NVX NOVONIX Ltd

001-41208

(Commission File Number)

NOVONIX LIMITED

By: /s/ Dr. John Christopher Burns

       Dr. John Christopher Burns

       Chief Executive Officer

Category

Weathering State

Resource (Mt)

TGC (%)

Contained Graphite (kt)

Indicated Mineral Resource

Weathered

1.5

14.8

230

Primary

6.8

15.2

1,030

Sub-total

8.3

14.2

1,260

Inferred Mineral Resource

Weathered

0.3

11.8

30

Primary

4.1

13.3

540

Sub-total

4.3

13.2

570

Total Indicated and Inferred Mineral Resource

Weathered

1.8

14.3

260

Primary

10.8

14.5

1,570

TOTAL

12.7

14.5

1,830

Tenement
Holder

Tenement
Name

Tenement
No.

Grant
Date

Expiry
Date

Area
(sub-blocks)

Area
(km²)

MD South
Tenements Pty Ltd

Pigeon South

EPM 17246

26/10/2010

25/10/2027

1

~3.235

Pigeon South

EPM 17323

20/10/2010

19/10/2027

1

~3.235

Exco Resources
Pty Limited

Boomarra
Consolidation

EPM 26025
(Sub-Blocks D, J, O and S
within Normanton 3123 Block)

14/12/2015

13/12/2025

4

~12.94

Grade

Incremental Resource

Cut-off

Cumulative Resource

Range

Tonnage

TGC

Contained

Grade

Tonnage

TGC

Contained

TGC%

t

%

Graphite (t)

TGC%

t

%

Graphite (t)

0.5 -> 1.0

9,321

0.96

90

0.5

18,727,920

10.87

2,036,420

1.0 -> 1.5

41,946

1.29

540

1.0

18,718,599

10.88

2,036,331

1.5 -> 2.0

218,497

1.73

3,783

1.5

18,676,653

10.90

2,035,791

2.0 -> 2.5

988,593

2.24

22,130

2.0

18,458,156

11.01

2,032,008

2.5 -> 3.0

1,070,574

2.74

29,322

2.5

17,469,563

11.50

2,009,879

3.0 -> 3.5

1,019,098

3.24

32,985

3.0

16,398,989

12.07

1,980,557

3.5 -> 4.0

1,055,065

3.74

39,420

3.5

15,379,891

12.66

1,947,572

4.0 -> 4.5

871,861

4.24

37,009

4.0

14,324,826

13.32

1,908,152

4.5 -> 5.0

799,013

4.75

37,926

4.5

13,452,965

13.90

1,871,143

5.0 -> 6.0

2,009,463

5.52

111,019

5.0

12,653,952

14.48

1,833,217

6.0 -> 7.0

1,031,876

6.44

66,442

6.0

10,644,489

16.17

1,722,198

7.0 -> 8.0

470,858

7.36

34,643

7.0

9,612,613

17.22

1,655,756

8.0 -> 9.0

317,892

8.56

27,209

8.0

9,141,755

17.73

1,621,113

9.0 -> 10.0

340,189

9.23

31,408

9.0

8,823,863

18.06

1,593,903

10.0 -> 11.0

39,185

10.49

4,110

10.0

8,483,674

18.41

1,562,495

11.0 -> 12.0

357,750

11.81

42,259

11.0

8,444,489

18.45

1,558,385

12.0 -> 13.0

208,610

12.30

25,654

12.0

8,086,739

18.74

1,516,126

13.0 -> 14.0

524,238

13.61

71,342

13.0

7,878,129

18.91

1,490,473

14.0 -> 15.0

504,882

14.52

73,328

14.0

7,353,891

19.29

1,419,131

15.0 -> 16.0

773,856

15.36

118,856

15.0

6,849,009

19.64

1,345,803

16.0 -> 17.0

849,501

16.54

140,546

16.0

6,075,153

20.19

1,226,948

17.0 -> 18.0

861,024

17.46

150,296

17.0

5,225,652

20.78

1,086,402

18.0 -> 19.0

912,615

18.49

168,702

18.0

4,364,628

21.44

936,106

19.0 -> 20.0

709,130

19.46

138,030

19.0

3,452,013

22.22

767,404

20.0 -> 22.5

1,378,710

21.43

295,426

20.0

2,742,883

22.93

629,374

22.5 -> 25.0

1,001,273

23.81

238,391

22.5

1,364,173

24.44

333,948

25.0 -> 27.5

340,410

26.19

89,151

25.0

362,900

26.19

95,557

27.5 -> 30.0

22,490

28.48

6,406

27.5

22,490

28.48

6,406

NOVONIX Limited (ASX:NVX)

