Syrah Resources Limited

Syrah Resources Limited Corporate Presentation May 2014 Image: Core from Ativa Zone being logged at Balama

1 Executive Summary Exceptional world class graphite and vanadium asset - LARGEST resource globally - Exceptional HIGH GRADE zones - OUTCROPPING deposit (low strip ratio) - Excellent infrastructure (deep water port, dam, grid power, all weather roads) - Expected to be the LOWEST COST producer worldwide - Simple metallurgy Remarkable project economics (based on scoping study) due to excellent infrastructure and ore characteristics - US$92mn capex (graphite only) - Mine gate cost of US$102/t - Total FOB costs of US$198/t to the port of Pemba. Syrah s unique project characteristics (i.e., size, cost, grade) enables it to target multiple markets and be a global leader in the graphite/carbon market. Few mines have the ability to be competitive across multiple segments like Syrah - Traditional graphite markets (refractories, metallurgy, lubricants) - New graphite markets (lithium ion battery markets Electric / Hybrid, fuel cells, expandable graphite) - Substitution into carbon markets (aluminium anode and cathode blocks / recarburiser) Vanadium production study substantially progressed - 98.5% V205 for steel industry - 99.9% V205 for redox flow batteries (grid storage application)

2 Overview Australian Stock Exchange listed Head office based in Melbourne Market capitalisation (undiluted) of A$596 million at A$3.67 per share as at 16 May 2014 162,485,614 shares on issue 3,859,467 options on issue ~$32m cash on hand as at 31 March 2014 Directors direct and indirect interests total 29% of current shares on issue Syrah Price and Volume last 2 years High: $3.99 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 January 2012 July 2012 January 2013 July 2013 January 2014 Daily Volume Daily Closing Share Price $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00

3 Board of Directors and Management Team Tom Eadie Non-Executive Chairman Paul Kehoe Managing Director Tolga Kumova Executive Director Rhett Brans Non- Executive Director Michael Chan General Manager, Balama Project Development Twenty years experience within the junior resources sector and at technical to senior executive levels with major mining companies He is a past board member of Royalco Resources Ltd, the Australasian Institute of Mining and Metallurgy (AUSIMM) and the Australian Mineral Industry Research Association (AMIRA) Currently also the Executive Chairman of Copper Strike Accountant and geologist with extensive corporate finance and restructuring experience through previous senior management roles with PricewaterhouseCoopers and Grant Thornton Worked with a group of ASX listed resource companies, performing company secretarial functions, business development and geology roles 15 years experience in stockbroking, corporate finance and corporate restructuring Specialised in initial Public Offerings and capital requirements of mining focused companies Operated a consultancy providing project management services to the mining Industry for the past 20 years. More than 35 years experience in the design and construction of mineral processing facilities Extensive African experience (Perseus Mining and Tiger Resources) 35 years industry experience in senior operations, project development and commercial roles 10 years of extensive rare earth project experience including complex metallurgical flow sheet development. Previous roles include General Manager of Project Development at Kimberly Rare Earths, Procurement/Supply Chain Manager at Arafura Resources Ltd and Commercial Manager for Lynas Corporation Ltd s Malaysian Operations

4 Project Locations Democratic Republic of the Congo Angola Lunga Zambia Rwanda Burundi Sasare Uganda Tanzania Shikula Malawi Kenya Tanzania HM Nachingwea Balama Excellent all-weather roads, dam and power enabling strong project economics Container export through Port of Pemba Additional ports currently being planned for construction in Pemba Zimbabwe Namibia Ngamiland Mozambique Madagascar Botswana Lesotho Swaziland South Africa

5 The Project

6 Balama is the world s largest deposit of high grade graphite Balama is an exceptional resource - 1.15Bt of graphite resource at 10.2% TGC [1] and 0.23% V 2 O 5-117Mt of contained graphite and V 2 O 5 - Larger resource than the rest of the world s reserves combined [2] - Large high grade areas (>15% TGC) to be mined first Balama also has one of the largest deposits of vanadium globally - 2.7Mt of resource - Approximately 6 times the size of South Africa s Rhovan deposit, the world s largest operating vanadium deposit (1) TGC = Total Graphitic Carbon. (2) Calculated by USGS (Source: Mineral Commodities Summaries 2012 USGS).

