Banter and General Comments, page-9

Happy Australia Day!

I thought an update on the progress we have seen for the newbies, the journey for the long timers and the egg on face for the doubters which there have been many (most with their undisclosed agendas).
The tungsten price started 2021 at $235 mtu and the share price around 3.8c
3/21 A capital raising at 3.2c for $6.5m gives enough capital to undertake bankable feasibility study.
4/21 Started infill drilling. Quarry improvements.
5/21 Extends drilling program due to early results.
6/21 Assay results showed high grades, not low grade that mkt was expecting. Continued improvements made in crushing, ore sorting and processing plant. 2 ton in a day achieved.
7/21 Drill hole connects to Iron Duke (previously thought to be separate deposit). Current drilling will enhance this view.
9/21 The capital note giving $6m at 6.5c which was a 44% premium to the share price. This provides capital for early works program to upgrade power network, double screening capacity and provide new loaders, dumpers, excavators and dozers.
9/21 Resource update 9.21m @ 0.63%. With room for more. Continued improvements with 3 ton in a day achieved.
10/21 Acquires 2nd ore sorter & Sandvik wet screen. Part of early works program. These should be in production in 2/22. Will allow 24/7 operations.
11/21 Identification of new potential zones - 18 tungsten and 12 tin. All future resource expansions. Recoveries improve to above 80%.
Announce production will increase from 20-30t per month to 70-90t per month when the new early works program completed.
12/21 BFS announced 12 year operation with only 2 years from Open Pit, rest from stockpile. NPV $131m IRR 154% Capex 19m Payback period 2.25 yrs. ONLY INCLUDES 15.5% OF KNOWN RESERVES.
12/21 Quarry still producing $1m for quarter. BFS only has $1m per year (more upside).
1/22 Power upgrade completed. Production in December hit 40t for month.
1/22 New drilling program announced, looking to expand the pit and underground options with holes in Iron Duke. Extension drilling both east and west.
1/22 $600k Federal Govt grant for Ore Sorter installation.

The tungsten price is now $330 mtu (up 40%). The share at 6c up 57%.

We aren't far away from 24/7 production with the 2nd ore sorter and wet screen providing more stockpile processing. Kevin and team has been refining the processing plant.

The resource size is only going to grow with more drilling targets. Additionally, there are other tungsten deposits within the region. It's likely Mt Carbine will be the hub as it will have the infrastructure.

Have a look at the cashflow from the BFS. It shows in year 3 & 4, the cashflow rises from $8m (just stockpile) to average $65m (open pit). Then it drops back to $8m from stockpile in year 5 to year 12. What they can't say officially but hopefully will eventually with the current drilling and scoping study (to be released in Q1CY22) is they are likely to produce similar cashflow to year 3&4 in year 5 to 12.

This will change the number dramatically.

The reasons for being a long term investor haven't changed. Tungsten, hardest metal known to man. Judged a critical metal by everyone and finally identified by Aust Govt as important. Mt Carbine was Australia's largest producer and is still the only producer. 90% of tungsten comes from China, Russia and Vietnam. None currently produced in US. The west needs our tungsten.

Financing is the only missing link with the company stating they are considering a number of offers.

These may include;
- Leasing equipment from producers.
- Offtake agreements
- Lending from financiers.
- Capital raising (not preferred)
- Government subsidies, grant and conditional loans.

They can do the finance in pieces as the $19m is required over a period of time and not in one go. This gives them options and choices.

The quarterly should out soon.

Well done to the management team who have been able to move Mt Carbine from a "gunna" to a serious producer. Plenty more upside to come.