Quantum Graphite’s Uley 2 Lease Renewal Extends Project Life by Two Decades

Lease Renewal Secures Long-Term Mining Rights

Quantum Graphite Limited has successfully renewed its mining leases for the Uley 2 Project in South Australia for an additional 21 years. This renewal, granted by the South Australian Department of Energy and Mining, provides a robust foundation for the company’s extended development plans, encompassing not only the Uley 2 and Uley 3 mineralisation areas but also future expansions into Uley 3 South, Uley 4, Uley 5, and Uley 6. The Uley region hosts one of the largest natural flake graphite deposits globally, positioning Quantum Graphite as a significant player in the graphite mining sector.

Showcasing Cutting-Edge Energy Storage Technology

In December 2025, Quantum Graphite’s Director Michael Wyer presented at the prestigious Singapore Scientific Conference, highlighting the company’s collaboration with Sunlands Energy Co. and their development of TES Graphite Cells. These cells represent a scalable, long-duration thermal energy storage solution capable of supporting grid stability and renewable energy integration. The presentation underscored the potential for retrofitting existing coal-fired power stations with this technology, offering a pathway to decarbonise energy infrastructure while maintaining baseload power.

Financing Strategy Evolves to Include Downstream Activities

Quantum Graphite is actively negotiating with prospective financiers to expand the Uley 2 Project’s funding structure. The proposed changes would integrate the financing of downstream processing and refining activities alongside mining operations, creating a single economic and legal enterprise. This integration promises operational efficiencies, cost reductions, and a more resilient supply chain, particularly benefiting the lithium-ion battery anode market. The company has deferred a final decision until the end of February 2026 to resolve regulatory considerations, with financiers focusing on finalising information requirements.

Advancing the Eyre Peninsula Graphite Hub

Progress continues on the development of the Eyre Peninsula Graphite Hub, a regional logistics and processing centre designed to support flake graphite producers and downstream industries. Quantum Graphite has shortlisted and selected two preferred sites, with negotiations underway involving landowners and stakeholders. The hub aims to leverage the fully permitted Uley 2 project’s concentrate supply and Sunlands Energy’s thermal energy storage manufacturing capabilities, strategically positioned to serve key global markets including North America, Europe, and emerging battery centres in Asia.

Financial Position and Operational Outlook

The company’s latest quarterly cash flow report reveals ongoing operational cash outflows, primarily driven by exploration, development, and corporate costs. However, these outflows were offset by financing inflows totalling A$2 million, resulting in a closing cash balance of approximately A$1.7 million. Quantum Graphite acknowledges the need to manage cash prudently, with plans to reduce or defer non-essential expenditures if necessary. The company remains confident in its ability to continue operations and meet business objectives, supported by financial backing from its principal shareholder and potential equity raisings.