Evolution Energy Minerals announce the commencement of exploration drilling at its Chilalo Graphite Project ("Chilalo"), located in south-east Tanzania. The program is comprised of approximately 3,000m of shallow reverse circulation ("RC") drilling into a number of the strongest electromagnetic ("EM") conductors, with step-out drilling from the most promising targets expected to follow. The total program is expected to be approximately 7,500m.

The use of EM surveys has proven itself to be an effective technique at identifying the conductors that are indicative of high-grade and/or thick graphite mineralisation and underpinned the discovery of Chilalo. Based on the previous results generated from this approach, the Company is confident that it will again deliver further success. The previous Definitive Feasibility Study ("DFS"), completed in 2020, identified a number of opportunities that could improve Chilalo's economics, one of which was exploration upside.

The discovery of any additional near-surface high-grade deposits has the potential to contribute to a reduction in mining operating costs compared to those in the DFS, by deferring the need to mine the existing deposit to the depth assumed in the DFS. Notwithstanding the upside opportunity associated with exploration success, Chilalo is a robust, long mine life project and mineral resource growth is not a requirement in order to obtain finance for construction. The DFS is currently being updated, with the results expected to be available later this quarter.