Funding Pressures Loom as Sarytogan Boosts Graphite Quality and Copper Prospects

Graphite Project Advances with Softer Ore and Higher Purity

Sarytogan Graphite Limited has unveiled encouraging progress in its flagship graphite project in Kazakhstan. Recent pilot milling tests indicate the graphite ore is significantly softer than previously assumed in the Pre-Feasibility Study, allowing for a 65% smaller ball mill and 36% less power consumption. This reduction in processing intensity not only lowers capital and operating costs but also mitigates maintenance risks, enhancing the project's overall efficiency.

Complementing this, flotation testwork has consistently delivered graphite concentrate grades exceeding 90% total graphitic carbon (TGC), a notable improvement from earlier grades of 80-85%. This upgrade has prompted the rebranding of the product from “Micro80C” to “Micro90C,” positioning it more competitively in the market and potentially unlocking higher-value applications, particularly in battery and advanced industrial sectors.

Resource Expansion and Infrastructure Secured

The company has completed 1,850 metres of reserve definition drilling across the Central Graphite Zone, achieving a drill spacing suitable for a Mineral Resource update and detailed mine planning. This drilling underpins the first 25 years of the mine schedule outlined in the Pre-Feasibility Study, reinforcing the project's long-term viability.

In parallel, Sarytogan secured a downstream processing plant site near the town of Agadyr, benefiting from excellent power, road, and rail infrastructure, including proximity to a 500kV substation and an electrified heavy haul railway connecting to European and Chinese markets. Power and transport studies have been completed, with engineering surveys underway to support the Definitive Feasibility Study (DFS), which remains on track for mid-2026 completion.

Strategic Recognition and Corporate Developments

A significant milestone was achieved when the European Union designated the Sarytogan Graphite Project as a Strategic Project under its Critical Raw Materials Act. This status not only underscores the project's importance in securing sustainable graphite supply for Europe but also opens doors to European customers and funding agencies, including the European Bank for Reconstruction and Development (EBRD), which recently nominated Martyn Buttenshaw as a Non-Executive Director to the Sarytogan board.

Meanwhile, founder Dr. Waldemar Mueller has retired from executive duties but remains on the board as a Non-Executive Director, signaling a leadership transition as the company advances its development agenda.

Copper Exploration Shows Early Promise

Beyond graphite, Sarytogan is progressing copper exploration at its Baynazar project. Recent trench sampling at the Ilkin prospect returned encouraging assays, including 140 metres at 0.09% copper, with sections up to 0.20% copper. The prospect is considered drill-ready, though further drilling depends on securing dedicated funding, as current investment prioritizes graphite project development.

Financial Position and Outlook

As of 30 June 2025, Sarytogan held approximately A$1.99 million in cash. The company acknowledges that this funding covers about 1.3 quarters of current expenditure, with management actively exploring additional capital options to sustain operations and advance the DFS. The coming months will be critical as the company updates its Mineral Resource estimates, completes customer qualification for its upgraded graphite concentrate, and navigates funding pathways for copper exploration.