Contained Graphite in Resources (Mt) 7 Comparison of flake graphite deposits globally 80 Syrah High Grade Total 70 60 50 40 Syrah East Syrah West 30 20 10 - (10) Graphite One Mason Graphite Energiser/Malagasy Northern Graphite Triton Kibaran Focus Stratmin Lamboo Castle Archer Lincoln 0% 5% Valence Industries 10% Flinders 15% 20% 25% % Head Grade (TGC) 1. Note that Syrah Resources uses a cutoff grade of 13% TGC in determining its resources versus cutoff grades of 2%-8% TGC used by other companies 2. Excludes deposits in China as no public data is available 3. Only includes deposits with a substantial flake graphite content

8 Overview of Balama Resource: Multiple zones and grades available for different end markets Global Inferred Resource 1.15 billion tonnes at 10.2% TGC and 0.23% V 2 O 5 (Inferred) Ativa Zone 51 million tonnes @ 19.9% TGC and 0.38% V 2 O 5 (Measured, Indicated and Inferred) Mepiche Zone 214 million tonnes @ 16.0 % TGC and 0.43% V 2 O 5 (Measured, Indicated and Inferred) Mualia Zone 117 million tonnes @ 17.7% TGC and 0.46% V 2 O 5 (Inferred) Mt Nassilala Continuous Graphite Exposure 8

9 Flake size distribution Metallurgical testwork on Balama East flake graphite shows that 58.3% of the processed material is coarse to very coarse (80+ mesh and above) Spherical Graphite The spherical graphite was produced from fine grained Balama graphite (100 μm) resulting in a finer grained sphere which is ideal for lithium ion battery use Consumer battery producers utilise graphite with 90% distribution at <10 μm) The spherical graphite produced by Syrah consisted of the following distributions and specifications: 90% Distribution <6.63μm 50% Distribution <4.69μm 10% Distribution <2.73μm Feed Size 100 μm D90: 6.63 μm D50: 4.69 μm Specific surface area: 1.47sqm/cc Spherical graphite yield: 50% Flake graphite feed size 100 μm

10 Syrah is expected to be the lowest cost producer in the world [1] Economic Assessment Results (from Snowden Mining Study) has confirmed: Low capital cost of US$92 million (graphite only) Mine gate cost of US$102/t Total FOB costs of US$198/t to the port of Pemba. The projected operating costs are bottom of the cost curve for graphite production Drivers of low cost: Open pit mining (no drill and blast) with negligible strip ratio Favorable infrastructure is assisting strong project economics water, roads, power, port High grade ore and simple metallurgy Affordable labour [1] Based on scoping study prepared by Snowden Mining Industry Consultants in June 2013

11 Simple graphite metallurgy given quality of resource Metallurgical test work has been conducted on Balama graphitic material by two international laboratories Uncomplicated graphite metallurgy via flotation achieved high grade concentrate (96-98% TGC) and high recovery (92%) Low levels of ash, volatile, moisture and sulphur Flowsheet optimisation currently being completed by pilot plant testwork WHIMS: Wet High Intensity Magnetic Separator

12 Balama Vanadium - highlights Scoping Study on vanadium completed May 2014 The market size is currently 140,000t/year V 2 O 5, due to rise 50% by 2017 [1] Syrah plans to produce 5,000-10,000t/year based on Scoping Study 98.5% vanadium pentoxide sells for between US$12.5 - US$15 per kilo 99.9% vanadium pentoxide can sell for approximately US$50 per kilo 46 tonnes of 99.9% V 2 O 5 is required per 1 MW. Energy storage market is forecast to be upwards of 300GW over the next 20 years [2] Balama 98.5% vanadium pentoxide concentrate from stage 2 processing [1] Reference: TPP Squared Inc [2] Reference: Projections of the future costs electricity generation technologies CSIRO 2011

13 Metallurgy Vanadium Initial test work indicates that high grade concentrate can be produced by simple magnetic separation and flotation with high recovery achieved Preliminary V 2 O 5 hydrometallurgical test work indicates mature technology (soda bake and alkaline leach process) is amenable to processing of Balama V 2 O 5 concentrate Leaching efficiency in excess of 85% and Ammonium Meta Vanadate (AMV) precipitation of >97% is achievable Potential to sell a concentrate or further refine to vanadium pentoxide flake

14 Key Infrastructure Part 1 PEMBA PORT Located within close proximity of deep water port facilities at Pemba (~240km) Third largest port in Mozambique Deepwater container port Available capacity for initial volumes proposed to be shipped by Syrah ROAD Main road connects Project to Pemba Port Sealed, well maintained road to Monte Puez (~200km) Remaining 35km currently unsealed with construction underway to seal remaining distance by end of CY2014

15 Key Infrastructure Part 2 WATER Large regional dam, Chipembe, located only 12km from the Balamba processing plant Dam underutilised (local agriculture only) Capacity required by Syrah have been contracted and allocated POWER Region currently being connected to the National Power Grid Power lines currently being installed between Balama town and Monte Puez Hydroelectricity = very competitive energy costs 4.7c per KW peak rate for residential

16 Chalieco Memorandum of Understanding MOU for offtake for 80,000-100,000 tonnes of graphite per annum and a quantity of vanadium to be determined, signed with Chalieco, a member of the Chinalco Group Parties to negotiate a legally binding offtake agreement within three months Chalieco intends to use the graphite mainly as a substitute for petroleum coke, anthracite and other forms of carbon used to manufacture aluminium cathode and anode blocks Aluminium anode block Aluminium cathode blocks

