Ann: AGM Investor Update, page-32

Australia has traditionally been very poor at value adding. IMO E25 needs to bootstrap for cash, build the HPEMM plant out of cashflow and debt, and value add. Because when we value add, we move up the value chain, become more important, and harder to replace. We move from being a commodity to a product. Once you have a product you can brand it, and create value propositions around quality, reliability, sustainability, and ethics. These all add value to the next member in the chain and these members are willing to sign long term contracts at a premium. Why, because we de-risk the supply and provide a product rather than an unprocessed commodity. If on the other hand E25 decides like most companies not to move up the value chain, then all we have is a commodity that China or any other country can screw us on price, terms or even ban the import. It is simple economics of supply and demand. If we supply a commodity we compete with an order of magnitude or more of commodity suppliers. Once we have a product we compete with 2 or three suppliers, who likely will already have long term supply contracts so they really don't become competitors. The demand for HPEMM will likely outstrip the available product suppliers as this decade progresses. And when demand is greater than supply, prices rise. Happy days.