TRITON

MINERALS LTD

ACN: 126 042 215

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2015

TRITON MINERALS LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2015 CONTENTS

Page

Corporate Directory 2

Directors' Report 3

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 14 Condensed Consolidated Statement of Financial Position 15

Condensed Consolidated Statement of Changes in Equity 16

Condensed Consolidated Statement of Cash Flows 17

Notes to the Financial Statements 18

Directors' Declaration 31

Auditor's Independence Declaration 32

Independent Auditor's Review Report 33

CORPORATE DIRECTORY

DIRECTORS

The Directors present their interim financial report on the consolidated entity consisting of Triton Minerals Limited ('Triton' or 'the Company') and the entities it controlled at the end of, or during, the half year ended 30 June 2015 ('the Group').

1. The Board of Directors

   
   

   The following persons were Directors of Triton Minerals Ltd during the period and up to the date of this report unless otherwise stated:

   
   

   Mr Christopher Catlow - Non-Executive Chairman	Appointed 05 June 2015
   Mr Brad Boyle - Managing Director & CEO	Appointed 27 April 2012
   Mr Alfred Gillman - Technical Director	Appointed 27 September 2012
   Mr Alan Jenks - Non-Executive Director	Appointed 28 January 2014
   Ms Paula Ferreira - Non-Executive Director	Appointed 24 August 2015

   
   

2. Company Secretary

   
   

   Mr Michael Brady (Joint Company Secretary)

   
   

   Mr Brady is Triton's General Counsel and Joint Company Secretary. Mr Brady is a commercial lawyer admitted to the Supreme Court of Western Australia and the High Court of Australia. Mr Brady previously worked as a senior lawyer at an Australian top tier international law firm where he principally practised commercial and corporate law.

   
   

   Mr Brady holds undergraduate degrees in Law and Psychology (Murdoch), a postgraduate qualification in Applied Finance (Kaplan) and is a graduate of the Australian Institute of Company Directors (AICD). Additionally, Michael is undertaking a Masters of Laws (Corporate, Energy & Resources) at the University of Melbourne.

   
   

   Ms Paige Exley (Joint Company Secretary)

   
   

   Ms Exley is Triton's Chief Financial Officer and Joint Company Secretary. Ms Exley has over

   15 years of experience in financial and management accounting roles with ASX listed companies and more recently has held company secretarial roles for ASX listed and unlisted companies.

   
   

   Ms Exley holds a Bachelor of Commerce, with a double major in Accounting and Business Law from Curtin University and is a Chartered Secretary with a Post-Graduate Diploma of Applied Corporate Governance from the Governance Institute of Australia.

   
   

3. Principal Activity

   
   

   The principal activity of the Group during the financial period was to acquire, explore and develop areas that are highly prospective for graphite, vanadium, gold, and other precious and base metals and minerals in Australia, Africa and elsewhere.

   
   

   
   

4. Significant Changes in the State of Affairs

Long State Investments - Equity Placement Facility

On 27 January 2015, the Company announced that it had entered into a binding agreement with Long State Investments Limited ('LSI'), to provide the Company with an Equity Placement Facility for up to $20 million, over two years on the terms and conditions summarised in the ASX announcement.

On 30 January 2015, the Company issued 541,125 fully paid ordinary shares at a deemed issue price of $0.1848 as an implementation fee of $100,000 to LSI for the establishment of the Equity Placement Facility.

On 23 February 2015, the Company issued 4,548,763 unlisted options exercisable at $0.2748, expiring 23 January 2018 to LSI as consideration for entering into the Equity Placement Facility.

Acquisition of Mozambique Graphite project

On 27 January 2015, the Company also announced that following discussions with its joint venture partner Grafex Lda ('Grafex'), new terms had been agreed with the minority shareholders of Grafex to extend, for a further 12 months, the timeline for the second Tranche payment of US$5 million in cash and US$5 million equivalent in Triton shares, for Triton to acquire the remaining 20% equity interest in Grafex and all of the Mozambique graphite projects known as Balama North, Balama South and Ancuabe ('the Projects').

Under the new terms, Triton has paid an extension fee of US$200,000 to the minority shareholders of Grafex for the 12 month extension. During this 12 month extension period Triton has undertaken to pay a series of instalments of cash and shares to the minority shareholders of Grafex in full satisfaction of the second Tranche payment to obtain 100% equity interest in Grafex.

