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Rule 5.5 Quantum Graphite Quarterly Activity Report and Appendix 5B Period Ending 31 December 2020 For Immediate Release 29 January 2021 Highlights Requotation of the Company's shares Sunlands Co. Collaboration - Final Testwork Program Sunlands Co. Collaboration - Commercial Pilot Marketing - Sunlands Co. Offtake The Company expects its shares will be requoted following the lodging of the Company's 2021 half year financial statements . The scheduled commencement of the final Sunlands Co. flake testwork program was again delayed due to the difficulties associated with key technical people travelling to and from the states of Western Australia , New South Wales and Victoria . With the opening of borders , this program is now expected to commence immediately and conclude by the end of March 2021 . The design phase of Sunlands ' commercial pilot facility is now progressing to the appointment of an EPC partner responsible for the construction of the thermal battery and associated electricity generation system . The Company and Sunlands have agreed to finalise offtake arrangements even though the Sunlands ' final testwork program has not been concluded . For personal use only Marketing - Key Customers COVID - 19 Flake Graphite Market Impact The Company continues discussions with key target end user customers however with continued restrictions on overseas travel , the marketing focus has shifted to North Asia , principally Japan and North Korea . European market prices for the Company's medium , large and extra - large flake graphite ( i.e. , > 95 % , > -100 mesh ) did not materially change from the end of the prior quarter . The market continues to be relatively tight and modest increases in demand are likely to push prices higher reflecting limited Chinese supply capability to meet large flake product needs . In contrast , the market for electric vehicle feedstock , i.e. , fine natural flake graphite ( 94 % , -100 mesh ) is unchanged with significant supply available to meet market expansion . ASX Listing Rules Appendix 5B ( 01/12/19 ) + See chapter 19 of the ASX Listing Rules for defined terms . FFF Page 1 of 10