Lithium Energy Limited (ASX:LEL)

Investors:

Scott Espenshade

William Johnson

ir@novonixgroup.com

Executive Chairman

Media:

Stephanie Reid,

+61 8 9214 9737

media@novonixgroup.com

chair@lithiumenergy.com.au

Criteria

JORC Code explanation

Commentary

Sampling techniques

Sampling Methodology – Reverse Circulation (RC) Drilling

Sampling for the Phase 2 (2015) and Phase 3 (2016) drilling programs were relatively straightforward, as the UDR650 drill rig was fitted with a combined Cyclone-Splitter unit, unlike the Phase 1 (2015) drilling program, which required a dedicated separate Splitter unit. Both small geochemical assay and large bulk samples were collected from each 1-metre drilled from the side-mounted cyclone.

A sample number tag was placed in the small geochemical assay sample bag and the contents weighed on digital scales. The weights were used to provide a rough bulk density for each 1m interval.

Geophysical parameters were measured routinely from each 1m interval by probing the small geochemical assay sample bag with various instrumentation, including magnetic susceptibility (SI units), electrical conductivity (ohms) and gamma radiation (counts per second).

A separate 2m “Composited Sample” was collected by extracting sub samples from 2 contiguous large bulk sample bags and placed into a numbered sample bag together with a tag number.

Sampling Methodology – Diamond Core Drilling

Detailed geochemical sampling was routinely conducted on a 1-metre interval basis of Quarter-Split HQTT drill core, collected from the Phase 2 and 3 drilling programs. This comprehensive sampling is regarded as more representative statistically.

The HQTT Drill Core was initially split 50% using a diamond core saw cutting machine. Half-split core is being retained initially as a visual reference or for use as a bulk metallurgical sample.

The remaining Half-Core was then split 50% into Quarter-Core, again using a manual core saw. The Quarter-Split Core was routinely submitted for geochemical analysis.

The remaining Quarter-Split Core was used as a metallurgical sample.

Selective Petrological sampling of some lithological units identified in drill core was undertaken. These petrology samples are by necessity a small sample, but were selected on the basis of being “typical” of the lithological unit from which they were collected.

Drilling techniques

Diamond Core

HQ Triple Tube diamond core was technically selected as the optimum sampling method for drilling the graphite mineralised zones at Mt Dromedary, on the basis of maximising recovery of graphite, as the method minimises

Criteria

JORC Code explanation

Commentary

disturbance to core, limiting potential losses in drilling water.

The ground conditions at Mt Dromedary were expected to be initially poor down to 20m depth, due to surface weathering overprinting effects of the Tertiary regolith. The soft, lubricating nature of graphite and its property as a natural “floater”, together with the regolith clay weathering profile indicate triple tube core barrels should be employed. The HQ diameter core also permits a large representative sample to be recovered, maximising the potential for geological information, geochemical sampling, geotechnical data collection and offers a large metallurgical sample size potential from each metre interval.

DEPCO Drilling Pty Ltd of Rockhampton, Queensland, was contracted by NOVONIX Limited (then known as GraphiteCorp Pty Ltd) (NOVONIX) to undertake the diamond drilling program in November 2015. DEPCO Drilling supplied a UDR650 multi-purpose drill rig.

Subsequently, Calibre Drilling Pty Ltd of Cloncurry was contracted by NOVONIX to assist with diamond core drilling due to delays experienced with DEPCO Drilling. Calibre Drilling supplied a small track-mounted Cortech YDX-3L diamond drill rig. The rig used a standard HQ diamond drill bit and was not fitted for triple tube core barrels.

