Syrah Resources Limited Corporate Presentation – May 2014

Image: Core from Ativa Zone being logged at Balama

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Executive Summary Exceptional world class graphite and vanadium asset

- LARGEST resource globally - Exceptional HIGH GRADE zones - OUTCROPPING deposit (low strip ratio) - Excellent infrastructure (deep water port, dam, grid power, all weather roads) - Expected to be the LOWEST COST producer worldwide - Simple metallurgy

Remarkable project economics (based on scoping study) due to excellent infrastructure and ore characteristics

- US$92mn capex (graphite only) - Mine gate cost of US$102/t - Total FOB costs of US$198/t to the port of Pemba.

Syrah’s unique project characteristics (i.e., size, cost, grade) enables it to target multiple markets and be a global

leader in the graphite/carbon market. Few mines have the ability to be competitive across multiple segments like Syrah

- Traditional graphite markets (refractories, metallurgy, lubricants) - New graphite markets (lithium ion battery markets – Electric / Hybrid, fuel cells, expandable graphite) - Substitution into carbon markets (aluminium anode and cathode blocks / recarburiser)

Vanadium production study substantially progressed - 98.5% V205 for steel industry - 99.9% V205 for redox flow batteries (grid storage application)

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Australian Stock Exchange listed

Head office based in Melbourne

Market capitalisation (undiluted) of A$596 million at A$3.67 per share as at 16 May 2014

162,485,614 shares on issue

3,859,467 options on issue

~$32m cash on hand as at 31 March 2014

Directors’ direct and indirect interests total 29% of current shares on issue

Overview Syrah Price and Volume – last 2 years

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January 2012 July 2012 January 2013 July 2013 January 2014

High: $3.99

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Tom Eadie Non-Executive Chairman

Twenty years experience within the junior resources sector and at technical to senior executive levels with major mining companies

He is a past board member of Royalco Resources Ltd, the Australasian Institute of Mining and Metallurgy (AUSIMM) and the Australian Mineral Industry Research Association (AMIRA)

Currently also the Executive Chairman of Copper Strike

Paul Kehoe Managing Director

Accountant and geologist with extensive corporate finance and restructuring experience through previous senior management roles with PricewaterhouseCoopers and Grant Thornton

Worked with a group of ASX listed resource companies, performing company secretarial functions, business development and geology roles

Tolga Kumova Executive Director

15 years experience in stockbroking, corporate finance and corporate restructuring Specialised in initial Public Offerings and capital requirements of mining focused companies

Rhett Brans Non- Executive Director

Operated a consultancy providing project management services to the mining Industry for the past 20 years. More than 35 years experience in the design and construction of mineral processing facilities Extensive African experience (Perseus Mining and Tiger Resources)

Michael Chan General Manager, Balama Project Development

35 years industry experience in senior operations, project development and commercial roles 10 years of extensive rare earth project experience including complex metallurgical flow sheet development. Previous roles include General Manager of Project Development at Kimberly Rare Earths, Procurement/Supply

Chain Manager at Arafura Resources Ltd and Commercial Manager for Lynas Corporation Ltd’s Malaysian Operations

Board of Directors and Management Team

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Project Locations

Tanzania

Democratic Republic of the Congo

Angola

Namibia

Botswana

South Africa

Lesotho

Swaziland

Zambia

Madagascar

Malawi

Kenya

Uganda

Mozambique

Rwanda

Burundi

Tanzania HM

Nachingwea

Shikula

Sasare

Lunga

Ngamiland

Balama

Zimbabwe

Excellent all-weather roads, dam and power enabling strong project economics

Container export through Port of Pemba

Additional ports currently being planned for

construction in Pemba

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The Project

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Balama is an exceptional resource - 1.15Bt of graphite resource at 10.2% TGC [1] and 0.23% V2O5 - 117Mt of contained graphite and V2O5 - Larger resource than the rest of the world’s reserves combined [2]

- Large high grade areas (>15% TGC) to be mined first

Balama also has one of the largest deposits of vanadium globally - 2.7Mt of resource - Approximately 6 times the size of South Africa’s Rhovan deposit, the world’s largest operating

vanadium deposit

(1) TGC = Total Graphitic Carbon. (2) Calculated by USGS (Source: Mineral Commodities Summaries 2012—USGS).

