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For personal use only QUANTUM GRAPHITE MARKET RELEASE For Immediate Release 30 July 2021 Quarterly Activity Report and Appendix 5B for 30 June 2021 Highlights Corporate Sunlands Co. Energy Storage Drilling Program Appointment of Lead Arranger for Bond Offering On 21 May 2021 , the Company announced the appointment of ACT Capital GmbH as Lead Arranger and Placement Agent in connection with the proposed bond offering for the financing of stage 1 of the Uley 2 process plant and related infrastructure . March 2021 Placement During the quarter , the Company completed the formalities relating to the March 2021 A $ 2million share placement at 6.5 cents per share . The Cleansing Prospectus in respect of the placement was released to the market on 27 April 2021. The General Meeting held on 28 May 2021 approved the issue of shares to director related parties that participated in the placement and to Chimaera Capital Markets on achieving the initial milestone under its advisory mandate with the Company in respect of the bond offering . June 2021 Placement In June 2021 , the Company completed a further A $ 965,000 share placement at 9 cents per share , representing more than a 75 % premium to the Company's last traded share price . Included in the June 2021 placement was the issue of shares to the value of A $ 540,000 to key technical consultants in respect of mine engineering , geology and research and development works . QGL and Sunlands Co Manufacturing Joint Venture The Company completed a transformational step in the development of a major downstream business with the announcement of the joint venture between the Company and Sunlands Co. After significant ongoing negotiations extending for more than 18 months , the parties concluded that the joint ownership of the manufacturing of the graphite storage media for the Sunlands Co. technology was preferred to a conventional offtake arrangement . The Company will be the exclusive supplier of flake graphite products to the joint venture . Further , the joint venture will be the exclusive supplier of graphite storage media for Sunlands Co's TES battery cells . Sunlands Co. Commercial Pilot Independently of the Company's joint venture with Sunlands Co , it continues to support the development of Sunlands Co's commercial pilot facility . The Company will provide initial coarse flake media for the pilot facility . During the quarter , the Company announced the next stage of drilling on its mineral tenements . The focus of the Uley 2 drilling is the extensional drilling campaign within the Eastern Conductor . Planning for this drilling has been completed and mobilisation of appropriate equipment and personnel is waiting only on the lifting of COVID - 19 border restrictions . The Company expects mobilisation to occur within the next 2 weeks . ABOUT QUANTUM GRAPHITE LIMITED Page 1 of 11 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 .