Ann: Notice of General Meeting/Proxy Form, page-23

We the shareholders will issue 150m shares including the performance shares for Blesberg plus a few million dollars in drilling and other costs.

So why do the directors of AVL think they should also get performance shares for a very small low grade resource?

There is no justification for issuing 5% of our company to the directors at this stage of our evolution.

When they can say to shareholders " A job well done", they will deserve extra performance shares.

A job well done is when AVL is cashflow positive. That's still light years away.

Presently they can only say "A job done well up to this point". I commend Vince and the crew for what they have achieved so far. They have set the company up to become multi layered instead of just focussing on the **anintha deposit.

When the market starts to reward us all with a rerate, the next tranche of director performance rights should be hit. 3 cents seems possible by the end of the year if the company can keep on track and achieve their objectives as per their schedule.

I would consider more preference rights, half at 4c and the rest at 5c. The directors should not expect to just be gifted 5% of the company on top of their salaries. They need to add value for shareholders also and the only way that matters is the share price, as we will all be dead long before we get a dividend.

All the work done to this point will mean nothing unless the directors can keep progressing the company to an end point. Getting the share price up has to be a priority to avoid huge dilution going forward. Sell off Nowthanna uranium deposit if needed.

The current swathe of listed and unlisted options will bring in much needed cash, but the downside is the capping effect they have. It no doubt makes the directors task of lifting the sp above 3c to get their next preference rights harder, but we all suffer together, including the directors.

Unfortunately they don't seem prepared to wait for the company to advance itself to a point where the market likes the story and the company gets rerated.

Back to Blesberg.
Performance rights kick in at 2mt @ .8% Li eq. That's ridiculous, as is the highest hurdle of 6mt at the same grade or grade equivalent.

Let's look at a few current ASX companies with Li resources:

AJM 40mt @ 1% Li indicated resource and 2.3mt @.9% inferred.

KDR 128mt @1.44% combined indicated and inferred resource.

PLS 156mt @1.25% combined indicated and inferred resource.

BGS Currently the resource is 15.5mt @1.48%.

NMT 78mt @1.37%

GXY Mt Cattlin 16mt @ 1.08%

All of the above are or will be in production in the near future (BGS maybe not)

So what will AVL need to be able to bring Blesberg to production?

It seems .8% Li would probably be uneconomic. The above are all 1% or greater.

The directors seem to have set the bar very low, so even if the resource is uneconomic, they still get their preference shares.

To me the Blesberg resource has absolutely nothing to do with any director receiving performance shares. The overall performance of AVL should be the only guide.

Just my opinion