Media, page-1691

The argument is pretty clear. Pensana management say they have developed a solution to any radioactive waste. Here is the statement sent to the Rare Earth Observer newsletter:

"The Longonjo carbonatite mineralisation contains low NORM (Naturally Occurring Radioactive Materials) broadly similar in tenor to (for example) the Mount Weld deposit mined by Lynas Corporation in Western Australia.

"In conjunction with the Wood Group, Pensana's metallurgical consultants in Australia have successfully developed a proprietary process route which provides for the deportment of NORM to permanent tailings storage in a stable and non-leachable form."

The newsletter's argument is they don't believe Pensana have found such a process. They criticise Pensana for holding back on more explicit information and I agree in respect that I would appreciate more information from them. But it makes sense that they would want to keep the proprietary process close to their chest for a common issue within the rare earth sector.

Ultimately, in all investments you have to make to decide if you trust management or not. And in this matter, the Wood Group are also staking their reputation. In contrast, ALL of the newsletter's "contributing experts" are anonymous.

One thing you don't have to be too concerned about is Wood Group's 'warp speed' development of a solution. From the newsletter's commentary:

"Wood Group must have worked at warp-speed, as there was no mention of proprietary process route for NORM and a NORM-suitable tailings storage mentioned in the Pensana Preliminary Feasibility Study dated November 15, 2020."

Their emphasis. Of course the PFS was actually a year earlier in 2019. The same mistake is repeated later in their commentary.