On the move up, page-15

Hi Buda,

You called it, you were correct and I was wrong. Your theory on the descending triangle proved to be intact.

I stated at the time that the chances of the share price returning to 3.90 - 4.20 was possible, but slim based on the significant re rating Syrah had achieved.

This was based on recent news on 220k tonne off takes, Vanadium scoping study encompassing 5,000 tonne scenario by Chalieco, metallurgical test work successfully producing 99.90% V2O5 powder and of course the take over interest from Glencore.

In early August I called support at $4.90, the close of the gap at $4.50 and then the top of recent resistance at $3.80 - 3.90.

Subsequently it has tested and breached each level and is currently trying to find support at it's current level of $3.50 although $3.30 may be tested also, regretfully.

The trend line that exists over a three year period is still in tact at $3.30 and has yet to be tested.

Fundamentally nothing has changed regarding the company time line on expected announcements and achievements forthcoming.

This was reiterated by Tolga Kumova recently by telephone call to myself.

Importantly nothing of commercial nature was revealed off course, but he did mention that there would be approximately six important announcements forthcoming over the next three months.

On the recent share price movement (sell off) after the Glencore rumour, I have heard that another shorter is taking advantage of world market weakness and trying to push the stock lower.

A quick check on the ASIC website will show the current short position on SYR at 4.806 million representing 2.93% of the issued stock.

I have heard that the last trader who attempted this, damaged their account so badly, they were subsequently dismissed from their position.

Make no mistake, the interest from Glencore I believe to be very real. The rumour may not appear again for some months, but there will be I believe, a take over offer at some point in the future.

Look at how long the Bhp / Rio merger attempt took to occur. Granted a very much larger and complex takeover, but rumors began circulating in 2003 only to become a formal offer in 2007.

Nothing has changed regarding the fundamentals of Syrah Resources. The company is progressing well towards becoming the lowest cost producer of high quality Graphite and Vanadium with a timeline to production of approximately 18 months.

Cheers Lute