EcoGraf Limited Epanko Value Engineering Identifies 20% Production Increase

Lower Unit Operating Costs Support Customer Demand for Graphite

EcoGraf Limited (“EcoGraf” or “the Company”) (ASX: EGR; FSE: FMK) is pleased to announce that the completion of a Value Engineering Review for the Epanko Graphite Project (“Project”) which targeted process plant efficiencies and has identified an increase potential in Stage 1 nameplate production capacity of 20% to 87,600 tonnes per annum (“tpa”) and which would support the development of a single 25,000tpa purification facility.

Key Points:

Value Engineering Review identifies a potential 20% increase in Epanko Stage 1 nameplate production capacity[1]

C1 operating costs estimated to reduce by 5.8% to approximately US$512/t for the first 10 years, compared with the February 2026 Bankable Feasibility Study (“Updated BFS”)

The Stage 1 Updated BFS for 73,000tpa¹ remains the basis for project development and debt financing, with potential increase to 87,600tpa to be finalised following Final Investment Decision (“FID”)

20% production increase potential is assessed as capable of delivery with no material design changes to BFS nameplate layout and US$12.0 million increase in initial capital (preliminary estimate when compared to the Updated BFS)

Engineering studies on the expansion case will be progressed to Bankable Feasibility Study (“BFS”) level, assisted by the European Investment Bank (“EIB”) Technical Assistance grant of up to €2 million (A$3.2 million) for independent technical, E&S and market studies²

 Opportunity for increase production capacity would support the initial development of a single 25,000tpa HFfree Battery Anode Material (“BAM”) facility³, supporting the Company’s expanding development initiatives in Europe, Asia and the U.S.

Positive progress on strategic equity and offtake discussions, supported by industry interest in EcoGraf’s HFfree® purification technology and downstream battery materials strategy, following the Mitsubishi Chemical agreement for up to 10,000tpa of purified spherical graphite (“SpG”)⁴

The value engineering has identified a potential opportunity to increase Epanko Stage 1 production by 20%, while reducing unit operating costs and preserving the Project’s high-quality flake distribution and high carbon grades. The 73,000tpa Updated BFS remains the Company’s base development and debt financing case.

This work is being undertaken alongside the debt financing process and the ongoing engagement with midstream and downstream partners, as the Company continues to advance Epanko and EcoGraf’s vertically integrated battery anode materials business.

Value Engineering Review

The Value Engineering review assessed a range of throughput expansion scenarios for the Epanko processing plant and indicated the potential to increase Stage 1 throughput by 20% through targeted upgrades and optimisation initiatives. The review was undertaken by the Company’s consultant, METC-PaulSam JV.

The review found that much of the existing plant design, including major crushing, grinding and flotation circuits, can accommodate higher throughput with limited modification, reflecting conservative design assumptions adopted during the BFS and Front End Engineering Design stages.

Key improvements identified include selective additions to flotation capacity, minor classification and screening upgrades, and potential optimisation of concentrate filtration and drying circuits. Approximately 44% of major equipment would require modification to support the increased throughput, with most upgrades assessed as modular and low complexity.

The estimated incremental capital cost is approximately US$12.0 million (AACE Class 4 estimate)[2] including US$5.5 million for the processing plant and US$6.5 million for the tailings storage facility (“TSF”) and is within the existing contingency allowance of the Updated BFS (being US$22 million).

This outcome reflects the benefit of the original plant design approach, which incorporated conservative scale-up factors and equipment sizing, particularly within the flotation circuits. At higher throughput rates, these design margins are partially utilised while remaining within accepted metallurgical operating ranges. All other material assumptions outlined in the Updated BFS relating to infrastructure, regulatory and environment, product specification, sales and marketing remain unchanged. 

Updated Mining and Processing Schedules

Indicative updated mining and processing schedules have been completed based on the potential 20% increase in processing plant throughput assessed in the Value Engineering review. The schedules used the existing mine design and current Ore Reserve (as outlined in the Updated BFS), which remains unchanged at 16.7Mt at 8.2% TGC. The Ore Reserve is based on Measured and Indicated Mineral Resources only. No Inferred Mineral Resources have been included in the Ore Reserve. The Ore Reserves underpinning the Value Engineering Review have been derived from Mineral Resources comprising approximately 43% Measured Resources and 57% Indicated Resources, in line with the Updated BFS.

