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PRESS RELEASE: Kibaran Resources Limited: EPANKO -2-

3 Apr 2017 6:51 am
hammer with a diameter of approximately 140mm. All samples were bagged and ticketed 
with unique sample numbers. 
 
Drill samples were sent to the SGS Laboratory at Mwanza (Tanzania) for sample 
preparation, with the pulps sent to SGS Johannesburg for assaying. All samples were 
crushed using an LM2 mill to -4mm and pulverised to a nominal 80% passing -75 µm. 
 
*Sample Analysis* 
 
Total carbon is measured using LECO technique. The sample is combusted in the 
oxygen atmosphere and IR used to measure the amount of CO2 produced. Calibration of 
the LECO instrument is completed by using certified reference materials. 
 
For the analysis of TGC, a 0.3g sample is weighed and roasted at 550 C to remove 
any organic carbon. The sample is then heated with diluted hydrochloric acid to 
remove carbonates. After cooling the sample is filtered and the residue rinsed and 
dried at 75 C prior to analysis by the LECO instrument. LECO analysis are completed 
by total combustion of sample in the oxygen atmosphere and using IR absorption from 
the resulting CO2 produced. 
 
*Estimation Methodology* 
 
A block model with parent cell sizes of 10m (Easting) by 25m (Northing) by 20m 
(vertical) was constructed, compared to the typical drill spacing of 20m x 50m 
within the Measured and Indicated volumes. 
 
Grade estimation was by ordinary kriging with inverse distance squared estimation 
run concurrently as a check estimate. A minimum of 4 and maximum of 12 composited 
samples were used in any one block estimate. A maximum of 5 composited samples per 
drill hole were used in any one block estimate. Cell Discretisation of 5 by 5 by 5 
was used. Grade interpolation was run with hard boundaries between the individual 
mineralisation domains (for Epanko East), and with the Base of Complete Oxidation 
surface acting as a hard grade interpolation boundary within the domains. 
 
All drill hole data (RC and diamond) and trench assays were utilised in the grade 
interpolation. A Quality Assurance study of the RC drilling coupled with a due 
diligence and twin drilling (diamond core) programme confirmed the RC drill holes 
could be used with the diamond core samples as part of the grade interpolation. A 
statistical study of the trench assay data demonstrated a slightly higher grade TGC 
population to the conventional drilling sample assay results, and a decision was 
made to limit the influence of the trench sample data to the Oxide weathering zone. 
 
Density values of 1.92 t/m3, 2.33 t/m3 and 2.84 t/m3 were applied to the oxide, 
transitional and fresh weathering domains respectively for the Mineral Resource 
located in the Western Zone. Density values of 1.76 t/m3, 2.43 t/m3 and 2.79 t/m3 
were applied to the oxide, transitional and fresh weathering domains respectively 
for the graphitic schist domain in the Eastern Zone. 
 
*Mineral Resource Classification* 
 
Classification of the Mineral Resource estimates was carried out taking into 
account the geological understanding of the deposit, quality of the sample data, 
quality of the local block estimates, quality of density data, and drill hole 
spacing. Metallurgical results related to flake size and sample purity, as well as 
marketing agreements in place supported the classification, as per Clause 49 (JORC 
2012). 
 
The Mineral Resource is classified as Measured, Indicated and Inferred, with 
geological evidence sufficient to confirm geological and grade (and quality) 
continuity within the Measured volumes, between points of observation where data 
and samples are gathered. The Indicated classification level was applied to the 
volumes where geological evidence is sufficient to assume geological, grade and 
quality continuity. The Inferred classification level was applied to the volumes 
where geological evidence is sufficient to imply but not verify geological, grade 
and quality continuity. 
 
Mineral Resource classification was carried out by stepping through both the West 
and East models, and creating 3D wireframe surfaces constraining the resource 
classification levels (Western Zone) or by applying northing and easting limits 
(Eastern Zone). Weathering profiles also controlled the classification, with the 
oxide weathering zone generally classified at the same or higher level to the 
adjacent blocks in transitional and fresh zones, due to high confidence in the 
geological continuity of graphitic schist as observed in outcrop and from trench 
data. 
 
A reporting cut-off grade of 8% TGC was previously used to report the Mineral 
Resource. 
 
The Competent Person (Mineral Resources) and Kibaran are of the opinion that there 
are reasonable prospects for eventual economic extraction for the Epanko Graphite 
Project. 
 
