10 December 2014

MARKET UPDATE

INTRODUCTION

Syrah Resources Limited (ASX: SYR, Syrah or the Company) is pleased to provide the following update to the market:

 Definitive Feasibility Study (DFS) - the DFS is rapidly being finalised and is expected to be announced in early 2015. Initial feedback indicates a long life project that is both technically and financially robust

 Environmental report - the environmental report will be lodged in the next two weeks and approval is expected in early 2015

 Offtake and marketing agreements - binding offtake agreements totaling ~120,000 tonnes per annum are currently being finalised. Syrah is confident that a successful outcome will be achieved shortly. Trial recarburiser pellets and spherical graphite samples have been sent to Marubeni and discussions with major battery producers have commenced

 Spherical graphite - Chalieco has commenced work on an Economic Feasibility Study targeting a

25,000 tonne per annum scenario which is expected to be finalised in Q1 2015. Trials have also commenced on the coating of Balama spherical graphite along with test work on its electrochemical properties. These results will be presented to global battery producers once finalised.

Tolga Kumova Managing Director Syrah Resources Ltd

Office contact - +61 3 9670 7264
Mobile contact - +61 3 421 707 155
Email - [email protected]
Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street
Melbourne 3000 Australia Ph: 03 96707264

About Syrah Resources

Syrah Resources (ASX code: SYR) is an Australian resource company that is rapidly progressing its flagship Balama Graphite and Vanadium Project in Mozambique to production. The Project currently hosts one of the largest graphite and vanadium resources in the world with an Australasian Joint Ore Reserves Committee (JORC) compliant resource of 1.15 Bt at 10.2% total graphitic carbon (TGC) and

0.23% V2O5. Balama is a 106 km2 granted mining licence located within the Cabo Delgado province in the district of Namuno in northern Mozambique. The Project is approximately 260 km by road west of Pemba and is accessible by a sealed, main road, running directly from Pemba Airport. The Port of Nacala is approximately 460 km by road south east of the Project and is the deepest port in Southern

Africa.

Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street
Melbourne 3000 Australia Ph: 03 96707264