Ann: Shareholder Update, page-2

Austpac has nowreceived the chemical analyses ofsamples taken during the Zinc & IronRecoveryProcess (ZIRP) testworkprogramcompleted in November 2019, including results of the one melt test undertaken by the CSIRO.The preliminary observations are:IronApre reduced iron oxide was meltedbythe CSIRO in an induction furnace and a clean iron with very low impurities was produced. Theiron is ideal for making high purity pig ironfor use in foundries.ZincThe zinc oxide reported with iron oxide to the scrubber dustduring the second process stage,and this is now being pre-reduced in a fluid bed roaster. The product will be processedin a second melt test by the CSIROdesigned to capturea zinc oxide productfor evaluation.The program comprised processing zinc-contaminated furnace dust and spent pickle liquor from a steel mill through of each the first three ZIRP process stages to produce apre-reduced iron pellet for melting is an induction furnace. The representatives of an Australian steelmaker who observed theoperationshaveprovided Austpac with a comprehensive set of analyses of the products from each stage,confirming the results obtained by Austpac. A sample of thepre-reduced ironfrom the third process stage was melted by the CSIRO in December 2019 to produce theiron product.A full technical review of the program is underway to identify improvements to the flowsheet.Thequality of theiron product and its potential fortheproduction of high-grade pig ironis very positive.