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QUANTUM GRAPHITE MARKET RELEASE For Immediate Release 14 October 2021 Quarterly Activity Report and Appendix 5B for 30 September 2021 Highlights Corporate Drilling Program Preparing for resumption of trading With the near completion of the Eastern Conductor drilling program , the Company is preparing for the resumption of trading in its securities . Eastern Conductor - Uley 2 extensional drilling The Eastern Conductor drilling program , representing the extensional drilling campaign immediately to the east of the proposed Uley 2 pit , is concluding . The first set of results are expected to be announced within the next 10 days . The announcement of 13 September 2021 included the following visual results of significant graphitic intersections from drillhole MD704 : For personal use only Sunlands Co. Joint Venture Research & Development ■ 51.8m to 53.1m graphitic gneiss / schist estimated as + 20 % TGC ■ 57.0m to 58.2m graphitic gneiss / schist estimated as + 10-20 % TGC . 62.8m to 70.5m graphitic gneiss / schist estimated as + 20 % TGC Graphitic gneiss / schist 2 cm Drill hole MD704 Estimated + 15 % TGC TRAY 17 Negotiation of Operating Agreement Following agreement on the equity and commercial elements of the joint venture , the parties focused efforts on the negotiation of the joint venture operating agreement . This agreement will detail the Board and management structure and govern all aspects of day - to - day activities . The parties expect to conclude this agreement by the end of 2021 . High temperature research The Company continues its research and development on the upgrading of Uley 2 coarse flake beyond the existing 98 % purity level . The next stage of this work involves a high temperature testwork program which will also assist the Company advance the work being undertaking with Sunlands Co. for the manufacturing pathway of the thermal storage media for Sunlands Co.'s thermal energy storage cells . Page 1 of 10