Graphite Metallurgical Test Work Progress Update

Comet Resources Ltd (Comet or the Company) (ASX:CRL) is pleased provide an update on ongoing test work on natural flake graphite from its Springdale Graphite Project (Springdale) located in Western Australia. Both excellent grade and recoveries were achieved on initial tests, leading to commencement of work earlier this year to produce a concentrate bulk sample for further testing. The production of the concentrate material was completed inJune in a lab in Perth, Western Australia, and was subsequently air-freighted to a specialist testing provider in Germany. That material has now arrived, been dried, and prepared for testing, with testing works now commenced. In addition to the tests being performed by the specialist lab for Comet, a sample of the concentrate material has also been provided to a third-party producer of natural flake graphite products for battery anodes for their own evaluation.

Highlights:

•Production of the bulk sample of Springdale graphite concentrate was completed on time in Q2, 2021

• Concentrate has now arrived at specialist facility in Germany and test work has commenced to assess amenability to produce battery anode material suitable for use in EVs

• Sample concentrate material has also been provided to a third-party producer of anode material for their test work

• Final results from this test work are expected within the current quarter

• Natural Flake Graphite included in EU Critical raw materials list

The specialist lab in Germany will assess, among other properties, the performance of the graphite during purification, micronisation and spheronisation. These are the key steps for the processing of natural graphite products for electric vehicle (EV) battery anode markets. Comet's German lab partners will simulate these to test Springdale's product suitability to meet industry standards in these areas. Graphite suitable for battery anode production also achieves premium pricing in graphite markets, making it a highly sought after product.

The inclusion of natural flake graphite on the European Union (EU) list of critical raw materials highlights the importance of these products as part of the push to reduce global carbon emissions. Comet's Springdale Project in WA, a stable tier one mining jurisdiction, is strategically well placed to provide such products.

Comet Managing Director, Matthew O'Kane, commented, "We now have material for testing in Germany, both for ourselves and a third-party producer of anode material. The results of these test work programs will determine the suitability of Comet's natural flake graphite from the high grade zone at Springdale for use in the manufacture of battery anodes for electric vehicles. With the continued push towards an electrified transport network, demand for these graphite products is expected to continue to grow."

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