Banter and general comments, page-796

Some simple maths of what grades are necessary to achieve an average of 1% Li (ie what is considered high grade) in the visible coarse spodumene intervals and the minor visible spodumene intervals.

I will let you form your own view of which results are feasible ie which assumptions are feasible.

The key assumption I have made below is that the intervals with coarse visible spodumene contain very high Li over the whole interval and the whole of the remaining pegmatite contain lithium - please refer to the note at the bottom for further explanation.
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Assumption 1 - To achieve a 1% Li average grade over an interval in a hole, with the intervals of minor visible spodumene having a grade of 0.5% Li. AZS needs the Li grade over the visible coarse intervals to be above 2% Li (ie very high grade) with 33% or more of the interval being very high-grade Li.

Comment - Holes 203 (up to 52.9m in the lower intersection) and 204 (up to 39.6m in the lower intersection) look like they may achieve the 1% Li average grade using the above assumptions after reviewing the visual below. Holes 201 and 202 are unlikely to achieve at least the 1% Li average grade under these assumptions and if holes 203 and 204 were extended then the extension is most likely not going to achieve 1% Li average grade under the above assumptions. These would be good results but nothing out of the ordinary.

Assumption 2 - To achieve a 1% Li average grade over an interval in a hole, with the intervals of minor visible spodumene having a grade of 0.5% Li then AZS needs the Li grade over the visible coarse intervals to be above 2.5% Li (ie very high grade) with 25% or more of the interval being very high grade Li

Comment - Holes 201, 202 (up to 31.7m in the lower intersection), 203 (up to 52.9m in the lower intersection) and 204 (up to 39.6m in the lower intersection) look like they may achieve at least the 1% average grade under the above assumptions after reviewing the visual below. If they extended holes 203 and 204 it is possible these 203 and 204 in the extension will achieve at least the 1% Li average grade. Under these assumptions it is possible the length of intervals for Li over 1% will be up to 22m for hole 201, up to 32.7m in hole 202, up to around 85m in hole 203 and up to around 70m in hole 204. These would be very good results.

Assumption 3 - To achieve a 1% Li average grade over an interval in a hole, with the intervals with minor visible spodumene having a grade of 0.25% Li then AZS needs the Li grade of the visible coarse intervals to be above 2% Li (ie very high grade) with 50% or more of the interval being very high grade Li.

Comment - Holes 203 (up to 52.9m in the lower intersection) and 204 (up to 39.6m in the lower intersection) look like they will achieve at least the 1% Li average grade under these assumptions but not in the other intervals even in the extensions. Holes 201 and 202 are very unlikely to achieve the 1% Li average grade under these assumptions across any intervals. These would be good results but nothing out of the ordinary.

Assumption 4 - To achieve a 1% Li average grade over an interval in a hole, with the intervals with minor spodumene having a grade of 0.25% Li then AZS needs the Li grade of the visible coarse intervals to be above 2.5% Li (ie very high grade) with 33% or more of the interval being very high grade Li

Comment - Holes 203 (up to 52.9m in the lower intersection) and 204 (up to 39.6m in the lower intersection) look like they will achieve at least a 1% Li average grade under the above assumptions after reviewing the visual below. Holes 201 and 202 are unlikely to achieve the 1% average grade under these assumptions and if holes 203 and 204 were extended then the extension is most likely not going to achieve 1% Li under the above assumptions. These would be good results but nothing out of the ordinary.

An important note - I have assumed that the whole of the pegmatite contains lithium but if some of the intervals outside the coarse visible spodumene do not contain lithium then: A. the intervals with over 1% Li will be shorter than noted above BUT B. the average grade over the shorter interval will be higher or the proportion of the interval that needs to be very high grade to achieve a 1% Li average grade can be shorter. In practice I understand it is unusual for the whole of the pegmatite to be lithium bearing (according to Tony). This is the reason I have highlighted the words up to above.