Current Corporate Structure EXCITING VANADIUM RESULTS …

Syrah Resources Ltd (ABN 77 125 242 284). Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia

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ASX Code SYR

Current Corporate Structure

Ordinary Shares

Issued Shares: 125,204,521

Options

Exercisable at 25c: 1,500,000

Exercisable at 26c: 17,000,000

Major Shareholders

Basapa PL 11.27%

Copper Strike Ltd 8.79%

Gasmere PL 8.70%

Kitara Investments PL 8.16%

Board of Directors

Mr Tom Eadie

Non-Executive Chairman

Mr Paul Kehoe

Managing Director

Mr Alistair Campbell

Non-Executive Director

Mr Mike Chester

Non-Executive Director

Ms Melanie Leydin

Company Secretary

Key Projects

Balama Graphite Project

(Mozambique) and Nachingwea

Graphite Project (Tanzania)

Have the potential to be high

tonnage, high grade, flake graphite

projects. Balama is mainly medium

to coarse flake and Nachingwea is

fine to coarse flake. Balama is also

highly anomalous in vanadium with

sample grades up to 1.25%.

Tanzania Mineral Sands

A very prospective portfolio of

mineral sands licence areas , some

of which have drill results up to 28%

heavy minerals.

Website

www.syrahresources.com.au

5 June 2012

EXCITING VANADIUM RESULTS FROM TRENCHING AT BALAMA

GRAPHITE PROJECT

Highlights:

Assays of trench rock chip sampling at Balama shows that the

deposit also contains interesting vanadium grades

Average grade of all 328 samples taken from the trenches was

0.30% V2O5 (0.17% V)

Summary results of the 8 trenches are:

o T1 – 123m long, 31 samples averaging 0.21% V








Distinct zones of higher grade V in the trenches, e.g.:

o T1 – 49m averaging 0.29% V




Potential for much higher grade V zones based on earlier

geochemical sampling which showed grades of 1.25%, 0.86% and

0.7% V

The main vanadium mineral is believed to be roscoelite which is one

of the main vanadium ore minerals

The Bama (Flaketown) mine in the USA produced graphite and

vanadium from roscoelite in the early 20th century

The vanadium may become a very valuable by-product in the

processing of graphite at Balama


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Syrah Resources Ltd (ASX:SYR) is very pleased to announce the vanadium assay results for 328 samples from 8

reconnaissance trenches at its 100% owned Balama Graphite Project in Mozambique. This early stage

trenching program was originally designed to locate high grade graphite zones for drill targeting. Vanadium

was not specifically targeted during the trenching. The graphite content of the trenching samples was

reported in SYR’s announcement to the ASX on 18 April 2012. There has been a delay in reporting the

vanadium results as SYR verified the results with another laboratory. Both laboratories now report comparable

results. Testing was done by three different methods – 4 acid digest, inductively coupled plasma (ICP) and XRF.

As ICP is considered the most accurate, it has been used to report these results.

The location of the trenches with respect to the outline of the Balama outcropping mineralisation is shown in

Figure 1.

Figure 1: Location of trenches with respect to the current interpretation of the Balama Graphite mineralisation derived from geological

mapping


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The 8 trenches covered a total length of 1,809m with the longest trench (T5) covering 475m perpendicular to the graphitic stratigraphy. On average, each sample was a composite from 3m of a trench, though individual samples varied from 1m to 20m in length. In total the sampling covered 982m of the trenches. Areas not assayed include zones where the trench did not reach bedrock, granitic zones and pegmatitic zones. Full analytical results are shown in the appendix. The average grade of the 328 trench samples was 0.30% V205 or 0.17% V. The highest grade trenches were T3

(average of 0.23% V) and T1 (average of 0.21% V).

Distinct zones of higher grade mineralisation exist in each trench. For example:

A grade of >0.2% V content is commonly considered to be economic. For example, the recently commissioned Windimurra Vanadium Mine in Western Australia (ASX:ATI) has a total resource of 210 Mt @ 0.47% V205 (0.26% V).

