Triton Minerals Limited - Mozambique Projects Update

Perth, Australia (ABN Newswire) - Triton Minerals Ltd. (ASX:TON) (Triton, Company) is pleased to provide the following update in relation to ongoing work being undertaken at the Company's Ancuabe and Nicanda Hill operations.

Triton Minerals' Managing Director & CEO Brad Boyle said: "Triton is pleased to provide additional information in relation to its binding off-take agreement to assist shareholders with any questions they may have had following yesterday's historic announcement.

Further, the Company is glad update shareholders with the progress of the Ancuabe and Nicanda Hill operations. These latest results and activities demonstrate just how quickly Triton is advancing these project areas and continues the Company's primary focus of developing Triton's Mozambique graphite project, towards graphite production in the near future."


ADDITIONAL INFORMATION ON KEY TERMS OF BINDING OFF-TAKE

Triton refers to the Company's ASX Announcement titled "Triton Secures Two Billion Dollar (USD) 20 Year Binding Off-Take Contract" released to the market on 1 April 2015. In addition to that announcement, Triton wishes to provide the full and frank disclosure to its shareholders and presents the following supplementary information to provide additional clarity regarding some of key terms of the Contract, namely:

1. the Contract is titled "Letter agreement", is executed by representatives of Triton and YXGC and parties agree that the Contract is to be legally binding upon them, gives rise to full legal rights and obligations and contains binding undertakings and representations regarding the full operation of an off-take;

2. the Contract provides that should either party make a written request to do so, Triton will prepare a more comprehensive offtake agreement that sets out in more detail any additional required terms and to the extent required elaborate upon the arrangements and commitments contained in the Contract;

3. the Contract continues in legal full force and effect unless an additional formal offtake agreement is agreed and signed by the parties;

4. the Contract provides that within 6-12 months post the commencement of full Production, the Parties have agreed that if a more formal offtake agreement has not already been entered between the parties, the parties will in good faith negotiate a formal off-take agreement which will replace the Contract and incorporate any additional terms required to finalise the strategic relationship; and

5. graphite concentrate will be traded at market price at the time of supply, which shall be no less than US$1,000 per tonne. The market price is not limited in its upside, however, the Contract provides that should the global graphite market price fall below US$650 per tonne, the Parties have agreed that, acting in good faith, they will undertake to negotiate new terms in relation to the graphite sale price.

The Company confirms that the Contract is legally binding and should no other more formal agreement be negotiated, finalised or executed, the terms of the Contract remain in force and continue to bind the parties.

Given the expected timeframe between execution of the Contract and the commencement of production, the parties thought it best to review the Contract within 6-12 months after production commences to ensure all required and relevant terms are defined in the Contract, to ensure the strong ongoing strategic relationship between Triton and YXGC.

If required the parties will negotiate in good faith a formal offtake agreement which captures all of the agreed terms in the Contract and would include any additional terms not covered in the Contract. To the best of Triton's knowledge based upon discussions with YXGC, the Company understands that the parties do not intend to enter into a more formal agreement until this time (i.e. within 6-12 months post production).

Triton confirms that in its scoping study (contained within the ASX release titled "Nicanda Hill Scoping Study" dated 26 November 2014) the Company assumed a conservative average graphite price of US$985 per tonne and that this figure did not take into account any potential price escalation as demand for graphite grows. Triton remains confident with this forecast and as a result was content to provide YXGC some degree of comfort with the opportunity to sit down with Triton and discuss new pricing in the unlikely event that the global graphite market price fell below US$650 per tonne.

Rather than signing a Memorandum of Understanding, a binding short form agreement was signed by the parties to provide a solid basis and a high degree of certainty for both parties. Triton considers the initial binding offtake agreement with YXGC to be a significant milestone in the development of the TMG projects and will continue to pursue further off take opportunities from around the world.


ANCUABE

METALLURGICAL TEST WORK UPDATE

The Company confirms that a 100kg bulk sample is progressing through a detailed metallurgical test work program being undertaken by Mintek in Johannesburg. As previously announced by Triton on 26 February 2015, the preliminary mineralogical work results identifies that:

- 85% of the graphite flakes are greater than 212µm in size; and

- ~60% of the graphite flakes recovered from the crusher discharge range between 600µm and 3300µm (i.e. are jumbo graphite flakes).

