Ann: Agreement with Tanzanian Government to progress Nachu, page-217

Hi Kazz just posting from a neutral position here and reading thru some off the comments.When I first read the announcement the benefits of the SEZ were encouraged by what was stated from Magnis although this zone does not imply benefits to others it certainly is more promising than the alternative. (Bulldozer mentality) This is good news for all of us.

The Magnis concept my first thought of sharing of plant for down stream processing were dismissive of the concept and importantly would there be a benefit to this shared arrangement. The proprietary process would be different from one to another and not to mention to this would be lot of dirt to move and truck to SEZ set up by MTT.

Clearly unpractical but then I read KingofHell post which cleared it up for me. Quote: processing facility that would allow other companies graphite concentrates to be processed into advanced products. What the second party would be delivering would be a concentrate and not dirt. It has already some what been processed but not fully processed for advanced products.

If for example expandable graphite was achieving sub prices prier to the benefit of down stream processing for advanced products it changes the ball game. Obviously the same attrition process would need to be suited and as samples are being tested this would be a prier qualification. Nachu graphite may be similar as they are similar in nature and from the same region where the attrition process is quite favorable for Nachu graphite.

The difference in margins from say expandable graphite prices for sub 180 microns as apposed to spherical battery grade prices would either validate or deny the concept. A key advantage to others would be reduced start up capex to adding value with the risk element proven and operational by Magnis Technology Tanzania.

To summarise in theory one would deliver a concentrate at a certain purification level at x microns range to be processed by MTT where an agreed rate would be paid to MTT to the advantage of both parties.

Croc