Reverse Circulation

DEPCO Drilling was contracted by NOVONIX to undertake the RC drilling program in November 2015. DEPCO Drilling supplied a UDR650 multi-purpose drill rig. The RC hammer bit had a measured diameter of 123mm. A larger diameter RC hammer was used to drill an initial pre-collar of 4m in the soil-colluvium profile, which was then cased off using PVC pipe to avoid unconsolidated material falling behind the drill rods.

A combined Cyclone and Sample Splitter unit was fitted to the side of the UDR650 drill rig. The Cyclone collected a 75% bulk sample in a big plastic bag and a 25% sample in a small plastic bag.

Drill sample recovery

Diamond Drill Core recovery was routinely recorded every metre. Initial core recoveries were typically 70-95% in the initial 20m, but as each drill hole progressed beyond 20m depth, core recovery typically increased to 100%.

Core recoveries recorded within graphite mineralised zones were typically >85%.

Logging

Logging - Drill Core

Once the drilling was completed, all the drill core was removed from site to Chinalco Yunnan Copper Resources Limited Mt Isa core processing facility, hired by NOVONIX.

A standardised sequential logging, processing and sampling procedure was employed for the HQ drill core on

Criteria

JORC Code explanation

Commentary

a 1-metre basis. The data was computer-coded for digital plotting purposes.

Core was initially cleaned to remove drill mud and greases. The core was then orientated using “Top of Core” marks from the Reflex orientation tool, marked into 1m intervals and the core recovery recorded. The core was then photographed using high-resolution digital camera and then geologically logged.

Geological logging of Drill Core was routinely undertaken on a systematic one-metre interval basis, recording the following geological data:

Geotechnical data was collected, including Rock Quality Designation (RQD), Fracture Density and orientations of structures such as faults, fractures, joints, foliation, bedding, veins recorded.

Geophysical properties of the core were collected, with magnetic susceptibility, electrical conductivity and Gamma radiation counts per second recorded.

The Specific Gravity for each interval was collected using an Archimedes Principle water displacement device.

Metallurgical samples were determined by Ore Type and selected on the basis of lithology and weathering/primary characteristics. Abrasion/UCS Engineering, Comminution and MLA samples were then sampled from the core.

The core was then split into one half and then into 2x quarters using a manual core saw. One ¼ split core was used for geochemical analysis and the other ¼ split core used for bulk Variability metallurgical testing.

The Core Trays (with balance of remaining half-split core) are currently stored on pallets in Chinalco’s Core Shed facility. The remaining core can be resampled and/or used in future metallurgical testwork if required.

Logging – RC Drilling

Geological logging of reverse circulation drill chips was routinely undertaken for each 1-metre interval using similar procedures to core logging (described above).

Visual record samples were collected from the large bulk sample and contents placed into a 20-compartment plastic tray. Each chip tray was photographed using a high-resolution digital camera.

Criteria

JORC Code explanation

Commentary

Sub-sampling techniques and sample preparation

One-metre intervals of Quarter-Split Drill Core and RC Drill Chips were submitted into ALS Minerals sample preparation laboratory in Mount Isa, Queensland. Geochemical analysis was subsequently performed at ALS Minerals laboratory in Brisbane, Queensland.

Geochemical analysis was by analytical Method C-IR 18 Total Graphitic Carbon, Method C-IR07 Total Carbon, Method S-IR08 Total Sulphur, Method Ash-01 Ash Content and Method ME-GRA05g Loss on Ignition.

Multi-element geochemical analyses were performed on 2-metre composites of RC Drill Chips and selected intervals of the graphite mineralized zones. The Multi-element analyses included whole rock oxides by Method ME-ICP06 Major Oxides, trace elements by Method ME-MS81 Ultra Trace Level, base metals by Method ME-ACD81 Four Acid Digest and Method ME-MS41 Ultra Trace Level Method.

Representative grab samples (approximately 200g weight) of the various Ore Types were collected from drill core on the basis of 1 sample per 10m and forwarded to ACTLABS (Ancaster, Canada) for Mineral Liberation Analysis (MLA).

