ASX-listed Volt Resources subsidiary Volt Graphite Tanzania has expressed its disappointment after receiving formal notification from Tanzania’s Ministry of Minerals that its mining licences for the Bunyu graphite project, located in the Mtwara region, will be cancelled.

The company says it has invested significant time and resources over a substantial period towards exploration, feasibility studies, approvals, offtake agreements, community engagement and broader development activities associated with the Bunyu project.

Volt also explains that it had made recent progress for this project, including establishing a defined project funding pathway through the execution of a binding term sheet in December 2025, with an Unbounded Opportunities Fund (UOF), which includes a proposed $11.1-million equity investment subject to the completion of a number of conditions.

In February, the company also varied its binding coarse flake offtake agreement with graphite manufacturer and exporter Qingdai Baixing Graphite to align with the project’s revised development schedule.

Further, Volt notes that it has increased its contracted yearly sales volumes to 20 000 t/y in years one and two and 90 000 t/y in years three to five, and advanced implementation readiness at Bunyu, including the near completion of office and storage facilities at Namangale.

Moreover, Volt has also recently submitted to the Tanzanian government a schedule of early-stage development activities that are able to be progressed over the course of this year and early 2027, including the start of the resettlement and compensation process for affected stakeholders, progressing secondary project approvals, access road upgrades, borefield establishment, feed testwork and initial site preparation.

As part of its broader commitment, the company says it has continued to support local communities in the Lindi region through its corporate and social responsibility (CSR) plan, including a recent investment in two new classrooms under construction at Namangale B Primary School and the production of 138 tables and chairs for Namangale Secondary School.

These initiatives, the company highlights, reflect Volt’s intention to deliver lasting social and economic benefits in parallel with the development of Bunyu to maintain constructive relationships with local stakeholders.

However, owing to the uncertainty regarding the outcome of discussions with the Tanzanian government and the status of the mining licences, coupled with some unresolved differences between Volt and the UOF on some additional term sheet terms and conditions, Volt has elected to let the agreement terminate.

Despite not receiving any assurances that further engagements with the Tanzanian government will be successful, Volt will continue assessing the legal steps available to it, including appealing the Mining Commission's decision to the relevant Tanzania court and to seek appropriate relief in relation to the cancellation of the ML 591/2018 and ML 592/2018 licences, and also to examine other remedies that may be available under international law.

“The decision to cancel the Bunyu mining licences is very disappointing given the significant progress the company has made in securing funding, strengthening offtake arrangements and advancing early works onsite, as well as the substantial investment already made in Tanzania over many years,” the Volt board says.

Volt concludes that it will work with noteholders on the security arrangements to have it restructured, with the view it will not financially adversely impact the company's financial position or financial capacity.

No final terms of the re-structuring have been agreed at this stage, and any re-structuring involving related party noteholders will be undertaken having regard to the requirements of the ASX listing rules