The first export quantity of graphite from Valence Industries’ Uley Graphite Project in South Australia has been transported by truck to be prepared for export. Approximately 20 tonnes of flake graphite was trucked from Port Lincoln to Valence’s Port Adelaide logistics handling facility.

This first shipment contained a range of flake graphite production taken from the commissioning program for Valence Industries’ existing processing facility in Port Lincoln.

The production rate and manufacture of a wide range of graphite products will increase materially as the plant moves through its commissioning and production ramp-up program to its targeted annual output rate of 14,000 tonnes.

During this program, Valence will continue to match graphite production to meet customer requirements with customer demand ranging from refractories and foundries through to battery and biomedical applications for volumes equal to the first 12 months of production. Due to confidentiality and commercial requirements, Valence Industries is not able to disclose specific customer details.

Commissioning of the Uley Graphite plant commenced on December 25, 2014.

Processing of the first 1500 tonnes of the run-of-mine stockpiles has been completed and has allowed Valence to achieve key commissioning milestones including:

* Capacity testing for processing of raw material and new graphite production;

* Preparation and packaging of a range of flake graphite products for export; and

* Ongoing construction of waste water containment dams.

Valence continues to calibrate the plant and equipment including the program to meet regulatory process waste water management requirements. The commissioning program and production ramp up phase remain on schedule for completion by the September quarter of 2015, when it will reach the targeted annual rate of production.

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