Triton is able to acquire a 90% equity interest in Grafex through the payment of US$3 million in cash and US$3 million equivalent in Triton shares to the minority shareholders of Grafex. Following this, Triton is able to acquire a 100% equity interest in Grafex through the payment of a further US$2 million in cash and US$2 million equivalent in Triton shares. Once an equity interest has been acquired, currently an 80% interest, Triton will maintain the earned equity interest even if it is unable to complete payment of the full second Tranche consideration. Triton earned an 80% interest in Grafex and the joint venture on 25 August 2014.

On 19 February 2015, the Company paid the extension fee of US$200,000 to the minority shareholders of Grafex and issued 7,661,877 fully paid ordinary shares at a deemed issue price of $0.1672 as part consideration towards earning a 90% equity interest in Grafex and the Projects.

On 24 March 2015, the Company paid part consideration of US$250,000 to the minority shareholders of Grafex and issued 1,671,009 fully paid ordinary shares at a deemed issue price of $0.1924 as part consideration towards earning a 90% equity interest in Grafex and the Projects.

On 28 April 2015, the Company paid part consideration of US$250,000 to the minority shareholders of Grafex and issued 826,626 fully paid ordinary shares at a deemed issue price of $0.3863 as part consideration towards earning a 90% equity interest in Grafex and the Projects.

On 25 May 2015, the Company paid part consideration of US$250,000 to the minority shareholders of Grafex and issued 917,692 fully paid ordinary shares at a deemed issue price of $0.3485 as part consideration towards earning a 90% equity interest in Grafex and the Projects.

4. Significant Changes in the State of Affairs (continued)

On 23 June 2015, the Company paid part consideration of US$500,000 to the minority shareholders of Grafex and issued 5,032,530 fully paid ordinary shares at a deemed issue price of $0.32 as part consideration towards earning a 90% equity interest in the Projects.

Joint Venture - AMG Mining AG

On 31 March 2015, the Company announced that it had signed a binding agreement to form a strategic alliance with AMG Mining AG ('AMG'), through the AMG subsidiary of GK Ancuabe Graphite Mine, SA ('GK'). The strategic alliance is for an initial exclusive period of two years during which the Parties will collaborate on the exploration, identification and development of graphite occurrences in the Ancuabe district, within the Province of Cabo Delgado in Mozambique. GK's Mozambique assets include permitted mining concession 4C that encompasses a functional graphite producing plant (on care and maintenance) and associated mining and production infrastructure in the Ancuabe district. Triton's exploration tenure completely surrounds this mining concession.

Off-take Agreement - Yichang Xincheng Graphite Co., Ltd

On 1 April 2015, the Company announced the signing of a 20 year binding off-take agreement to supply 100,000 tonnes of graphitic concentrate per year at a minimum sale price of US$1,000 per tonne, with Chinese graphite products specialist Yichang Xincheng Graphite Co., Ltd ('YXGC') for Triton's Mozambique Graphite ('TMG') ('Agreement'). Triton has exclusive rights to supply graphite to YXGC from Mozambique, Madagascar, Malawi and Tanzania.

The binding off-take agreement is conditional upon the following conditions being met within 36 month of signing the Agreement:

• Triton receiving all relevant government approvals;

• Triton commissioning a processing plant or plants;

• Triton achieving commercial production of Material to the satisfaction of Triton; and

• Triton providing YXGC notice of its intention to commence deliveries of Material.

Project Funding - Shenzhen Qianhai Zhongjin Group Co., Ltd

On 27 April 2015, the Company announced the formal signing of a letter of intent (LOI) with Chinese equity firm and resources trading house, Shenzhen Qianhai Zhongjin Group Co., Ltd ('SQZG'). Pursuant to the LOI, SQZG have agreed to provide up to US$100 million direct equity investment in Triton and up to a US$100 million debt facility funding for a total of up to US$200 million to build and develop a graphite concentrate operation with initial capacity to produce up to 200,000 tonnes of graphite concentrate per year at Nicanda Hill.

The debt facility will be for a maximum term of five years from the date of funding and during the term of the loan and until the debt full is paid in full, Triton agrees to provide SQZG with up to 200,000 tonnes of graphite concentrate at a fixed price US$875 per tonne FOB of material for any shipment, subject to purity of the graphite concentrate of not less than 90% and moisture content of up to 1%.

