Syrah Resources Ltd (ABN 77 125 242 284). Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia

Ph 03 96707264 Fax 03 96420698 1

ASX Code SYR

Current Corporate Structure

Ordinary Shares

Issued Shares: 147,867,623

Options

Exercisable at $0.26: 3,001,967

Exercisable at $2.21: 500,000

Exercisable at $2.90: 250,000

Exercisable at $3.87: 1,000,000

Major Shareholders

Basapa PL 9.54%

National Nom Ltd 8.59%

Copper Strike Ltd 7.44%

Kitara Inv PL 6.91%

Board of Directors

Mr Tom Eadie

Non-Executive Chairman

Mr Paul Kehoe

Managing Director

Mr Tolga Kumova

Executive Director

Mr Michael Chester

Non-Executive Director

Mr Rhett Brans

Non-Executive Director

Ms Melanie Leydin

Company Secretary

Key Projects

Balama Graphite Project (Mozambique)

and Nachingwea Graphite Project

(Tanzania)

Balama is the largest and one of the

highest grade flake graphite and

vanadium projects globally. Balama is

mainly medium to coarse flake and

Nachingwea is fine to coarse flake.

Tanzania Mineral Sands

A very prospective portfolio of mineral

sands licence areas, some of which

have drill results up to 28% heavy

minerals.

Website

www.syrahresources.com.au

24 July 2013

BALAMA GRAPHITE AND VANADIUM PROJECT UPDATE

Syrah Resources (ASX:SYR) is pleased to report on the recent progress made at the Balama Graphite and Vanadium Project:

APPLICATION FOR MINING LICENCE

Following completion of the Balama West Scoping Study, Syrah completed additional work to convert the Study to an Economic Feasibility Study as required under the Mozambique Mining Law. As the Balama West resource is

Highlights:

Application for Balama mining licence submitted to the Ministry of Mining

Environmental permitting work expected to be complete by October 2013

Infill drilling at the high grade Ativa Zone at Balama West completed and drill assays awaited. Extensive graphite horizons intercepted as anticipated

Once assays are received, the Ativa Zone (18.6 million tonnes at 21% TGC and 0.39% V2O5) is expected to be upgraded to Indicated and Measured status and production and financial projections for the development plan for Balama West can be released to the ASX

Excavation of a 100t bulk sample confirmed softness of graphite ore for use in further test work

Large Scale final pilot plant test work for process flowsheet optimisation to commence and expected to be completed in three to four months

Extensive community and government consultations conducted and very high levels of support received from all parties

Powerlines connecting Balama to the National Grid progressing well and expected to be completed in four months

Water rights to Chipembe Dam secured, paid and confirmed Port of Pemba Authority confirms ample available capacity at the

port for the volume of graphite proposed to be shipped by Syrah Discussions concerning the debt financing of Balama commenced

with various institutions

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Syrah Resources Ltd (ABN 77 125 242 284). Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia

Ph 03 96707264 Fax 03 96420698 2

currently in the Inferred category, Syrah is unable to publish the results of the Study (refer announcement of 12 June 2012). A Mining Licence has now been applied for with the Government of Mozambique. Environmental work is ongoing and expected to be completed by October 2013. FINANCING

Discussions have commenced with international debt financiers and potential trade partners regarding the securing of project development finance for the Balama Graphite and Vanadium deposit. COMMUNITY CONSULTATIONS Over the past few months, extensive community consultations have been held with local villages by Syrah representatives in conjunction with personnel from specialised consulting firm Coastal and Environmental Services. Based on community feedback, Syrah is very confident that it has the support of the local communities. The Balama Project will provide extensive employment in the area. It is currently estimated that approximately 300 people will be involved in construction of the mine and 200 in the ongoing operations in Mozambique.

Figures 1 and 2 – Community consultations with local villages

LARGE SCALE PILOT PLANT TEST WORK Bulk samples of graphite ore have been extracted in order to conduct final large scale pilot plant test work. Syrah has excavated from surface over 100 tonnes in total from the Balama East and West zones. This work is designed to optimise the flow sheet and process plant. This test work will be completed over the next three to four months.

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Syrah Resources Ltd (ABN 77 125 242 284). Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia

Ph 03 96707264 Fax 03 96420698 3

The graphite ore was very easily dug using conventional excavation processes. Syrah does not believe that any blasting will be required until the oxide zone is depleted which is likely to be at least a decade from start of mining. This will further reduce mining costs below that considered in the Scoping Study/Economic Feasibility Study.