Trench ID

Trench length

(m)

Number of samples

Average V % per

sample

T1 123 31 0.21

T2 157 23 0.16

T3 121 12 0.23

T4 120 6 0.15

T5 475 131 0.16

T6 350 52 0.16

T7 233 27 0.12

T8 230 45 0.15

Trench ID

Interval Average % V per sample

T1 69-118 (49m) 0.29

T2 105-151 (46m) 0.20

T3 1-45 (44m) 0.29

T5 173-224 (51m) 0.26

T5 363-475 (112m) 0.27

T6 41-132 (91m) 0.23

T8 77-180 (103m) 0.20

Table 1 – Summary data and results from trenches

Table 2 – Higher grade V zones in trenches

Summary data and results from trenches


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Based on these vanadium assays and field observations, SYR believes it is probable that substantial medium grade zones of around 0.25% V will be established at Balama within an extremely large lower grade resource of >0.15% V. As the deposit is outcropping and vanadium will likely be a by-product of graphite production, the vanadium may be worth recovering at grades of >0.1% V. Furthermore, it is noteworthy that earlier geochemical sampling at Balama showed vanadium grades of 1.25% V (rock chip), 0.86% V (rock chip) and 0.7% V (stream sediment). The current trenching program only covered a very small part of the outcropping deposit and did not reveal samples assaying at such high values. As noted, the trenching program was directed towards graphite exploration. SYR believes that follow up of the high grade samples and further exploration in similar environments has the potential to result in very high grade areas of >0.5% V.

Based on earlier XRD analysis, the main vanadium mineral present appears to be a green coloured barium rich

roscoelite. Roscoelite is a mica and was identified in 1876 by an English chemist who was able to extract the

vanadium in his home laboratory using sulfuric acid. Roscoelite is one of the four main vanadium ores. It is

possible that other vanadium minerals are present in the Balama deposit. Samples are being collected to be

sent to a petrologist for further analysis. There is a strong correlation between the graphite grade and the

Figure 2 – Drill core with green mineral (vanadium?)

Figure 2 – High grade graphite sample with green minerals some of which is roscoelite


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vanadium grade at Balama which is not surprising as various researchers have proposed that roscoelite

crystallises as a result of vanadium bearing fluids coming in contact with carbonaceous units.

As noted in SYR’s announcement on the initial metallurgical testwork, SYR achieved a greater than 95%C

concentrate by simple flotation. Mintek’s reports show that the mica (hence including roscoelite) readily

separates from the graphite. The “waste” from the graphite production will be rich in vanadium after the

graphite has been removed. It should then be a simple process of extracting the roscoelite and other

vanadium minerals from the remaining material. The Bama or Flaketown Mine in Alabama operated in the

early 20th century and was a graphite mine producing vanadium as a roscoelite by-product. As such, SYR

currently has a very high degree of confidence that both graphite and vanadium can be recovered from the

Balama Graphite Deposit.

ABOUT VANADIUM

Vanadium is primarily used as an alloy to strengthen steel. It is also alloyed with titanium in the aerospace

industry and in vanadium redox batteries. Vanadium alloys are also used in nuclear reactors.

Demand for vanadium is expected to grow significantly with several forecasters expecting a supply deficiency

as early as 2013. This is driven by several factors:

1. The continued growth of economies such as China and India;

2. China, the world’s largest steel producer uses comparatively low amounts of vanadium per tonne of steel

produced. China has recently legislated to increase vanadium content in steel rebar. If it were to match the

steel quality of producers in north America and Western Europe, it has been estimated that the vanadium

required would equate to one-third of current worldwide supply per year;

Figure 3 - Graphite mineralisation in drill hole BMDD0003 showing some roscoelite


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3. Vanadium is used in lithium ion batteries for electric and hybrid cars and as a substantial component in

Vanadium redox batteries.

“Without a doubt, vanadium is growing into one of the world's most important metals about which no one has ever heard”. John Hykawy (Ph.D., MBA), materials analyst, Byron Capital Markets

CONCLUSION

As noted in earlier announcements, SYR believes that Balama is a world class graphite deposit. These vanadium results indicate that Balama may also host significant quantities of vanadium, which would become a very valuable by-product. As noted, some of the vanadium zones are substantial in the trenches. Balama has a strike distance of over 7 km. The green micaceous mineral identified as roscoelite is pervasive over much of this distance. The information in this report as it relates to geology, geochemical, geophysical and exploration results was compiled by Mr. Tom Eadie, FAusIMM, who is a Competent Person and Chairman of Syrah Resources Limited. Mr. Eadie has more than 20 years experience in the activities being reported on and consents to the inclusion of this information in the form and context in which it appears in this report.

