Blencowe Resources

Questions Answered & Near-Term Catalysts

Good Morning Team.

I reached out to BRES CEO Mike Ralston at the tail end of last week with a few queries and the gent was happy to provide answers.

For reference, consider the BRES investment case in brief here.

Text below:

1) What’s the next big catalyst for Blencowe Resources, and how soon can investors expect meaningful news?

The upcoming drilling program kicks off in January, targeting a substantial resource and reserve upgrade at Orom-Cross. Initial results are expected by late Q1 2025, which will feed into the DFS. This drilling is expected to enhance financial metrics and project value significantly. Investors can also look forward to updates from SAFELOOP testing, downstream SPG processing progress, and offtake discussions with tier-1 globally recognized industry leaders who are conducting due diligence on Orom-Cross graphite.

2) You recently tweeted that some SAFELOOP testing results are due shortly. Can you detail what they mean for Blencowe’s positioning within the EV battery market?

Initial testing of Orom-Cross graphite has delivered exceptional results, demonstrating its high quality and potential for premium pricing contracts. SAFELOOP represents a major validation of our graphite by some of the leading scientists in the industry as well as a game-changing commercial opportunity ahead. We’ll release updates on testing soon, which we believe will reaffirm Orom-Cross as a critical supplier in the European EV supply chain.

3) The market has been cautious about mining equities. What sets Orom-Cross apart, and how does Blencowe plan to deliver shareholder value in this environment?

Orom-Cross stands out due to its low-cost, high-purity graphite and strategic location in Uganda, providing direct access to both Western and Asian markets. Our differentiated downstream SPG strategy, alongside initiatives like SAFELOOP, adds significant value beyond traditional concentrate production. The DFC’s backing and ongoing discussions with strategic partners further validate the project’s potential, offering strong third-party support. Combined with steady newsflow, these elements position Orom-Cross as a standout project in the graphite space.

4) Investors are curious about offtake agreements. How are discussions with OEMs progressing, and what can we expect in terms of formal agreements?

We’re in active discussions with several tier-one OEMs, and testing of Orom-Cross graphite is progressing very well. The interest we’re receiving has been excellent, and we’re optimistic about translating these discussions into formal agreements. SAFELOOP, in particular, represents a substantial offtake opportunity with premium pricing far above current market rates. Updates on these discussions will follow as we hit key milestones.

5) The US DFC has been a key supporter of Orom-Cross. Can you provide an update on the relationship and when further funds are expected?

The DFC remains a cornerstone partner, having already provided $3.5 million of their $5 million grant. The next $500k payment is expected shortly, following submission of our updated environmental report, with the final $1 million to follow towards end 1Q 2025 as milestones are achieved. This funding is essential for the DFS, and post-DFS the DFC is a key potential funding partner for project implementation, demonstrating their confidence in Orom-Cross.

6) The SGP facility Joint Venture is a major differentiator for Blencowe. What progress has been made in formalising this partnership?

We’re working closely with our partners to finalize the joint venture for the SPG facility, which is progressing well. Moving toward a binding agreement is a key focus, and we’re aiming to update the market soon. This facility is a game-changer, offering downstream value-add potential and a long-term offtake channel for purified graphite.

7) SAFELOOP has garnered attention. How confident are you that this initiative will transition into a large-scale offtake opportunity for Blencowe?

We’re highly confident as this project has exceptional team participants as well as the EU funding it. SAFELOOP validates the quality of Orom-Cross graphite and its strategic importance in the EV supply chain. As the exclusive supplier for this initiative, we’re well-positioned to meet the substantial demand as it scales into commercial production. The combination of premium pricing and projected volumes—up to 100,000 tonnes (small flake concentrate) annually—makes this a transformative opportunity for Blencowe.

8) The market loves timelines. When can investors expect to see key milestones reached in 2025?

Here’s a snapshot of what’s coming in 2025:

• Drilling results in Q1 2025, followed by resource/reserve upgrades.

• Updates on downstream SPG studies in Q1/Q2.

• SAFELOOP testing updates, with interesting results expected shortly.

• DFS completion on track for mid-2025 (including DFS for the Phase 1 plant and the Phase 3 downstream beneficiation plant as stand-alone projects).

Each milestone adds tangible value to the project and will demonstrate the growing strength of Orom-Cross to the market.

9) Will we be seeing media from the site during the drilling programme to provide the market with a window into progress and activity at Orom-Cross?

Yes, we recognize the importance of showcasing our progress and keeping investors informed. We’ve already making arrangements to provide regular updates, including photos, videos, and drone footage from the Orom-Cross site. Expect to see visuals of rigs, active drilling, and site development, such as the permanent camp installation. These updates will give the market a real-time look at boots-on-ground activity and reinforce confidence in the momentum we’re building.

My take…

Catalysts for Blencowe Resources in 2025

• Drilling Results
  The January drilling program at Orom-Cross, with initial results expected by late Q1 2025, is a critical catalyst feeding into the DFS and enhancing current project economics.

• SAFELOOP Testing Updates
  Results from SAFELOOP testing will validate the high quality of Orom-Cross graphite, and could position Orom-Cross as a premium supplier in the EV battery market.

• Offtake Agreements Progress
  Active discussions with Tier 1 OEMs and ongoing testing could lead to formal agreements, perhaps at premium pricing.

• DFC Grant Milestones
  The next $500k payment from the DFC grant is expected very soon, with an additional $1 million by the end of Q1 2025.

Get to the end of March with positive momentum on these four and we should see a strong base for a climb higher in Q2 as the longer term catalysts Mike has highlighted come into play.

And there’s always the Trump factor to consider…with Sino-US tensions over critical minerals dialed to cloud 9, demand for ex-China graphite is going to rise swiftly.

3 Key Strategic Differentiators of Orom-Cross

1. Low-cost production and high-purity graphite makes Orom-Cross attractive to both Western and Asian markets.

2. The joint venture for a Spherical Purified Graphite (SPG) facility will add downstream value and open long-term offtake opportunities.

3. Blencowe's partnership with SAFELOOP is critical and underappreciated. As the exclusive supplier for this initiative, it positions BRES superbly.

The bottom line is that this stock is undervalued - and with near term catalysts in the offing, this may not last long.