REG - Blencowe Resources - Orom Cross Graphite DFS NPV10 up 15% to US$1.254bn

Blencowe ResourcesAnnouncement

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RNS Number : 2140G  Blencowe Resources PLC  29 May 2026

Date: 29 May 2026

Blencowe Resources Plc

("Blencowe" or the "Company"),

 

Updated DFS Model Strengthens Orom-Cross Economics

NPV10 rises 15% to US$1.254bn; Capex Unchanged; New Offtakes and Downstream
Pathways Incorporated

 

Blencowe Resources Plc (LSE: BRES) is pleased to announce an update to the
commercial model underpinning the Definitive Feasibility Study ("DFS") for the
Orom-Cross graphite project in Uganda, reflecting a number of developments
since the initial DFS was published in December 2025.

The updated model incorporates revised assumptions and inputs since the
initial DFS, including new high value offtakers, updated pricing, costings and
timings, expanded reserves incorporated into the mine plan, and increased
confidence in product mix and saleability based on ongoing testwork and
commercial engagement. Importantly, these improvements have been achieved
without any increase in capital spend to deliver the project.

The revised commercial model increases Net Present Value10 ("NPV10") by 15%,
from US$1.087 billion to US$1.254 billion over the initial 15-year life of
mine ("LOM").  While IRR has moderated versus the initial model due to
updated inputs (specifically timing of capital spend), the revised DFS model
continues to demonstrate robust economics with increased free cash generation.
 

 

Highlights

·    NPV10: +15% to US$1.254 billion (initial 15-year LOM); IRR10: 51%.

·    Net Free Cash: +120% to US$4.466 billion over LOM with increased
volumes and prices for high grade purified graphite products from
beneficiation facility, reflecting global demand.

·    Average Annual EBITDA: +45% to US$333 million p.a.

·    Capex: unchanged for both phases (P1 US$45m; P2 US$125m). Competitive
internationally given infrastructure proximity.

·    Commercial progress: several new offtake agreements, including high
value niche sales, now reflected within revised DFS model.

·    Market shift: western markets actively seeking purified products
ex-China supports higher volume sales expected in highest value products.

·    Expandables included: additional downstream processing pathway for
expandable graphite and associated sales incorporated.

·    Tenders submitted: applications submitted into several sizeable
graphite tenders; outcomes expected to become clearer in Q3 2026.

·    Strategy: downstream beneficiation / higher-value upgraded products
remains core (including USPG and expandables).

 

Commercial Model and Scaling

Orom-Cross is expected to scale-up production in line with expected increased
demand from offtakers for both concentrates and purified products.  The
Company's view is that the project is less constrained by what it can produce
than by what it can contract and sell into higher-value pathways, particularly
as all upgraded products are now qualified and commercial terms for these are
more evident.

Blencowe believes demand for natural flake graphite and upgraded products will
continue to grow, specifically from Western markets seeking non-Chinese
supply, while supply growth may remain constrained, thus supporting the
opportunity for new entrants with scalable, high-quality product pathways and
beneficiation.

Following successful bulk sample testing in 2025, the Company has continued
engagement across multiple markets and sectors.  Several new offtake
agreements have been signed (including higher-value niche sales) and these are
now reflected in the revised DFS model.  Growth in net cash flow and NPV is
largely the result of increased volumes of purified products sold as well as
higher pricing for these as expected from Western markets.  The Company
expects to provide updates as further milestones are reached and disclosure is
permitted.

The revised model reflects improved reserve confidence from the Stage 7
programme and incorporates the updated mine plan assumptions, providing
greater assurance around production volumes and scalable operations over time.

 

Capital Framework and Phasing

Importantly, the revised DFS model reflects updated operating inputs
(including fuel and equipment assumptions) without any increase in anticipated
capital spend required to deliver the project:

·      Phase 1 Production (P1): US$45 million (project equity-led
pathway; faster start-up)

·      Phase 2 Production (P2): US$125 million (scale-up and in-country
downstream capability; predominantly debt-led)

This phasing supports a staged approach to de-risk execution while maintaining
the long-term vision to deliver upgraded products in-country.