Quality of assay data and laboratory tests

Geochemical Analysis

One-metre intervals of Quarter-Split Drill Core and RC Drill Chips were submitted into ALS Minerals sample preparation laboratory in Mount Isa, Queensland. Geochemical analysis was subsequently performed at ALS Minerals laboratory in Brisbane, Queensland.

Geochemical analysis was by analytical Method C-IR 18 Total Graphitic Carbon, Method C-IR07 Total Carbon, Method S-IR08 Total Sulphur, Method Ash-01 Ash Content and Method ME-GRA05g Loss on Ignition. Accuracy levels are reported to 0.01%.

Multi-element geochemical analyses were performed on 2-metre composites of RC Drill Chips and selected intervals of the graphite mineralised zones. The Multi-element analyses included whole rock oxides by Method ME-ICP06 Major Oxides, trace elements by Method ME-MS81 Ultra Trace Level, base metals by Method ME-ACD81 Four Acid Digest and Method ME-MS41 Ultra Trace Level Method.

The QA/QC results confirm the suitability of the drilling data for use in resource estimation.

Mineral Liberation Analyser

Representative samples of the various Ore Types were analysed by ACTLABS (Ancaster, Canada) for Mineral Liberation Analysis (MLA), to determine the modal mineralogy and characterise the size and deportment of graphite flakes. The MLA is a quantitative mineralogical technology, developed by ACTLABS, which uses a FEI Quanta600F scanning electron microscope (“SEM”).

A Jones Riffle splitter was used to split a representative sample for the MLA study. The samples were further screened to -850/+106 µm. Representative splits were taken using a Quantachrome Mini-riffler and mixed with carnauba wax. Each sample was mounted on an epoxy resin block and coated with carbon and then polished, prior to examination using the MLA.

Criteria

JORC Code explanation

Commentary

The +106/-850 µm fraction range was measured for the graphite flake size distribution, in order to represent preserved rock fragments that are closest to the original graphite size and rock texture.

Mineral matter was identified and quantified using the XBSE measurement mode on the Quanta 600F MLA instrument. Minerals and other attributes are directly measured on the MLA by a combination of image analysis, employing atomic number contrast imaging from back-scattered electron (BSE) signal intensity and Energy Dispersive Spectrometry (EDS), using two Bruker 5010 SDD detectors. The BSE signal intensity is proportional to the mean atomic number of minerals.

Verification of sampling and assaying

The QA/QC protocols adopted for the Mt Dromedary Phase 2 drilling program involved routinely inserting a Certified Graphite Reference Standard (5 different Standards used) or Blank sample into the tag book number sequence every 10 samples. A total of 278 Certified Reference Materials and 45 Blank samples were used.

The QA/QC sample density is considered to be more than adequate and is very robust. Additional QA/QC controls were also provided by internal laboratory repeats and standards.

Laboratory performance and all reported analytical results was statistically evaluated using QA/QC monitoring software. All Certified Reference Materials reported within 1 Standard Deviation of the Certified value. Two (2) of the Blank samples indicated very low order graphite contamination (<0.05% Cg).

Location of data points

M.H. Lodewyk Pty Ltd licensed surveyors of Mount Isa, Queensland, were contracted to establish a series of fixed Base Stations on site and then accurately survey each drill hole collar to sub-metre accuracy, using a Differential Positioning System (DGPS) instrument, in the MGA 94 Zone 54 projection.

Down hole surveys were routinely collected every 30m, using a Reflex EZ Shot after completion of End of Hole Depth on the way out of the hole, and sequentially as the drill rod string was recovered.

Down hole survey data was also collected continuously and automatically by the High Resolution Acoustic Televiewer down hole instrument supplied by Geology Pty Ltd of Hervey Bay. Down hole survey data was collected with an accuracy of ±0.01 degrees and ±0.01m.

Data spacing and distribution

Data was routinely collected on a continuous 1m interval basis. Samples were collected at 1m intervals down each hole.

Criteria

JORC Code explanation

Commentary

Orientation of data in relation to geological structure

Drill Hole Orientation

Drill holes were designed to intersect graphite mineralisation at perpendicular to strike observed in outcrop. Geotechnical data, automatically collected by the High Resolution Acoustic Televiewer and classified by software confirms the foliation structures and indicate data collected from drill core is generally conformable with the schistose fabric foliation of the graphite mineralisation.

