30 May 2024

GreenRoc Mining plc

("GreenRoc" or the "Company")

2023 Full Year Results, Publication of Annual Report and Notice of AGM

GreenRoc Mining plc (AIM: GROC), a company focused on the development of critical mineral projects in Greenland, today announces its audited results for the year ended 30 November 2023.

The Financial Statements (including notes) and the statements of the Chairman and CEO, set out below, have been extracted from GreenRoc's Annual Report, which was approved by the Board on 29 May 2024 and will be made available on the Company's website (www.greenrocmining.com).

Highlights During the Year

·    Near three-times increase declared in January 2023 in the Mineral Resource Estimate ("MRE") for Amitsoq, with the MRE increasing to 23.05 Mt at a grade of 20.41% C(g) for 4.71 Mt contained graphite.

·    European Raw Materials Alliance declared its official support for the Amitsoq Project in February 2023.

·    MoU signed with Norwegian mining and construction group LNS in March 2023.

·    GreenRoc named "Greenland's Prospector and Developer of the Year" at PDAC Toronto in March 2023.

·    Graphite samples delivered to a potential international off-take customer.

·    In October 2023, the UK Advanced Propulsion Centre's Automotive Transformation Fund ("ATF") awarded GreenRoc a grant of £250k to part-finance a Prefeasibility Study ("PFS") into the establishment of a processing plant to produce active anode material ("AAM") from Amitsoq graphite concentrate .

·    Also in October 2023, an independent Preliminary Economic Assessment ("PEA") was published for Amitsoq which validated the Project's potential to become a globally significant producer of graphite concentrate, with a pre-tax NPV8 of US$235M, an IRR of 31.1%, a life of mine (''LOM'') of 22 years, total gross revenue of US$2.1Bn over the LOM, average net revenue of US$89.8M per year and a 4-year payback period on capital from the start of production.

·    GreenRoc raised a total of £1.9m during the year to fund additional testing and work programmes to build on the highly successful second phase drilling programme and fast-track the further development of the Amitsoq Project.

Post Year-End Highlights

·    In January 2024, the Company announced successful results from its electrochemical battery test work and management undertook site visits to processing plant manufacturers in China.

·    In February 2024, GreenRoc noted that a recent change in Greenland's mining laws is expected to significantly reduce the timeline for GreenRoc to apply for and obtain an Exploitation Licence for Amitsoq.

·    In March 2024, GreenRoc management was invited to attend and speak at a high-level roundtable discussion focused on the challenges of the global graphite supply chain, hosted by the Government of South Korea as part of the multinational Minerals Security Partnership (''MSP'') and including senior delegations from both the US and the EU.

·    An enlargement to the Amitsoq exploration licence package was approved in April 2024, with the result that GreenRoc now holds all ground within the Nanortalik Graphite District which is known to host high-grade graphite mineralisation.

·    Also in April 2024, the Company received a Letter of Interest from US EXIM Bank, the official export credit agency of the United States, indicating its willingness to consider financing GreenRoc for up to US$3.5M of US export contracts relating to goods and services ordered by the Company.

·    In May 2024, GreenRoc announced the results of the AAM Plant PFS, with compelling numbers indicating a pre-tax NPV8 of US$837m with an IRR of 33.8%, total gross revenue of US$6.5Bn over the 22-year period, total gross profit totalling US$2.7Bn and a 4-year payback period on capital from start of production, based on average annual processing of 80,000t of graphite concentrate at 95% graphitic carbon (C(g)) for the production of 39,700t of AAM.

·    Finally, a share placing to raise £238k was completed in May 2024 to further the Company's work to:

o  supplement the AAM Plant PFS;

o  continue the process of identifying the optimal AAM Plant location;

o  conduct further test work (e.g., on expandable graphite production);

o  prepare for Amitsoq public pre-consultation as precursor to applying for an Exploitation Licence;

o  enter the DigBee scheme for ESG performance benchmarking;

o  prepare and submit an application to the EU for "Strategic Project" status for Amitsoq; and

o  continue discussions with potential strategic and offtake partners.

Notice of AGM

GreenRoc also announces that its Annual General Meeting will take place on 28 June 2024 at 11.30 am at its registered office, 6th Floor, 60 Gracechurch Street, London EC3V 0HR.  The Notice of Annual General Meeting will be made available on the Company's website (www.greenrocmining.com). Shareholders will receive individual notification and/or copies of relevant documents according to their communication preferences held on file by the Company's Registrar.

