First Graphene Limited reported sustainable improvement in the performance of its mining division. The primary focus in 2017/18, has been the construction and commissioning of the Commercial Graphene Production Facility at Henderson, as the Company graduated into a technology focused enterprise. The development of the graphite mines in Sri Lanka has been continuing simultaneously, at a steady pace. The board previously took the strategic decision that it was not necessary to accelerate mine production ahead of the completion of the graphene processing facility, preferring a more prudent and lower cost approach that involved concentrating management resources on the more exciting growth opportunity that graphene presents. Now, the improvement in the mining performance corresponds with the commissioning of the graphene facility, positioning the Company as one of the world's large suppliers of high quality bulk graphene. The Company has found the development of its 100%-owned mines to be a challenging exercise, as it has progressively advised shareholders. It is a credit to the management team in Sri Lanka that it has been able to progressively address and overcome the issues as they have arisen, to reach the point where are now hoisting good volumes of vein graphite. Shareholders should understand that the delays in achieving the higher levels of graphite production have not disadvantaged the Company to any extent. The business plan calls for the mining and stockpiling of graphite for the conversion to graphene, being a value-added product many times more valuable than raw graphite. However, it was not until early 2018, that the Commercial Graphene Production Facility was ready to receive graphite, so up until now there has not been the need for large tonnages of the feed material. Nevertheless, to ensure that there was no risk to the interruption to the graphene production plan, management demonstrated prudence in negotiating a purchase agreement to acquire high-grade vein graphite from the Kahatagaha Graphite Lanka Limited mine. The Company is now in a strong position with stockpiles sufficient to feed the Commercial Graphene Production Facility for at least two years, operating at maximum capacity. Negotiations are currently underway that could lead to the doubling of this stockpile size in the coming months. The commissioning of every underground mine, across a range of commodities, requires a period of development and preparation of workings ahead of achieving continuous ore production. It is not until operations move underground that a mining team begins to experience and starts to understand the exact nature of the ground conditions and the orebodies that it seeks to exploit. It can be a steep learning curve that often requires modification of initial mining plans and schedules to ensure they are optimised for site specific conditions. Narrow-vein underground mining will never be a walk in the park. It requires a highly skilled workforce and vigilant management on a continuous basis. Having elevated the competency of the workforce through rigorous training and the enforcement of high standards, the Company is in a much better position than at the outset of mining. The mining infrastructure that has been constructed is a long-term investment in future, with these mines having the potential for being productive for many years, and perhaps decades. Workings are down to depths of 40-50m now, with the potential to extend to levels deeper than 500m, as has been experienced in graphite mines operating elsewhere in Sri Lanka by other parties. In accordance with best practices, the Company will periodically engage with independent expert mining engineers to provide opinions and advice to ensure high standards of safety, efficiency and productivity. Current Position ­ Phase 1 Completed at Aluketiya: After an extended time frame for the development of the Aluketiya mine, the vein graphite production rates have increased to achieve up to 500 kg per day, though the mine continues to experience better and worse rates depending up daily conditions. At this level of production it is now only 10% short of the original planned rate of 200 tonnes p.a. from each shaft, which is still viewed as an attainable rate within the coming months. The Phase 1 mining has been completed and with this there are a multiple number of seam working faces that have been developed, ready for production. While these faces have been in the process of being established the graphite production has been ongoing. The underground geological interpretation continues to reinforce the current mine plan and rationalisation programmes have reduced the operating costs. The Company has ongoing training programmes to continue to improve efficiencies and production rates and mining option rates of return will bring Aluketiya productivity to best practice levels.