Coarse flake downstream JV with YXGC

Evolution Energy Minerals (“Evolution” or the “Company”) (ASX: EV1, FSE: P77) is pleased to announce the execution of a binding term sheet with YXGC with regards to the downstream processing of coarse flake concentrate from the Company’s Chilalo Graphite Project (“Chilalo”), which is located in southeast Tanzania. The Term Sheet, the details of which are in Appendix 1, envisages, subject to positive results and approvals, the establishment of a processing facility for the processing of 25,000tpa of coarse flake concentrate into high-value graphite products including graphite foil, bi-polar plates and seals for electric vehicles. The Company has undertaken a preliminary review of suitable locations, with a focus on Europe and the Middle East.

In May 2022, the Company signed a binding offtake agreement with YXGC to supply 30,000 tonnes per annum of flake graphite concentrate (from +100 mesh up to +32 mesh) for a period of three years from first production at Chilalo. However, in addition to this important offtake relationship, both parties are seeking to establish downstream manufacturing outside China which allows Evolution to capture greater margins in the value chain and provides YXGC with an opportunity for international expansion using their cutting-edge technologies.

This Term Sheet is a critical step in positioning Evolution as a downstream manufacturer of graphite foil and bi-polar plates. Partnering with YXGC, a global leader in the manufacture of expandable graphite and graphite foil, places Evolution in a strong position to capitalise on the opportunity to realise the material value uplift from accessing these markets.

Phil Hoskins, Evolution’s Managing Director, commented: “Evolution’s strategy is grounded in sustainably producing graphite products for the modern economy. YXGC is a global leader in the processing of coarse flake graphite to manufacture high-value products such as graphite foils. Combining Chilalo’s high-quality coarse flake graphite with YXGC’s experience, technology and know-how will enable Evolution to capture additional margins and maximise the value of Chilalo. We look forward to this initiative being the next step change beyond our immediate focus of financing the Chilalo mine development.”

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