Core Orientation

Core orientation was routinely undertaken during drilling using a Reflex ACT II tool. The unit is attached to the top of the core inner tube barrel and initialised. The unit is removed and the orientation marked on the Top of Core using a coloured paint marker or chinagraph pencil.

Sample security

All the samples collected were placed into plastic bags and securely sealed with staples. The sample bags were then placed in a large plastic bag labelled accordingly with Hole Number and Sample Type and sealed with plastic ties. The various samples were placed separately into 1-tonne capacity Bulka Bags and stored temporarily on site before being transported by 8-tonne capacity Flat Bed Truck direct into ALS Minerals Division preparation laboratory facility in Mount Isa, Queensland. A follow up visit to the ALS Minerals Division preparation laboratory facility in Mount Isa indicated no tampering with the staple-sealed sample bags had occurred.

Audits or reviews

Drilling and sampling procedures were reviewed by independent consultants during a site visit in 2015, who found that all procedures and practices conformed to industry standards.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

Mineral Tenements

NOVONIX subsidiary, MD South Tenements Pty Ltd (MDSTPL), holds and has contractual interests in the Mt Dromedary tenements comprising the Mt Dromedary Graphite Project (Mt Dromedary) located in the Cloncurry region in North Central Queensland, ~130km by road north of Cloncurry, adjacent to the Burke Development Road.

MDSTPL holds a contractual interest in Sub-Blocks D, J, O and S (of 12.94km2) within Normanton 3123 Block on Exploration Permit for Minerals (EPM) 26025 (of which Exco Resources Pty Limited (Exco) is the registered holder) (Normanton Sub-Blocks) pursuant to:

In addition, MDSTPL is the registered holder of EPM 17323 (of 3.235km2) and EPM 17246 (of 3.235km2), which are

Criteria

JORC Code explanation

Commentary

contiguous to the Normanton Sub-Blocks (within EPM 26025).

Lithium Energy Limited (ASX:LEL) (Lithium Energy) subsidiary, Axon Graphite Limited (Axon Graphite), has entered into a share sale and purchase agreement (dated 3 April 2024) (SPA) with NOVONIX to acquire MDSTPL. The SPA is conditional on, relevantly, Axon Graphite completing an initial public offering (IPO) and ASX providing Axon Graphite with a list of conditions which, once satisfied, would result in ASX admitting the company to the Official List of ASX.

Axon Graphite subsidiary, Burke Minerals Pty Ltd (BMPL), is the registered holder of EPM 25443 (of 6.47 km2) (Burke Graphite Project/tenement), which is contiguous to the Mt Dromedary tenements.

Pastoral Lease

The Mt Dromedary tenements are situated primarily on privately-owned Gleeson Station (Lands Lease Lot 2965 Plan PH 1525).

Native Title

Relevant access agreements (‘Section 31 Deeds’) have been entered into with registered native title holders, the Kalkadoon People. The Kalkadoon People’s native title rights have been recognised over ~39,000km2 of land and waters in the Mt Isa region, including areas of reserves, unallocated Queensland State land, pastoral leases and other leases.

Native Title Site Clearances

Native Title clearances for the Mt Dromedary drill sites were obtained following site visits by representatives from the Kalkadoon People, accompanied by a company representative.

Bullen Bullen Nature Refuge

The Bullen Bullen Nature Refuge lies to the north and east of Mt Dromedary Project area and was declared in 2008. The Nature Refuge is actively managed by the The Northern Australian Pastoral Company.

Exploration done by other parties

The Mount Dromedary Project area was explored and mapped previously in the 1970s and 1990s, and more recently by NOVONIX since 2014. The following sections describe sequentially the results of mineral exploration conducted on the various tenements that covered the area during the period 1968-2008.

The Mt Dromedary Flake Graphite deposit was discovered in the early 1970’s by Mr Bill Bowes, Manager of nearby Coolullah Station, together with a geologist partner. It is believed Mr Bowes excavated about five (5) trenches using a backhoe to expose graphite schist bedrock.

