http://www.purplecom.com.au/_content/documents/2283.pdf

ANALYST: Kiril Mugerman SECTOR: Mining kmugerman@iagto.ca (514) 284 4175
What is graphite?
Why are companies suddenly exploring for it?
Why the rush?
These are some of the questions that investors have already found answers to
through the multitude of companies presently active in the sector. However, this
is not all what investors want to know. What has not been properly addressed is
what makes one deposit stand out above others, how to recognize a company
with the right assets and what to expect from exploration companies in the next
12 to 24 months.
In this report we review the fundamentals behind graphite supply and demand
which are ultimately pointing towards supply shortage in the upcoming years.
Our model for future graphite supply and demand suggests that a minimum of 4
new mines and as many as 23 will be needed to go into production outside of
India and China between now and 2020 to satisfy the growth in demand.
CONCLUSION
This report reviews 36 companies and 98 properties which are presently being
explored for graphite across the globe. We separate these companies based on the
stage of their project into three risk groups. The Top Tier is made up of 3
companies with advanced projects and 3 with historical resources that could be
quickly upgraded to 43-101 status. This group offers investors both short and
long term growth.
The Mid Tier includes 12 companies with established targets, most of them drill
ready. We expect several large discoveries to come from this group that could
offer the largest return for investors in the graphite sector.
The Lower Tier comprises the remaining 18 companies forming the highest risk
investment at the moment in the sector.
Disclaimer: The opinions put forth in this report are those of the mining analyst. Great care should
be taken when making judgments based on this report. Please see the legal disclosures at the end of
the report for more information.
May 1st, 2012
GRAPHITE