Other than the customary resolutions to be proposed at the Annual General Meeting, shareholders will also be asked to approve a resolution to change the Company's name from Greenroc Mining Plc to GreenRoc Strategic Materials Plc. The GreenRoc Board considers the new name to be more aligned to GreenRoc's core business strategy, which has evolved since the Company's IPO and Admission to AIM in September 2021, to create a vertically integrated graphite anode business involving not only the mining of graphite from the Company's world-class Amitsoq graphite deposit in south Greenland but also the construction and operation of an anode processing plant in Europe or North America for the production of coated spherical purified graphite (cSPG), a key input material in the lithium-ion battery of an electric vehicle. 

GreenRoc's Chairman, George Frangeskides, commented:

"During the past financial year, we have cemented Amitsoq's position as one of the world's foremost graphite deposits. Our team's work has been focused not just on bringing the Amitsoq Mine into production, but also on developing the economic case for a vertically integrated graphite business at GreenRoc, encompassing not only an upstream graphite mine and primary concentrate production but also a downstream anode plant which will turn that graphite concentrate into high-value cSPG for EV batteries. I am pleased to be able to say that we remain firmly on track for that twin objective, with independent economic assessments completed in the past year now providing a combined pre-tax NPV for both sides of the business of more than US$1 billion.

"At the same time, it makes sense that our Company's name and branding should reflect the evolution of our business strategy and it is for that reason that we propose to change the Company's name from GreenRoc Mining to GreenRoc Strategic Materials, reflecting our amibition to become one of the first Western producers of high-value active anode material for electric vehicle batteries."

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the timing and granting of regulatory and other third party consents and approvals, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events. 

Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

CHAIRMAN'S STATEMENT

I am pleased to present the GreenRoc Mining Plc group ("GreenRoc" or "the Group") Annual Report for the year ended 30 November 2023.

This year has seen significant progress made at our world-class Amitsoq Graphite project in South Greenland. The financial year began with us announcing a near three times increase in the Mineral Resource Estimate for Amitsoq, at the same time confirming Amitsoq's position as one of the very highest-grade graphite deposits globally. In the middle of the year, a potential international off-take customer for Amitsoq, having requested graphite concentrate and spheronised graphite samples in order to conduct its own testwork, confirmed itself to be satisfied with the quality of our graphite. And towards the end of the year, we published an independent Preliminary Economic Assessment ( "PEA") for Amitsoq which validated the project's potential to become a globally significant producer of graphite concentrate, with an after-tax NPV8 of US$179M, an IRR of 26.7%, a life of mine (''LOM'') of 22 years, total gross revenue of US$2.1Bn over the LOM,  average net revenue of US$89.8M per year and a 4-year payback period on capital from the start of production.

The PEA represents an assessment only of the economics around the upstream mining and primary processing operation at Amitsoq, and does not factor in the considerable upside potential from the downstream processing and conversion of Amitsoq graphite concentrate into high-value active anode material ("AAM"). It is significant, therefore, that during the year we also announced the award of a grant of circa £250,000 by the UK Advanced Propulsion Centre's Automotive Transformation Fund ("ATF") to part-finance a Prefeasibility Study ("PFS") into the establishment of a processing plant to produce AAM from graphite concentrate delivered from Amitsoq.  The results of the PFS were published last month, with an after tax NPV8 of US$545m, an IRR of 25.3% and a 4-year payback period on the expected capex costs of US$321m for this downstream segment of the Company's overall value creation strategy for Amitsoq. The delivery of a robustly positive economic assessment of both the upstream and the downstream operations provides for a greatly enhanced financial proposition as we move forward in our discussions with offtakers, strategic partners and government agencies.

In March of this year I attended the PDAC mining conference in Toronto, one of the world's biggest annual gatherings of mining companies, governments, regulators and financiers. PDAC provides an opportunity to gauge the overall health of the mining sector, to spot emerging trends and gain insights into the outlook for different commodities. From my conversations with various industry participants during the conference, what has been clear is how much the junior resources sector continues to be buffeted by the ongoing geopolitical and economic shockwaves the world has faced over the past few years, whether relating to the after-effects of the Covid pandemic or the terrible conflicts which continue to rage across the world.

That being said, from GreenRoc's perspective PDAC also provided tangible reasons for renewed optimism as we look forward to the next 12 months. In particular, it was clear just how seriously Western governments are finally taking the need to put measures in place to ensure the long-term security of supply of battery materials, and how this is starting to flow into the promise of support for companies like GreenRoc which will have a key role in delivering that supply. 

