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For personal use only QUANTUM GRAPHITE MARKET RELEASE For Immediate Release 30 April 2021 Quarterly Activity Report and Appendix 5B for 31 March 2021 Highlights Corporate : Requotation of Shares and New Share Issue New Drilling Program Technical & Commercial Sales Engagement with Key Customers Commencement of New Research & Development Workstream Sunlands Collaboration Following the Company's lodgement of its 2021 Interim Financial Statements , it continues to work with the ASX to lift the suspension on quotation of the Company's shares . During the quarter the Company raised approximately $ 2million in capital by way of the placement of new shares to institutional and sophisticated investors . Just over a quarter of this placement is subject to shareholder approval at the General Meeting scheduled for 28 May 2021 . Following continuous delays caused by COVID - 19 in 2020 , funding partner due diligence investigations resumed and largely concluded by the end of the quarter . As announced earlier this week , the Company has approved the next stage of the in - fill drilling to extend the Uley 2 Reserves and Resources . In addition , its significant exploration tenement , EL6224 , will be the subject of further exploration , specifically within one of the other 3 high grade envelopes ( ie . , Salt Lake , Casey and Fishery ) . Despite levels of industrial activity remaining subdued across Europe , the Company has resumed technical sales engagements with key customers . It is now scheduled to ship samples from its existing stockpiles to Europe . The samples +196 , +197 and +595 product . As recently announced , the Company has made application for a grant under the Federal Government's Modern Manufacturing Initiatives ( MMI ) Translation Stream . This R & D program includes testwork aimed at developing the advanced processing and manufacturing pathway for the local production of thermal storage media based on Uley 2 coarse flake . This program has the potential to support a new market that would include the critical component required by The Sunlands Company Pty Ltd ( Sunlands ) for its thermal energy storage ( TES ) cells . Commercial Pilot Program - The development of Sunlands ' commercial pilot facility has progressed further to the appointment of engineering and associated specialist contractors . Sunlands has advised that it is also in the final stages of selecting an appropriate Australian network grid participant as its National Electricity Market partner . Resumption of Testwork Program - The Company has resumed the testwork program that was the subject of COVID - 19 related interruptions in the last quarter of 2020 . Offtake - As announced earlier this week , the proposed offtake arrangement between the Company and Sunlands is the subject of continuing negotiations principally focused on the individual specifications of the multiple coarse flake product mix required by Sunlands . The Company has proposed a solution and expects Sunlands to respond by mid - May 2021 . ABOUT QUANTUM GRAPHITE LIMITED QGL Is the owner of the Uley flake graphite mineral deposits located south - west of Port Lincoln , South Australia . The company's Uley 2 project represents the next stage of development of the century old Uley mine , one of the largest high - grade natural flake deposits in the world . For further information , qgraphite.com .