Both the project funding agreement and the off-take agreement are conditional on the completion of a formal due diligence by SQZG, to be completed no later than 30 June 2015 and the execution of final binding agreements.

On 2 June 2015, the Company announced that SQZG had sought an extension to the LOI equity and debt funding due diligence deadline of 30 June 2015 which was announced by the Company on 27 April 2015, for up to six months to incorporate a formal review of the Ancuabe graphite project as well as the Nicanda Hill project.

4. Significant Changes in the State of Affairs (continued)

Joint Venture Agreements - Yichang Xincheng Graphite Co., Ltd

On 14 May 2015, the Company announced the entry into two binding joint venture agreements with Chinese graphite products specialist Yichang Xincheng Graphite Co., Ltd ('YXGC') to develop and produce graphite enhanced products in Mozambique and China. The joint venture companies will source Triton Mozambique Graphite ('TMG') concentrate exclusively from Triton to develop enhanced graphite products.

Triton will hold a 49% interest in the China joint venture ('China JV') of which YXGC will be the operator. The China JV is conditional upon on the following conditions being waived or satisfied by the relevant party from the date which is thirty six (36) months from the Commencement Date, 13 May 2015, whereby either party may terminate the Joint Venture:

• Triton commissioning to its sole satisfaction a processing plant or plants of a size and scale capable of satisfying the graphite concentrate demand to produce Enhanced Product;

• incorporation of an entity/company of which the shareholders are Triton and YXGC each holding shares commensurate to their Participating Interest within 6 months of the Commencement Date ('JV Company');

• receiving all relevant Mozambique Government approvals; all relevant Chinese Government approvals or any other relevant Government approvals (including Australia);

• agreeing on an appropriate site for the Graphite Enhance Products Plant in China Hubei province of Xinshan;

• entry into a Shareholders Agreement between Triton & YXGC in relation to the JV Company which incorporates the terms and intent of the Joint Venture;

• agreeing on the Graphite Enhance Products Plant design, construction cost, timetable and size;

• agreeing to items/decisions of the Joint Venture that require unanimous approval of the Parties;

• agreeing to an initial Joint Venture budget and work program;

• agreeing on the initial cost and initial capital contributions ('Initial Contribution');

• undertaking the following items within six months from the Commencement Date;

• opening a Joint Venture bank account, with both Parties as co-signatories to the account;

• each Party depositing US$1 million into the Joint Venture bank account; and

• establishing a joint venture management team.

  
  

  Triton will hold a 70% interest in the Mozambique joint venture ('Mozambique JV') of which Triton will be the operator. The Mozambique JV is conditional upon on the following conditions being waived or satisfied by the relevant party, either Party may terminate the Joint Venture:

• Triton commissioning to its sole satisfaction a processing plant or plants of a size and scale capable of satisfying the graphite concentrate demand to produce Enhanced Product;

• incorporation of an entity/company of which the shareholders are Triton and YXGC each holding shares commensurate to their Participating Interest within 6 months of the Commencement Date ('JV Company');

• receiving all relevant Mozambique Government approvals; all relevant Chinese Government approvals or any other relevant Government approvals (including Australia);

1. Significant Changes in the State of Affairs (continued)

   
   

   • agreeing on the appropriate site for the Graphite Enhance Products Plant in near Pemba or Nacala, Mozambique;

   • entry into a Shareholders Agreement between Triton & YXGC in relation to the JV Company which incorporates the terms and intent of the Joint Venture;

   • agreeing on the Graphite Enhance Products Plant design, construction cost, timetable and size;

• agreeing to items/decisions of the Joint Venture that require unanimous approval of the parties;

• Agreeing to an initial Joint Venture budget and work program;

• Agreeing on the initial cost and initial capital contributions ('Initial Contribution'); and

• Triton electing, at its sole discretion, how it will provide its Initial Contribution.

Mozambique Capital Gains Tax

On 1 January 2015, a Mozambique capital gains tax regime applicable to the mining sector came into force. According to this regime, the tax in relation to a capital gain on the transfer of mining rights located in the Mozambique territory by non-residents is payable by the seller. In relation to this payment, the seller, the buyer or the entity holding the mining rights have joint and several liability for the payment of the tax in Mozambique. For more information refer to note 13.

