Walkabout Resources has exercised its option to acquire the remaining 30% of the prospecting licence hosting the Lindi Jumbo graphite deposit in Tanzania. The application for transfer has now been registered with the Ministry of Minerals, Tanzania. Walkabout now owns 100% of tenement PL9992/2014, a part of which is the subject of a pending mining licence application, ML/00638/2017 (MLA), which means that Lindi Jumbo Ltd, a wholly owned subsidiary of Walkabout, will hold 100% of the Lindi Jumbo graphite mine.

With respect to the progress of the Lindi Jumbo Mining Licence application, the company remains highly encouraged by recent communications from the Ministry of Minerals of Tanzania. Discussions in Dodoma held on 25 May 2018 between the Company and the Ministry confirmed that licence applications were due for issue in large batches until the backlog has been depleted.

Executive Chairman of Walkabout Resources Ltd, Trevor Benson commented;

“The purchase of the remaining 30% of the project will see a huge value-adding transaction into the company. The passing of this significant project milestone is indicative of the confidence that management has in the project and in the subsequent progression of events in Tanzania.”

Walkabout is fast-tracking the development of the high-grade Lindi Jumbo graphite project to take advantage of forecast market conditions for flake graphite deposits with high ratios of Large and Jumbo flakes.

The Lindi Jumbo DFS noted:

• Project start-up capital $29.6 million, lowest capital intensity amongst peer group
• Pre Tax NPV10 of $302 million Pre Tax IRR at 108%
• Post Tax NPV10 of $180 million and Post Tax IRR 88%
• Weighted average (Base Case) basket price of product is $1,564/t
• Modelling and design now using updated concentrate ratios based on large scale, closed circuit metallurgical test results from BGRIMM provides a higher level of certainty to study results.