Keith Explanation Proactive, page-4

Thank you. Yes I have read all the presentations carefully many times. And after few days of discussing it here it starts to be clear. Confusion came from mixing charts of lithium production cost and total production cost.

Keith is in this talk wrong when saying SQM came from 2000 to 3000. It is very nicely displayed in LPD lithium cost curve graph. 2000 is only lithium production cost, 3000 is total cost. Exactly same in EMH 2016 presentation charts of lithium production cost vs. EMH PFS total cost chart: 2000 vs 3000.

Now when we established that we can move on to EMH prices in these charts. 3500 total cost in PFS. 2274 lithium production cost in PFS. Net of potash (324) the PFS lithium production cost is 1950.

In 2016 presentation lithium production cost net of potash is 1500.

Mining, concentrate production, tin and tungsten credits have absolutely no effect to these two numbers. We are talking strictly about lithium production cost from concentrate net of potash.

Roasting (PFS) LCP net of potash: 1950
L-Max (Presentation 2016) LCP net of potash: 1500

If we take these 450 from our 3500 total cost we are by coincidence on the same number as LPD wants to get their Phase 1 C3 co-product cost to from their current 5300 Phase 1 C3 co-product cost (which can be translated as total cost). Magical 3000, the price SQM (favorite of all these charts) has total cost.

So yes, I do agree 1500 never become 3500. 3000 become 3500. And that is kind of alright though I was hoping for price reduction and not increase.