Other

On 19 January 2015, the Company raised $31,964 through the exercise of unlisted options which were converted to 319,643 fully paid ordinary shares at $0.10 per share.

On 26 February 2015, the Company announced the appointment of key consultants engaged to complete a Definitive Feasibility Study at Nicanda Hill.

On 16 March 2015, the Company issued 7,142,857 shares at an issue price of $0.14 per share, with a free attaching unlisted option for every two shares issued being a total of 3,571,428 unlisted options exercisable at $0.20, expiring 16 March 2017. Through the issue of shares and options the Company raised capital of $1,000,000 excluding costs.

On 25 March 2015, the Company raised $256,500 through the exercise of unlisted options by Directors, Alfred Gillman and Alan Jenks which were converted to 2,565,000 fully paid ordinary shares at $0.10 per share.

On 26 March 2015, the Company raised $10,000 through the exercise of unlisted options by Director Brad Boyle which were converted to 100,000 fully paid ordinary shares at $0.10 per share. The Company raised a further $12,014 through the exercise of unlisted options which were converted to 60,070 fully paid ordinary shares at $0.20 per share.

On 26 March 2015, the Company issued 192,957 fully paid ordinary shares at a deemed issue price of $0.1924 per share to a consultant for the provision of consulting services.

On 27 March 2015, the Company raised $188,142 through the exercise of unlisted options which were converted to 940,710 fully paid ordinary shares at $0.20 per share.

On 7 April 2015, the Company raised $159,948 through the exercise of unlisted options which were converted to 799,738 fully paid ordinary shares at $0.20 per share.

On 8 April 2015, the Company raised $147,038 through the exercise of unlisted options which were converted to 735,192 fully paid ordinary shares at $0.20 per share.

1. Significant Changes in the State of Affairs (continued)

   
   

   On 15 April 2015, the Company raised $39,285 through the exercise of unlisted options which were converted to 196,427 fully paid ordinary shares at $0.20 per share.

   
   

   On 28 April 2015, the Company raised $3,571 through the exercise of unlisted options which were converted to 17,857 fully paid ordinary shares at $0.20 per share.

   
   

   On 28 April 2015, the Company issued 1,000,000 fully paid ordinary shares at a deemed issue price of $0.355 per share to a consultant, Oriental Link Holdings, for the provision of consulting services provided to secure a binding off-take agreement with Yichang Xincheng Graphite Co Ltd ('YXGC').

   
   

   On 6 May 2015, the Company raised $21,428 through the exercise of unlisted options which were converted to 107,142 fully paid ordinary shares at $0.20 per share.

   
   

   On 18 May 2015, the Company issued 34,301,382 shares to institutional and sophisticated investors at an issue price of $0.35 per share to raise capital of $12,005,484 excluding costs. The funds raised were used to progress the Feasibility Study at the Nicanda Hill project, commence an early works program at Nicanda Hill, undertake the initial drilling program at the Ancuabe Project and provide general working capital.

   
   

   On 28 May 2015, the Company held its Annual General Meeting, where amongst other matters shareholders approved the re-election of Mr Alan Jenks as a director of the Company, the ratification of prior issues of shares and options as well as an additional 10% placement facility.

   
   

   On 5 June 2015, the Company appointed Mr Christopher Catlow as Non-Executive Chairman and Mr Alan Jenks resigned as Chairman of the Company and became a Non-Executive Director.

   
   

   On 18 June 2015, the Company raised $30,000 through the exercise of unlisted options by Director Brad Boyle which were converted to 300,000 fully paid ordinary shares at $0.10 per share.

   
   

   On 18 June 2015, the Company issued 1,000,000 fully paid ordinary shares at a deemed issue price of $0.315 per share to a consultant, Oriental Link Holdings, for the provision of consulting services provided to secure a binding joint venture agreement with YXGC to produce enhanced graphite products.

   
   

2. Review of Operations

   
   

3. Projects

   
   

   Triton, through its majority 80% equity interest in Grafex Lda ('Grafex') is the registered holder of eight exploration licenses, of which six have been granted and two are in application, in the Cabo Delgado Province of northern Mozambique. The licenses comprise three project areas, known as:

   • Balama North Project

   • Balama South Project

   • Ancuabe Project

     
     

     All three areas are considered highly prospective for graphite.

