AGM, page-10

Hi Leapzig, welcome back to ALK I have missed your input for the last couple of years.

Writing up my notes is taking a long time so cannot guarantee I will finish tonight but will post some comments regarding Ian Gandel speech and the Gold component on Nic Earners presentation now.

The meeting commenced with the Chairman’s address by Ian Gandel, a copy of which has been released to the ASX. It is worth a read.
In summary he outlined the following points

• Acknowledge the departure of John Dunlop and the changing of the guard between Ian Chalmers and Nic Earner
• Highlighted the fact that ALK does non-support fly-in/fly-out operations, and hires the majority of its staff locally. It maintains a good gender balance in what is an essentially male industry, 17% of the 200 staff are female
• Outlined the proven environmental credentials of ALK
• Discussed the Toongi Pastoral Company role, as well as the DP and Tomingley biodiversity offset areas
• Outlined that the DP will be a significant world producer of critical technology metals
• Again stated that subject to finalising offsets and funding and design the project is construction ready
• Advised that the past year involved considerable efforts to establish and consolidate relationships with potential customers
• Stated the importance of the MOU with Siemens
• That the preferred approach of the company is to produce high value downstream products and that this is what the company has been working on finalising products that meet the specification of individual manufacturers for evaluation and pre-qualification
• Expressed high confidence in the ability to sell all of ALK products in the broader market
• He stated that ALK is very close to having secured customers for all the product streams
• Advised it is propitious time to be progressing the DP, due to the current restrictions in China for rest of the world supplies of certain critical elements that are needed in the trends driving today’s economy
• Outlined that the prices of the DP output products are climbing in value due to the demand increases and the period of oversupply seems to have ended
• Stated that the DP is the most advanced poly-metallic project of its kind outside China and is highly significant as potential long term, reliable and independent option for the supply of these critical materials.
• ALK is looking forward to finalising the financing and proceeding to production.
• Outlined the Tomingley Gold Operations had a very successful year last year despite the issue with rain and recorded the pre tax profit of $17.1 million
• Expects a similar result for the current year prior to the end of the open cut mine stage.
• Outline the effort for the investigation of the resources below Wyoming One and expects a positive outlook to be announced in the coming months.
• Highlighted the exploration efforts having been targeting significant gold copper deposits in the style of Ridgeway- Cadia porphyry systems or McPillamys gold deposits
• This testing has confirmed the potential of the 15km corridor of the Northern Molong Porphyry Project to host significant deposits

After the end of the formal part of the meeting where all items passed with a greater than 90% yes vote, he empathise the growing importance of the new board member Gavin Smith as his connections and knowledge will become increasing importance as ALK moves closer to production

IG then handed over to Nic Earner (NE) whose presentation was very well done. He appears to be a worthy successor to Ian Chalmers (IC)
NE stated

• That the markets for ALK potential products in now turning in favour of ALK
• He regards ALK as been in a really solid position and again stated that they regard themselves as very under valued
• HE stated that ALK has a very solid board with a very broad skill set ranging from members who have started and members who have sold companies. Appropriate consultants solidly support the board skills
• He repeated the statement by IG that the Tomingley results for the coming year are expected to be in line with last years results and that the ASIC is expected to be lower. They are expecting a very good years result prior to the open pits closing down
• He advised that the VRE results were very successful.
• The electricity easement for the DP has been finalised.
• The water access for the DP has been finalised
• Outlined the importance to ALK of the ANSTO involvement and the pilot plant
• Highlighted that the process development has produced high grade zirconia’s and is now progressing towards high grade hafnium products
• Highlighted that 42% of the DP future earnings will relate to Zirconia products
• Discussed the strategic agreements with Mintech LOI and the Siemens MOU
• Detailed that the modular design lower the costs of the plant due to the cheaper offshore costs as well as significantly reduce the on site construction time
• The certification the products will prove that the products have been pre tested and prove that ALK can deliver on time
• The result for the modular design is expected to be delivered this Friday 1^st Dec, with the results to be delivered to the market in Jan/Feb next year
• There is excitement regarding the gold discovery at El Paso which at this stage looks like a repeat of the Tomingley results
• A large amount of drilling has and continue to be undertaken over the next few months
• The Tomingley underground results have yet to reach the base of the resources
• At this stage there has been no decision regarding the underground, it is under discussion at board level but will depend on what is decided to be the best allocation of resources
• To answer Leapzip’s question, it was stated that ‘unfortunately that there may be a couple of year gap to get approvals etc” I am assuming this was referring to both the Tomingley underground and the promising El Paso discovery
• There was discussion of the discovery of further targets in the Northern Molong Porphyry Project.
• Boda in particular will be tested in the next few months, my understanding was some additional drilling was supposed to be undertaken in Nov, but this was not mentioned.