Ann: Completion of Share Purchase Plan, page-53

Hi FDS,

You briefly touched on the independent techincal review conducted by SRK on Epanko (and the updated BFS) in a previous post - https://hotcopper.com.au/threads/an...4708699/page-47?post_id=38119793#.XLFSJLfmidM

I don't think many people fully appreciate how much Epanko has been de-risked from a technical aspect. The independent review undertaken by SRK took 18 months, there was no aspect of the BFS that they didn't scrutinise down to the finest detail.

Most mining companies don't ever get close to achieving the figures stated in their feasibility studies. There's an old saying; "If it sounds too good to be true, then it usually is". Companies presenting feasibility studies with outrageously good figures, which haven't been independently reviewed, need to be treated with a high degree of skepticism.

Can other Tanz-based graphite miners be successful and highly profitable? Most definitely. Is there another graphite project in Tanzania as de-risked as Epanko? IMO, absolutely not.

There is one glaring risk (to Epanko and all other Tanz graphite projects) that can not be mitigated and that is the Tanzanian Government. This is a HUGE risk to all mining projects in Tanzania, not just graphite. This is why EcoGraf has become IMO the most crucial business to KNL, as it doesn't carry the high degree of risk that Tanzanian mining projects do. This ultimately will attract investment from institutional and sophisticated investors with a low-risk profile - just another aspect which separates us from our peers.