The Mt Dromedary area was held under EPM 6961 by Nord Resources (Pacific) Pty Ltd during 1991-1999 (Ford et al, 1992 and Fogarty, 1999). Nord collected rock chip samples from weathered graphite mineralised outcrops and submitted them for petrological examination and for preliminary flotation metallurgical appraisal at Peter Stitt and Associates Sydney Laboratory (Ford et al, 1992). Preliminary “sighter” flotation metallurgical studies were very encouraging and indicated the samples contained

Criteria

JORC Code explanation

Commentary

60-70% flake graphite (>75µm size) grading 14.5-20% FC. Peter Stitt and Associates then generated graphite concentrates varying in purity between 25-64% FC, but at a poor overall recovery of 40%.

CRA Exploration Pty Ltd (CRAE) entered into a Joint Venture with Nord and collected further rock chip sampling of the graphite schist (Newberry, 1994). CRAE’s internal Advanced Technical Development division (ADT) indicated the graphitic schists have a high carbon content, but was predominantly <75µm in size and was classified (incorrectly) by ATD as “amorphous” graphite. Exploration activities for graphite ceased when ATD made this conclusion. This decision also coincided with a global drop in graphite prices.

Geology

The Mt Dromedary Project area lies within the Boomarra Horst, in the northern sector of the Quamby-Malbon Belt of the Eastern Succession terrane, Mount Isa Block in northwest Queensland.

The Project is hosted within the Corella Formation, a carbonate platform succession unit of the Proterozoic Mary Kathleen Group. The rocks mapped in the area sequentially from the base include dacite lava, banded iron formation, marble, slate, black shale, siltstone, limestone, graphitic schist, and muscovite-biotite schist.

The Black Mountain gabbro, dolerite sills and dykes intruded the Corella Formation about 1685-1640 Ma. It is believed these mafic intrusions may have been syn-depositional or early diagenesis, but were probably emplaced before lithification of the host sediments occurred.

The rocks of the Mt Dromedary area have subsequently been metamorphosed to medium-high pressure and medium-high temperature amphibolite grade facies during the Isan Orogeny between 1600–1580 Ma.

Drill hole information

The drill program sites were selected on the basis of ~50m section x 35m drill hole spacing over a 500m strike length, with a 50m section spacing designed to provide an indicated and inferred resource estimate.

Holes were orientated east-west (084o magnetic azimuth bearing), with a dip angle of 50o, designed to perpendicular intersect graphite beds.

Downhole surveys were routinely collected every 30m, using a Reflex EZ Shot after completion of End of Hole Depth on the way out of the hole, and sequentially as the drill rod string was recovered.

Diamond Drill Core

Diamond core drilling was undertaken and HQTT core recovered in 3m core barrels.

Core orientation was routinely undertaken during drilling using a Reflex ACT II tool.

Geotechnical data (foliation, bedding, fault, joint and fracture orientations) was collected continuously and automatically by the High Resolution Acoustic Televiewer downhole instrument supplied by Geology Pty Ltd of Hervey Bay.

Criteria

JORC Code explanation

Commentary

Reverse Circulation

The RC hammer bit had a measured diameter of 123mm. A larger diameter RC hammer was used to drill an initial pre-collar of 4m in the soil-colluvium profile, which was then cased off using PVC pipe to avoid unconsolidated material falling behind the drill rods.

Data aggregation methods

Exploration results are not being reported.

Aggregation of intercepts are not applicable as a Mineral Resource is being reported.

Metal equivalent values have not been used.

Relationship between mineralisation widths and intercept lengths

Foliation structural data from the borehole televiewer indicates the graphite mineralisation was intersected orthogonally down-dip and is close to true width.

The graphite schist is interpreted as thin-bedded, medium-grained carbonaceous, feldspathic, quartz sandstone and the foliation represents original bedding.

Diagrams

Relevant diagrams have been included within the main body of this document.

Balanced Reporting

This document is believed to include all representative and relevant information and is believed to be comprehensive.

All drill hole collars have been surveyed to the GDA94 UTM Zone 54 South datum. Collar surveys were completed by a contract surveyor, Lodewyk Surveyors, utilising a differential GPS device.

Exploration results are not being reported.

