Ann: Kvanefjeld Project, Greenland - Update on Legal Proceedings, page-39

Increasing of Shenghe Shares in ETM/GML is not necessary and won't happen...

When I first bought shares Shenghe were not involved, I was at the time of the announcement disappointed that the company had linked in with a Chinese Company...

However my view changed as the Kvanefjeld reserve is complex and Shenghe significant skills in separation and processing at the time were not readily available and still aren't..
China still controls around 90% of processing and still does processing for Mountain Pass in the US...

The GML original plan was for some initial processing in China but a Plant in the EU or somewhere close....

As far as I am aware ETM/GML still plan processing in the EU and had processing test's in Finland as I recall....

Previously before the Ukraine War Shenghe were looking to build a plant in the EU...

Shenghe is a 9% shareholder and at present that is very unlikely to change plus we have their continued superior expertise in processing....

China would be in for the long haul and play the long game I see no reason for that to change at present...

The Chair has just released an AGM paper and clearly stated:

Despite the recent downturn in rare earth……………….we consider Kvanefjeld,s size and its location in Europe makes it a highly important strategic asset as the European Union and the United Staes seek to develop rare earth supply chain outside of China. We will be doing everything in our power to move this project ahead for shareholders...

"Compromise and Collaboration"

"Go Thor"