The project is now at an advanced stage of study, with mining approvals, 
environmental studies, landholder agreements (in negotiation) all supporting the 
eventual extraction of ore from the project. The deposit outcrops at surface on two 
hills providing low strip ratios which enhance the project economics. Metallurgical 
studies have confirmed that Epanko graphite is of high purity and >75% of the 
product is >150microns (100mesh) with large flake constituting >50% of the product. 
 
Due to the excellent metallurgical characteristics offtake agreements have been 
established with major, blue-chip graphite consumers and suppliers. 
 
Ore will be transported by road to Dar es Salaam for shipment to European and Asian 
markets. A new road bridge has been completed across the Kilombero River in 
Tanzania with approach roads scheduled for completion in the near future. This 
bridge will significantly decrease the haulage time and costs to Dar es Salaam 
port. 
 
*Table 2:* Summary of Significant Drill Intersection completed during the quarter 
on Western and Eastern Zones showing significant total graphitic carbon ("TGC") 
intervals*. 
 
                                    *WESTERN* 
*Hole   *Hole  *Easting*  *Northing* *Azimuth* *Dip* *From   *To *Interval* *TGC%* 
Type*     ID*                                         (m)*  (m)* 
 DD   MHDD042 243839.189 9036052.821    90      -50  54.87 62.45    7.58     10.3 
                                                     145.7  162     16.3     12.3 
                             165      167.57   2.57  10.4 
                            175.4       185     9.6   9.9 
                           189.39      195.8   6.41   9.2 
                            204.2     207.68   3.48  11.4 
                           209.75       212    2.25  10.2 
      MHDD045 243862.626 9035952.611    270     -60  6.85    9      2.15     9.6 
                                                     59.58  62      2.42     10.0 
                            74.53      93.7    19.17  9.9 
      MHDD046 243864.609 9035953.098    90      -50   3.8   6.4     2.6      10.1 
                                                     15.8  20.3     4.5      14.3 
                             99       161.38   62.38 11.9 
                             192       197.3    5.3   9.6 
                           200.08       203    2.92   9.6 
      MHDD048 243887.448 9035857.213    90      -50   27    29       2       9.5 
                                                     29.3  33.2     3.9      11.0 
                            33.8        45     11.2   9.7 
                            137.9     153.84   15.94  9.7 
                           161.66     164.48   2.82   9.5 
      MHDD051 243886.309 9035857.254    270     -60  11.3   17      5.7      9.7 
                                                     17.3  21.25    3.95     13.0 
                            21.55      27.6    6.05  11.3 
                           105.47     108.33   2.86   8.1 
                             116      123.39   7.39   8.5 
                             134      138.84   4.84   9.6 
                           141.72     153.72    12    9.5 
      MHDD053 243886.854 9035857.309    270     -80  36.49 52.8    16.31     9.5 
                                                      63    77       14      10.8 
      MHDD054 243839.229 9036055.017    270     -80   5.4   8.2     2.8      9.5 
                                                      61   73.08   12.08     13.0 
                            92.25       99     6.75  11.4 
      MHDD056 243840.472 9036051.837    45      -60    1    4.5     3.5      9.4 
                                                     35.5  37.5      2       8.2 
                            102.3     106.15   3.85  10.7 
                           122.77      132.5   9.73  10.7 
      MHDD057 243863.525 9035954.577    270     -80    6    10       4       8.9 
                                                      79    82       3       9.3 
                             97       100.05   3.05  12.2 
      MHDD058 243801.559 9036152.193    270     -80    0    2.7     2.7      12.1 
                                                       3    5.2     2.2      16.2 
                            36.73      44.48   7.75   9.1 
      MHDD059 243794.577 9036195.321    270     -80   3.9   9.6     5.7      11.3 
                                                     11.4  15.3     3.9      15.5 
                            22.82      26.85   4.03   8.1 
      MHDD060 243897.153 9036750.683    225     -50   6.9   9.6     2.7      13.8 
                                                      9.9  12.5     2.6      13.8 
                            18.9       21.6     2.7   9.7 
                            32.08      48.69   16.61  9.6 
                            50.75      55.97   5.22   8.8 
                            77.29      79.44   2.15   8.0 
                           106.39      108.9   2.51   9.4 
                           120.28       123    2.72  10.6 
      MHDD061 243794.957 9036246.294    270     -80   2.4   5.1     2.7      12.9 
                                                      6.9   9.4     2.5      13.2 
                             15         18       3    8.1 
                            20.8       27.17   6.37  10.4 
                             29        35.47   6.47  11.2 
                            35.9       44.42   8.52   8.7 

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April 03, 2017 02:51 ET (06:51 GMT)
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