Paul Kehoe Managing Director Syrah Resources Ltd Mobile contact - +61 3 414156288 Email – [email protected]


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APPENDIX – TRENCH ASSAY RESULTS TGC >20% IN RED, 10-20% IN MAUVE, <10% IN BLACK V>0.2% IN RED, 0.1 -0.2% IN MAUVE, <0.1% IN BLACK

SAMPLE RESULTS FROM TRENCH 1

Sample Number

From (m) To (m) TGC* (%)

V (%)

K004961 16 17 24.4 .03

K004947 21 22 22.8 .28

K004941 22 23 11.1 .05

K004958 23 24 16.2 .06

K004921 24 25 9.9 .05

K004922 25 27 17.7 .09

K004943 27 28 20.1 .10

K004919 34 35 20.3 .21

K004956 44 48 26.6 .15

K004926 48 52 23.9 .13

K004954 52 57 26 .18

K004953 59 62 31.1 .16

K004928 62 65 20.2 .15

K004931 65 69 20.1 .13

K004944 69 70 22.1 .32

K004952 70 73 22.6 .44

K004932 73 74 16.2 .44

K004929 74 75 18.1 .15

K004920 75 76 19.5 .36

K004971 76 77 20.8 .20

K004918 77 78 15.6 .41

K004973 78 79 14.5 .22

K004962 79 86 12.1 .29

K004964 86 93 14.9 .03

K004935 93 94 18 .26

K004917 94 95 15.2 .17

K004963 95 96 21.1 .29

K004967 96 100 21.1 .40

K004936 100 102 17.6 .32

K004906 102 104 19 .29

K004934 116 118 15 .29 *Total Graphitic Carbon


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Sample Number


V (%)

K004946 6 12 28.6 .23

K004937 12 14 24 .12

K004966 14 18 26.9 .16

K004908 20 21 23.1 .11

K004950 26 27 26 .22

K004902 30 33 20.5 .14

K004907 38 45 21 .14

K004940 45 51 21.1 .12

K004955 51 59 25.6 .15

K004959 59 66 27.8 .11

K004904 66 70 21.1 .11

K004910 70 75 23.5 .14

K004903 75 85 19.3 .11

K004939 85 89 25 .18

K004960 89 92 26.5 .11

K004925 92 105 23.9 .16

K004916 105 111 20.9 .22

K004949 114 121 23.3 .11

K004912 121 124 26.7 .27

K004945 124 127 24.7 .17

K004905 127 132 18 .20

K004914 132 136 21.8 .20

K004951 136 151 23.3 .21

*Total Graphitic Carbon SAMPLE RESULTS FROM TRENCH 3

Sample Number


V (%)

K004933 1 2 19.5 .27

K004948 2 3 22.7 .34

K004957 9 11 19 .31

K004909 11 12 19 .40

K004930 21.5 22.5 20 .31

K004911 42 43.50 19 .20

K004924 43.5 45 16.2 .20

K004965 59 60 19.7 .13

K004915 68 69 16.1 .13


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K004901 83 84 10.7 .18

K004972 91 92 14.2 .18

K004942 113 114 10.5 .16


Sample Number


V (%)

K004969 6 10 14.6 .19

K004968 10 14 13.5 .15

K004913 78 79 12 .08

K004938 88 94 9.6 .10

K004970 111 112 11 .14

K004927 120 121 11.3 .24


Sample Number


V (%)