     
     

     Triton currently holds an 80% equity interest in Grafex and has entered into an arrangement with the minority shareholder of Grafex to purchase the remaining 20% interest in exchange for the payment of US$5M in cash and US$5M equivalent in Triton shares.

     
     

     5. Review of Operations (continued) Balama North Project

     The Balama North Project is located approximately 230km west of Pemba, in northern

     Mozambique, in the vicinity of known graphite mineralisation. Over the past 18 months the Balama North Project has been established as the Company's flagship project and currently contains the world's largest and fourth largest graphite Mineral Resources, at Nicanda Hill and Cobra Plains respectively.

     
     

     In February 2014, the Company announced its maiden Inferred Mineral Resource Estimate comprising 103 Million Tonnes ('Mt') at an average grade of 5.2% graphitic carbon, containing 5.7Mt of graphitic carbon, at the Cobra Plain's deposit at the Balama North project. This resource is classified as Inferred in accordance with the guidelines of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).

     
     

     Table 1: Mineral Resource Estimate Table - Cobra Plains:

     
     

     Classification	Tonnes (Mt)	Grade (TGC%)	Contained Graphite (Mt)
     Inferred	103	5.2	5.7

     
     

     Competent Person's Statement

     The information in this report that relates to Mineral Resource estimate at the Cobra Plains deposit on Balama North project is based on, and fairly represents, information and supporting documentation prepared by Mr Mark Drabble, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr Drabble is not a full-time employee of the Company. Mr Drabble is employed as a Consultant from Optiro Pty. Ltd. Mr Drabble has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)'. Mr Drabble has reviewed and approved for release this announcement as it relates to Mineral Resources and consents to the inclusion in this report the supporting information in the form and context as it appears.

     
     

     One of the Company's most significant achievements to date is the announcement in October 2014 of the maiden Mineral Resource at Nicanda Hill. Triton achieved this milestone in only six months from the commencement of drilling at Nicanda Hill.

     
     

     The maiden Mineral Resource estimate ranks Triton's Nicanda Hill deposit as the largest combined graphite and vanadium deposit in the world.

     
     

     The total Mineral Resource estimate as at 31 December 2014 comprises 1,457 Million Tonnes ('Mt') at an average grade of 10.7%TGC and 3.93 Mt at an average grade of 0.27% of Vanadium Pentoxide ('V2O5') classified as either Inferred Mineral Resources or Indicated Mineral Resources in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition) as reflected in Table 2 below. This Mineral Resource has been reported inside geological wireframes (defined on the basis of mineralised graphite intercepts) and equates to a nominal 8% TGC cut-off grade.

     
     

     
     

     5. Review of Operations (continued)

     
     

     Table 2: Mineral Resource Estimate Table - Nicanda Hill:

     
     

     Classification	Tonnes (Mt)	Grade (TGC%)	Contained Graphite (Mt)	Grade (V2O5%)	Contained V2O5 (Mt)
     Indicated	328	11.0	36.1	0.26	0.85
     Inferred	1,129	10.6	119.7	0.27	3.05
     *Total	1,457	10.7	155.9	0.27	3.93

     *Note that some of the numbers may not equate fully due to the effects of rounding.

     
     

     Competent Person's Statement

     The information in this report that relates to Mineral Resource estimate at the Nicanda Hill deposit on Balama North project is based on, and fairly represents, information and supporting documentation prepared by Mr Mark Drabble, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr Drabble is not a full-time employee of the Company. Mr Drabble is employed as Managing Principal at Optiro Pty. Ltd. and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)'. Mr Drabble has reviewed and approved for release this announcement as it relates to Mineral Resources and consents to the inclusion in this report the supporting information in the form and context as it appears.

     
     

     Following the announcement of the Mineral Resource at Nicanda Hill, Triton released a Scoping Study for Nicanda Hill, which was undertaken and prepared by independent geological and mining consultants Optiro Pty Ltd. Based upon positive drilling results and the results of the scoping study, Triton engaged a complete technical team of experts, who possess a high degree of experience in graphite, to assist Triton with the completion of Feasibility Studies and an Environmental Management and Impact Assessment ('EIA') in relation to Triton's Mozambique graphite project. Results of the feasibility studies and EIA are expected late 2015.

