Ann: Quarterly Activities Report - March 2022, page-36

DEG is an exploreco with ambitions of being a developer as a stop on the way to producer. The differences are critical to understand cash management. Explorecos and developers make ZERO money, while one hopes producers are profitable.

Does DEG even have the geos necessary to analyse the drilling? develop a drilling/target plan? It's junctures like this, Au or Li or both, that can be company makers or breakers.

I believe the BoD has/is prioritizing their set budget. What DEG has is not a well defined ore deposit, but rather a huge one with a number of possible satellite deposits. HOW is DEG going to monetize this, ie. mine it? Where to drill it, how deep, with an eye on a deal JV, debt, etc.

Li is hot and will stay hot for the short and medium term, it's price will moderate once more supply comes in. I believe DEG should drill it with an eye here on a sale. To assume the DEG BoD don't know the Li market's potential is naive -- and a very strong reason to sell.

Will DEG do the right thing? Either way in a few months Captain Hindsight will rear his ugly head saying, "over-extended," "took their eye off their knitting," and other such rubbish. But if DEG hits, then step back there's an sp express bus moving up!

OV

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