes. Black Rock Mining will refine Mahenge concentrate to 98% to 99% TGC. This compares to most currently traded concentrates of 94% to 95% TGC. As such we believe we are already compliant with this aspect of the legislation.

MNS confirmed:

The Company has been advised by the Export Processing Zone Authority (EPZA) that the new legislation will not have impact on the subsidiary, Magnis Technologies Tanzania Ltd (“MTT”) which will utilise Magnis’ developed technology in the Special Economic Zone (SEZ) for processing of graphite concentrate to final products. It should be noted that the SEZ was approved by the current government and announced to the ASX on 29 March 2017. The approval to operate within a SEZ allows the Company to apply the advanced technologies it has been developing to produce value enhanced graphite products. SEZ legislation was introduced in Tanzania in 2006 and provides incentives for companies to create value addition and advance employment and development of Tanzania. The SEZ licences are issued by the Minister of Industry and Trade. UTZ will be conducting the mining operations and processing plant operations to produce a basic graphite concentrate which will then be sold to MTT at commercial rates. MTT will then use the technology the Company has developed to produce the final advanced products.

KNL said:

The Company’s Epanko Graphite Project will produce an industrial mineral product of 96% carbon that will be sold as a final product directly to customers in Germany, Japan and South Korea. As graphite is classified as an industrial mineral, it is not a product that is traded on a quotable terminal market, but is manufactured to individual customer specifications and sold under long term bi-lateral sales agreements. As an industrial mineral operation, the majority of the new provisions are not expected to impact the Company as they appear targeted at mining operations for metals, precious metals, metal concentrates and gemstones.