As expected RNU has received PEPR approval. This is a major milestone that's taken longer than expected but finally received.

28 November

2022 PEPR Approval for Siviour Graphite Mine and Concentrator

Receipt of key approval paves the way for development of the Siviour Battery Anode Material Project Upstream operation Highlights:

• Renascor is pleased to announce that it has received approval from the South Australian Department of Energy and Mining (DEM) for the Program for Environment Protection and Rehabilitation (PEPR) for its proposed Siviour Mine and Concentrator in South Australia1.

• The PEPR approval permits Renascor to process up to 1.65 million tonnes per annum, which would allow Renascor to produce up to 150,000 tonnes of Graphite Concentrates per year2.

• Approval of the PEPR, which is the second step (following the previous grant of the Siviour Mineral Lease3) in South Australia’s two-stage assessment process, permits Renascor to move forward with the development of the upstream Graphite Mine and Concentrator portion of the Siviour Battery Anode Material Project – a vertically integrated battery anode material manufacturing operation located wholly within South Australia.

• PEPR approval follows a process of extensive stakeholder engagement, independent expert audits and comprehensive studies undertaken to incorporate designs and management plans to comply with conditions outlined in the Siviour Mineral Lease granted in 20194.

• The conditions of the approved PEPR are in line with Renascor’s expectations after a period of consultation with DEM since submission of the PEPR in September 20215. • PEPR approval satisfies a fundamental condition of the Australian Government’s A$185 million loan facility to fund Renascor’s integrated Siviour Battery Anode Material Project6.

https://renascor.com.au/wp-content/uploads/2022/11/20221128-PEPR-Approval-for-Siviour-Graphite-Mine-Concentrator-2479243.pdf

Further milestones expected in 2023 include

-Resource expansion

-Advance to binding offtakes, potential partnerships

-FID

-Construction and Production expected 2024

DISC Is my largest holding in RL and hold in SM

RNU currently in trading halt until Tuesday, advising of an update regarding a Regulatory Approval.

Envisage this to be the overdue PEPR approval.

What is PEPR

A program for environment protection and rehabilitation (PEPR) is an operational document which describes how a miner will undertake mining operations in a practical and specific way. A PEPR approval is supported by a detailed, science-based assessment of its technical contents by South Australian government agencies including the Environment Protection Authority (EPA), the Department for Environment and Water (DEW) and the Department for Energy and Mining (DEM).

The management strategies, monitoring systems and compliance criteria outlined in the Hillside PEPR will enable the achievement of the projects’ environmental outcomes.

Many explorers don't go to mine due to many factors. Product Grade, Resource Depth, Geographic Location, License issues, Environmental Issues, Foreign Government Concerns, Cost to Mine etc etc Although RNU is still years away from mining product, its gaining momentum and many of the associated risks with general "investing in explorers" are being ticked off.

This summary on RNU i thought was well put together and worth the share.

Geology- Without doubt the #1 factor that separates Renascor from its peers is the the flat horizontal in-situ deposit that is located near surface between 5-15m below surface (you can dig it with your shovel), it is a consistent thick band without variability within veins. This is a truly unique resource in the graphite space and resource space in general.

Located in Australia- You cannot in todays modern society undervalue the importance of being situated in a safe, secure and mining friendly jurisdiction such as Australia. Being in Australia provides investors certainty and confidence in the long term for any Company operating here.

Major Project Status- Renascor is 1 of 29 Projects in Australia that have been granted Recognition from the Australian Federal Government as being economically important to Australia's future. The granting of Major Project Status is that the Federal Government works hand in hand with the 29 companies in securing all necessary state and federal approvals.

Australian Critical Mineral Listing- The Australian Critical Mineral Listing is vitally important for Renascor, it results in us being 1 of only 15 selected projects that are given access to the Department of Industry's AUD$1.3 Billion dollar slush fund to provide low interest finance opportunities for projects that provide critical minerals for Australias economic prosperity. The arrangement also ensures that the Australian Government can assist with various support to any of the 15 projects in terms of further finance, overseas trade negotiations, offtake discussions etc with the full backing of the Australian Government.

Being a Critical Mineral Project also opens avenues for Renascor to secure Finance through the Clean Energy Finance Corporation and Export Finance Australia funding arms (Of which the company already has in-principle support).

Downstream Purified Spherical Graphite -The company is entering the higher margin downstream processing industry by converting there already high 97.5% Purity Graphite Flake Product, into a world class leading 99.99% Purified Spherical Graphite. The company is unique from other ASX Players who are mining in Africa, then shipping concentrate to Australia or Europe or The USA and then processing, Renascor is on track to become the world’s first integrated, in-country mine and Purified Spherical Graphite operation outside of China i.e. The Mine and Processing Plant are an Hours drive away, not a week by boat.