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Balama is the world’s largest deposit of high grade graphite

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Comparison of flake graphite deposits globally

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ArcherCastle

Energiser/Malagasy

Flinders

Focus

Graphite One

KibaranLamboo Lincoln

Mason Graphite

Northern Graphite

Valence Industries

Stratmin

Syrah East

Syrah High Grade Total

Syrah West

Triton

(10)

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0% 5% 10% 15% 20% 25%

Cont

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d G

raph

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in R

esou

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(Mt)

% Head Grade (TGC)

1. Note that Syrah Resources uses a cutoff grade of 13% TGC in determining its resources versus cutoff grades of 2%-8% TGC used by other companies2. Excludes deposits in China as no public data is available3. Only includes deposits with a substantial flake graphite content

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Global Inferred Resource 1.15 billion tonnes at 10.2% TGC and 0.23% V2O5 (Inferred)

Ativa Zone – 51 million tonnes @ 19.9% TGC and 0.38% V2O5 (Measured, Indicated and Inferred)

Mepiche Zone – 214 million tonnes @ 16.0 % TGC and 0.43% V2O5 (Measured, Indicated and Inferred)

Mualia Zone – 117 million tonnes @ 17.7% TGC and 0.46% V2O5 (Inferred)

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Continuous Graphite Exposure

Mt Nassilala

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Overview of Balama Resource: Multiple zones and grades available for different end markets

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Flake size distribution

The spherical graphite was produced from fine grained Balama graphite (100 μm) resulting in a finer grained sphere which is ideal for lithium ion battery use

Consumer battery producers utilise graphite with 90% distribution at <10 μm)

The spherical graphite produced by Syrah consisted of the following distributions and specifications:

90% Distribution <6.63μm

50% Distribution

<4.69μm

10% Distribution

<2.73μm

Feed Size 100 μm

D90: 6.63 μm

D50: 4.69 μm

Specific surface area: 1.47sqm/cc

Spherical graphite yield: 50%

Flake graphite feed size 100 μm

Spherical Graphite

Metallurgical testwork on Balama East flake graphite shows that 58.3% of the processed material is coarse to very coarse (80+ mesh and above)

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Economic Assessment Results (from Snowden Mining Study) has confirmed:

− Low capital cost of US$92 million (graphite only)

− Mine gate cost of US$102/t

− Total FOB costs of US$198/t to the port of Pemba.

− The projected operating costs are bottom of the cost curve for graphite production

Drivers of low cost:

− Open pit mining (no drill and blast) with negligible strip ratio

– Favorable infrastructure is assisting strong project economics—water, roads, power, port

– High grade ore and simple metallurgy

− Affordable labour

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Syrah is expected to be the lowest cost producer in the world [1]

[1] Based on scoping study prepared by Snowden Mining Industry Consultants in June 2013

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Metallurgical test work has been conducted on Balama graphitic material by two international laboratories

Uncomplicated graphite metallurgy via flotation achieved high grade concentrate (96-98% TGC) and high recovery (92%)

Low levels of ash, volatile, moisture and sulphur

Flowsheet optimisation currently being completed by pilot plant testwork

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Simple graphite metallurgy given quality of resource

WHIMS: Wet High Intensity Magnetic Separator

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Balama Vanadium - highlights

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Scoping Study on vanadium completed May 2014

The market size is currently 140,000t/year V2O5, due to rise 50% by 2017 [1]

