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BLACK ROCK MINING LIMITED ASX ANNOUNCEMENT 25 January 2021 DECEMBER 2020 QUARTERLY ACTIVITIES REPORT HIGHLIGHTS • POSCO Strategic Alliance & Development Relationship advanced : ○ POSCO successfully completed due diligence activities ○ Mahenge Graphite meets POSCO's battery grade anode specification о POSCO agrees to invest US $ 7.5m to acquire a 15 % stake in Black Rock • Discussions ongoing with Government of Tanzania on Free Carry Interest Agreement • Capital raising completed for AU $ 2m Tanzanian graphite developer Black Rock Mining Limited ( BKT : ASX ) ( Black Rock or the Company ) is pleased to provide an update on activities at its Mahenge Graphite Mine in Tanzania for the period ending 31 December 2020 . POSCO Strategic Alliance & Development Relationship POSCO Confirms Binding Investment Agreement Investing US $ 7.5m to Acquire 15 % of Black Rock The Company announced on 17 December 2020 that , subject to a final internal POSCO Group of Korea ( POSCO ) approval process , it had agreed an Investment Term Sheet ( Term Sheet ) with POSCO for the placement of US $ 7.5m worth of shares in Black Rock to acquire an equity interest of 15 % . The agreement allows for the issue of a total of 126,020,001 shares at an issue price of A $ 0.082 per share . This represents a 23 % premium to the 30 - day VWAP and a 15 % premium to the 15- day VWAP prior to the agreed share price standstill date of 20 November 2020 ( refer ASX announcement 23 November 2020 ) . Subject to POSCO maintaining a minimum of 10 % equity interest in Black Rock , POSCO has the right to nominate a non - executive director to the board of Black Rock . After execution of the Term Sheet , the agreement was tabled and presented to a final internal approval - gate process within POSCO , and on 18 January 2021 , Black Rock announced that POSCO had completed its final internal approval sign off , with both parties now working to finalise the remaining conditions precedents , being Australian Government Foreign Investment Review Board approval , and Tanzanian Government Fair Competition Commission approval , both of which are expected to be procedural and routine . In parallel to finalising POSCO's US $ 7.5m equity investment , and as part of the Strategic Alliance to develop the Mahenge Graphite Mine , Black Rock and POSCO are advancing the following agreements : ( i ) Offtake & Prepayment Agreement ; ( ii ) Subscription Agreement to the equity investment ; and ( iii ) Umbrella & Shareholder Rights Deed . The Offtake & Prepayment Agreement contemplates POSCO to acquire between 20,000 to 40,000 tonnes per annum of minus 195 flake graphite for the life of mine production from Module 1 of the plant to be constructed at Mahenge . POSCO has indicated a preparedness to provide between US $ 10 million and US $ 20 million as a prepayment facility , with the facility to be used as development funding for the Mahenge Graphite Mine . The parties aim to execute an agreement by 31 March 2021 . Black Rock Mining Ltd ACN 094 551 336 ASX : BKT Australian Office 45 Ventnor Avenue West Perth , WA 6005 Ph : +61 8 9389 4415 E : info@blackrockmining.com.au www.blackrockmining.com.au Tanzanian Office Mahenge Resources Ltd Msasani Towers Second floor Wing B Dar es Salaam Ph +255 719 382 631 Directors Richard Crookes - Chairman John de Vries - Managing Director & CEO Gabriel Chiappini - Non - Executive Director / Company Secretary Ian Murray - Non - Executive Director