Talga Resources : Funding Success in UK Faraday Battery Programs

5 December 2017

ASX:TLG Triple Funding Success for Talga and Partners in UK Faraday Battery Programs Talga Resources Ltd

ABN 32 138 405 419

1st Floor, 2 Richardson St, West Perth, WA 6005

T: [phone]

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www.talgaresources.com

Corporate Information

ASX Codes TLG, TLGOA

Shares on issue 202.4m Options (listed) 44.9m Options (unlisted) 33.5m

Company Directors

Terry Stinson

Non-Executive Chairman

Mark Thompson

Managing Director

Grant Mooney

Non-Executive Director

Stephen Lowe

Non-Executive Director

Ola Mørkved Rinnan

Non-Executive Director

• Talga successful with all three of its UK Government 'Faraday Battery Challenge' funding applications that seek to develop:
• Sodium-ion batteries;
• Safer high voltage Lithium-ion batteries; and
• Scaled up high performance battery materials and UK supply chain.
• Talga's consortia partners include global automotive and battery material companies, along with leading universities on battery technology
• ~A$5.1 million in grants awarded to consortia group, with up to ~A$1.0 million rebatable against Talga expenditure
• Funding accelerates battery material developments currently underway at Talga Technologies Ltd (UK) and increases commercialisation opportunities

  Talga Resources Ltd ("Talga" or "the Company"), is pleased to announce that its wholly owned UK subsidiary, Talga Technologies Ltd has been successful in three funding applications under the UK Government Faraday Challenge ("Faraday") battery development initiative.

  Faraday represents a £246 million UK Government funding initiative for battery research, development and scale up of facilities to help create a new supply chain for battery production in the UK at scale.

  This follows a commitment by the UK Government to place a ban on new petrol and diesel engines by 2040, driving the need for cost-effective, high performance, safe, low weight, and recyclable batteries to power the next generation of electric vehicles.

  http://www.talgaresources.com/irm/PDF/1455/KiskamaIOCGProjectDrillingResults

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  Table 1 Talga's successful Faraday Battery Challenge programs and partners.

  Talga, together with its consortia partners (see Table 1) has secured significant funding support under the 'Innovation' aspect of Faraday, where total funding of ~A$5.1 million has been awarded to support the following three R&D projects:

• Safe High Voltage EV battery materials - led by Talga together with Johnson Matthey, Cambridge University and TWI;

• Sodium-ion batteries for automotive power applications - led by Faradion together with Talga, Jaguar Land Rover, Warwick Manufacturing Group ("WMG") and Croda; and

• Supply Chain Accelerator for Li-ion Electrode materials in UK - led by Talga together with PV3 and WMG.

Talga shall receive a 70% rebate against its eligible costs, including salaries, consumables, equipment and contractor expenses. Talga's participation in the programs ranges from 12-24 months. The funding is expected to provide up to ~A$1.0 million against a ~A$1.5 million Talga budget over the period.

Talga Managing Director Mark Thompson commented: "We are delighted with this outcome. To secure all three funding grants is a sterling win for Talga and largely underwrites our battery development budget for the next few years.

Most significantly it has also enabled us to partner with brand names in the battery value chain, well funded with state of the art facilities, along with innovative local technology and material companies.

Whilst clearly this Faraday Challenge will concentrate on batteries for electric vehicles it will have wider spillover benefits in how Talga's graphene and graphite enhanced batteries could be applied in other environments such as rail, marine, aerospace, industrial/domestic and grid energy.

Talga looks forward to an exciting period of growth for our European operations in the battery supply chain."

NEXT STEPS

Now that the funding application winners have been announced, joint development agreements between the consortia partners can be finalised with a view to commencing activities in January, 2018. Talga will provide more specific details on each project in coming weeks and will update the market as agreements are put in place. Milestones will be released in conjunction with official newsflow from Talga's partners and the Faraday Battery Challenge and Innovate UK websites.

For further information, visit www.talgaresources.com or contact: Mark Thompson Jeremy McManus

Managing Director Commercial Manager

Talga Resources Ltd Talga Resources Ltd

http://www.talgaresources.com/irm/PDF/1455/KiskamaIOCGProjectDrillingResults

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T: + 61 (08) 9481 6667 T: + 61 (08) 9481 6667

About Talga

Talga Resources Ltd ("Talga") (ASX: TLG) is a technology minerals company enabling stronger, lighter and more functional graphene and graphite enhanced products for the multi-billion dollar global coatings, battery, construction and carbon composites markets. Talga has significant advantages owing to 100% owned unique high grade conductive graphite deposits in Sweden, a test processing facility in Germany and in-house product development and technology. Advanced product testing is underway with a range of international corporations including industrial conglomerate Chemetall (part of BASF), Heidelberg Cement, Haydale, Zinergy and Jena Batteries.