Syrah plans to produce 5,000-10,000t/year based on Scoping Study

98.5% vanadium pentoxide sells for between US$12.5 - US$15 per kilo

99.9% vanadium pentoxide can sell for approximately US$50 per kilo

46 tonnes of 99.9% V2O5 is required per 1 MW. Energy storage market is

forecast to be upwards of 300GW over the next 20 years [2]

[1] Reference: TPP Squared Inc

[2] Reference: ‘Projections of the future costs electricity generation technologies ‘ CSIRO 2011

Balama 98.5% vanadium pentoxide concentrate from stage 2 processing

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Initial test work indicates that high grade concentrate can be produced by simple magnetic separation and flotation with high recovery achieved

Preliminary V2O5 hydrometallurgical test work indicates mature technology (soda bake and alkaline leach process) is amenable to processing of Balama V2O5 concentrate

Leaching efficiency in excess of 85% and Ammonium Meta Vanadate (AMV) precipitation of >97% is achievable

Potential to sell a concentrate or further refine to vanadium pentoxide flake

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Metallurgy – Vanadium

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PEMBA PORT

Located within close proximity of deep water port facilities at Pemba (~240km)

− Third largest port in Mozambique

− Deepwater container port

− Available capacity for initial volumes proposed to be shipped by Syrah

ROAD

Main road connects Project to Pemba Port

− Sealed, well maintained road to Monte Puez (~200km)

− Remaining 35km currently unsealed with construction underway to seal remaining distance by end of CY2014

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Key Infrastructure – Part 1

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WATER

Large regional dam, Chipembe, located only 12km from the Balamba processing plant

− Dam underutilised (local agriculture only)

− Capacity required by Syrah have been contracted and allocated

POWER

Region currently being connected to the National Power Grid

− Power lines currently being installed between Balama town and Monte Puez

− Hydroelectricity = very competitive energy costs

− 4.7c per KW peak rate for residential

Key Infrastructure – Part 2

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Chalieco Memorandum of Understanding

MOU for offtake for 80,000-100,000 tonnes of graphite per annum and a quantity of vanadium to be determined, signed with Chalieco, a member of the Chinalco Group

Parties to negotiate a legally binding offtake agreement within three months

Chalieco intends to use the graphite mainly as a substitute for petroleum coke, anthracite and other forms of

carbon used to manufacture aluminium cathode and anode blocks

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Aluminium anode block Aluminium cathode blocks

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Asmet Memorandum of Understanding

MOU for offtake for 100,000 – 150,000 tonnes of graphite per annum at a price of approximately US$1,000 per tonne over an initial 5 year period, signed with Asmet (UK) Limited, a European trader of metallurgical consumables (including carbon) to the iron, steel and aluminium industries

Graphite intended to be used by Asmet as a recarburiser in mainly foundry applications and high quality steel production

Syrah will provide Asmet with two to three tonnes of sample graphite products for testing

Subject to successful completion of this testwork, Syrah and Asmet will be required to negotiate, in good faith, a formal offtake agreement for the sale of graphite

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Engine block made from gray iron which uses graphite as a carbon alloy Recarburiser pellet made from Balama graphite

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Significant investment has been made in local infrastructure

− Water bores drilled for use in neighbouring villages and Infrastructure programs commenced at Balama hospital

Strong supporter of local economies

− Large employer of local labour and developing training programmes to develop a local workforce

Balama operations will invest in local agricultural development for food supplies

Strong focus on improving local community health and education

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Community Development

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Timeline to Production

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Q2 CY14 Q3 CY14 Q4 CY14 Q1 CY15 Q2 CY15 Q3 CY15 Q4 CY15 Q1 CY16

Vanadium Scoping Study

Environmental Approval

Bankable Feasibility Study

Debt Financing

Construction

Full Production

Commissioning

In just 5 years, Syrah Resources

will have progressed from a grass roots explorer to a leading graphite producer

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Investor Education

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Price Volume Market Size

Traditional Graphite Market • Natural Flake • Batteries/new applications

US$700-3000/t US$3500+/t

1Mt 80Kt

US$1 billion US$320 million

Substitution/Alternative Markets • Synthetic Graphite – Electrodes – Carbon – Blocks

