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RENASCOR RESOURCES 30 April 2021 ASX : RNU Significant Events Quarterly Activities Report for the period ended 31 March 2021 Renascor entered into non - binding Memoranda of Understanding ( MOUs ) to supply a total of up to 20,000tpa¹ of Purified Spherical Graphite ( PSG ) from its 100 % -owned Siviour Battery Anode Material Project ( Siviour ) in South Australia to leading Japanese - based global trading company , Hanwa Co. , Ltd. ( Hanwa ) , and Jiangxi Zhengtuo New Energy Technology Co. Ltd. ( Zeto ) , a top ten anode producer globally . О Renascor has now achieved total potential commitments covering in excess of 100 % of current Siviour Stage 1 PSG production capacity of 28,000tpa , after previously executing a MOU for up to 10,000tpa with anode company Shanxi Minguang New Material Technology Co. Ltd ( Minguang New Material ) ² . As a response to PSG demand from Renascor's existing offtake partners and increasing inbound enquiries from major anode manufacturers , Renascor commenced work to investigate a substantial increase to PSG production through an increase to Siviour's Stage 1 PSG production capacity and a subsequent Stage 2 expansion . Renascor achieved first stage product qualification of Siviour PSG with both Zeto and Minguang New Material , with the results enabling the two parties to progress engagement towards binding PSG offtake agreements . Advanced mineral processing trials undertaken by leading independent battery mineral consultancy group Dorfner Anzaplan have confirmed the suitability of Renascor's eco - friendly , hydrofluoric acid - free ( HF - free ) proprietary technology to purify graphite to battery grade , with results of up to 99.98 % total carbon ( TC ) ( versus anode industry standard of 99.95 % TC ) . Letter of in - principle support received from the Clean Energy Finance Corporation ( CEFC ) , an Australian Government backed clean energy technology financier . The CEFC support adds to in- principle financing support received from Export Finance Australia ( EFA ) , and Atradius , the respective export credit agencies of the Australian and Dutch Governments . Renascor received confirmation from the South Australian Government Treasury that Siviour has been classified as a ' New Mine ' for the purposes of State royalty calculations³ . The granting of New Mine status means that the Siviour will incur a reduced royalty rate of 2 % of the net value of the minerals recovered from Siviour through 30 June 2026 , representing a reduction from 3.5 % over the initial years of production4 . On 23 April 2021 , Renascor announced a placement ( Placement ) to raise approximately $ 15 million ( before costs ) led by institutional investors in Australia and overseas . With the proceeds from the Placement , the Siviour Project is now fully funded up to the construction phase , targeted to commence in 2022 . Renascor's cash position as of 31 March 2021 was approximately $ 4.1m . This does not include $ 15 million in proceeds ( before costs ) from the Placement , which are expected to be received in the current quarter . Renascor Resources Limited ABN 90 135 531 341 Head office : 36 North Terrace Kent Town SA 5067 Phone : +61 8 8363 6989 Email : info@renascor.com.au www.renascor.com.au 1