General Discussion Topics, page-127147

Here is JB’s response to my query about mid-stream processing, draw your own conclusions.

From his reply, I got the impression that the BOD does have an open mind.

I don’t believe he has put anything into this email that he would not want made public.

“Sorry it has taken a week to get back to you, I have been in transit and wrapping some matters up.

Firstly, thanks you for the support and comments show which are both balanced and measured, the lithium market is extremely dynamic and somewhat challenging to navigate.

Unfortunately we are fundamentally linked in our share price to the lithium commodity price, what we try to achieve is cost control and fiscal management in order to navigate these markets.

From my end the current market is still quite buoyant - pricing levels and market penetration still looks extremely promising.

In regard to midstream - it is a perfectly valid point that we have (and will consider), there are probably some differences to PLS and MIN (both of whom I know vey well) in regard to the undertakings with the Government of Quebec and the alignment with what we have at NAL.

The trade of study we have received is focussed on lithium carbonate as we have a considerable investment and equipment to deliver carbonate on site, other than someone starting from scratch.

However in saying that, the midstream provides lower capex, reduced reliance on technology, it ha great merits, this is probably pertinent to Moblan.

Our strategy is relatively simple in regard to what we are comfortable in delivering (mine, processing, lithium oxide concentrate), we do need expertise in the next phase of downstream.

This then dovetails into what we need from partners, the objective is to gain downstream exposure (beneficial and economic) without any risk to Sayona.

The partner engagement we discussed is based on bringing in IP and delivery ability to Sayona, we are considering all options and you have provide some excellent alignments as to our thinking.

I have hopefully answered some questions but it is quite complex and heavily reliant on partners / technology.

If you have any further queries please do not hesitate to contact me.”

Kind regards

James