preopen, page-40

The leases seem to be good greenfield opportunities but they are clearly in the wrong vehicle. As management continually hint they are looking to add a little value to either spin off or sell.

In a normal market where capital finds it natural home I think firming up the resource and adding value would be a good one.

However, we are not in a normal market. Capital needs to be preserved and applied to where the biggest marginal return is. We have 9m in the bank which leaves us in a great position. If we spend a dollar on drilling holes which leads us to a capital raise in the future to fund the Al expansion then it is a waste of a dollar right now - imo.

It would be a different story if the market applied an increase to the market cap for the value added but it doesn't - so again without a sell down or a spin off the capital should be preserved to purchase the land in the US and build the plant. This is where the biggest shareholder value will be extracted.

It is important for small cap companies to be dynamic - especially in markets such as this. If Europe gets squeezed, capital will be hard to come by. Right now, we have enough money to fullfil the equity component of a finance structure which will build the plant.

A legitimate concern of mine is that if we deplete this 9m on drilling and the like, there is a real chance we may need to go to market.

In saying that - i am 100% behind management. They have clearly indicated that they would only spend on drilling when they were certain of a return for shareholders or an offtake agreement. Lets hope it is near.

If it is not - there is a growing case the drilling should stop. On a simple opportunity cost basis.

Cheers