Ann: Bald Hill Tantalum Offtake Term Sheet Executed, page-30

The FS says we will produce 260,000 lbs of Tanatalum Pentoxide with an average recovered grade of 25%, i.e what the offtake is based on. As El Jefe says they used a price of US$60/lb which is now trading at $90/lb. Let's split the difference and call it $75/lb that we receive.

The FS allocated A$133 of tantalum credits per tonne of spodumene (which is basically 260,000 lbs x A$80 / 155,000 tonnes of spodumene). If we increase this by 25-50% we are gaining an extra $33-66 of credits per tonne of spodumene.

Once fines circuits are installed etc this could bring down our opex to something like US$300. We could theoretically be netting US$580/t over 200kt by 2019. EBITDA of $72m attributable to TAW.