A002001 38 40 10.3 .10

A002002 40 41 8.5 .08

A002003 41 43 8.5 .07

A002004 45 46 8 .06

A002005 47 48 9.2 .08

A002006 49 50 9.4 .14

A002007 52 53 7.5 .14

A002008 54 55 5.5 .04

A002009 55.5 56.5 8.3 .08

A002010 57 58 9.4 .10

A002011 58 59 8.7 .08

A002012 59.5 60.5 8 .06

A002013 62 64 3.7 .10

A002014 65 66 6.1 .08

A002015 67 68.5 5.2 .10

A002016 70 71 7.9 .06

A002017 71 72 6.1 .08

A002018 72 73 9 .12

A002019 73 74 8.8 .09


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A002020 74 75 9.2 .08

A002021 76 77 9.3 .06

A002022 77 78 9.1 .06

A002023 79 80 10.5 .09

A002024 80 81 9.4 .07

A002025 82 83 8.3 .06

A002026 86 87 6.1 .04

A002027 87 88 8.5 .05

A002028 89 90 6.1 .04

A002029 91 92 1.6 .01

A002030 92 93 3.8 .04

A002031 93 94 2.5 .07

A002032 95 96 11.6 .20

A002033 97 98 11.5 .11

A002034 98.5 99.5 7.8 .08

A002035 101 102 9.1 .10

A002036 102 103 9.5 .10

A002037 104 105 9.4 .08

A002038 105 106 8 .06

A002039 107 108 9.3 .07

A002040 109 110 9.6 .14

A002041 111 112 9.5 .15

A002042 112 113 14.2 .13

A002043 114 115 7.6 .09

A002044 115 116 7.3 .08

A002045 118 119 8.2 .12

A002046 121 122 10.8 .12

A002047 124 125 8.2 .13

A002048 126 127 8.2 .11

A002049 128 129 9.2 .10

A002050 129 130 11.9 .12

A002051 131 132 9.5 .14

A002052 137 138 7.4 .04

A002053 144 145 13.7 .24

A002054 147 148 14.4 .21

A002055 148 149 15.7 .15

A002056 149 150 15.4 .17

A002057 150 152 6.4 .06

A002058 153 154 11.1 .15

A002059 155 156 5.9 .04

A002060 157 158 6 .04

A002061 160 161 4.2 .04

A002062 163 164 3.4 .04


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A002063 165 166 6.8 .05

A002064 167 168 3.6 .12

A002065 171 172 10.2 .19

A002066 173 174 17.1 .23

A002067 174 175 11.5 .16

A002068 176 177 14.6 .21

A002069 177 178 16.4 .19

A002070 179 180 18.2 .23

A002071 180 181 18.3 .24

A002072 181 182 16.5 .22

A002073 182 183 16.2 .20

A002074 183 185 21 .21

A002075 189 190 6.1 .14

A002076 190 192 12.8 .23

A002077 192 194 23.1 .52

A002078 194 196 22.2 .37

A002079 196 197 20.1 .33

A002080 197 200 23.5 .32

A002081 206 207 17.8 .25

A002082 217 218 22.2 .36

A002083 223 224 25.9 .22

A002084 240 241 19.5 .17

A002086 302 304 5.6 .03

A002087 304 306 3.1 .04

A002088 306 307 4.6 .04

A002089 307 310 6.7 .05

A002090 310 312 5.7 .04

A002091 312 316 12.5 .09

A002092 316 319 17.6 .21

A002093 321 322 24.5 .27

A002094 324 325 10.1 .30

A002095 326 327 19.2 .19

A002096 327 328 20.8 .26

A002097 328 329 20.4 .21

A002098 329 331 11.1 .18

A002099 337 338 14.2 .19

A002100 340 341 13 .20

A002101 346 347 12 .07

A002102 347 349 14 .13

A002103 355 356 16 .18

A002104 357 358 14.3 .22

A002105 360 361 24.5 .13

A002106 361 362 23.9 .13


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A002107 363 364 21.9 .22

A002108 365 366 20.7 .22

A002109 366 367 18 .26

A002110 369 370 20.6 .25

A002111 374 376 17 .22

A002112 376 378 17 .22

A002113 378 385 15.1 .24

A002114 424 425 20.4 .37

A002115 425 426 25.7 .54

A002116 426 427 22.8 .46

A002117 428 429 21.3 .41

A002118 429 430 20.2 .32

A002119 431 432 18.2 .22

A002120 432 433 15.3 .21

A002121 435 436 21 .27

A002122 436 437 21.6 .20

A002123 437 438 21.7 .22

A002124 438 439.5 17 .22

A002125 439.5 441 21.5 .22

A002126 441 443 19 .29

A002127 443 444 17.4 .18

A002128 447 448 11.8 .11

A002129 448 449 19.7 .24

A002130 449 451 16.5 .37

A002131 451 453 21.1 .36

A002132 473 475 12.5 .18


Sample Number

From (m)

To (m) TGC* (%)

V (%)

