AngloGold Ashanti US$9.0m (A$13.5m) Gold Farm-in Agreement

EQS-News: EcoGraf Limited / Key word(s): Agreement
AngloGold Ashanti US$9.0m (A$13.5m) Gold Farm-in Agreement

23.05.2024 / 17:45 CET/CEST
The issuer is solely responsible for the content of this announcement.

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5-Year Gold Exploration Farm-In on Innogy's Golden Eagle Project

EcoGraf Limited (EcoGraf or the Company) (ASX: EGR; FSE: FMK; OTCQB: ECGFF)
is pleased to announce that it has signed a binding agreement with AngloGold
Ashanti Holdings plc (AngloGold), a subsidiary of AngloGold Ashanti Plc
(NYSE: AU; JSE: ANG) to enter into a US$9.0m (A$13.5m) 5-year farm-in
agreement for the exploration of gold at EcoGraf's wholly owned subsidiary
Innogy Limited's (Innogy) Golden Eagle gold project (the Golden Eagle
Project) in the Lake Victoria Goldfields of Tanzania (Farm-in Agreement).

AngloGold is one of the world's largest gold miners and owner of Tanzania's
largest gold mine, the 9.9Moz Geita gold mine.1

Key highlights of the project:

  * The Golden Eagle Project has been the subject of detailed technical and
    corporate due diligence by AngloGold, commencing in May last year. The
    Golden Eagle Project is located in the Singida and Manyara regions of
    Tanzania and is a high-quality gold asset that has significant potential
    to discover world class multi-million-ounce gold deposits.

  * The project is located on the eastern margin of the world class +70 Moz
    gold Archean Lake Victoria Goldfields2 in the same structural corridor
    as the historical 3.4 Moz Golden Pride 2 gold mine which was operated by
    Resolute Mining Limited.

  * The project covers the direct interpreted northeast continuation of the
    Banded Iron Formation (BIF) that hosts the high-grade Winston gold
    deposit, which has returned drill intercepts of 16m @ 55.23g/t gold from
    116m2.

  * Geologically, the area is characterised by very favourable Archean
    greenstone belts, set within a granitic complex.

  * Gold in the area is predominantly hosted within veined shear zones
    within the BIF units within the greenstone belts.

  * Several highly prospective untested gold prospects and shear zones and
    faults crosscut the BIF units of the Golden Eagle Project.

  * Previous exploration efforts involved significant prospect generation
    activities within the Golden Eagle Project licences, providing a
    significant number of gold targets and exploration upside.

  * The Golden Eagle Project comprises two pending Prospecting Licences,
    which total 578 km2.

EcoGraf Managing Director, Andrew Spinks, commented: "The Golden Eagle
farm-in agreement with AngloGold Ashanti, the fourth largest gold miner in
the world, demonstrates the strong technical quality of the Innogy assets
and is a further vote of confidence in the mining industry of Tanzania. We
look forward to AngloGold's expertise in gold exploration being applied to
Golden Eagle, as it hunts for another Tier-1 gold deposit to complement its
existing Geita operation in Tanzania."

"This agreement is a great result from our technical team, providing a
pathway to realise value for our shareholders from EcoGraf's non-core
mineral assets. It provides upside exposure to the rising gold price for our
shareholders, while the Company focusses on the development of its battery
anode materials business for the lithium-ion battery market."


Image link:
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=download2_file&code_str=6c03fae10652d3da4ab8f7e04241f0b4
Image title: Figure 1: Golden Eagle Projects - Regional Magnetics and
Interpreted Structures 3

Figure 1: Golden Eagle Projects - Regional Magnetics and Interpreted
Structures 3


Image link:
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=download2_file&code_str=5f2525657ac228364c6c5925eab45c96
Image title: Figure 2: AngloGold and EcoGraf's Major Tanzanian Projects and
Operations 1, 4


The material terms of the Farm-in Agreement are:

  * AngloGold to make a US$100k payment to Innogy on Commencement Date,
    being once the Golden Eagle Project Prospecting Licences are granted by
    the Tanzanian Mining Commission.

  * AngloGold has the right to earn 70% of the Golden Eagle Project
    Prospecting Licences by spending US$8.9m (approx. A$13.4m) over five
    years on the licences, with EcoGraf retaining 30%.

