Ann: AGM Presentation, page-27

Below are a few notes I made from the AGM today, mainly from the very positive presentation given by Project Manager, Darryl Butcher. Some of this has already been mentioned by others who were at the meeting.

The PFS

A revised PFS is underway concentrating on the 2mtpa processing plant option. It is likely to be positively updated on several fronts.

It will include an increased resource based on the current drilling program.

It will use lithium/spodumene concentrate prices more in line with market forecasts.

The presentation mentioned cost optimisation targets of up to 50% for transport and logistics, power and fuel. It was mentioned that the “50%” figure would not have been used if the company didn’t think it was achievable. Given that transport and logistics alone were 50% of total operational costs in the PFS, these potential reductions are very significant.

Exploration

The recent placement is funding a 20,000m drilling program which should be completed by the end of January. However it is likely that further drilling will be ongoing after this.

The current program seems to be finding lithium everywhere to the extent that a “sterile” area on which to locate the plant has not yet been found. A new area called Sabali which is not shown on the presentation map but which is around 1k south of Yando, seems to be shaping up as an area of particular interest.

Asked which prospect had the most potential, Darryl Butcher ended up mentioning just about every one of the pegmatite zones including further extensions in both directions at Main and West. Speaking to him after the meeting I certainly got the impression that he is very bullish about the potential size of Goulamina.

On future funding/off take talks Greg Walker stated that BGS has entered into confidentiality agreements with various parties but because they are ‘confidential’ he was not able to provide any further details.

Cheers, Thomo