Mintek have now advised the Company that initial flotation results have returned positive results. For the Rougher Concentrate using an initial 850micron grind these positive results show:

- 97% graphite recovery

- head grade of 14.4%TGC

- flotation time of 9 minutes

- overall rougher concentrate grade of 80% TGC with a 17% rougher mass recovery

- first stage rougher concentrate grade of 87% TGC achieved without any cleaning flotation stages.

This data suggests that after the full suite of cleaning stages the concentrate should achieve >90%TGC whilst preserving and retaining a large proportion of large and jumbo flake size.

Triton believes that these results are encouraging and continues to support the Company's belief that the Ancuabe project contains world class graphitic material.

Further metallurgical tests are underway on the Ancuabe samples and Triton expects to receive the final flotation results from Mintek in the coming weeks.


ENVIRONMENTAL IMPACT STUDY

Triton is pleased to confirm that Coastal and Environmental Services (CES) has now also been engaged by the Company to produce an Environmental Impact Study at the Company's Ancuabe project. CES is now managing both the Nicanda Hill and Ancuabe site environmental programs.


FIELD WORK UPDATE

Triton verify that a further mapping and sampling program is now underway at Ancuabe. Field preparations are also being made for the up-coming limited initial drill program at Ancuabe, which is expected will commence in May/June 2015. The primary focus of this small drilling program is to confirm and test the extents of the graphite mineralised zones already identified by Triton.


NICANDA HILL

FIELD WORK UPDATE

The Company confirms that field preparations have commenced for the 2015 drilling season. Drilling is scheduled to commence during May 2015. This drilling campaign is designed to achieve the following objectives:

- Obtain representative metallurgical samples from within the optimised pit shell

- Obtain samples for geotechnical studies

- Limited infill resource drilling to obtain a proportion of measured resources

- Hydrological testing.

The Company also notes that the DRA feasibility team is progressing well with feasibility activities and has completed the site layout and infrastructure assessment phase. To date, the feasibility schedule approved by the Company is progressing in line with the timeframes set.


NICANDA HILL RESOURCE UPDATE

The Company confirms that a revision of resource model using Optiro as an independent consultant is nearing completion. The resource update is intended to provide a more accurate basis for the Definitive Feasibility Study (DFS). Triton is aiming to announce the results of the update shortly.


POTENTIAL STRATEGIC PARTNERS

The execution of the binding off-take contract (Contract) between Triton and Yichang Xincheng Graphite Co Ltd (YXGC) demonstrates the strategic importance and growth potential of graphite-based technologies and represents a significant milestone for the Company in securing an additional strategic partner.

Triton together with the assistance of World Industrial Minerals and Oriental Link Holdings, are actively advancing discussions with current and new potential strategic partners from Europe, Japan, China and North America.


INTEGRATED DEVELOPMENT PLAN

As previously announced by Triton on 4 February 2015, the Company is reviewing a number of development options in which the Ancuabe Project may be incorporated into the Nicanda Hill operations, in order to provide a greater commercial flexibility by providing a varied range of high-purity graphite flake sizes for end users.

Most recently, Triton has secured a premier exploration and development strategic partner in Mozambique with AMG Mining and, most significantly, secured an initial binding off take agreement, that the Company hopes will underpin the development of the integrated Ancuabe and Nicanda Hill Projects (Figure 1 in link below).

Should Triton be able to integrate the Ancuabe and Nicanda Hill Projects, this would place the Company in a unique position with respect to the size of its resources (hence life of mine), low production cost, and the ability to provide the full range of graphite flake sizes.


CONCLUSIONS

Triton is working towards establishing TMG as a new global graphite-industry benchmark, by aiming to offer the world's lowest cost and most diversified graphite product range together with the longevity of a reliable supply of high quality flake graphite.

Triton management is actively engaged with various parties to secure additional off take contracts.


About Triton Minerals Limited:

Triton Minerals Ltd. (ASX:TON) is an ASX listed, responsible mineral explorer and resource management company headquartered in Perth, Australia.

Led by a highly experienced management team, Triton Minerals' vision is to grow shareholder's value through discovery or development of base metal, gold and other precious metal deposits.

Triton has made excellent progress with its three Graphite projects located in the Cabo Delgado Province in Mozambique, with the program successfully identifying a number of graphitic exposures.

It is the Company's belief that the Mozambique, Balama North Project could host multiple and very substantial world class graphite deposits.



Contact:

Triton Minerals Ltd.
Brad Boyle
T: +61-8-6489-2555
F: +61-8-9388-1252
www.tritonmineralsltd.com.au