Blencowe notes the capital requirements are in the lowest percentile
internationally and are highly competitive by industry standards, particularly
as they cover both the Orom-Cross mining and processing operation and the
beneficiation facility near Gulu.

 

Downstream Pathway and Non-China Demand

The Company's long-term strategy to deliver upgraded purified products remains
core, including uncoated spheronised purified graphite ("USPG") and
expandables. Where appropriate, the Company expects to utilise third-party
processing partners to upgrade in the interim while progressing in-country
capability.

Demand for non-Chinese graphite products (particularly purified products)
continues to build as Western markets seek supply chain resilience. The
Company believes Orom-Cross' expanding inventory, product options and
developing commercial pathway significantly strengthen the project's strategic
relevance.

 

Uganda Value-Add and In-Country Beneficiation

Blencowe's long-term strategy is to maximise in-country value-add in Uganda
through the production of upgraded graphite products, including USPG and
expandables, supported by beneficiation capacity near Gulu. This approach
aligns with Uganda's broader objectives around local processing and value
addition, skills transfer and industrial development, while strengthening
Orom-Cross' positioning within resilient, non-China supply chains.

 

Infrastructure and On-Site Progress

·    Upgrade and sealing works have commenced on the road from Kitgum to
Orom-Cross, managed and paid for by the UK Government, improving logistics to
Mombasa port.  This project is expected to be completed ahead of ramp up of
Orom-Cross (P2 Production) and thus supports higher volumes moved from site.

·    A first permanent camp was completed at Orom-Cross in 1Q 2026 to
house contractors during mine construction, which will commence following
funding.

 

Next Steps

The Company will continue to pursue value enhancement across Orom-Cross as
further test work is delivered, tenders are completed, and as strategic
relationships progress.

·      Tenders:

The Company has submitted applications into several sizeable, strategic
graphite tenders and expects greater clarity on outcomes in the next quarter
(Q3 2026).  Successful outcomes will underpin expected volume growth for both
concentrate and upgraded product streams.

·      SAFELOOP:

Significant progress has been made within the EU's SAFELOOP initiative
(developing a Gen3 lithium-ion battery for deployment in standardised EV buses
across the European continent) but no sales for this initiative have been
included in any DFS modelling to date.

·      Price and product mix: continued improvements from higher-value
niche sales and upgraded products.

Additional upside under evaluation but not yet modelled include industrial
diamonds, further micronisation, speciality defence/energy applications,
ultra-high purity (99.99% TGC) products, tenders underway and Project SAFELOOP
(all subject to commercial terms).

As the project advances, the Company is focused on ensuring Orom-Cross is
understood by a broader pool of sophisticated capital, supported by improved
research coverage and institutional engagement.  This will become a central
part of Blencowe's corporate strategy over forthcoming months as the Company
seeks to bring more institutional shareholders onto the register.

 

Funding Strategy and Near-Term Priorities

The combination of low upfront capex, staged development, and downstream
exposure positions Orom-Cross within a limited subset of graphite projects
capable of meeting both return-thresholds and strategic supply chain
requirements to attract the required capital.

Blencowe continues to progress two complementary funding pathways alongside
ongoing commercial and development activity:

1.    Phase 1 Production (P1) - US$45m (project-level focus):

·    Primary focus is securing P1 equity funding, with a preference for
project-level funding to minimise dilution at the plc level.

·    The Company notes that several interested P1 investment partners have
signed NDAs and are conducting due diligence in the data room as part of their
internal financial decision-making processes.

·    P1 is designed to establish an operating and sales track record and
support downstream qualification from site, and to deliver pricing visibility
which is critical to debt funding.

