Mr. Blair Way reports

FLINDERS' WOXNA IN SWEDISH GRAPHENE PROJECT

Flinders Resources Ltd.'s Swedish subsidiary, Woxna Graphite AB, has been chosen as an industry partner within Svenskt Grafen (Swedish graphene), a Swedish-government-funded program to research and commercialize the production of graphene from Swedish-sourced graphite. With a production-ready, fully permitted graphite mine and processing facility, Woxna is the natural partner for this program.

Key points:

• In 2013, the European Union launched the graphene flagship project, a 10-year, one billion ($1.1-billion (U.S.)) project to research graphene commercialization. Chalmers University in Gothenburg, Sweden, is the project co-ordinator.
• In 2015, Sweden launched SIO Grafen, a three-year, 54-million-Swedish-kronor ($6.4-million (U.S.)) project aimed at strategic innovation to commercialize graphene production in Sweden. SIO Grafen is financially supported by the Swedish government and industry.
• In 2015, SIO Grafen initiated Swedish graphene, a two-year, 2.4-million-Swedish-kronor ($280,000 (U.S.)) project to investigate Woxna's Swedish flake graphite, and its suitability to produce graphene on an industrial scale.
• Flinders's partner in Swedish graphene is 2D Fab AB, a company spin-off from Mittuniversitetet (Mid Sweden University), which has been conducting graphene research for many years.
• The Swedish government is providing funding for Swedish Graphene. Swedish Graphene will run until November, 2016.

Blair Way, president and chief executive officer, states: "This announcement represents an exciting milestone for Flinders, placing the company at the forefront of one of the fast-moving areas of new materials research. The European Union and Sweden are global leaders in the research and development of graphene, with a significant research history and very substantial future funding. Sweden is highly regarded as a technology-driven industrial economy, and SIO Grafen cements Sweden's position as a sustainable leader in the development and commercialization of graphene.

"Flinders is extremely proud to be a part of this leading technology project to develop graphene from Swedish-sourced graphite. The partnering of a fully permitted graphite mine with fully funded graphene research of this scale, makes for a strong and unique story with the capacity to deliver in industrially relevant time frames.

"The Swedish graphene project completes the third link in our strategy to position Woxna as a leading supplier to the current and future graphite and graphene industries. Woxna has produced and sold flake graphite to the traditional refractory sector, and is currently researching the production of high purity graphite product with Chinese technology suppliers."

Graphene is the world's thinnest material, extremely light, strong and flexible. It is also a transparent conductor, combining electrical and optical functionalities. It is believed the material will provide unique possibilities for completely new solutions and collaborations between sectors.

The purpose of the Swedish graphene project is to produce graphene from graphite produced in Sweden. The secondary objective is to find appropriate commercial applications for Swedish graphene. Woxna, as one of Europe's two graphite mines, and Sweden's only graphite producer, can supply domestically sourced natural flake graphite which provides a clear strategic advantage for Sweden.

A mining study to establish the technical feasibility and economic viability of the Woxna project has not been completed nor does the project host a mineral reserve. There is increased uncertainty and risk of economic and technical failure should the project proceed to further production. While the property hosts mineral resources, mineral resources that are not mineral reserves do not have demonstrated economic viability.

Woxna and its partner 2D Fab form the first two links in the graphite to graphene value chain and are the main participants in the Swedish graphene project. The partners will seek support from Swedish industry to evaluate the graphene produced from Swedish graphite in printing, energy and surface treatment applications. The next stage of the Swedish graphene project is to seek potential industrial users of the graphene for use in a range of products.

Woxna has already mined and milled in excess of 1,000 tonnes of natural flake graphite since restarting the facility last year. High-grade large flake concentrate has already been shipped to 2D Fab. Test work on the Swedish graphite to graphene process has already commenced, with 2D Fab running Woxna natural flake graphite concentrate through its unique and sustainable technology that has the ability to produce graphene from natural flake graphite, water and minimal energy.

The qualified person as defined in National Instrument 43-101 for the Woxna project, Blair Way, president and chief executive officer and a director of the company, and a fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the contents of this release.

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