The United States, in particular, was very well represented at PDAC.  Its interest in Greenland specifically was demonstrated by the fact that the US Under Secretary for Economic Growth, Energy, and the Environment, Jose Fernandez, spoke during the conference's annual Greenland Day session, which was hosted by the Government of Greenland. He also attended a high-level roundtable discussion focused solely on the challenges of the global graphite supply chain, which was hosted by the Government of South Korea as part of the Minerals Security Partnership (''MSP''), formed to accelerate the development of sustainable critical energy minerals' supply chains. MSP partners include many European states, including the United Kingdom, France and Germany, as well as India, Japan, the Republic of Korea, the US and EU.

In a sign of the increasing international recognition of the pivotal role the Amitsoq deposit is set to play in addressing these graphite supply constraints, GreenRoc's CEO Stefan Bernstein and I were invited by the Korean Government to attend the MSP roundtable. In fact, GreenRoc was one of just three global graphite mining companies invited to present their projects at the session.  Other speakers at the roundtable included senior representatives from the European Commission, the International Finance Corporation (IFC) and the US Development Finance Corporation (DFC).

Stefan and I also held various bilateral meetings with key US and other international agencies, the outcomes of which have given us a renewed confidence in the growing impetus of Western governments to make available te necessary financial and strategic support to help us bring Amitsoq into commercial production.  Indeed, the first concrete action in that direction came with our announcement last month that we had received a Letter of Interest from the Export-Import Bank of the United States ("US EXIM Bank"), the official export credit agency of the United States, to finance GreenRoc for up to US$3.5M of US export contracts relating to goods and services ordered by the Company. Such contracts could relate, for instance, to the conduct of Pre- or Definitive Feasibility Studies ("PFS" and "DFS" respectively) for the Amitsoq Mine and/or a DFS of the AAM Processing Plant.

As we continue into 2024, therefore, I believe we are in a very strong position to capitalise on the increasing awareness of the critical role which Amitsoq is set to play in the Western battery materials supply chain.

On behalf of the entire Board, I would like to take this opportunity to thank GreenRoc's shareholders for their continued support.

George Frangeskides

Chairman

CHIEF EXECUTIVE OFFICER'S STATEMENT

INTRODUCTION

The major milestone achieved over the past year was the completion of a Preliminary Economic Assessment of the Amitsoq Graphite project, which confirmed a robust and positive economic outlook for the project. In addition to the economic metrics (which are reported on further below), the PEA contains a detailed evaluation of fundamental matters relating to mine design and the siting of construction, accommodation and processing facilities which are critical to a future mining operation at Amitsoq.

PROJECTS OVERVIEW

The Company's flagship project is the Amitsoq Graphite project in South Greenland, a historic mine which the Company is pushing towards reopening as a producing graphite mine by 2027/28. Two exploration licences associated with this project are: the Amitsoq licence itself, MEL 2013-06, and the adjacent licence MEL 2022-03, which contains evidence of high-grade graphite mineralisation - none of which has ever been tested by drilling. In January 2024, the Company submitted an application for an enlargement of the ground east of the MEL 2022-03 licence to include the remaining known graphite mineralisation in the Nanortalik Graphite District. At the time of writing the application is being processed by the Greenland Government. The grant of this enlargement will cement GreenRoc's position as the sole and exclusive rights holder over the emerging world-class Nanortalik Graphite District.

In North Greenland, GreenRoc holds exploration licence MEL 2017-29, encompassing the Thule Black Sands (''TBS'') project, a heavy mineral sand deposit spanning several kilometres of coastline. At the time of writing, following its most recent drilling programme, the Company is awaiting an updated mineral resource estimate.

Licence 2017-41 in Melville Bay, a prospective iron ore resource, was relinquished at the end of 2023, as the Company seeks to focus its resources on developing the world-class Amitsoq project as the best way to deliver significant shareholder value.

The three licences held by the Company are in good standing with regard to exploration obligations.

Amitsoq Graphite Project ("Amitsoq")

A PEA on Amitsoq was commenced in May 2023 and concluded in October 2023. This assessment, by leading consultancy SLR Consulting Ltd represents the first detailed independent study of the economic viability of the Amitsoq project. The results of the PEA were very positive, with the headline points being as follows:

·    Pre-Tax Net Present Value at 8% discount rate (NPV₈) of US$235M with Internal Rate of Return (IRR) of 31.1%.

·    After-tax NPV₈ of US$179M with IRR of 26.7%.

·    Life of mine (LOM) is 22 years with potential to extend through resource expansion.

