Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-79

The constant "$0" commentary fails to acknowledge that equity investment associated with an offtake is not always a given.

For that matter we have no idea what discussions / potential commitments in the background are going on.

What we do know is:

• The current second biggest battery manufacturer in the world has given a 100% offtake to AUZ subject only to finance
• LG will have conducted a due diligence on the project and found it satisfactory for their commitment
• LG have extended the offtake so they must still see value for their purposes in continuing the offtake commitment, in being associated with Sconi and see some ongoing prospect that Sconi will progress.

Large companies like LG do not make commitments worth hundreds of millions with out serious consideration and certainly to extend that commitment following such a significant sole failed milestone shows their continued desire to see Sconi get up. For anyone to suggest LG issued/extended the offtake as some sort of "no cost" backstop just indicates they have no commercial understanding of what goes into the issuance off an offtake agreement such as LG has issued.

Non holders may see no value in the LG offtake - but one thing is patently obvious, AUZ with the offtake has something to support potential financing - without it there would be no prospect.