DGAP-News

Kibaran Resources Limited: ThyssenKrupp Group Subsidiary signs LOI with Kibaran for exclusive Offtake for 20,000 tpa of Graphite

DGAP-News: Kibaran Resources Limited / Key word(s): Letter of Intent
Kibaran Resources Limited: ThyssenKrupp Group Subsidiary signs LOI
with Kibaran for exclusive Offtake for 20,000 tpa of Graphite

23.10.2014 / 12:30

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Kibaran Resources Limited

ASX ANNOUNCEMENT
23 October 2014

ThyssenKrupp Group Subsidiary signs LOI with Kibaran for exclusive Offtake
for 20,000 tpa of Graphite

Kibaran Resources Limited (ASX: KNL) (Kibaran or the Company) is pleased to
announce it has executed a Letter of Intent (LOI) with German company
ThyssenKrupp Metallurgical Products GmbH, a subsidiary of ThyssenKrupp, to
develop an exclusive, long-term commercial agreement for the sale of
Kibaran's natural flake graphite products. ThyssenKrupp is a major German
integrated materials and technology company.

Key highlights:

- Development of an exclusive long-term commercial agreement between the
parties for the sale of an initial and minimum 20,000 tpa of natural
flake graphite products in Russia, Korea and the EU 27 (excluding
Germany, but including Turkey);

- The term of the planned agreement is for 10 years

- ThyssenKrupp Metallurgical Products will endeavour to assist Kibaran to
obtain debt or equity funding for development of the graphite projects.

The agreement will account for approximately 25% of Kibaran's planned
40,000 tonnes annual graphite production from its Epanko Project and
support for the future development of Kibaran's Merelani project.

50% of the planned graphite production at Epanko is now supported by
offtake and sales agreements, which places Kibaran in an enviable position
as the company plans to fast-track the project through the feasibility
study. Both parties are now working to advance the LOI to a formal
commercial binding agreement.

ThyssenKrupp Metallurgical Products as one of the world's leading
commodity trading companies is embedded in the global ThyssenKrupp
corporate group. ThyssenKrupp, headquartered in Germany, is a major
integrated materials and technology group and have around 160,000 employees
in nearly 80 countries working with passion and expertise to develop
technologies, products and services for sustainable progress. Their skills
and commitment are the basis of their success. In fiscal year 2012/2013
ThyssenKrupp generated sales of around EUR39 billion.

Kibaran Executive Director, Mr Andrew Spinks said, "The signing of
Kibaran's LOI involving the sale of Kibaran's graphite products is a
further major milestone in the development of the Epanko deposit. This LOI
is the second major sales agreement and discussions continue with other
targeted customers worldwide. "

"We are extremely pleased to announce the beginning of our relationship
with ThyssenKrupp Metallurgical Products. Given its scale and international
business standing, ThyssenKrupp's involvement with Kibaran is a significant
vote of confidence in our Company and our ability to deliver," he added.

"ThyssenKrupp Metallurgical Products has also agreed to work with Kibaran
to pursue project funding which will be a key component of our overall
Project Financing plan following completion of the Epanko deposit
Feasibility Study. The signing of this LOI is further evidence that Kibaran
is committed to delivering on our stated objective to be the being a major
producer of graphite from Tanzania, East Africa."

"This is also a significant boost and benefit to the Tanzanian community,
as it supports the development of graphite in Tanzania."

For further information, please contact:

Company Secretary
Robert Hodby
Kibaran Resources
P: + 61 8 6380 1003

Investor/Media Relations
Rebecca Lawson
M&C Partners
P: [phone]
E: [e-mail]



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