·    4-year payback period on capital from start of production.

·    Average Net Revenue of US$89.8M per year throughout the 22-year LOM.

·    Total gross revenue of US$2.1Bn over a 22-year LOM, with total undiscounted net pre-tax cash flow totalling US$794.7 M.

·    Initial capital cost (Capex) of US$131M inclusive of 25% contingency.

·    Average operating cost (Opex) of US$121 per tonne of milled ore.

·    Average annual production of 77,000t of concentrate at a minimum 94% grade.

·    Mine plan assumes mining from the Lower Graphite Layer (LGL) only, leaving considerable resources from the Upper Graphite Layer (UGL) available for future production expansion or extension to the LOM.

The nominal mining rate was set at 400,000t per year. Importantly, the PEA is calculated by mining only the Lower Graphite Layer (LGL), which is the thickest and richest of the two main orebodies at Amitsoq. Also, about 75% of the resource for the PEA Cash Flow Model is comprised of Indicated and Measured Resources, leaving only about 25% coming from Inferred Resources. Prioritizing the LGL in the mining model increases the global ore grade from 20.4% to 21.3% and makes for a simpler mining design, while reserving the UGL for later expansion.

An important aspect of the selected mine design is the ability to use tailings (the waste product left on site after processing the ore to a primary concentrate) as backfill in the mine. With an annual nominal mining rate of 400,000t, ca. 3.8M m³ of tailings will be produced throughout the LOM, of which ca. 3.3M m³ will be able to be used as backfill with only ca. 0.5M m³ remaining for surface storage. This is not only an environmentally positive outcome for the project, with most tailings being returned underground, it also means that the overall cost of tailings and waste management at Amitsoq can be dramatically reduced. 

A number of options have been considered for the storage of the relatively modest volume of tailings, including both dry-stack and a wet storage facility. Transport to the storage facility is planned to take place on barges. In terms of infrastructure plans, we intend to utilise some of the existing platform and mine adits from the historic mining activities which ceased about 100 years ago, as well as some existing facilities in Nanortalik town, which is only about 15km to the South of Amitsoq. Nanortalik has several vacant houses and office buildings as well as a deep-water port. Mining is envisaged to take place throughout the year, as the deep fjords surrounding Amitsoq do not freeze over in the winter, and, being located in the South of Greenland, the Nanortalik region enjoys relatively mild weather compared to the rest of Greenland.

Test work is ongoing with respect to obtaining important data regarding the precise characteristics of Amitsoq graphite ore and, therefore, the optimal processing options. A 670kg bulk sample collected from the underground workings at Amitsoq is undergoing tests at UVR-FIA GmbH, a German process engineering firm specialising in mineral resources. In addition to achieve constraints on processing parameters of Amitsoq ore, the test work will also supply GreenRoc with graphite concentrate allowing the Company to conduct further test work on producing downstream products for the battery industry (see below) as well as understanding which processing units give the best results. A further 160kg composite bulk sample is undergoing processing tests with FLSmidth A/S, a Danish multinational technology and service supplier to the global mining industry, using their newly developed pressurised flotation cells. The reports from these tests will be available in Q2-Q3, 2024.

GreenRoc has held several information meetings with the Greenland Government over the past year and has developed a very good relationship with frequent interaction and mutual sharing of information. In parallel, GreenRoc has held two information meetings with local communities in Nanortalik, in January and November 2023. The feedback from the local communities has been overwhelmingly positive, with genuine interest and support from the local community in seeing the Amitsoq mine becoming active again.

Establishing a vertically integrated graphite business

The main market for graphite in the decades to come will be in the electrification of vehicles, where graphite is extensively used as anode material for Li-batteries. Another growing market is in energy storage systems, both for domestic and industrial use. The demand for graphite in the manufacturing of Li-based batteries for electric vehicles is set to rise four times over the coming decade (Fastmarkets, 2023). Today, China accounts for around two thirds of the world's graphite production and has a near monopoly on the processing of graphite to active anode material (AAM). As such, Western battery and electric car producers are wholly dependent on the import of graphite anode material from China. The production of AAM requires natural flake graphite concentrate (>94% purity) as feedstock. The processing of that concentrate into AAM involves micronisation, shaping to rounded particles (spheronisation), purification to a >99.95% pure graphite and finally coating to make a coated spherical purified graphite (cSPG) product. AAM typically sells at prices 5-10 times higher than the price of a simple graphite concentrate.