5 Year Royalty Relief from the South Australian Government- In a positive sign and show of support from the South Australian, they have agreed to provide a reduced 2% Royalty rate for a period of 5 years of the Siviour Project.

The Revised DFS- is due this Qtr and it shapes to be a real company maker. With PSG Recoveries increasing by a whooping 20%, and the currently planned Stage 1 of 825ktpa and Stage 2 1.65Mtpa throughputs likely to get a significant uplift given the increasing interest in PSG from outside China. The Currently planned annual production of 28ktpa of PSG is likely to fall in the range of 85-90ktpa PSG (2/3rds of which is already under non-binding offtake), with strategic interest leaving Rensacor in a positive position.

The company also has significant ability to complete further In-Fill drilling at a later stage to turn the below "Blue Inferred" resources into Indicated or Measured with an 8-9 hole shallow drilling campaign. The shallow ore body near surface is a real winner and what makes RNU my #1 Graphite pick.

Renascor’s Siviour deposit in South Australia contains the largest reported Ore Reserve of Graphite outside of Africa, and the second largest Proven Reserve in the world. When you stack it up against its ASX peers, Renascor is usually in the Top 2 or 3 for each category, it results in an extremely LOW Risk, Potentially high Margin Opportunity.

The Biggest Hurdle to overcome is gaining approval to operate, the company already has its ML locked away in 2019 and is on the verge of obtaining its PEPR for the Mine in the next month or two, it is open waters after that !

Mou's with POSCO and Hanwa who mention RNU on their webpage

https://www.hanwa.co.jp/en/csr/business/ev.html

Some costings from Bombers Maid on HC,

I would highlight numerous Assumptions have been made in these workings and the below should be considered general in nature and not financial advice, please always take what you read on HC with a grain of salt and complete your own research !!!

Assumptions

- Stage 1 Throughput of 1.65Mtpa vs Stage 2 of 2.25Mtpa

- 23 Year Mine Life on Current Measured + Indicated Resources (No Inferred Tonnage Utilised in Model)

- No Changes to Benchmark Graphite Pricing from Previous Studies (If Graphite Prices Increase, Strap Yourself In )Lithium pricing has increased 5 fold in 6 months with Graphite shortage in a similar position over a similar expected timeframe.

- Initial CAPEX Increased from US$142m to US$215m (Allowance made for larger initial production + increase in equipment ie. inflation)

- Recovery Grades for Concentrate and PSG as per recent announcements

- AUD:USD= 0.72

Outputs Post Tax

- NPV10 of US$1.48B (AUD$2.1B)

- Payback Period of 1.4 Years

- IRR of 57%

- EBITDA LOM US$5.52B (AUD$7.75B)

Potential Share Value / EPS Ratio (2.25 Billion SOI Assumed Considering Majority of Capex from Export Finance Australia + Clean Energy Finance Corporation)

PE 10 - $0.92

PE 15 - $1.39

PE 20 - $1.85

PEPR is the next milestone and due shortly.

I will be closely watching the Graphite pricing and demand requirements throughout 2022-23 as i'm expecting a steady rerate to occur over the next 12-18 months.

If its anything like the Lithium pricing rerate of late, projects like RNU would be even more enticing.

Confirmation of “New Mine” status by the South Australian Government enables Renascor to lock in a reduced Royalty Rate for the Siviour Project

Renascor Resources Limited (ASX: RNU) (Renascor) is pleased to announce that it has received confirmation from the South Australian Government Treasury that the Siviour Graphite Project has been classified as a ‘New Mine’ for the purposes of State royalty calculations 1 .

The successful attainment of New Mine status means that the Project will incur a reduced royalty rate of 2% of the net value of the minerals recovered from the Siviour Mine through 30 June 2026, representing a reduction from 3.5% over the initial years of production2 .

Renascor’s 100% owned Siviour Project is on track to become Australia’s first vertically integrated Purified Spherical Graphite production facility3 . With the largest reported Graphite Ore Reserve outside of Africa4 , Renascor is well positioned to become a secure, low-cost supplier of materials critical to the production of electric vehicle batteries and offgrid power storage.

1 See South Australian Government Gazette of 14 January 2021.

2 In the 2018 South Australian State Budget, the reduced royalty for New Mines was discontinued from 1 July 2020. Notwithstanding this discontinuance, Siviour’s classification as a ‘New Mine’ entitles Siviour to the reduced royalty rate through 30 June 2026. See https://energymining.sa.gov.au/minerals/mining/mineral_royalties.