Ann: Quarterly Activities Report, page-15

I do think some blending is a good idea when the premium price for higher iron ore content is not big. But for sure the blending will only be limited and I think it will be mixed for example 3 tonnes of Iron Ridge iron ore for 1 tonne of Shine iron ore. This way the silica content will not be higher than around 4%-5% which is definatly considered a good ore silica wise. Add in the 10 million tonnes with again some limited mixing and well you could be looking at 3-5million tonnes being dug up and mixed into a blend.

If that all works out well then we really need another 20-30 million tonnes of 61-63% FE iron ore to be found/aquired which could blend and you have just about used up all of the Shine resource. That is just a possibility. Market conditions (Sub 110 USD 62% prices in the long term would likely derail that idea.)

2 years ago you would prefer to keep selling the higher FE contant as it is. But prices between 58% and 62% and same for 62% and 65% have narrowed in the last 1 year. Steel producers in China seem to be looking for more medium quality ore (58-62% FE) maybe because freight is much cheaper than before and coal prices are not as high as before.

Also from my point of view living in China and knowing there is some current weakness in the economy I am pretty sure the government here is less sensitive on reducing emissions than making sure the economy is still pumping along if not growing.

As someone mentioned I am looking forward to see what terms get agreed on 3rd party access to the port facilities. I would definately be happy to see say a few million (for the financial year) after depreciation costs profited from 3rd party ore handled through these facilities.

One other person mentioned about other resources. I think as such a small company it would be too risky and hard to manage multiple types of processing minerals. Especially it is a big risk to buy mines outside the mid west region at this time.

I still think if operations are growing in the medium term and things go well. The company could consider a magnetite operation or atleast look at the potential of doing that if hermitite resources opportunities run out. But only if an income stream for the 10 years has been secured (extending life of mines) so the risk is reduced.

I do not expect a dividend in February/March 2024. Of course it would be nice but not expected. Even though it is early days and excluding procurements (new mines or infastructure) which would require them to draw down cash on hand in the bank. I can see at these Fe prices FEX declaring a 3-4 cent dividend in August 2024. All other quarters being similar to the 1st quarter.

I will consider topping up my holding over the next few months as 20-22 cents is tempting me to buy in more.