The McIntosh Project Graphite assets are a combined total Graphite resources of 23.8 million tonnes, grading 4.5% TGC, with 81% indicated (HXG ASX Announcement 5 April 2019). The graphite project continues to progress in collaboration with Hexagon’s JV partner, Green Critical Minerals Pty Ltd (GCM). Under the terms of the Agreement Green Critical Minerals (GCM) has the right to earn up to 80% interest in the Graphite Mineral Rights only across Hexagon’s McIntosh Project tenements. The tenements will remain wholly held/managed by Hexagon. The Agreement with GCM brings cash to Hexagon and exploration funding to the project and leverages off past investments made by the Company.

Details of the JV are detailed in HXG ASX Announcement 14 February 2022 and HXG ASX Announcement 24 November 2022.

In addition to expenditure on the GCM drill program GCM made the second staged payment of $200,000 to Hexagon Q4 2023.

Most recently GCM released the following announcements from its 2023 drill program:

• 1 November 2023: Discovery Hole Intersects 250m of Graphite Mineralisation
• 21 November 2023: Emperor Test Work Confirms High 97% Purity and SPG Potential
• 27 November 2023: Amended-Emperor Testing Confirms High Purity and SPG Potential
• 18 December 2023: Battery Annode and Downstream Potential at Emperor

These findings will be included in GCM’s updated PFS due in Q1 2024 and will form the basis of the expanded Emperor Resource.

The Ceylon Graphite Project is located on the northeast end of the Alabama Graphite Belt and covers approximately 500 acres in Coosa County, Alabama. The project is a historic mine active during World Wars I and II. It is 80% owned by Hexagon.

In December 2021 Hexagon signed a development deal (Binding Earn-in-Option) with Canadian headquartered Graphite project development company South Star Battery Metals Corporation (South Star) (TSXV: STS) in relation to Hexagon’s 80% owned Ceylon Graphite Project (comprising of a ground holding of 500 km2) located in Alabama in the USA.

The agreement provides for an ‘on the ground’ program (expenditure) of in excess of CAD $750,000 to develop the Ceylon Project led by South Star out to 2025.

Details in ASX Announcement 8 December 2021.

South Star Battery Metals Announces Small-Scale Pilot Metallurgical Testing Program for Alabama Graphite Project (TSXV Announcement, 3 May 2022).

South Star have completed a drill program of around 2000m over 15 holes, the results of which will feed into the 43-101 Maiden Resource Report which will be released in parallel with the findings of the Preliminary Economic Assessment (PEA) which is due for completion by end March quarter 2024.

Total expenditure on the project by South Star upon completion of the PEA is forecast to be approximately C$3m (AUD 3.3m). Hexagon is free carried.