Criteria

JORC Code explanation

Commentary

Other substantive exploration data

Metallurgical samples were also collected from HQ core. Graphite mineralisation was visually classified into several Ore Types, defined on the basis of estimated graphitic carbon grade, host lithology, gangue mineralogy, weathered or primary and average graphite flake size. HQ drill core samples were then collected from each ore type for (a) Abrasion/UCS, (b) Comminution, and (c) Variability testwork.

The Abrasion/UCS and Variability samples were submitted to SGS Laboratories in Perth, Western Australia. The Comminution samples were submitted to JK Tech Laboratory in Brisbane, Queensland.

No other substantive exploration data was collected.

Further work

Metallurgical test work has been completed under the supervision of an independent consulting metallurgist.

Follow up resource development drilling (comprising RC and diamond core (metallurgical and geotechnical) holes), bulk sampling, metallurgical and battery anode material (BAM) test work and feasibility studies are planned.

The current Mt Dromedary mineralisation is open along strike and down dip.

Criteria

JORC Code explanation

Commentary

Database integrity

The data base has been systematically audited by NOVONIX geologists.

All drilling data has been verified as part of a continuous validation procedure. Once a drill hole is imported into the data base a report of the collar, down-hole survey, geology, and assay data are produced. This is then checked by a NOVONIX geologist, and any corrections are completed by the data base manager.

Site visits

A site visit was conducted by Shaun Searle of Ashmore Advisory Pty Ltd (Ashmore) during January 2023. Mr Searle inspected the Mt Dromedary deposit area and sub-crop. During this site visit, notes and photos were taken. No major issues were encountered.

Geological interpretation

The confidence in the geological interpretation is considered to be good and is based on visual confirmation in outcrop and within drill hole intersections.

Geochemistry and geological logging has been used to assist identification of lithology and mineralisation.

The Mt Dromedary Project area is hosted by a mapped graphitic schist as a sub-unit of the Corella Formation, within the Mary Kathleen Group and is of Proterozoic age. The style of mineralisation is crystalline graphite within graphitic schists. Infill drilling has supported and refined the model and the current interpretation is considered robust.

Criteria

JORC Code explanation

Commentary

Observations of outcrops and host rocks as well as the results of infill drilling, confirm the geometry of the mineralisation.

Infill drilling has confirmed geological and grade continuity.

Dimensions

The Mt Dromedary Mineral Resource area extends over a north northeast – south southwest strike length of ~1km (from 7,830,510mN – 7,831,510mN), has a maximum width of ~130m (418,220mE – 418,350mE) and includes the ~120m vertical interval from 160mRL to 40mRL.

Estimation and modelling techniques

Using parameters derived from modelled variograms, Ordinary Kriging (OK) was used to estimate average block grades in up to three passes using Surpac software. Linear grade estimation was deemed suitable for the Mt Dromedary Mineral Resource due to the geological control on mineralisation. Maximum extrapolation of wireframes from drilling was 50m along strike and 70m down-dip. This was half drill hole spacing in this region of the Mt Dromedary Project. Maximum extrapolation was generally half drill hole spacing.

Reconciliation could not be conducted due to the absence of mining.

No recovery of by-products is anticipated.

In addition to total graphitic carbon (TGC), total carbon (TC), S, LOI and Ash content were interpolated into the block model.

The parent block dimensions used were 25m NS by 12.5m EW by 5m vertical with sub-cells of 6.25m by 3.125m by 1.25m. The parent block size dimension was selected on the results obtained from Kriging Neighbourhood Analysis that suggested this was the optimal block size for the dataset.

An orientated ‘ellipsoid’ search was used to select data and adjusted to account for the variations in lode orientations, however all other parameters were taken from the variography derived from Objects 2 and 101. Three passes were used for each domain. The first pass had a range of 80, with a minimum of 4 samples. For the second pass, the range was extended to 150m, with a minimum of 4 samples. For the final pass, the range was extended to 300m, with a minimum of 4 samples. A maximum of 12 samples was used for all three passes.

No assumptions were made on selective mining units.

TGC had a strong positive correlation with TC and LOI. TC and LOI also had a strong positive correlation. Remaining pairs had no correlations or weak negative correlations.