By no means do all occurrences of natural flake graphite meet the exacting requirements to qualify as feedstock in the production of AAM. In order to confirm that Amitsoq graphite meets these standards, GreenRoc has commissioned German graphite specialists ProGraphite GmbH to run a series of test programmes, including the production of spherical purified graphite from Amitsoq concentrate. The tests results have demonstrated very good performance levels across all parameters, including when incorporated within a laboratory-constructed Li-battery cell in order to mirror actual EV battery conditions. These highly positive test results strengthen GreenRoc's resolve to create a fully integrated business for the production of AAM. Further support for the quality of our graphite has also been provided by a potential large industry offtaker which requested Amitsoq graphite samples to carry out their own test work in late 2023. They have since confirmed that our graphite performed very well across all parameters.

GreenRoc's objective of establishing itself as a vertically integrated producer of AAM for the European and/or US battery industries is motivated not only by a desire to capture the significant value upside from the sale of AAM but also because using our own fully owned source of high-quality graphite feedstock as the input material into an anode production plant has several advantages:

·    supply security;

·    ensuring a consistent quality of graphite feedstock and eliminating the need for recalibration of processing routines;

·    allowing for the development of bespoke spheronisation and purification processes;

·    the ability to demonstrate the highest ESG standards for our AAM; and

·    localised production reducing sovereign and geopolitical risk and operating costs, in turn making Amitsoq more attractive to potential strategic partners and offtakers.

In September 2023, GreenRoc commenced a feasibility study on establishing an AAM processing plant in Northern Europe. The plant will have a nominal annual capacity to process 70-80,000t of graphite concentrate which in turn will yield 30-40,000t of AAM, sufficient to make batteries for about 1 million electric cars per annum. The feasibility study was managed by GreenRoc and conducted by a consortium of leading specialist contractors: Benchmark Mineral Intelligence (market analysis and AAM specifications), ProGraphite (technical solutions, state-of-the-art instrumentation and supplier details), SLR Consulting (pilot processing and full-scale processing plant outline, economic model) and Decision Risk Analytics (dynamic risk/opportunity model). The feasibility study has been supported by a £258,000 grant from the ATF and the results of this study were reported in early May 2024. The results of the study demonstrate the value of this vertical integration strategy, with a post tax NPV8 of US$545m, IRR of 25.3% and Capex payback period of 4 years after commencing production.  The study includes an economic model, sensitivity analysis and risk model providing GreenRoc with a solid foundation for a decision to move forward with our integrated business model strategy.

As part of the anode plant feasibility study, a GreenRoc delegation, including myself and a metallurgical expert from SLR Consulting, travelled to China in January 2024 to visit three leading manufacturers of graphite processing equipment, as well as a producing AAM plant. The visit was extremely useful and provided us with valuable information about the latest state-of-the-art processing equipment and the potential suppliers of such equipment.

Amitsoq - the year ahead

A change in Greenland's mining laws, effective 1 January 2024, now allows an Exploitation Licence to be applied for and granted prior to the final approval of a project's Environmental Impact Assessment ("EIA"), Social Impact Assessment ("SIA") and Impact Benefit Agreement ("IBA"). Previously, an Exploitation Licence could only be applied for once the lengthy EIA and SIA processes had been completed and formally approved and an IBA between the Government of Greenland, GreenRoc and the local Municipality had been negotiated and signed.

This change, allowing the process for the grant of an Exploitation Licence to run in parallel with the EIA and SIA processes, rather than having to wait for the latter to be completed, means that the additional time required to achieve an Exploitation Licence should be considerably reduced.

Under the new law, provided the holder of an Exploration Licence has substantiated and delineated a viable mineral deposit which it intends to exploit, and has complied with its licence obligations, the licence holder will be entitled to be granted an Exploitation Licence. Before an Exploitation Licence can be granted, the licence holder must submit a Project Description and details of the Mineral Resource Estimate to the Government.  The Project Description must then be translated into Greenlandic and Danish and published for public consultation for at least 35 calendar days. Once the applicant has addressed any pertinent issues raised in the public consultation, it will then be entitled to the grant of an Exploitation Licence.

GreenRoc believes this change in the law is likely to shorten the Exploitation Licence permitting process for the Amitsoq Graphite project by several months if not a full year, given that it has already formally submitted to the Greenland Government its draft Project Description for Amitsoq, in December 2023. Further, GreenRoc has also fulfilled the condition requiring a viable mineral deposit to be substantiated and delineated at Amitsoq, as supported by the results of the PEA published in October 2023. It is expected, therefore, that an application for an Exploitation Licence will be submitted in the first half of 2024, paving the way to its possible grant before the end of 2024.

