Ann: Binding offtake agreement signed with LG Energy Solution, page-409

The LG agreement is a major step forward for AUZ - it is a signed binding agreement with a huge multinational company.

It is ludicrous and incredibly naive to suggest that LG would sign a binding agreement for the supply of raw materials they need without fully considering the likelihood the project would proceed - look at the comments in the announcement issued by LG that is not an announcement by a company that does not fully expect Sconi to proceed.

LG would look inept and damage their international reputation as a company to sign a supply agreement like they have, come out strongly with statements like they have and then see the project not proceed - why would they bother? they need the raw material and there are other options around to source Nickel and Cobalt.

What LG has issued is a offtake agreement no doubt to support a funding proposal - we do not know if there are any other aspects to the relationship - perhaps LG is involved in the funding, perhaps they have committed to an equity component in the funding but have not announced it yet - just because SKI included equity in their non binding proposal doesn't mean that LG has to or indeed at this stage that they have not committed to some level of equity as a part of a successful funding package. Perhaps they have committed to some level of pre payment.

All we can do is speculate about what the funding will look like, will there be NAIF funding, what if any concessions will the Qld Government offer. what will be the equity injection requirement if any into any successful project funding.

I appreciate that you and some of the non holders have differing views to what I have expressed - certainly there is no guarantee that funding will proceed - one thing I can guarantee from experience when I was involved in syndicates funding projects like Sconi is for LG to issue the commitment they did and make the public statements they have, they consider the project commercially viable and that project funding is likely to be achieved.