Ann: Notice of General Meeting/Proxy Form - Offtake Agreement, page-4

fwiw...I am voting against this proposal. I have a fundamental problem with the manner in which the asset which our company explored and pursued development of, has been raped by Shenghe. First we were sold out by the major shareholder when a 20% interest was sold to the Chinese company that is already the world's largest processor of rare earths, thus facilitating their maintenance of market dominance. Market dominance has significant unsavoury outcomes such as controlling pricing at all stages of production and I believe it would impact any returns to PEK as a raw material producer. Considering our asset is one of the most desirable resources globally, it stinks that we are at the mercy of a Chinese monopolistic player.

One could argue that their deal aided the resolution of a way forward with the Tanzanian government. That may be so, but as lowly retail shareholders, we will never know, as management old and new have done an abyssmal job of actually informing us in their efforts to appease both the Tanzanian government and Shenghe alike.

But the further impact is that through the offtake agreement the timeline for development and therefore cash flow is not in our control. While the offtake is controlled by Shenghe as well as the financial arrangements for mine construction and virtually everything else, they decide when we get some cashflow. If it suits Shenghe to keep prices up, then the development of our asset will be delayed. This is the outcome of ceding control to the world's dominant play, which is also Chinese and who has zero concerns for other shareholders. It is the main reason our share price is in the toilet imo. The reduction in the price for NdPr is just another factor.

I do not have a very large interest, having sold around half my shares earlier at around $0.40+, and I have only hung onto my residual shares in the forlorn hope that development of the mine might happen soon. Nothing in what I have read gives me any confidence of that. Now that Shenghe has effective control of the process, who knows what the future holds except that one can be sure that the lion's share of the value will accrue to them as the financier, and processor, while they dominate global production. It's disgraceful that an Australian company can get away with selling the farm the way it has imo.

Regards
DF