Battery Minerals : diversifies with deal to acquire highly prospective copper-gold project in Victoria

Battery Minerals Limited (ASX: BAT) ('Battery Minerals' or 'the Company') is pleased to report on a successful March 2020 Quarter, during which the Company diversified its asset base with an agreement to acquire a highly prospective copper-gold project in Victoria.

GIPPSLAND, VICTORIA

Agreement to acquire a controlling interest in Gippsland Prospecting

On 2 and 16 March 2020, Battery Minerals announced that it had signed two binding agreements to acquire 100% of Gippsland Prospecting Pty Ltd ('Gippsland Prospecting), which has the sole right to apply for a highly-prospective exploration licence immediately adjacent to Stavely Minerals (ASX:SVY) Thursday's Gossan copper-gold project in Victoria. Known as Block 4, the tenement covers 809sqkm and hosts the historic Moyston gold mine, which produced 75,000oz at 22g/t Au. The exploration licence is also just 7km from the rich Stawell gold mine, which has produced 5Moz of gold. Gippsland Prospecting won the Victorian Government tender, which gave it the sole right to apply for the exploration licence

Battery Minerals will pay the three shareholders of Gippsland Prospecting $500,000 in aggregate and issue them 439,363,850 shares in aggregate in return for 100 per cent of Gippsland Prospecting. Block 4 will be renamed E67801 on grant of the exploration licence.

The acquisition is subject to the approval of Battery Minerals shareholders at its AGM to be held on 13 May 2020 and the grant of the exploration licence - E67801. Under the terms of the agreement, Gippsland Directors Kent Balas and Darryl Clark, who are both exploration geologists, will become Directors of Battery Minerals. Block 4 is considered highly prospective for shear zone-hosted Orogenic gold deposits such as Stawell, as well as volcanic-hosted base metals mineralisation and large-scale Cadia Ridgeway- type porphyry copper mineralisation, within the well-defined Stavely volcanic belt

The adjoining Stavely tenement hosts the Thursday's Gossan porphyry copper-gold discovery. Stavely has reported high-grade copper intersections and stated that the mineralisation remains open along strike and down dip.

Material terms

The material terms of the acquisition agreement are: Battery Minerals will acquire 100% of the shares in Gippsland Prospecting Pty Ltd, the owner of 100% of Block 4.

Subject to shareholder approval, Battery Minerals will pay the three (3) shareholders of Gippsland Prospecting $500,000 in aggregate and issue them 439,363,850 shares in aggregate in return for 100% of Gippsland Prospecting

Battery Minerals has agreed to spend a minimum of $1.5 million on exploration and evaluation on Block 4 in the first 12 months after completion of the transaction.

On completion of the transaction, Mr Kent Balas and Dr Darryl Clark will join the Battery Minerals Board, and Mr Balas will be appointed as Managing Director of Battery Minerals.

Subject to shareholder approval, Battery Minerals will issue the new members of the management and consulting team 70 million Zepo incentive 5-year options where vesting is subject to clear performance targets, being the definition of mineral resources, ore reserves and commencement of mining.

In addition, Battery Minerals will repay Gippsland Prospecting shareholder loans of $250,000 for past expenditure.

Shareholder approval will be sought on 13 May 2020 at the Company's Annual General Meeting.

Background Information on Battery Minerals

In addition to the Gippsland Prospecting acquisition, Battery Minerals Limited ('Battery Minerals') is an ASX listed Australian company with two world-class graphite deposits in Mozambique, being Montepuez and Balama Central. Battery Minerals has produced high quality graphite flake concentrate at multiple laboratories. Subject to completing project financing, Battery Minerals intends to commence graphite flake concentrate production from its Montepuez Graphite Project at a rate of 50,000tpa at an average flake concentrate grade of 96% TGC. The Company has previously disclosed the combined Mozambique Graphite projects have potential to produce in excess of 150,000tpa of high-quality flake graphite.

While continuing to pursue cost effective financing options for the graphite projects, the Company has identified the complimentary battery mineral exploration project at Gippsland in Western Victoria. The Gippsland Project is host to significant strike length of the Stavely Volcanics, the Moyston shear and the Miga Arc, all considered prospective for base metals and gold in the region. Battery Minerals will continue to actively pursue discoveries in these areas.

Contact:

David Flanagan

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Forward Looking Statements

Statements and material contained in this document, particularly those regarding possible or assumed future performance, resources or potential growth of Battery Minerals Limited, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Such forecasts and information are not a guarantee of future performance and involve unknown risk and uncertainties, as well as other factors, many of which are beyond the control of Battery Minerals Limited. Information in this presentation has already been reported to the ASX. All references to future production and production & shipping targets and port access made in relation to Battery Minerals are subject to the completion of all necessary feasibility studies, permit applications, construction, financing arrangements, port access and execution of infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Ore Reserves, as well as the relevant competent persons' statements.

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