Coffee with Samso, page-37

Pretty clear where JM is driving this imo............'In-house' wet processing ASAP is the ultimate aim/goal here it seems (to me at least)..........I'm sure many here would agree on this score.............and he's sounding very enthusiastic on this aspect imo.

• The Company is currently undertaking an optimisation of the Scoping Study through the consideration of a wet‐processing option utilising a low cost, highly efficient and commercially available facility to potentially be based on site that has the advantage in that it produces a fully wet‐processed product that allows the Company to significantly increase product recovery.

Initial 'toll based cash-flow' provides $$ for spend on a water efficient wet plant on-site ("90% of water" to be recycled type of levels being quoted)...........cost savings to be had re transport/tolling are obvious of course...........'processing yield' increases also..........which in-turn will positively affect SS/FS numbers (bring on some 'wet process optimized' SS numbers ASAP thanks JM).

They then 'follow-on' with additional purification of the wet refined product to 'realize' the very high margin 'pure halloysite' arm of the business............this in turn feeds into and bolsters the R&D and commercialization efforts of the nano-tech side of things..........all fits together very nicely if you ask me.

Throw in the possibility of the Halloysite source at Camel lake and well things look very promising (especially if CL proves up as commercial scale)......note though it's still early days at Camel Lake.

ADN then becomes...................."World leaders in all things Halloysite"...............

Clearly wet-processed product is where the 'big margins' are and where significant demand is. But we apparently also have a 'very large' demand for pure Halloysite which is a commodity that currently has a 'non-existent' supply chain globally so to speak (according to JM at least, and he should know).

Furthermore, the very same product that an in-house wet plant (or toll produced for that matter) would provide is also the same feed stock proven as 'single pass' for purification into 4N HPA............and while HPA might be considered a 'back-burner' I'm fairly sure they'll be looking to solidify any 'collaborative' deals that might come their way on something in the HPA space...........(long-term world class HPA feed stock supplies aren't a dime a dozen after all).

You can see the logic behind going 'full wet process in-house' ASAP. The value-add potential beyond the 'simple' wet refined product is exceptional imo (pure Halloysite first and foremost, nano-tech possibilities second and thirdly possible 4N production collaborations on the side as well for example)................that's just my take on it though of course.

JM knows this stuff backward and where the value is.................