Ann: New Vanadium Process Route, page-3

Directors Comments
The Board recognises that while the new bottle roll and vat/column leach testwork programme is still at an early stage, these initial results on lump rock are most encouraging and now graduate this model of process route to our most preferred.

The potential of using a coarse 2mm concentrate for a heap or vat leach operation is now under revue as test results demonstrate it would reduce the amount of material leached by ~50% and potentially shorten leach times.

A 2mm concentrate beneficiation plant would be a simpler design to the facility used in the recently released Vanadium Scoping Study that generated a 106 micron (~1/10th of a mm) concentrate with the potential flow on of capital and operating cost savings.

Alternatively, if lump ROM material was chosen in coming months to be the most economic option to be used in the PFS, then there will be no magnetic separation circuit required at all. During 2019, KRC aims to present shareholders with the most prudent commercial strategy to develop the Speewah vanadium resources and advance towards the production of Vanadium, Titanium and Iron products at the lowest unit cost.