Ann: Half Yearly Report and Accounts, page-96

I wouldn’t say MNS is moving away from its Chinese off-takes and financing. Big difference between a company purchasing graphite with end user orders to pay the bills compared to a company that also has to commit its own money to finance the capex. While the Chinese are unpredictable they are the biggest player in graphite so to dismiss them would be a mistake. And if you believe industry chatter Chinese production has dropped. Fact or fiction? So are they going to import more graphite particularly those flake sizes and qualities not so readily available domestically? Does Chinese graphite stack up against quality deposits elsewhere in the world? Apparently not. So where are the Chinese going to source from?

The Canadians are having trouble financing high capex or low grade mines, one Oz company is self funded, a winner according to insto’s but not good enough for the banks. Another smoked too many magic mushrooms and imploded. So who will supply the future graphite market? Someone is going to have to if we believe the coming growth in batteries in particular.

Fact is we don’t know what is going on with Chinese financing. Management made a decision several months ago to investigate alternative funding options. Common sense I would have thought. So now in the eyes of some that is a red flag. So if we want non-Chinese financing we need western offtakes. Not seeing many offtakes landed yet. The burley's in the water and there's a few nibbles. Just waiting for the change of tide and bam. Never know maybe a double header. BFS, offtake/s then financing.... eventually.

Without boring non-believers with tales of our product I fancy we are better positioned than most to supply this market. So perhaps instead of those suggesting our Chinese partners are phantom off-takes which we are looking to replace, maybe we are just expanding our offtakes and establishing a more diverse client base. Good business sense I would have thought. We still have room inside our production cap. But what if we don’t achieve 180kt in offtakes? Lose a few k in China gain a few k in the West. What about synthetic? Even Mr Riddle believes flake will replace a good portion of synthetic. Happy days if that's the case - at least for those who can. We have a lot of downside room to remain viable.

Read the company ann’s. They are scattered with concealed gems for those with an open mind who want to expand their understanding of where our future lies.