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To: LoneClone who wrote (106996)	5/26/2014 9:19:44 PM
From: LoneClone	Read Replies (1) \| Respond to of 192641

MRL Corporation testwork produces 95.4% graphite concentrate Friday, May 23, 2014 by Proactive Investors proactiveinvestors.com.au MRL Corporation ( ASX:MRF) has received promising results with testwork on remnant graphite samples from its Sri Lankan graphite licence producing concentrate grading 95.4% total graphitic carbon. Especially notable is that this result was achieved from the first round of testing using a single stage flotation without any regrind and process optimisation. These results comes as the company prepares to drill an initial three NQ Triple Tube diamond drill holes at to test the vein graphite potential in three locations across the Warakapola Pandeniya / Bopitiya area. The drill is expected to mobilise to site on or around 29 May. A Head Analysis grade of 85.6% TGC was achieved which is consistent with the results reported on the 26th March 2014. The samples were collected from remnant stockpiles dating back in excess of 50 years pm EL228. Drilling MRL has locked in a contract for diamond drilling services to be provided by the Geological Survey and Mines Bureau (GSMB). The first drill location is at Pandeniya and is expected to be between 50 to 125 metres in depth. Drill holes two and three will be up to 300 metres deep and test the continuity of vein graphite mineralisation below the historical shafts and adits. The contract stipulates a time to complete the drilling program of 15 weeks, however MRL will work with GSMB to complete the program in the most efficient manner. Drill core samples from this program will be tested by Nagrom to establish the insitu grade of any vein graphite intersections encountered. Sri Lankan graphite Sri Lanka is renowned the world over for being the only producer of crystalline vein or lump graphite, which is the highest quality of naturally occurring material. The quality of vein graphite produced in Sri Lanka has a purity level in excess of 90% Carbon as Graphite. This is significant as it requires very little upgrading and processing to produce a high quality saleable product, leading to low operating costs and high profit margins. First Mover Advantage MRL has established first mover status in southern Sri Lanka, with four highly prospective lump/vein graphite development projects. The company is establishing a major tenement position covering this type of graphite, which has effectively been pre-treated by nature to contain extremely high levels of carbon purity that attract premium pricing. Current programs are focused along 650 metres of historic mine workings on the Pandeniya to Wallagala strike-line within the Warakapola Project. MRL’s Sri Lanka project work is not greenfield exploration; all projects areas have extensive historical workings and remnant graphite. Analysis The results from the preliminary testwork demonstrate the attractiveness of MRL Corporation and its Sri Lanka graphite projects. This is especially true given the concentrate grading 95.4% TGC was achieved from the first round of testing with a single stage flotation. A Head Analysis grade of 85.6% was also achieved, consistent with the grades of about 85% through the use of XRF and ICP. MRF’s projects could potentially produce 5,000tpa of vein graphite, generating revenues of up to US$10 million per year. This can be achieved with capital costs of under US$5 million and operating costs of US$600-650/tonne, which compares well with other potential graphite producers, which have CAPEX of between $30 million to $133 million. Proactive Investors had initially placed a Speculative Buy on MRL Corporation when its shares were trading at $0.03, with a valuation of $0.09 to $0.10 on the stock due to the early production potential.