Evion Group Obtains Mining Permits for Madagascar's Maniry Graphite Project, Advancing Toward Development

Mining Permits Convert Exploration Rights to Formal Mining Tenure

Evion Group announced that the Mines Ministry of Madagascar has officially granted mining permits for the Maniry Graphite Project, completing the conversion from exploration permits and securing tenure across all major project areas identified in the 2022 Definitive Feasibility Study. This milestone followed the review and signing of formal CSR Mining Contracts, now registered with the Bureau du Cadastre Minier de Madagascar (BCMM) in compliance with the Malagasy Mining Code. A government decree formalizing the permit grant was expected to be issued in the week following the announcement.

This regulatory approval is a significant de-risking event for the project. As per the company update dated 19 February 2026, the Mines Ministry had completed its technical evaluation of Evion's application, confirming it met all substantive requirements under Madagascar's new Mining Code. The BCMM then assessed the DFS and compliance documents before issuing the permits. The grant remains subject to customary regulatory conditions and ongoing adherence to the Mining Code.

First Critical Minerals Project Approved Under Madagascar's Reformed Mining Code

Evion’s mining permit grant is notable as the inaugural approval for a critical minerals project under Madagascar’s updated Mining Code. This milestone underscores the robustness of the Maniry Project proposal and Evion’s effective stakeholder engagement with the Malagasy government. It positions Evion as a priority development project in Madagascar amid rising global demand for graphite, a vital mineral for energy storage and advanced technologies.

The timing aligns with global geopolitical efforts to diversify graphite supply chains. Graphite is essential for lithium-ion battery anodes, electric vehicles, and grid-scale energy storage. The permit approval signals Madagascar’s commitment to responsible critical minerals development and reducing dependency on concentrated supply sources.

European Union Strategic Project Status Strengthens Development Prospects

The European Union Commission has designated Maniry as a Strategic Project, placing it among a select group of critical minerals initiatives crucial to European supply security. Maniry is the only graphite project outside Europe with this EU strategic status. This endorsement grants Evion access to EU grant funding and active financing discussions with the European Investment Bank and KfW Development Bank, both influential multilateral development finance institutions.

The EU’s support reflects its strategy to establish secure, non-China-concentrated graphite supply chains that underpin the bloc’s energy transition and advanced manufacturing. Managing Director David Round highlighted that being the sole graphite project outside Europe with this designation accelerates engagement with offtake partners, financiers, and strategic investors. Evion plans to advance offtake negotiations via the EU Energy and Raw Materials Platform, a multilateral initiative coordinating critical minerals procurement across Europe.

Definitive Feasibility Study Confirms Strong Project Economics

The Maniry Graphite Project’s economics are based on a comprehensive DFS completed in November 2022, detailing a technically sound, high-grade flake graphite operation. The DFS estimates a 21-year mine life supported by an 18-year ore reserve. Stage 1 production is forecasted at approximately 39,000 tpa of graphite concentrate, with Stage 2 expansion from Year 4 increasing output to between 56,000 and 60,000 tpa. Stage 1 capital expenditure is projected at US$79.2 million, with an additional US$24.6 million required for Stage 2 expansion.

The DFS projects a pre-tax NPV of US$263 million at an 8% discount rate and an after-tax NPV of US$204.8 million, delivering an IRR of 32.65%. The capital payback period is estimated at 3.8 years. Life-of-mine operating costs are approximately US$640 per tonne of concentrate, based on a basket price assumption of US$1,448 per tonne FOB. These figures are subject to execution risks during engineering and construction.

Vertically Integrated Model Covers Full Critical Minerals Value Chain

Evion operates a vertically integrated business model spanning upstream resource extraction through downstream manufacturing and advanced materials production. Upstream, the Company holds the Maniry Graphite Project with secured mining tenure. Midstream and downstream operations include the Panthera expandable graphite joint venture in India, which is commercially producing and selling expandable graphite products. This generates cash flow while Maniry progresses toward development, providing financial flexibility and mitigating corporate risk.

