Woxna Graphite Tests Yield Enhanced Large Flake Distribution

Vancouver, Canada

Flinders Resources Limited (“Flinders”) (TSX.V — FDR) Mr. Martin McFarlane, President & CEO is pleased to provide an update on the metallurgical test programs being conducted on graphite bearing rock from the Woxna Graphite Mine, Sweden.

A bulk sample, together with representative core samples of graphite mineralization from across the Woxna Kringel mineral resource were sent to flotation specialist Aminpro Metallurgical Laboratories (“Aminpro”) in Chile. Aminpro were commissioned to complete a series of graphite processing tests that would lead to a new process flow sheet optimising graphite flake size, purity and recovery results.

A key goal of the test work program was to maximise the proportion of larger flake sizes in the flotation concentrate. Using a single stage coarser grind and rougher float has yielded an encouragingly high proportion of large flake sizes.

The following table outlines the flake size distributions for the current test results and historical production, and shows potential for improved flake size distribution.

Graphite Flake Size 
Test Results
(% by weight)
Historic Production
 (% by weight)
+250 µm 23
+180-250 µm 27 32
+100-180 µm 35 32
-100 µm 15 36

Further cleaning test work is currently underway to maximise graphite purity while maintaining a high flake size distribution. The metallurgical test program concludes with locked cycle tests of the proposed new process flow sheet. This work is expected to be completed in early June.

Mining Plan

Golders of Sweden are nearing completion on the design of the Woxna mine plan and will deliver their final report at the end of May.

Having previously delivered a 4 phase 20+ year mine plan, Golders have undertaken multiple iterations to optimise the first 10 years of the plan resulting in a better than 30% improvement of the 10 year stripping ratio to 6:1 with 3:1 during the first 3 years.

The revised mine plan has then been subject to optimisation using the industry recognised Whittle optimisation software. This is anticipated to further improve ore to waste ratios by up to 15%.

Tailings and Water Management

Tailings and water management plans were presented to the regulators earlier this year. The plans will deliver substantially improved environmental performance at the Woxna mine. While no formal approval is required from the regulator, feedback to date has been positive.

Preliminary Economic Assessment

Once the final results are available from the metallurgical test work, all of the components will be available to complete a preliminary economic assessment of resuming production at the Woxna graphite mine.

New and reused equipment will be specified for the final modified process flow sheet. Operating and capital costs will then be calculated as will revenue based on the metallurgical test results.

It is anticipated that the preliminary economic assessment of the Woxna graphite project will be completed in July.

The qualified person for the Woxna project, Mr. Chris Stinton of GBM Minerals Engineering Consultants of the United Kingdom, has reviewed and verified the contents of this release.

On behalf of the Board

“Martin McFarlane”
Martin McFarlane, President and CEO

For more information contact:
Jim Powell +1 647-478-5806

Certain information set out in this news release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are Forward-Looking Statements. Forward-Looking Statements are often, but not always, identified by the use of words such as “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,” “should,” “could,” or “might” occur or be achieved and other similar expressions. Forward-Looking Statements are based upon the opinions and expectations of the Company based on information currently available to the Company. Forward-Looking Statements are subject to a number of factors, risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the Forward-Looking Statements including, among other things, the Company has yet to generate a profit from its activities; there can be no guarantee that the estimates of quantities or qualities of minerals disclosed in the Company’s public record will be economically recoverable; uncertainties relating to the availability and costs of financing needed in the future; competition with other companies within the mining industry; the success of the Company is largely dependent upon the performance of its directors and officers and the Company’s ability to attract and train key personnel; changes in world metal markets and equity markets beyond the Company’s control; mineral reserves are, in the large part, estimates and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized; production rates and capital and other costs may vary significantly from estimates; unexpected geological conditions; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; all phases of a mining business present environmental and safety risks and hazards and are subject to environmental and safety regulation, and rehabilitation and restitution costs; the Company does not maintain insurance against environmental risks; and management of the Company have experience in mineral exploration but may lack all or some of the necessary technical training and experience to successfully develop and operate a mine. Although the Company believes that the expectations reflected in the Forward-Looking Statements, and the assumptions on which such Forward-Looking Statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on Forward-Looking Statements, as there can be no assurance that the plans, intentions or expectations upon which the Forward-Looking Statements are based will occur. Forward-Looking Statements herein are made as at the date hereof, and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these Forward-Looking Statements.