Ann: Merelani Update, page-7

pav I was wondering whether you were aware they were commencing a drilling program at Merelani? Definitely wasn't in an ASX announcement I would have thought this was material enough to disclose to the market unless I have missed the announceent stating it (I was aware of the three exploration targets defined but not the subsequent drilling program). None the less it's a fantastic update and great news.

It also explains why the share price has fallen and that is because they will definitely need to raise more capital to progress two projects at once. The December cash flow report should be interesting.

Whenever I thought about Merelani I couldn't really imagine them working on Merelani by way of a drilling program etc. without the JV signed off on OR Epanko finance received which would imply a much higher share price and less dilution. But I guess this graphite province is just that good and with the window to secure off-takes narrowing they couldn't just twiddle their thumbs waiting so I back their judgment.