INFILL DRILLING A total of 36 holes have been drilled for 3,366 metres at the Ativa Zone at Balama West since drilling recommenced in April 2013. The Ativa Zone is to date the highest grade zone at Balama with an Inferred Resource of 18.56 million tonnes at 21% TGC and 0.39% V2O5. Graphite mineralisation was intercepted as expected. Several holes have been sent to the laboratory for processing and Syrah anticipates first results to be received in two to three weeks. Infill drilling is now complete at the Ativa Zone and the drill rig has now moved to infill Balama East. Once the infill drill assay data is received for the Ativa Zone, Syrah expects that it will be upgraded to Indicated and Measured status. Syrah anticipates being in a position to release an updated resource for the Ativa Zone in approximately two months, with a significant quantum in the ore reserve category to support debt financing for project development. Once the Ativa Zone has been upgraded to Indicated / Measured status, Syrah anticipates the release to the ASX of the Scoping Study outcomes shortly thereafter.

Figure 3 – Excavating Balama graphite ore from

high grade Ativa Zone

Figure 4 –High grade graphite shown in the pit

wall in the Ativa Zone

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Syrah Resources Ltd (ABN 77 125 242 284). Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia

Ph 03 96707264 Fax 03 96420698 4

Figure 5 – High grade graphite ore in hole BMDD0054 from Ativa Zone

POWER The erection of powerlines connecting Balama to the National Grid is progressing well and expected to commission in about four months time. Commercial price delivered to site is expected to be less than 5 cents per KWH due to the considerable Hydroelectric power generation in Mozambique.

Figure 6 –Powerlines being erected between Balama and Montepuez

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Syrah Resources Ltd (ABN 77 125 242 284). Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia

Ph 03 96707264 Fax 03 96420698 5

WATER

Syrah has secured rights to 1,000,000m3 of water from Chipembe Dam located just 10km from the proposed site of Balama’s processing plant. This is sufficient to meet Balama’s operational needs.

Figure 7 – Along the banks of Chipembe Dam

PORT OF PEMBA

Further discussions have been held with the Pemba Port Authority to secure capacity at the Port. There is presently suitable available capacity at the Port of Pemba with 8,500 TEU (TEU: twenty foot equivalent container unit) handled last year, capacity of 18,000 TEU as advised by the Port Management company with an upgrade for the port to be complete by the end of 2014 doubling the container capacity to approximately 36,000 TEU.

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Syrah Resources Ltd (ABN 77 125 242 284). Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia

Ph 03 96707264 Fax 03 96420698 6

Figure 8 – Port of Pemba

VANADIUM METALLURGICAL TESTWORK

Vanadium testwork is progressing well and Syrah expects to update the market within the next month.

The information in this report as it relates to geology, geochemical, geophysical and exploration results was compiled by Mr Tom Eadie, FAusIMM, who is a Competent Person and Chairman of Syrah Resources Ltd. Mr Eadie has more than 20 years experience in the activities being reported on and has sufficient expertise which is relevant to the style of mineralisation and type of deposit under consideration. He consents to the inclusion of this information in the form and context in which it appears in this report.

Paul Kehoe

Managing Director

Syrah Resources Ltd

Mobile contact - +61 3 414156288

Email – p.kehoe@syrahresources.com.au

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Syrah Resources Ltd (ABN 77 125 242 284). Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia

Ph 03 96707264 Fax 03 96420698 7

About Syrah Resources

Syrah Resources (ASX code: SYR) is an Australian resource company with a diversified exploration portfolio

located in southeast Africa. The Company is rapidly progressing its core Balama Graphite and Vanadium

Project in Mozambique to production. Balama is a 106km2 granted prospecting licence located within the Cabo

Delgado province in the district of Namuno in northern Mozambique. The project is approximately 265km by

road west of the port town of Pemba. Pemba Port is a deep-water container port, and the third largest in

Mozambique. The Balama project site is accessible by a sealed, main road, running directly from the airport

and Pemba Port. The main road is located 1km from the airport.

Syrah’s exploration portfolio also includes a strategic mineral sands portfolio in Tanzania, comprising eight

tenement areas, some with high grade heavy mineral intersections, and the Nachingwea graphite project in

Tanzania.

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