Blencowe Resources Plc (LON: BRES) Offtake MOU with Yunasko Ltd.

Further Offtake MOU for Orom-Cross Graphite Project

Agreement provides for sale of high value purified flake products to Advanced Technology firm

Blencowe Resources Plc is pleased to announce the signing of an additional non-binding Memorandum of Understanding (“MOU”) for natural medium flake concentrate offtake from its Orom-Cross Graphite Project. The offtake agreement is with Yunasko Ltd. (“Yunasko”), an advanced technology company headquartered in London and Kyiv, and a recognised leader in energy storage and ultracapacitor technologies used across next generation industrial and defence applications.

This new MOU follows recent Blencowe senior management engagements in the United States and Europe and reflects the strong response to ongoing successful test work confirming the consistently high-quality of product from Orom-Cross graphite

Highlights:

·    Non-binding five-year MOU with Yunasko for five years to supply of an initial 500 tonnes per annum of purified medium flake graphite.

·    Yunasko is a leading innovator in advanced supercapacitor energy systems serving high-specification energy storage and defence markets.

·    Pricing to be agreed under a formal binding agreement within 24 months.

·    Initial agreement follows substantial product qualification work and coincides with completion of Blencowe’s Definitive Feasibility Study (“DFS”).

·    Blencowe continues to progress positive discussions with multiple OEMs and strategic downstream users engaged during recent US and European marketing initiatives.

The Yunasko MOU covers a niche, high-value component of the Company’s medium flake (+100 mesh) graphite output during the first five years of production. Yunasko’s initial 500 tonnes per annum requirement is anticipated to increase as the commercial relationship matures.

The product will be further upgraded in Chicago, USA  by Blencowe’s US technology partner, American Energy Technology Co. (“AETC”), enabling Yunasko to purchase a premium-grade materials.

Blencowe is also advancing discussions in the United States with additional OEMs and leading downstream processors for both large flake products and smaller flake categories.  Several Groups are currently undertaking qualification test work on Orom-Cross material, and the Company anticipates further MOUs to be concluded as these programmes advance. Market engagement remains strong, and the Company is progressing discussions with additional potential offtakers worldwide as it builds toward a diversified suite of sales agreements ahead of first production.

Executive Chairman Cameron Pearce commented:

“We are pleased to add a further high-quality European offtaker to our growing portfolio particularly one operating at the forefront of energy storage innovation. Supercapacitor applications require exceptionally consistent, high-grade material and Orom-Cross, supported by AETC’s purification capabilities, is ideally suited to meet this demand.”

“Our graphite is currently undergoing evaluation with a broad range of international end users, and we remain confident of additional offtake agreements following as these programmes progress.  Purified material attracts significantly higher pricing than standard concentrates and these higher value customers provide both market credibility and a meaningful uplift on our weighted average selling price.”

Yunasko Executive Chairman Yurii Maletin commented:

“We are pleased to be working with Blencowe Resources to receive high-quality purified graphite from Orom-Cross natural resource for integration into Yunasko’s next-generation energy storage systems. Our testing, together with American Energy Technology Co.’s purification and downstream processing work, confirms that Orom-Cross provides material of particularly high suitability for these advanced applications.

Yunasko, a leader in high-power ultracapacitor and hybrid energy storage technologies, is driving meaningful innovation in the global energy storage market by delivering faster-charging, longer-life and higher-efficiency solutions. The use of premium purified graphite will further strengthen Yunasko’s ability to develop cutting-edge systems, and we look forward to a long and productive relationship as Blencowe moves towards first production.”

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