17 Asmet Memorandum of Understanding MOU for offtake for 100,000 150,000 tonnes of graphite per annum at a price of approximately US$1,000 per tonne over an initial 5 year period, signed with Asmet (UK) Limited, a European trader of metallurgical consumables (including carbon) to the iron, steel and aluminium industries Graphite intended to be used by Asmet as a recarburiser in mainly foundry applications and high quality steel production Syrah will provide Asmet with two to three tonnes of sample graphite products for testing Subject to successful completion of this testwork, Syrah and Asmet will be required to negotiate, in good faith, a formal offtake agreement for the sale of graphite Recarburiser pellet made from Balama graphite Engine block made from gray iron which uses graphite as a carbon alloy

18 Community Development Significant investment has been made in local infrastructure Water bores drilled for use in neighbouring villages and Infrastructure programs commenced at Balama hospital Strong supporter of local economies Large employer of local labour and developing training programmes to develop a local workforce Balama operations will invest in local agricultural development for food supplies Strong focus on improving local community health and education

19 Timeline to Production Q2 CY14 Q3 CY14 Q4 CY14 Q1 CY15 Q2 CY15 Q3 CY15 Q4 CY15 Q1 CY16 Vanadium Scoping Study Environmental Approval Bankable Feasibility Study In just 5 years, Syrah Resources will have progressed from a grass roots explorer to a leading graphite producer Debt Financing Construction Commissioning Full Production

20 Investor Education

21 Syrah has the ability to serve multiple segments of the market as a result of size and low cost Traditional Graphite Market Natural Flake Batteries/new applications Price Volume Market Size US$700-3000/t US$3500+/t 1Mt 80Kt US$1 billion US$320 million Low Cost Substitution/Alternative Markets Synthetic Graphite Electrodes Carbon Blocks Up to US$15,000/t 1Mt US$12 billion Largest Resource Carbon Market Petroleum Coke Calcined Pet Coke Other < US$1,000/t 30Mt 7Mt 13Mt US$24 billion Addressable Market Potential to capture multiple market segments

22 Traditional Natural Graphite Market Overview Natural Graphite Market by Region, 2011 Natural Graphite Market by Sector/Application, 2011 13% 3% 5% 9% 2% Batteries 8% Others 7% Refractories, Foundries, Crucible 37% Lubricants 8% Parts and Components 11% 68% Brazil Canada China India North Korea Other Source : Industrial Minerals New Markets Li-Ion Batteries Fuel Cells Pebble Bed Nuclear Reactors Graphene Metallurgy 29% Source : USGS and Industrial Metals Magazine

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E For personal use only 23 Demand Forecasts Global Graphite Demand (k tonnes) 1,300 1,200 1,100 Estimations for Graphite Market Average 3.3% per year growth by 2016 Average 8.8% per year growth for Batteries Additional 1.4 million tonnes demand by 2020 3,000,000 1,000 900 800 2,500,000 2.5Mtpa+ from additional battery demand 700 600 2,000,000 500 400 300 1,500,000 Up to 1.5Mtpa 200 1,000,000 100 0 500,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Growth with Batteries (9%) Growth w/o Batteries (3%) Source : USGS and Industrial Metals Magazine Source : USGS and Industrial Metals Magazine

24 Pricing Forecasts (Industrial Minerals)

25 Spherical Graphite Battery Anode High quality spherical graphite was produced from Balama flake graphite Spherical graphite was produced from fine grained Balama graphite (100 microns) resulting in finer grained sphere which is most ideal for lithium ion battery applications Consumer electronic batteries require sub 10 micron due to higher surface area and energy density requirements Historically automotive batteries have used 15-20 micron material due to cost Significant interest for Balama spherical graphite has been shown by Asian based battery groups Spherical graphite pilot plant has been constructed and samples will be sent to all major battery producers in the coming months

26 Alternative Markets Synthetic Graphite Market US$12 billion market Carbon Market US$24 billion market Annual Consumption (Mt) 7Mt 43% 38% Synthetic Carbon Synthetic Graphite Others 13Mt Calcined Petroleum Coke Anodes for Aluminium Synthetic Graphite Blocks 50Mt Others (GPC etc) 8% 11% Synthetic Graphite Electrode

27 Anode Blocks for Aluminum Green petroleum coke is used in anode blocks after calcinations by aluminium smelters Used in reduction process of Al 2 O 3 to aluminium metal (Al) Low sulfur and high carbon material is required High quality raw material is scarce in the market Supply deficit of high quality material 560 kg of anodes consumed per ton of aluminium produced 450 kg of green coke or 360 kg of calcined petroleum coke required for one tonne of aluminium production Over 13 million tonnes per year of anodes required for aluminium production Over eight million tonnes per year of calcined petroleum coke is required

