Ann: South Johnstone Project Update, page-25

The doom and gloom brigade with regards to the bauxite resource isn’t the reactive silica 2.8% quite low despite some claims it was high 6%+ etc and bauxite quality is same as the darling downs region of WA which has been mined for 50 years it’s a lot closer to China than that region and believe Alcoa and south 32 are now selling this bauxite to other refiners as well now. Bauxite is where rio and others are making their money (profit margins are a lot higher 50%+) not in smelting aluminium (5-10% margin if your lucky China runs all theirs at a loss) .

Production of aluminium is going up with needing more environmentally friendly cars (lighter metals req’d) and electric cars so more and more bauxite required too. The cheaper the price of aluminium the better it is for bauxite demand.

14km from port, near surface =‘s cheap and easy to mine and transport and up to 400mt around South Johnstone starting to look like a no brainer this will be mined for 50 years you can split hairs about JORC fact is the resource was drilled 20- 30 years ago etc to at least 45mt to the old JORC standard 250m by 250m drill holes rather than 50m by 50m that’s good enough for Sholom and co to realise there is almost a guaranteed resource why drill it out more now which costs $$ when they can fund it themselves as they go for under $5m so no need for DFS.

Bonus to Grow some hemp for rehabilitation of the farm land win win for MCL and QBL even after they become seperate entities.