Talga : Drill results to upgrade Europe's largest graphite resource

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ASX Release	ASX:TLG
3 March 2022

Drill results to upgrade Europe's largest graphite resource

• Final results from Talga's 2021 Vittangi drilling in Sweden return world-class grades, paving way to upgrade Europe's largest natural graphite resource for Li-ion batteries
• New deposit confirmed at Nunasvaara East with drill intercepts including:

• 1. 51m @ 28.4% Cg (from 8m) NUN21028 incl. 12m @ 35.7% Cg
  1. 22m @ 28.4% Cg (from 31m) NUN21012 incl. 8m @ 39.4% Cg
  1. 34m @ 26.1% Cg (from 40m) NUN21024 incl. 14m @ 28.2% Cg
• Niska South deposit extended at depth and along strike with intercepts including:
• 1. 24m @ 32.5% Cg (from 111m) NIS21011 incl. 9m @ 36.6% Cg

• 1. 26m @ 25.3% Cg (from 73m) NIS21005 incl. 9m @ 31.2% Cg o 22m @ 27.5% Cg (from 63m) NIS21010 incl. 7m @ 37.4% Cg
• Revision of Vittangi JORC graphite resources underway, with drilling to re-commence immediately to continue growing feedstocks for battery customer roadmaps

Battery and advanced materials company Talga Group Ltd ("Talga" or "the Company")(TLG:ASX) is pleased to report the final suite of results from its 2021 drill program at the Company's Vittangi Graphite Project in northern Sweden ("Vittangi" or "the Project").

Talga is building a vertically integrated operation to supply green natural graphite anode products to Li-ion battery manufacturers and automotive OEM customers. By 2031, Europe is forecast to require 1 million tonnes anode per annum (tpa), whilst global demand is projected to reach >8.3 million tpa1.

The Company's anode products are being trialled by more than 40 customers whose capacity roadmaps underscore the enormity of demand, globally and in Europe. As a result Talga is expanding its graphite mineral resources and in 2021 completed a 56-hole drill program at Vittangi (ASX:TLG 24 Nov 2021).

Final drill assay results have now been received, returning significant graphite grades, confirming a new deposit at Nunasvaara East and extending the Niska South deposit. A revision of the Vittangi JORC Mineral Resource has now commenced.

Talga Managing Director, Mark Thompson, commented: "With the commissioning of our Electric Vehicle Anode plant (EVA) underway Talga is well advanced in its plans for vertically integrated anode production in Europe. The consistent high grades from recent drilling at Vittangi are outstanding, and our world-class Swedish natural graphite deposits clearly have room for significant further growth. We are pleased to commence upgrading the scale of resources to match fast growing global demand for cleaner, secure battery supply chains."

Talga Group Ltd	Suite 3.03, Level 3,	[e-mail]	www.talgagroup.com
ABN 32 138 405 419	46 Colin Street	[phone]	Talga Group
ASX: TLG	West Perth 6005		@Talga_Ltd
	Australia

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Drill results

The 2021 drill program at Vittangi consisted of 56 diamond drillholes for 6,790 meters and targeted optimisation of existing mine developments, upgrading of resources (Fig 4), and conversion of exploration targets (Fig 5 and Table 6) to support Talga's customer driven expansion plans. Assay results from the final 23 drillholes have now been received and are reported below.

The drillholes successfully intersected targeted graphite units with assay results returning significant grades of graphite ("Cg") consistent with those previously reported from the program (ASX:TLG 24 November and 9 December 2021, and 2 February 2022).

Drilling at Nunasvaara East tested a 400m zone of the strong EM conductor previously thought to consist of discontinuous blocks (ASX:TLG 26 October 2021). However, assay results show wide, high- grade graphite intercepts with excellent continuity (Fig 1 and Table 1), confirming Nunasvaara East to be a new graphite deposit that remains open along strike and at depth.

Due to its location adjacent to the planned mill and concentrator, Nunasvaara East has high potential to favourably impact future development options. Although drill testing is at an early stage, the deposit will be included in near-term resource revisions. Future drilling will test if the newly identified deposit extends west to join up with the nearby Nunasvaara North resource or is a standalone deposit.

Figure 1 Cross section of new Nunasvaara East graphite deposit.

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Figure 2 View looking south over Vittangi graphite project during 2021 drilling and trial mining.

Drillholes at Niska South successfully intercepted targeted depth (Table 1 and Fig 3) and strike extensions forming part of Talga's JORC Exploration Targets (see Table 6) (ASX:TLG 20 July 2021).

The mineralisation at all of the Vittangi graphite deposits; Niska South, Niska North, Nunasvaara East, Nunasvaara South and Nunasvaara North remain open along strike and at depth.

Drillhole location details are in Table 3 and Figure 4, with significant intercepts summarised in Table 1 and Figure 4, and intercept assay details in Appendix Table 8.

Next steps

A revision of Talga's Vittangi graphite resources (Table 4) is now underway to support and optimise future expansion plans. This Mineral Resource upgrade is planned for completion in late Q2 2022 and aims to expand what is currently Europe's largest JORC or NI43-101 defined graphite mineral resource (see Table 7).

Information received from completed geotechnical and water bore drilling will be compiled and used to optimise aspects of the Nunasvaara South DFS mining plan over the first few years of operation.

Building on the latest drill results and SkyTEM survey (ASX:TLG 26 October 2021) a new 26 hole drill program will commence at Vittangi in coming weeks. The new program will test the JORC exploration target linking the Niska South and Niska North resources (see Figure 5), with a view to revise resources further in the second half of 2022.

Authorised for release by the Board of Directors of Talga Group Ltd.

For further information please contact:
Mark Thompson	Nikki Löf
Managing Director	Group Communications Manager
Talga Group Ltd	Talga Group Ltd
[phone]	[phone]

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Figure 3 Niska South cross section showing successful 2021 depth extension intercept down-dip of 2019 intercepts (see ASX:TLG 5 June 2019).

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Figure 4 Plan of 2021 Vittangi drillholes and significant intercepts.

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