Ann: Appendix 2A - Exercise of Options, page-10

Bad migraine so won’t respond in more detail than below now.

ADN cash position should be $9M+ after options conversion. Had another post somewhere with more detail.

WAK’s product is lower price market segment and hence higher competition. Their pricing around $300/t.

ADN’s pricing starting around $700/t and up to $4500ish for the concrete product.

ADN’s Halloysite allows production of premium blends.

ADN also have significant upside in what they are doing.

1. DFS should be significant upside on PFS
2. Hammerhead should be better upside than #1
3. Mt Hope looking at other markets
4. ADN adding a HPA alliance soon
5. Camel Lake for high-end Halloysite nanotubes
6. ADN looking at acquiring related industrial minerals opportunities

ADN essentially 5 projects/initiatives in addition to the initial rerate to production for #1. We are waiting to see what eventuates for #4 and #6.

This is all excluding ADN’s JVs for gold and gold/copper from which they will derive future value for shareholders.

I looked at WAK and their wasn’t sufficient upside for me, also concern about the more crowded part of the kaolin market they are focused on.

WAK also apparently have $28M debt on their books which needs to be paid back over 4 years.