  * AngloGold may withdraw from the Farm-in Agreement after minimum
    expenditure of US$0.9m, being the expenditure requirement for the first
    two years after the Commencement Date. If this occurs, AngloGold will
    return all data and samples generated during the farm-in period to
    EcoGraf.

  * After AngloGold earns a 70% interest, EcoGraf has the option to
    contribute to maintain its 30% or dilute to a gross revenue royalty on
    AngloGold taking the Golden Eagle Project through to production.

The Golden Eagle Project forms part of AngloGold's new exploration portfolio
in Tanzania as it restarts exploration in the country. AngloGold has
established a dedicated Tanzanian exploration office in Dodoma5.

Aside from the Golden Eagle Project, EcoGraf through Innogy holds the
Northern, Southern and Western Frontier Projects. In addition to nickel and
lithium prospectivity, the Frontier Projects hold significant potential for
Proterozoic gold mineralisation.

Tanzania is Africa's third largest gold producer6, largely from the +70 Moz
gold Lake Victoria Goldfield of the Archean Tanzanian Craton, which was
discovered in 1906.7

EcoGraf holds further gold, nickel and lithium exploration assets in
Tanzania and is engaging with corporate groups that have expressed an
interest in these assets.

References:

Note 1: Refer www.anglogoldashanti.com/portfolio/africa/geita

Note 2: Refer Tanga Resources Limited ASX announcement 17 July 2017

Note 3: Refer ASX Announcement 23 March 2023

Note 4: Refer ASX Announcement 11 March 2024

Note 5: Refer
www.thecitizen.co.tz/tanzania/news/business/anglogold-ashanti-exploration-firm-commences-operations-in-tanzania-4491530

Note 6: Refer www.trxgold.com/buckreef/buckreef-overview

Note 7: Refer
elements.visualcapitalist.com/the-history-of-the-lake-victoria-goldfield/

This announcement is authorised for release by Andrew Spinks, Managing
Director.

For further information, please contact:

INVESTORS

Andrew Spinks

Managing Director

T: +61 8 6424 9002

Competent Person Statement

The information in this report that relates to EcoGraf Exploration Results
and Mineral Resource is based on, and fairly reflects, information compiled
by Mr David Drabble, a Competent Person, who is an employee of EcoGraf
Limited and a Member of the Australian Institute of Geoscientists (#307348).
Mr Drabble has sufficient experience relevant to the style of mineralisation
and type of deposit under consideration as well as to the activity that is
being undertaken to qualify as Competent Person as defined in the 2012
Edition of the Australasian Code for the Reporting of Exploration Results,
Mineral Resources, and Ore Reserves (JORC Code). The Company confirms that
it is not aware of any new information or data that materially affects the
information included in the relevant market announcement and the assumptions
.

About AngloGold Ashanti

AngloGold Ashanti PLC is an independent, global gold mining company with a
diverse, high-quality portfolio of operations, projects and exploration
activities across ten countries on four continents.

While gold is AngloGold Ashanti's principal product, the Company also
produces silver (Argentina) and sulphuric acid (Brazil) as by-products and
will pursue value-creating opportunities in other minerals where it can
leverage the Company's existing assets, skills and experience to enhance
value creation. Website www.anglogoldashanti.com

About EcoGraf

EcoGraf is building a vertically integrated battery anode materials business
to produce high purity graphite products for the lithium-ion battery and
advanced manufacturing markets. Over US$30 million has been invested to date
to create a highly attractive graphite mining and mineral processing
business.

In Tanzania, the Company is developing the TanzGraphite natural flake
graphite business, commencing with the Epanko Graphite Project, to provide a
long-term, scalable supply of feedstock for EcoGraf(TM) battery anode material
processing facilities, together with high quality large flake graphite
products for specialised industrial applications.

Using its environmentally superior EcoGraf HFfree(TM) purification technology,
the Company will upgrade the flake graphite to produce 99.95%C high
performance battery anode material to supply electric vehicle, battery and
anode manufacturers in Asia, Europe and North America as the world
transitions to clean, renewable energy.

Battery recycling is critical to improving supply chain sustainability and
the Company's successful application of the EcoGraf(TM) purification process to
recycle battery anode material provides it with a unique ability to support
customers to reduce CO2 emissions and lower battery costs.

Follow EcoGraf on LinkedIn, Twitter, Facebook and YouTube or sign up to the
Company's mailing list for the latest announcements, media releases and
market news.


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1910125 23.05.2024 CET/CEST