28 Recarburiser Carbon Raiser Calcined petroleum coke is the main source Main use is as a carbon additive in iron and steel production mainly in electrical arc furnaces Low sulfur, high carbon material is required Graphite is the best material for this application as it is pure carbon and soluble in molten metal Supply deficit of high quality material Recarburiser requirements vary by raw material and final product 30 40 kg is required per ton of iron by scrap metal 3 30 kg is required per ton of pig iron 1 2.5 kg is required per ton of steel Over seven million tonnes of calcined petroleum coke is traded per year The total value of this trade is over US$3 billion per year

29 Graphite Electrodes Used in electrical arc furnaces for steel and iron production Special grade petroleum coke called Needle Petroleum Coke is used High carbon grade and very low sulfur material is required with crystalline structure (after graphitising) Required 1,000 degrees C baking and 3,000 degrees C of graphitisation process = very high energy consumption 2.5 kg of electrode is consumed for production of 1 mt of steel 1.5 million tonnes of consumption of electrodes per year Over US$3.5 billion market trade value Using natural graphite could create a huge cost saving as it could enable skipping the graphitisation process

30 Expandable Graphite +50 mesh, 98% C minimum, flake graphite required for expandable graphite production Mainly used in graphite foils, flame retardants and insulation material Increasing use in technology product (in tablets and mobile phones) as a heat transfer agent 40,000 produced in 2012 Sells for between US$3,000 US$5,000 per tonne Balama graphite confirmed to be expandable

31 Electrical Graphite Uses include carbon brushes and lamp carbon Very high grade, very low impurity synthetic graphite is used Crystalline structure is very important for electrical application and natural flake graphite has the perfect crystalline structure Over two million tonnes per year market trade volume Over US$3 billion per year trade value

32 Other Potential Future Markets Fuel Cells Toyota intending to commence production of hydrogen fuel cell car by 2015 Honda, Hyundai and Renault intend to commercialise hydrogen fuel cell cars About 80 kg of graphite in each fuel cell car Nuclear Reactors Large users of graphite 65 new reactors being constructed with a further 167 planned Graphene It is the thinnest material known and yet also one of the strongest It conducts electricity as efficiently as copper and outperforms all other materials as a conductor of heat It is almost completely transparent, yet so dense that even the smallest atom hydrogen cannot pass through it

33 Vanadium Consumption 2012 (85,000 tonnes) Chemicals 3.0% Super Alloys/Titanium Alloys 3.0% Energy Storage Cast Iron 1.0% 2.0% Other [PERCENTAGE] Special Steel 30.0% HSLA Steel 60.0% Source: Merchant Research and Consulting.

34 Vanadium Production Global Vanadium Production in 2012 Other Countries 3.2% Russia 25.4% China 36.5% South Africa 34.9% Source: Merchant Research and Consulting.

Tonnes Vanadium (Metric) 35 Global Vanadium Supply and Demand Forecast 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Consumption Production Source: Merchant Research and Consulting. Tight vanadium supply/demand balance forecast over the next five years expected to be driven by strengthening steel demand and China moving to grade 3 rebar Potential demand for energy storage could further add to the supply deficit significantly in the coming years

36 Vanadium Redox Battery (VRB) Potential large driver of vanadium demand for grid storage applications VRBs can better match electricity supply and demand in real time Increases grid efficiency and potentially reduces the number of power plants required VRBs could capture ~17% of the energy grid storage market by 2017 [1] ~46 tonnes of V 2 O 5 is required for 1 MW capacity using VRBS for grid storage [2] Global market for energy storage over the next 10 years could be upwards of 300 GW and US$200-US$600 billion in value [3] Sumitomo Electric Industries is currently working with Hokkaido Electric Power to store electricity using VRBs in order to stabilise its grid network VRBs require high purity V 2 O 5 greater than 99.9% purity Vanadium compounds have the ability to take on four oxidation states which makes vanadium very useful for electrical energy storage applications. [1] Reference: Lux Research [2] Reference: University of Tennessee [3] Reference: Kema Inc.

37 Disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. Certain statements contained in this presentation, including information as to the future financial or operating performance of Syrah Resources Limited (Syrah Resources) and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of estimates and assumptions that, whilst considered reasonable by Syrah Resources, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, Statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital expenditures, ore reserves and mineral resources and anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Syrah Resources disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise. The words believe, expect, anticipate, indicate, contemplate, target, plan, intends, continue, budget, estimate, may, will, schedule and other similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Syrah Resources has prepared this presentation based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in the presentation. To the maximum extent permitted by law, Syrah Resources, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation Materials or its contents or otherwise arising in connection with it.

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