Ann: Battery Anode Agreement with Long Time Technology, page-129

2 pages on this thread already! Commentary in all directions!

This is a very important announcement. It is the first of the 11 OEMs TLG is in deep negotiations with, who have stepped up and signed an MOU, but what an MOU! The wording is the strongest indication of an off take to be signed. The released statement from Long Term Technologies (LTT), with a client list as long as your arm all with world class credentials, is as powerful as it gets. Allow me to paraphrase: 'As soon as you can supply we buy". I have chosen my words most carefully here.

We have all been focussed on the LKAB/Mitsui JV and the first of the Vitangi drilling results due any day. This announcement in the strongest possible language for an MOU has come before those details have been released! LTT have just booked a chair in pride of place at the top table as the first mover, whilst the remaining 10 OEMs continue to dance to the music, but will there be enough chairs for all?

LTT out of Taiwan in Asia also confirms TLG not just as a European player, but a global player; remember the reference to only 30% supply to Europe in one of TLG's presentations? Here is the clearest indication of where some of the remaining production is scheduled to go. Some are fretting about mixing 'snow white' green credentialed TLG anode material with grubby synthetic, fear not the other important word that has appeared in recent presentations that I have listed on another thread is 'drop in'. Talnode can be blended, which allows the end user to meet specification on price, a critical aspect for potential clients in Asia. The very symbolic desk top trophy on show at the last presentation is also the clearest indication on the identity of the car manufacturer Mark Thompson refers to as: "the car manufacturer we all love". Draw your own conclusions as to where the remainder of that 'floating' 70% might go.

This announcement has just made the financing discussions so much easier for TLG, yet the market reaction is perverse with the price down to almost $2 as I write this. Go figure.