The Mt Dromedary deposit mineralisation was constrained by wireframes constructed using a nominal 1% TGC cut-off grade. For high grade mineralisation, a 10% TGC cut-off was used to construct the wireframes. The wireframes were applied as hard boundaries in the estimate.

Statistical analysis was carried out on data from seven domains. After analysis, it was determined that no top-cuts were required.

Criteria

JORC Code explanation

Commentary

Validation of the model included detailed comparison of composite grades and block grades by northing and elevation. Validation plots showed good correlation between the composite grades and the block model grades.

Moisture

Tonnages and grades were estimated on a dry in situ basis.

Cut-off parameters

The Mt Dromedary Mineral Resource estimate has been constrained by the mineralisation solids and reported above a cut-off grade of 5% TGC. Further geological, geotechnical, engineering and metallurgical studies are recommended to further define the graphite mineralisation.

Mining factors or assumptions

Ashmore has assumed that the Mt Dromedary deposit could be mined using open pit mining techniques.

Metallurgical factors or assumptions

The Mt Dromedary deposit comprises natural graphite that has been demonstrated to be able to be processed by standard flotation technology to international bench mark product categories. Samples from the Central Zone (of the Mt Dromedary deposit) were sent for Locked Cycle Testwork at JKTech in Brisbane, Queensland, to determine processing recoveries and concentrate grades for weathered and primary material. Results indicate that an approximate 93% processing recovery is achievable for primary material and an approximate 85% processing recovery is achievable for weathered material, producing a 95% graphitic (very fine) carbon concentrate.

Flake concentrate is likely suitable for anode material for lithium-ion batteries. Additional testwork was conducted by NOVONIX Battery Testing Services, Inc. and confirmed a 95% TGC concentrate grade.

Environmental factors or assumptions

No assumptions have been made regarding environmental factors. MDSTPL will work to mitigate environmental impacts as a result of any future mining or mineral processing.

Criteria

JORC Code explanation

Commentary

Bulk density

A total of 795 density measurements were taken from diamond drill core at the deposit, analysed using the dry weight / wet weight technique.

It is assumed there are minimal void spaces in the rocks within the deposit.

Bulk densities were assigned averages based on lithology and weathering. Values for the mineralisation assigned in the block were between 2.29t/m3 and 2.35t/m3 for weathered material and were between 2.35t/m3 and 2.67t/m3 for fresh mineralisation. Average waste densities were assigned based on lithology and weathering from measurements.

Classification

The Mt Dromedary Mineral Resource estimate is reported here in compliance with the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ by the Joint Ore Reserves Committee (JORC Code). The Mt Dromedary Mineral Resource was classified as Indicated and Inferred Mineral Resources based on data quality, sample spacing, and lode continuity. The Indicated Mineral Resource was defined within areas of close spaced RC and diamond core drilling of predominantly 50m by 30m, and where the continuity and predictability of the lode positions was good, with some Indicated Mineral Resource classified where good grade continuity occurred up to 100m by 50m. The Inferred Mineral Resource was assigned to areas where drill hole spacing was greater than 100m by 50m, where small, isolated pods of mineralisation occur outside the main mineralised zones, and to geologically complex zones.

The input data is comprehensive in its coverage of the mineralisation and does not favour or misrepresent in-situ mineralisation. The definition of mineralised zones is based on high level geological understanding producing a robust model of mineralised domains. This model has been confirmed by infill drilling which supported the interpretation. Validation of the block model shows good correlation of the input data to the estimated grades.

Criteria

JORC Code explanation

Commentary

The Mt Dromedary Mineral Resource estimate appropriately reflects the view of Mr Shaun Searle (of Ashmore) as the Competent Person.

Audits or reviews

Internal audits have been completed by Ashmore which verified the technical inputs, methodology, parameters and results of the estimate.

Discussion of relative accuracy/ confidence

The geometry and continuity has been adequately interpreted to reflect the applied level of Indicated and Inferred Mineral Resource. The data quality is good and the drill holes have detailed logs produced by qualified geologists. A recognised laboratory has been used for all analyses.

The Mt Dromedary Mineral Resource statement relates to global estimates of tonnes and grade.