Syrah Resources Limited - Additional Information regarding Binding Active Anode Material Offtake Agreement with Tesla

Syrah Resources Limited (ASX: SYR) ('Syrah') refers to its announcement on 23 December 2021 that it has executed an offtake agreement with Tesla, Inc. ('Tesla') to supply natural graphite Active Anode Material ('AAM') from its vertically integrated AAM production facility in Vidalia, USA ('Vidalia').

Syrah wishes to provide additional information regarding the Agreement.

The offtake obligation is conditional on the parties agreeing the final specifications of AAM by no later than 31 December 2022 and achieving final qualification of AAM to Tesla's satisfaction by no later than 31 May 2025. The Agreement may also be terminated if production has not started by 31 May 2024.

Subject to satisfaction of the above conditions, Tesla will offtake 8kt per annum of the proposed initial expansion of AAM production capacity at Vidalia, being the majority of such initial planned production capacity of 10kt per annum. The terms of the Agreement have been the subject of extensive negotiations during which Syrah has had regard to the estimated capital and operating costs relating to the expanded production facility.

The importance and materiality to Syrah of the agreement with Tesla is that it provides a foundation to proceed with the initial expansion of Vidalia's production capacity, as stated in the announcement of 23 December 2021. The terms of the Agreement including volume, pricing and term will assist Syrah in finalising its investment decision in relation to Vidalia.

Syrah plans to make a final investment decision for construction of this expanded facility in January 2022, subject to financing commitments. As stated in the earlier announcement, Syrah is also advancing commercial and technical engagement with other target customers to develop Vidalia AAM for mass production and secure additional longterm purchase commitments for Vidalia.

Contact:

Viren Hira

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About Syrah Resources

Syrah Resources (ASX code: SYR) is an Australian Securities Exchange listed industrial minerals and technology company with its flagship Balama Graphite Operation in Mozambique and a downstream Active Anode Material Facility in the United States. Syrah's vision is to be the world's leading supplier of superior quality graphite and anode material products, working closely with customers and the supply chain to add value in battery and industrial markets

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