Beyond graphite, Evion’s portfolio extends to advanced engineered materials for AI infrastructure, defence, and energy security applications. The Company is also advancing fluorspar exploration in Nevada, USA, diversifying its critical minerals exposure. This integrated approach enables Evion to capture value across mineral processing and manufacturing stages, reducing commodity price volatility and export restriction risks. Securing mining permits anchors the upstream segment, allowing Evion to supply European and global customers with reliable, vertically integrated critical minerals.

Clear Pathway to Project Financing and Final Investment Decision

Obtaining mining permits removes a major regulatory obstacle, enabling Evion to advance Maniry toward a Final Investment Decision and construction. The company update indicates that regulatory certainty will accelerate engagement with strategic partners, financiers, and offtake customers. Managing Director David Round emphasized a shift toward execution, including progressing offtake discussions via the EU Energy and Raw Materials Platform and advancing financing talks with the European Investment Bank, KfW, and other development finance institutions.

The FID process typically involves securing binding offtake agreements, finalizing engineering designs and cost estimates, and obtaining financing commitments from debt and equity providers. With mining permits and EU support secured, Evion can approach potential partners with greater confidence in regulatory and tenure security. Prospective offtake and financing partners include battery anode manufacturers, industrial graphite processors, and strategic investors in clean energy and advanced technology sectors. Moving Maniry toward FID is the next significant milestone in the Company’s development timeline.

Strategic Fit with Global Efforts to Diversify Graphite Supply

Maniry’s permit approval aligns with global initiatives to diversify graphite supply away from China, which dominates global production and processing. Battery manufacturers, automotive firms, and energy storage developers are actively seeking dependable, non-Chinese graphite sources to mitigate supply chain risks. Evion is well positioned to meet this demand through Maniry’s high-grade flake graphite and downstream processing capabilities via Panthera in India, offering a vertically integrated, geographically diversified supply solution.

Support from Madagascar and the European Union highlights recognition of this strategic priority. The graphite market is driven by structural growth from electric vehicle adoption, battery energy storage deployment, and grid modernization worldwide. By securing mining permits amid heightened supply chain resilience focus, Evion positions Maniry to capture market share from customers prioritizing supply security and ESG standards. The EU endorsement and development bank backing further enhance the project’s appeal to offtake and financing partners aligned with climate and energy transition goals.

Ongoing Regulatory and Compliance Obligations

While mining permits represent a major milestone, Evion notes the approval remains conditional on customary regulatory requirements and ongoing compliance with Madagascar’s Mining Code provisions. Specific details on ongoing compliance obligations were not disclosed. Investors should monitor company updates for any material conditions, fees, reporting, or regulatory engagements related to the permits during development.

Madagascar’s mining regulatory environment, strengthened by the new Mining Code, is influenced by the country’s political and economic stability. Evion has maintained strong government relations, evidenced by the permit grant and ministerial support. However, regulatory conditions may evolve, so investors should stay informed on geopolitical and policy developments as the project advances. Regular company disclosures on regulatory compliance and stakeholder engagement will be key indicators of ongoing project health.

Investor Impact and Share Price Considerations

The immediate effect of the mining permits announcement on Evion’s share price was not publicly clear. The permits represent a significant de-risking event that could bolster investor confidence in the project’s development and the Company’s progress toward FID and construction. Investors will likely watch for future announcements on offtake agreements, financing commitments, and FID progress as key valuation catalysts.

Fundamentally, the permits improve Evion’s risk-return profile by eliminating regulatory tenure risk and enabling advancement toward value-creating milestones. Combined with robust DFS economics, EU endorsement, and development finance interest, the project shows strong potential to generate shareholder value upon development and production commencement. Nevertheless, execution risks remain across engineering, construction, financing, and operations. Investors should track company communications on financing progress, offtake partnerships, and FID timing as critical indicators of the project’s trajectory.