A002205 0 10 9.9 .12

A002206 41 45 7.1 .24

A002207 45 47 12 .25

A002208 47 48 10.9 .24

A002209 51.5 60 8.2 .20

A002210 60 69 10.8 .21

A002211 69 80 10.3 .13

A002212 80 90 13.9 .21

A002213 90 100 5 .04

A002214 100 107 15.6 .25


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A002215 107 109 17.8 .30

A002216 109 112 16.8 .29

A002217 112 115 19.8 .27

A002218 115 116 16.4 .28

A002219 116 117 17.3 .27

A002220 117 121 18.3 .24

A002221 121 123 17.9 .18

A002222 123 124 15.1 .28

A002223 124 128 9 .17

A002224 128 131.60 20.1 .20

A002225 138 140 12.8 .16

A002226 140 141 11.5 .13

A002227 146.4 149.3 9.4 .14

A002228 149.3 160 9.7 .,11

A002229 160 165 9.3 .13

A002230 165 170 8.9 .15

A002231 170 190 9 .12

A002232 190 204 10.9 .17

A002233 204 209 9.9 .14

A002234 209 215.60 8.3 .09

A002235 229.60 240 8.9 .09

A002236 240 250 6.4 .06

A002237 250 255 8.9 .09

A002238 255 275 8.7 .08

A002239 275 280 9 .10

A002240 280 284 8 .07

A002241 284 295 10.7 .18

A002242 295 300 9.6 .18

A002243 305.40 313 8.3 .09

A002244 313 315 10 .14

A002245 315 318 9.3 .12

A002246 318 320 10.6 .12

A002247 320 322.80 9.4 .12

A002248 322.80 326 10.1 .10

A002249 326 329 10 .17

A002250 329 337 9.2 .13

A002251 337 339 9.7 .13

A002252 339 341 10.4 .15

A002253 341 343.80 9.2 .15

A002254 343.80 345 8.8 .15

A002255 347 448 8.3 .15

A002256 349 350 7.5 .12

*Total Graphitic Carbon


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Sample Number


V (%)

A002178 10 11 18.4 .23

A002179 34 35 14.6 .19

A002180 50 56 19.7 .34

A002181 56 60 18.3 .09

A002182 50 70 14.1 .14

A002183 70 80 20.8 .06

A002184 80 90 14.3 .25

A002185 114 115 16 .17

A002186 115 125 15.4 .10

A002187 125 130 19.8 .18

A002188 130 137.5 9.4 .13

A002189 161 162 2 .07

A002190 162 164 6.5 .09

A002191 164 174 5.5 .07

A002192 174 176 8.1 .05

A002193 188 197 6.3 .09

A002194 197 198 5.9 .12

A002195 198 201 6.6 .10

A002196 201 204 6.4 .09

A002197 204 206 6.1 .07

A002198 206 208 3.3 .07

A002199 208 210 6.3 .09

A002200 210 212 4.6 .06

A002201 222.5 223 5.3 .06

A002202 225.5 226 5.6 .09

A002203 226 228.5 6.2 .05

A002204 228.5 233 4 .06



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Sample Number


V (%)

A002133 0 1 23.5 .13

A002134 1 2 9.5 .07

A002135 2 6 23.9 .14

A002136 6 9 27.3 .32

A002137 9 12 30.8 .06

A002138 12 13 31 .11

A002139 13 20 29 .09

A002140 20 27 26.2 .18

A002141 27 29 27.9 .20

A002142 42.60 43 25.5 .06

A002143 43 50 23 .05

A002144 50 55 17 .04

A002145 55 60 21.1 .15

A002146 60 63 21 .08

A002147 63 67 25.8 .10

A002148 67 72 26.6 .08

A002149 72 77 30.9 .05

A002150 77 85 18.3 .35

A002151 85 90 23.2 .20

A002152 90 95 17.2 .18

A002153 95 100 17.4 .14

A002154 100 105 15.8 .11

A002155 105 110 14.5 .18

A002156 110 115 12.5 .20

A002157 115 120 19.2 .35

A002158 125 130 22.1 .12

A002159 130 135 18.9 .22

A002160 135 140 21.4 .12

A002161 146 150 24.3 .21

A002162 150 155 18.2 .16

A002163 155 160 11.3 .12

A002164 160 165 13.4 .13

A002165 165 170 13.1 .18

A002166 170 175 18.9 .27

A002167 175 180 16.7 .32

A002168 180 184 17.3 .13

A002169 202.3 204 17 .13

A002170 204 210 2 .09

A002171 210 212 6.2 .12


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A002172 212 214 8 .11

A002173 214 217 1.9 .15

A002174 217 221 4.8 .13

A002175 221 225 3.2 .10

A002176 225 230 2.9 .11

A002177 230 235 3.8 .13


Documents

Current Corporate Structure EXCITING VANADIUM RESULTS …