Armadale Capital Regulatory News (ACP)

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

11 January 2021

Armadale Capital Plc

('Armadale' or 'the Company')

 Mahenge Natural Flake Graphite Testing Confirms Suitability For Use In Lithium-Ion Battery Anodes

Armadale Capital plc the AIM quoted investment group focused on natural resource projects in Africa, is pleased to report that the results of the phase one test work undertaken on natural flake graphite from Armadale's 100%-owned Mahenge Graphite Project in south-east Tanzania ("Mahenge") have determined Mahenge graphite to be suitable for use in lithium-ion batteries commonly used in the exponentially evolving energy and high-tech sectors including the rapidly growing electric vehicle battery market.

Armadale Chairman, Nick Johansen, commented: 

"To have positive confirmation from Australia's Commonwealth Scientific and Industrial Research Organisation that Armadale's natural flake graphite from our Mahenge graphite project is suitable for use in lithium-ion batteries is very welcome news indeed; we are delighted to positively progress this testing collaboration with CSIRO's world-class specialist battery team to confirm the Mahenge natural flake graphite as a premium quality product with the exceptionally high purity and characteristics necessary for the lithium-ion battery market.

A great deal of technical analysis and testing has been carried out in this initial phase of work in CSIRO's state-of-the-art laboratories and these results justify carrying on to the more advanced levels of testing work including micronising and classification; spheronising; and electrode fabrication and testing. I cannot emphasise enough how valuable this technical data relating to the characteristics of Mahenge's natural flake graphite is for Armadale and its shareholders in marketing this exceptional high-quality graphite project and also in putting the Company in a strong position to close out potential binding off take discussions which have already been initiated with a number of selected parties.

In terms of the graphite market itself, with commonly accepted market perceptions of global cultural shifts towards the 'green economy' and especially with huge demand forecasts from the electrification of vehicles, we are of the strong opinion that exponential demand growth for graphite will continue and are poised to capitalise upon this momentum. Armadale has proved an exceptionally high-quality project with compelling economics and our timing for production coming online could be perfect. With a number of key value-adding workstreams in flight including project finance we look forward to 2021 being a year to remember for the Company and its shareholders."

CSIRO Testing Process

HIGHLIGHTS

Armadale engaged CSIRO which is the Australian Governments scientific and industrial research organisation at their facility in Melbourne to undertake both physical characterisation and electrochemical testing of the natural graphite flake from the deposit for potential use in Lithium-ion batteries.

As part of that testing, two flake sizes have been characterised and fabricated into electrodes to determine the influence of flake size on electrode performance.

The initial characterisation work has been based on unpurified graphite and includes

* Particle sizing

* XRF and XED analysis

* SEM analysis

For the electrochemical analysis, samples of 25 and 38 micron flake graphite were separately processed to produce test coin cells by the following general method.

* Slurry the sample with solvent and binder

* Coating a foil substrate

* Produce coin cells with appropriate electrolyte

The coin cells were then subject to electrochemical data analysis including a series of charge and discharge cycles and demonstrated good efficiency and cycling performance for unpurified non spheronised flake graphite.

Based on the results to date the Mahenge Natural Flake Graphite is considered suitable for use in lithium-ion battery anodes. Further the results would justify proceeding to the next level of test work including

* Micronising and classification

* Spheronising

* Purification

* Coating

* Electrode fabrication and testing

The results of this round of testing are highly encouraging. Natural flake graphite for use in Lithium-ion batteries has significant environmental benefits when compared to artificial graphite.

The Mahenge graphite deposit can potentially provide a good source of exceptionally high-grade natural flake graphite, and be a valuable export commodity for Tanzania.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

**ENDS**

Notes

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant Indicated and inferred mineral resource estimate of 59.48Mt @ 9.8% TGC, making it one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu's potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in, include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

More information can be found on the website www.armadalecapitalplc.com.