 

2.    Phase 2 Production (P2) - US$125m (predominantly debt):

·    P2 funds ramp-up mining to scale as well as in-country downstream
processing capability near to Orom-Cross and is expected to be funded
predominantly via debt.

·    Expressions of interest and diligence pathways for debt providers are
underway as they typically take longer than equity-led funding.

·    DFI-style routes, including DFC, continue to be considered as
potential debt funding pathways for P2 (not considered within P1 equity).

Several interested P1 funding parties have signed NDAs and are conducting due
diligence in the data room. The Company is progressing all parties as
efficiently as possible and will provide updates when there is substantive
progress suitable for announcement.

 

Updated Production Pathway (as reflected in the model)

The updated DFS incorporates a refined staged plan:

·      P1: delivers up to 20,000tpa of 97% TGC concentrate at Orom-Cross
plus up to 3,000tpa spheronised graphite from in-country beneficiation at a
proposed facility near to Gulu.

·      P2: delivers up to 70,000tpa of 97% TGC concentrate plus up to
10,000tpa USPG and expandables from in-country beneficiation.

The Company notes that all subsequent phases of growth beyond P2 Production
are driven by demand and contracted sales, with Orom-Cross not constrained by
potential production so much as by sell-through of higher-value product
streams.

 

 

 

 

Blencowe CEO Mike Ralston discusses the updated DFS with Vox in the interview
below:

www.voxmarkets.com/articles/interview-with-blencowe-resources-0de98ba
(http://www.voxmarkets.com/articles/interview-with-blencowe-resources-0de98ba)

 

Executive Chairman Cameron Pearce commented:

"This DFS model update reflects tangible progress across Orom-Cross. NPV10
increases to US$1.254 billion and net free cash rises to US$4.466 billion,
while capital spend remains unchanged across both Phase 1 and Phase 2. While
IRR has moderated versus the prior model due to updated inputs, the economics
remain highly robust and the uplift in NPV and cash generation is the key
outcome for project funding and delivery.

Just as importantly, the revised model now reflects additional commercial
inputs, including new offtake agreements and the inclusion of expandables. We
have also submitted into several sizeable graphite tenders and expect greater
clarity on outcomes for these in the next quarter.

Funding remains the key gatekeeper. We continue to progress Phase 1 equity
discussions, alongside longer-dated Phase 2 debt pathways, and we will update
the market as and when appropriate.

Additionally, as Orom-Cross advances, we are also focused on ensuring the
enlarged investment case is understood by a broader pool of sophisticated
capital, supported by improved research coverage and institutional
engagement."

 

For further information please contact:

 

 Blencowe Resources Plc                            www.blencoweresourcesplc.com (http://www.blencoweresourcesplc.com/)

 Sam Quinn (Director)                              Tel: +44 (0)1624 681 250

                                                   info@blencoweresourcesplc.com (mailto:info@blencoweresourcesplc.com)

 Sasha Sethi (Investor Relations)                  Tel: +44 (0) 7891 677 441

                                                   sasha.sethi@blencoweresourcesplc.com
                                                   (mailto:sasha.sethi@blencoweresourcesplc.com)
 Tavira Financial (Joint Broker):

 Jonathan Evans                                    Tel: +44 (0)20 3192 1733

                                                   jonathan.evans@tavira.group (mailto:jonathan.evans@tavira.group)
 Oak Securities (Joint Broker):

 Calvin Man / Mungo Sheehan / Jerry Keen           Tel: +44 (0)20 3973 3678
 Cavendish (Joint Broker):

 Neil McDonald / Peter Lynch / Hanna Leijonmarck   Tel: +44 (0) 20 7908 6000

                                                   epr@cavendish.com (mailto:plynch@cavendish.com)

 Twitter                                           https://twitter.com/BlencoweRes (https://twitter.com/BlencoweRes)

 LinkedIn                                          https://www.linkedin.com/company/72382491/admin/

                                                 (https://www.linkedin.com/company/72382491/admin/)

 

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