Up to US$15,000/t 1Mt US$12 billion

Carbon Market • Petroleum Coke • Calcined Pet Coke • Other

< US$1,000/t

30Mt 7Mt 13Mt

US$24 billion Addressable Market

Syrah has the ability to serve multiple segments of the market as a result of size and low cost

Low Cost

Largest Resource

Potential to

capture

multiple

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9%

2%

68%

13%

3% 5%

Natural Graphite Market by Region, 2011

Brazil Canada China India North Korea Other

Traditional Natural Graphite Market Overview

Refractories, Foundries, Crucible

37%

Metallurgy 29%

Parts and Components 11%

Lubricants 8%

Batteries 8%

Others 7%

Natural Graphite Market by Sector/Application, 2011

New Markets Li-Ion Batteries Fuel Cells Pebble Bed Nuclear Reactors Graphene

Source : Industrial Minerals Source : USGS and Industrial Metals Magazine

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Global Graphite Demand (k tonnes)

Source : USGS and Industrial Metals Magazine

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E 500,000

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Growth with Batteries (9%) Growth w/o Batteries (3%)

2.5Mtpa+ from additional battery demand

Up to 1.5Mtpa

Demand Forecasts Estimations for Graphite Market

Average 3.3% per year growth by 2016

Average 8.8% per year growth for Batteries

Additional 1.4 million tonnes demand by 2020

Source : USGS and Industrial Metals Magazine

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Pricing Forecasts (Industrial Minerals)

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Spherical Graphite – Battery Anode

High quality spherical graphite was produced from Balama flake graphite

Spherical graphite was produced from fine grained Balama graphite (100 microns) resulting in finer grained sphere which is most ideal for lithium ion battery applications

Consumer electronic batteries require sub 10 micron due to higher surface area and energy density requirements

Historically automotive batteries have used 15-20 micron material due to cost

Significant interest for Balama spherical graphite has been shown by Asian based battery groups

Spherical graphite pilot plant has been constructed and samples will be sent to all major battery producers in the coming months

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Alternative Markets

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Synthetic Graphite Market Carbon Market

US$12 billion market US$24 billion market

7Mt

13Mt

50Mt

Annual Consumption (Mt)

Calcined Petroleum Coke

Anodes for Aluminium

Others (GPC etc)

38%

11%

8%

43%

Synthetic Carbon

Synthetic Graphite Others

Synthetic Graphite Blocks

Synthetic GraphiteElectrode

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Green petroleum coke is used in anode blocks after calcinations by aluminium smelters

Used in reduction process of Al2O3 to aluminium metal (Al)

Low sulfur and high carbon material is required

High quality raw material is scarce in the market

Supply deficit of high quality material

560 kg of anodes consumed per ton of aluminium produced

450 kg of green coke or 360 kg of calcined petroleum coke required for one tonne of aluminium production

Over 13 million tonnes per year of anodes required for aluminium production

Over eight million tonnes per year of calcined petroleum coke is required

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Anode Blocks for Aluminum

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Calcined petroleum coke is the main source

Main use is as a carbon additive in iron and steel production mainly in electrical arc furnaces

Low sulfur, high carbon material is required

Graphite is the best material for this application as it is pure carbon and soluble in molten metal

Supply deficit of high quality material

Recarburiser requirements vary by raw material and final product

− 30–40 kg is required per ton of iron by scrap metal

− 3–30 kg is required per ton of pig iron

− 1–2.5 kg is required per ton of steel

Over seven million tonnes of calcined petroleum coke is traded per year

The total value of this trade is over US$3 billion per year

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Recarburiser—Carbon Raiser

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Used in electrical arc furnaces for steel and iron production

Special grade petroleum coke called “Needle Petroleum Coke” is used

High carbon grade and very low sulfur material is required with crystalline structure (after graphitising)