     
     

     Balama South Project

     The Balama South Project is located approximately 35 km south of the Balama township within the same north-east trending geological domain covered by the Balama North project which hosts the Cobra Plains deposit and the Nicanda Hill prospect.

     
     

     To date, only limited exploration activities have been completed on the Balama South project. The major activity being a helicopter-borne geophysical survey of VTEM Plus (Full-Waveform) and magnetic gradiometer ('VTEM Survey').

     
     

     The Company believes that the Balama South project is highly prospective for graphitic mineralisation so further exploration programs are planned for the Balama South project to test anomalies identified through the VTEM Survey. It is hoped that in the medium to long term the Balama South project will be able to be integrated into the Balama North and Ancuabe projects as identified by the integrated development concept plan.

     
     

     Ancuabe Project

     The Ancuabe project is located approximately 60km west from Pemba, in northern Mozambique. The Company tenement holding surrounds the historic Ancuabe Graphite Mine.

     
     

     A program comprising over 1,800 line km of VTEM Survey was completed over the Ancuabe project licenses. As a result of the VTEM Survey, Triton confirmed that three new large and significant conductive responses (typical of high grade graphite mineralisation) have been identified within License 5336 of the project area.

     
     

     Prospect area 1 is particularly significant as it appears to form a potential satellite mineralised body along strike north east from the historic Ancuabe graphite mine, which is currently held by Graphite Kropfmuehl ('GK'), the operational graphite division of AMG Mining.

     
     

     
     

     5. Review of Operations (continued)

     
     

     Further, this location is important given its close proximity to the small functioning graphite processing plant at the Ancuabe graphite mine site.

     
     

     Reconnaissance mapping and sampling undertaken at Ancuabe, which was completed in the southern portion of prospect area 1, identified a substantial amount of graphitic outcropping in several locations, over a distance of approximately 3.5kms.

     
     

     Visual inspections of the rock samples taken from License 5336, appear to show a high proportion of large, jumbo and super-jumbo graphite flake, that appears to readily separate on the outer surface of the rock chip samples

     
     

     Very large flake graphite sourced from Ancuabe, may provide Triton the ability to produce a wide size range of high quality graphite concentrates in order to cater for a variety of end-user requirements. Further, the Ancuabe project could position Triton to take advantage of the expected future increase in demand for jumbo and large flake graphite.

     
     

     These prospects, and positive rock chip sampling results, offer Triton the opportunity to test for additional near-surface high-grade, high purity and very large flake graphite to complement the Company's Nicanda Hill Project.

     
     

     In addition to this work, Triton has signed a binding agreement to form a strategic alliance with AMG Mining AG ('AMG') through the AMG subsidiary of GK Ancuabe Graphite Mine, SA ('GK'). The strategic alliance between AMG and Triton is for an initial exclusive period of two years during which the Parties will collaborate on the exploration, identification and development of graphite occurrences in the Ancuabe district, within the Province of Cabo Delgado in Mozambique.

     
     

     Exploration work continues at Ancuabe with the goal of defining a Maiden Mineral Resource within the near future.

     
     

4. Integrated Development Plan




The Company is reviewing a number of development options in which the Ancuabe Project may be incorporated into the Nicanda Hill operations, in order to provide a greater commercial flexibility by providing a varied range of high-purity graphite flake sizes for end users.




Triton is investigating whether the Ancuabe project could be developed as either a stand-alone operation in close proximity to Pemba port facilities or transporting the graphitic material for treatment to the proposed Nicanda Hill operation.




An option being reviewed by Triton is the creation of a Central Processing Plant ('CPP') facility at Nicanda Hill. Under this proposal, Triton could supplement the Nicanda Hill material with graphite ore from both Ancuabe and, in the longer term, Balama South.




Although, Ancuabe is located approximately 150kms East of Nicanda Hill and normally transporting ore over this distance to the processing plant would limit the potential economics of a project, Triton considers that the use of back-loading on return from the Port of Pemba to Nicanda Hill, may be a commercially attractive option.




The potential of the Ancuabe super jumbo flake operation is considered by Triton to be complimentary to the Nicanda Hill operation. An integrated Nicanda Hill-Ancuabe development plan offers Triton the option to provide a supplemental range of graphite flake sizes.