Ann: Change in substantial holding, page-16

Schu - its not as silly as it might seem.

The market is usually right on these things.

You are correct re the 'lifeline' to production. And that is indeed a positive.

But what then? Once they have repaid Blackrock and built Stage 1 (with a capacity up to only 700K lbs/annum) they will be out of money. Much of the $6M working capital raised here will be gone by the end of next year - especially if they have to use the debt facility at a whopping 15% coupon rate!

Where does the $115M come from for Stages 1 and 2 - which are critical for profitability (in order to defray opex over a sufficient quantity of product). There won't be any operational surplus from the current 200K annual contracted sales - or from higher amounts (if and when additional offtakes are signed) unless the sales are for amounts well over $60/lb.

As I have already posted, without a significant rise in the U price, there will be a significant cap raise requirement before the end of 2015. And until such a rise occurs, the breaks will be firmly on (notwithstanding the potential for P&D's)