Ann: Annual Financial Report - 30 June 2021, page-33

There are two parts to it.

1. The outstanding royalty payments that should have been paid prior to the agreement being terminated. Both parties have roughly agree on this amount with a little bit of calc differences. It is around $1.7M.

2. My understanding is the royalty agreement had a built in end date of January 2019. After this point rvr could buy out the royalty or continue with the current/new arrangement. TMC terminated the agreement early on December 2018. RVR position was they were not allowed to do that. The current court decision is that TMC is allowed to terminate it. So TMC are then asking for the buy out amount of the royalty. They have calced it to be worth $20M RVR think $10-15M is more realistic. The court did provide some direction saying that TMC $ figure is basically the max number with the benefit of hindsight and seeing the RVR production numbers. So the final number will be less than TMC's number but has not been determined.

RVR have said they wish to appeal the court decision regarding the agreement termination.

Anyway that is my layman's understanding. I am an engineer not a lawyer.

This delay on RVRs part just means they get to hold on to there cash for longer. So makes sense really.