Ann: Refinery PFS and updated Mine & Concentrator Scoping Study, page-4

Page 13

XIII. Summary risks

The PFS identified a number of areas for further study. These relate to inclusions in the scope of the Refinery, metallurgical testwork and pilot scale testwork and will be addressed as part of the Refinery DFS.

Ongoing metallurgical testwork is continue to improve Covalent Lithium’s understanding of the ultimate physical behaviour of spodumene material in both the Concentrator and the Refinery. These testworks will be optimised as part of the DFS.

Kidman announced on 17 September 2018, the Perth Mining Warden (Warden) has made a recommendation to the Minister for Mines and Petroleum (Western Australia) (Minister) that applications for exemption from minimum expenditure obligations for tenements held by Kidman subsidiaries be refused. The Warden’s recommendation is not binding on the Minister, and the Minister has the discretion to grant certificates of exemption to Kidman and its subsidiaries, notwithstanding the Warden’s recommendation. Kidman believes that there are compelling reasons why the Minister should exercise his power under the Mining Act 1978 (WA) and made detailed submissions to the Minister in this regard on 25 September 2018. The parties are currently going through a process of exchanging submissions in accordance with the guidelines of the Department of Mines, Industry Regulation and Safety. The PFS outcomes summarised in this announcement assume that the exemptions will be granted by the Minister in a timely manner. If this does not occur, there may be delays associated with the project that could impact the key conclusions of the PFS.

So we continue to wait