Renascor Resources (RNU) Status Update summary

Project and Market Overview

• Siviour Graphite Project in South Australia is among the world's largest graphite resources, with low operating costs and capital intensity, and is development ready with all major approvals and a strong cash position.

• The strategy is to vertically integrate by refining mined graphite into purified spherical graphite (PSG) for the lithium-ion battery anode sector, targeting ex-China supply chains.

• Demand for graphite is driven by the growth in electric vehicles and lithium-ion batteries, with Western markets seeking alternatives to Chinese-dominated supply chains.

• Chinese dominance in graphite and anode production is unsustainable and not replicable outside China, leading to increased opportunities for ex-China suppliers.

• Recent policy shifts, tariffs, and trade uncertainties are accelerating the need for secure, ex-China graphite supply, benefiting projects like Siviour.

Competitive Advantages and Technology

• Siviour offers a secure, low-cost source of graphite in a stable jurisdiction, with vertical integration reducing logistics and handling costs.

• The project uses an HF-free purification process, employing caustic and sulfuric acid, which is more efficient and environmentally suitable for Western markets.

• A demonstration facility, supported by a government grant and offtake partners, is being built to validate the process at scale and further reduce costs.

• The demonstration plant is on schedule, with commissioning expected by Q3/Q4 2025, aiming to prove efficient, scalable production of PSG.

• Early contractor involvement and long-lead procurement are underway to de-risk and accelerate construction, including grid upgrades and ore collection for demonstration.

Offtake, Financing, and Policy Support

• A AUD 185 million conditional loan facility is secured from the Australian government, with technical due diligence completed.

• Non-binding offtake agreements are in place with major anode manufacturers in Asia, focusing on ex-China supply, including commitments for up to 50,000tpa PSG with POSCO and Mitsubishi Chemicals.

• Australian government policies, including the Critical Minerals Facility and proposed production tax credits, align with global incentives and help level the playing field against Chinese competition.

• The proposed Critical Minerals Reserve could accelerate final investment decisions by reducing offtake risk.

• Near-term value drivers include finalizing offtake agreements, securing financing, and achieving final investment decision for full-scale development.