The Dale

Syrah Resources Limited (ASX: SYR) today announced that it sold and delivered 10kt break bulk shipment of natural graphite fines from its Balama Graphite Operation (“Balama”) in Mozambique to PT Indonesia
BTR New Energy Materials in Indonesia. This is Syrah’s first large volume natural graphite sale to a battery supply chain participant
destination outside China.

This natural graphite sale is a further important development in the Company’s sales strategy to transition Balama natural graphite sales to a more geographically diversified and commercially aligned customer base and highlights Syrah’s unique position in natural graphite and AAM supply outside of China.

BTR New Materials Group Co Ltd is constructing, in joint venture, a US$478 million active anode material (“AAM”) facility
in Indonesia of 80ktpa AAM production capacity, which is expected to commence production in 2024. Syrah aims to develop
further natural graphite fines sales to PT Indonesia BTR New Energy Materials that demonstrate Balama’s provenance and
quality considering evolving market dynamics.

Syrah also provided an update on the Chinese Graphite Market.

Syrah’s March 2024 quarter natural graphite sales were similar to December 2023 quarter natural graphite sales. For most of the March 2024 quarter natural graphite demand conditions in China have been impacted by uncertainty related to the granting of China graphite export licences.
Release of China graphite export statistics for January and February 2024 by the General Administration of Customs was delayed to late March 2024. The China graphite export statistics in January and February 2024 show:

• Natural graphite fines and coarse flake exports were extremely limited;
• Purified spherical graphite exports were 25-40% of the 2023 monthly average and limited to South Korea; and
• AAM exports normalised to 2023 average monthly levels in February 2024.

1 Source: Datamyne and Chinese customs data. Natural graphite includes high purity and expandable graphite and Syrah Resources Natural graphite sales and market update dated 08.04.24.

An apparent increase in the granting of China export licences is expected to support higher natural graphite fines demand as consumption and re-stocking flow through the Chinese anode supply chain.

Market conditions for coarse flake natural graphite are positive with constrained global supply and relatively stable demand conditions leading to price support announced Syrah.

For more Mining news, see The Dale.

**Note. Title image used for illustrative purposes only