Required 1,000 degrees C baking and 3,000 degrees C of graphitisation process = very high energy consumption

2.5 kg of electrode is consumed for production of 1 mt of steel

1.5 million tonnes of consumption of electrodes per year

Over US$3.5 billion market trade value

Using natural graphite could create a huge cost saving as it could enable skipping the graphitisation process

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Graphite Electrodes

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+50 mesh, 98% C minimum, flake graphite required for expandable graphite production

Mainly used in graphite foils, flame retardants and insulation material

Increasing use in technology product (in tablets and mobile phones) as a heat transfer agent

40,000 produced in 2012

Sells for between US$3,000–US$5,000 per tonne

Balama graphite confirmed to be expandable

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Expandable Graphite

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Uses include carbon brushes and lamp carbon

Very high grade, very low impurity synthetic graphite is used

Crystalline structure is very important for electrical application and natural flake graphite has the perfect crystalline structure

Over two million tonnes per year market trade volume

Over US$3 billion per year trade value

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Electrical Graphite

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Fuel Cells

Toyota intending to commence production of hydrogen fuel cell car by 2015

Honda, Hyundai and Renault intend to commercialise hydrogen fuel cell cars

About 80 kg of graphite in each fuel cell car

Nuclear Reactors

Large users of graphite

65 new reactors being constructed with a further 167 planned

Graphene

It is the thinnest material known and yet also one of the strongest

It conducts electricity as efficiently as copper and outperforms all other materials as a conductor of heat

It is almost completely transparent, yet so dense that even the smallest atom hydrogen cannot pass through it

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Other Potential Future Markets

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2012 (85,000 tonnes)

HSLA Steel 60.0%

Special Steel 30.0%

Super Alloys/Titanium Alloys 3.0%

Chemicals 3.0%

Cast Iron 2.0%

Energy Storage 1.0% Other [PERCENTAGE]

Vanadium Consumption

Source: Merchant Research and Consulting.

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Source: Merchant Research and Consulting.

Global Vanadium Production in 2012

China 36.5%

South Africa 34.9%

Russia 25.4%

Other Countries 3.2%

Vanadium Production

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Source: Merchant Research and Consulting.

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Ton

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Met

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Consumption Production

Tight vanadium supply/demand balance forecast over the next five years expected to be driven by strengthening steel demand and China moving to grade 3 rebar

Potential demand for energy storage could further add to the supply deficit significantly in the coming years

Global Vanadium Supply and Demand Forecast

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Vanadium Redox Battery (VRB)

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Potential large driver of vanadium demand for grid storage applications

VRBs can better match electricity supply and demand in real time

Increases grid efficiency and potentially reduces the number of power plants required

VRBs could capture ~17% of the energy grid storage market by 2017 [1]

~46 tonnes of V2O5 is required for 1 MW capacity using VRBS for grid storage [2]

Global market for energy storage over the next 10 years could be upwards of 300 GW and US$200-US$600 billion in value [3]

Sumitomo Electric Industries is currently working with Hokkaido Electric Power to store electricity using VRBs in order to stabilise its grid network

VRBs require high purity V2O5 greater than 99.9% purity

[1] Reference: Lux Research

[2] Reference: University of Tennessee

[3] Reference: Kema Inc.

Vanadium compounds have the ability to take on four oxidation states which makes vanadium very useful for electrical energy storage applications.

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Disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. Certain statements contained in this presentation, including information as to the future financial or operating performance of Syrah Resources Limited (Syrah Resources) and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of estimates and assumptions that, whilst considered reasonable by Syrah Resources, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, Statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital expenditures, ore reserves and mineral resources and anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Syrah Resources disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and other similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Syrah Resources has prepared this presentation based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in the presentation. To the maximum extent permitted by law, Syrah Resources, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation Materials or its contents or otherwise arising in connection with it.

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Thank you

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