Table 1: Ore Reserve Statement for the Epanko Deposit

Notes for Table 1: Cut-off grade applied Eastern Zone is 5% TGC; Cut-off grade applied Western Zone is 6.25% TGC. For LG processed in Yr 20 -22, Eastern Zone cut-off grade is 3.5%TGC and Western Zone cut-off grade is 4% TGC. Tonnage figures contained within Table 1 have been rounded to nearest 100,000. % TGC grades are rounded to 1 decimal figure. Abbreviations used: Mt = 1,000,000 tonnes, Kt = 1,000 tonnes.  Rounding errors may occur in tables.  The Ore Reserve estimate in Table 1 is extracted from the Company’s ASX announcement dated 25 February 2026 titled “Updated Epanko Bankable Feasibility Study” and has not been updated, and is not required to be updated, as a result of the Value Engineering Review.

Figure 1: Concentrate production for 73ktpa Updated BFS vs potential +20% increase in production

Figure 1 shows a comparison of the potential 20% increase in production versus the original 73ktpa Updated BFS for the first 10 years of production. The potential 20% increase in processing throughput rate would result in a revised life of mine (“LOM”) plan of 20 years (down from 22 years as disclosed in the Updated BFS).

The revised life of mine plan remains derived solely from the Epanko Ore Reserves as disclosed in the Updated BFS. The plan does not rely on any Measured, Indicated or Inferred Mineral Resources that are not classified as Ore Reserves, nor on any exploration target.

The Company has not yet quantified, and this announcement does not disclose, any updated net present value (“NPV”) or internal rate of return (“IRR”) for the potential 20% increase. Any potential increase in Project value will be assessed in conjunction with the Epanko technical assistance supported by European Investment Bank (“EIB”) grant funding that has commenced².

Operating Costs

The Value Engineering Review indicates C1 operating costs of approximately US$515.9/t of concentrate sold over the LOM and US$512.3/t for the first 10 years of processing, FOB Dar es Salaam. This compares with US$553.3/t and US$544.0/t, respectively, in the February 2026 Updated BFS, representing reductions of 6.8% over the LOM and 5.8% for the first 10 years.

Including royalties, levies and sustaining capital, estimated AISC are approximately US$615.4/t over LOM and US$610.8/t for the first 10 years, compared with US$650.9/t and US$639.0/t, respectively, in the Updated BFS. This represents reductions of 5.5% over the LOM and 4.4% for the first 10 years, reflecting the potential unit cost benefits of the higher production rate. 

Table 2: Operating cost estimates for the potential 20% increase in production rate – US$/t Concentrate Sold, FOB Dar es Salaam, real 2025

	Updated BFS Feb 2026		Value Engineering Review Sep 2026
Operating Cost	LOM	First 10-Years of Processing	LOM	First 10-Years of Processing
C1 Cost FOB Dar es Salaam	553.3	544.0	515.9	512.3
All In Sustaining Cost	650.9	639.0	615.4	610.8

Notes for table – rounding errors may occur. Figures in table are US$/t.

 

This announcement is authorised for release by Andrew Spinks, Managing Director.

 

For further information, please contact:

INVESTORS 

Andrew Spinks  

Managing Director 

T: +61 8 6424 9002

 

 

References:

Note 1: Refer EcoGraf Limited ASX announcement 25 February 2026 ‘Updated Bankable Feasibility Study’

Note 2: Refer EcoGraf Limited ASX announcement 21 September 2026 ‘EIB Grant Funding Commences’

Note 3: Refer EcoGraf Limited ASX announcement 13 August 2025 ‘HFfree Delivers Industry-Leading Low Cost and Stage 1 NPV of US$282m (A$433m)’

Note 4: Refer EcoGraf Limited ASX announcement 20 April 2026 ‘Strategic Partnership with Mitsubishi Chemical Corporation for Battery Anode Materials’

Forward looking statements

Various statements in this announcement constitute statements relating to intentions, future acts and events. Such statements are generally classified as “forward looking statements” and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. The Company gives no assurances that the anticipated results, performance or achievements expressed or implied in these forward-looking statements will be achieved.

