The McIntosh 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 will bring cash and exploration funding to Hexagon and leverage off past investments made by the Company.

Details in HXG ASX Announcement 14 February 2022 and HXG ASX Announcement 24 November 2022.

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

During the July-September quarter results from the latest exploratory drill program were announced. (ASX GCM 18th July 2023). Highlights included 280m thick Graphitic Schist at the Emperor target. Follow up drilling intersected up to 208m of graphitic schist, drilled 150m to the south of the above mentioned discovery hole, and up to 230m of graphitic schist was intercepted 200m to the north of the discovery hole.

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

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).

In 2022 South Star completed a 10-15 holes drill program and installed a piezo to monitor groundwater levels onsite. They initiated the 43-101 Maiden Resource Report in Q1 2023. Metallurgical work was also carried out with three tonnes of ore being turned into RoM concentrate at North Carolina State University with 15kg of RoM concentrates tested for a variety of value-add/battery applications. During 2023 South Star undertook a drill program consisting of total drilling of around 1500-2000m. The outcomes of the program and other technical analysis of the graphite will feed into a Preliminary Economic Assessment (PEA) that is due for completion by the end of Q1 2024.