After the conclusion of the Pre-feasibility Study on the AAM Plant, and the conclusion that it represents a very attractive business case for GreenRoc, the next move is to locate the right site for such a plant. Presently, we are looking at a handful of sites across four countries and are collecting data as well as establishing business contacts at these locations. Along side, we are exploring the possibilities of public support for the pre-construction development of both the Amitsoq mine and the AAM plant in terms of grants and loans.

Other developments

On 30 November 2023, the EU and Greenland signed a strategic partnership to develop sustainable raw materials value chains. The partnership agreement is in the form of a Memorandum of Understanding (MoU). Following the signature of the MoU, the EU and Greenland will jointly develop a roadmap with concrete actions to put the strategic partnership into practice.

GreenRoc's Amitsoq project is an obvious candidate to be designated a strategic project under the EU's Critical Raw Materials Act, given that natural flake graphite is on the EU's list of strategic raw materials. Discussions with other EU bodies such as EIT Raw Materials and the European Battery Alliance are also advancing. Lately, the European Battery Alliance announced the establishment of a €500M fund to support the development of a domestic supply of battery raw materials.

Thule Black Sands Ilmenite Project ("TBS")

Exclusive exploration licence MEL 2017-29 is located in northern Greenland (see Fig. 3). The project, TBS, covers a long stretch of coast with significant deposits of heavy mineral sands at or near surface. The mineral of interest here is ilmenite, an iron-titanium oxide mineral, which is of great economic importance because it is the main feedstock for producing titanium dioxide pigment for enamel, paints and other coatings. Titanium is defined as a critical raw materials by the EU and by the USA.

A large drilling programme was conducted at TBS in 2021 using a sonic drill rig. The material from the drilling was sent to specialist mineral sands consultants IHC Mining in Australia (IHC).  The completion of the analytical programme has been delayed due to a series of events outside the Company's control. A final series of tests and analytical work having now been carried out, at the time of writing IHC is in the process of completing itsfinal report and revised mineral resource evaluation. IHC's Competent Person's Report is expected shortly.

FINANCING

The Company completed four placings in the year: in December 2022, gross proceeds of £333,000 were raised at 4.5 pence; in March £550,000 was raised at 3.5 pence; in August 2023, gross proceeds of £470k were raised at 3.8 pence; and in November 2023, gross proceeds of approximately £461k were raised at 2.5 pence, with an additional tranche of 3,000,000 shares issued at 2.5 pence issued immediately after the year end. The funds have been primarily used to conduct the Amitsoq PEA and to support the funding of the Feasibility Study into an AAM processing plant. In addition, funding has been directed to conduct the ongoing Environmental and Social Impact Assessments, test work on Amitsoq graphite concentrate and electrochemical test work  of AAM produced from Amitsoq graphite concentrate.  Post year end, the Company undertook a further placing of £238,311 to further support this work programme, along with the working capital needs of the business as we advance the development of these exciting projects.

OUTLOOK

GreenRoc has set its intention to become one of the first, if not the first, vertically integrated producer of European, domestically sourced AAM for the fast-growing battery industry. While prices for battery raw materials are currently experiencing a down cycle, expert analysts agree that in the long run, graphite producers will see a marked increase in commodity prices, driven by the massive industry and consumer demand for electric vehicles, as well as by the rapidly increasing use of graphite AAM for establishing large battery energy storage facilities across the world, an emerging market which has been largely overlooked in the past. Current low commodity prices, which graphite shares with nickel, lithium and cobalt, among others, have little bearing on the future profitability of GreenRoc's Amitsoq project as we are aiming at commencing production from 2027, by which time all forecasts show a deficit in global graphite supply resulting in elevated prices for AAM.

In a geopolitical landscape where Western nations are scrambling to secure their supply chains of critical raw materials, Greenland is seeing an increasing interest in its large-scale projects from the European Union, as well as from individual countries such as the USA, the UK, Japan and South Korea. We are already seeing the tangible results of this with a pipeline of governmental support programmes having either been already implemented or announced by a wide range of nations and intergovernmental bodies. This support is expected to result in political and financial support to projects which can deliver high-quality critical raw materials with high ESG standards to support the energy transition in the Western world. One of the most obvious candidates for this is GreenRoc and our Amitsoq Graphite Project.

Stefan Bernstein

Chief Executive Officer

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 NOVEMBER 2023

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED  30 NOVEMBER 2023