Production targets and financial information

Production targets and forecast financial information derived from the production targets, included in this report is extracted from the updated Bankable Feasibility Study released on 25 February 2026 titled “Updated Epanko Bankable Feasibility Study”.  The Company confirms that all material assumptions underpinning the 73,000tpa base case production target and forecast financial information derived from it, as set out in the previous market announcement, continue to apply and have not materially changed. The preliminary Value Engineering review case (potential 20% increase and operating cost analysis) is a separate, updated production target derived from the Value Engineering review described in this announcement and represents a first-phase optimisation study based on the existing Ore Reserves. The associated production target and the operating cost estimates derived from it are preliminary estimates and will be formally updated following completion of the second phase of value engineering and the associated further studies.

This announcement refers to two production cases for the Epanko Project. The development / financing case (73,000tpa) is the base case disclosed in the Updated Bankable Feasibility Study (ASX announcement dated 25 February 2026) and is the basis on which the debt financing is being arranged. The Value Engineering review case reflects a potential 20% throughput increase identified through the Value Engineering review described in this announcement and is based on the existing Ore Reserves, pit design and mine infrastructure. It is not a new Ore Reserve or Mineral Resource estimate, and is not reflected in the current debt financing arrangements. The production target for the potential 20% increase (87,600tpa) is based 100% on Ore Reserves, comprising approximately 43% Proved (7.1Mt) and 57% Probable (9.6Mt) Ore Reserves. No Inferred Mineral Resources or Exploration Targets are included in the production target. Inferred Resources have only been mined incidentally with the Measured and Indicated Resources and treated as waste for scheduling purposes. The Ore Reserves and Mineral Resources underpinning the production targets have been prepared by a Competent Person in accordance with the requirements in Appendix 5A of the JORC Code 2012.

25,000tpa HFfree Battery Anode Material (“BAM”) facility: The references in this announcement to a 25,000tpa HFfree BAM facility relate to the production target and the forecast financial information derived from it was first disclosed in the Company’s ASX announcement dated 13 August 2025 titled “HFfree Delivers Industry-Leading Low Cost and Stage 1 NPV of US$282m (A$433m)”. The Company confirms that all material assumptions underpinning that production target and the forecast financial information derived from it continue to apply and have not materially changed.

Competent Person and Compliance Statements

The information in this announcement that relates to the Ore Reserves have been extracted from the previous market announcement dated 25 February 2026 titled “Updated Epanko Bankable Feasibility Study”. 

The information in this announcement that relates to Mineral Resources have been extracted from the previous market announcement dated 11 March 2024 titled “127% Increase in the Epanko Mineral Resource”. 

The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcements and confirms that all material assumptions and technical parameters underpinning the abovementioned Ore Reserves and Mineral Resources continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the previous market announcements. 

About EcoGraf

EcoGraf is building a vertically integrated battery anode materials business to produce high purity graphite products for the lithium-ion battery and advanced manufacturing markets. Over US$30 million has been invested to date to create a highly attractive graphite business which includes:

• Epanko Graphite Mine in Tanzania;

• Mechanical Shaping Facility in Tanzania; 

• EcoGraf HFfree^® Purification Facilities located in close proximity to the electric vehicle, battery and anode manufacturers; and

• EcoGraf HFfree^® Purification technology to support battery anode recycling.   

In Tanzania, the Company is developing the TanzGraphite natural flake graphite business, commencing with the Epanko Graphite Project, to provide a long-term, scalable supply of feedstock for EcoGraf^® battery anode material processing facilities, together with high quality large flake graphite products for specialised industrial applications.

In addition, the Company is undertaking planning for its Mechanical Shaping Facility in Tanzania, which will process natural flake graphite into spherical graphite (SpG). This mechanical micronising and spheronising is the first step in the conversion of high-quality flake graphite concentrate into battery grade anode material used in the production of lithium-ion batteries.

Using its environmentally superior EcoGraf HFfree^® purification technology, the Company will upgrade the SPG to produce 99.95%C high performance battery anode material to supply electric vehicle, battery and anode manufacturers in Asia, Europe and North America.

Battery recycling is critical to improving supply chain sustainability and the Company’s successful application of the EcoGraf HFfree^®   purification process to recycle battery anode material provides it with a unique ability to support customers to reduce CO₂ emissions and lower battery costs.

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^[1]The review is a first phase optimisation study. It has been prepared to a lower level of accuracy and confidence than the Updated BFS, is not a feasibility study, and has not been independently verified. There is no certainty that any increase in Project value will be realised, or that the Company will elect to proceed with the potential 20% increase in throughput.

^[2] Source: The Cost Estimating Series: Capital Cost Estimate Classes — Integrated Technologies, Inc.