Breaking the $0.5B MC, page-20

Hello. I have been doing some brief superficial research on MEI. The 409Mt JORC was announced with average depth of 6.9 metres. The 9 holes in the 27 September 2023 announcement showed this JORC could double in size based on economically recoverable clays. Of course, as you know, the JORC was only from 20% of the MEI tenement area. Based on current REE prices and 60% recoveries for the Pr & Nd and 40% recoveries for the Tb & Dy (27/9/23 in the lab for clays averaged around 76% for Pr/Nd & 55% for Tb/Dy), I calculated the 409MT JORC is worth US$13B. Attributing 5% in-situ (takeover) value values the JORC at US$660M or AUD$1B. Doubling the current JORC values it at US$1.3B. The in-situ value will depend on the mining & processing operating costs. Using 75% of IXR's operating costs in their DFS is US$40/kg opex. The current MEI basket basket price for only Pr, Nd, Tb & Dy I calculate to be US$87/kg, which is double LYC's FY23 basket price of AUD$46.16/kg or US$30.60/kg. Based on a 12Mtpa mining operation, I guess a takeover for AUD$1.5B is possible. I don't hold MEI but I am just checking out possibilities for VMM, which I hold. Good luck. Best wishes.

.