Valuation 64c per share IIR research report, page-8

RISKS
Offtake and Funding – Given the number of graphite projects looking for funding and
offtake this is a risk, however in Walkabout’s case it may be somewhat mitigated through
the low cost nature and quality of potential products at Lindi that clearly differentiates it
from others. These are the areas on which the Company is now concentrating efforts.
Commissioning: Should Lindi proceed “challenges” commonly occur in the commissioning
of plants, with these not behaving as expected – this is somewhat reduced with the
proposed operation using industry standard techniques.
Exploration: This is the key risk for the Namibian and UK properties, with these being
early stage; mitigating this however is the prospectivity of the tenements.
Permitting: The risk here is the speed of permitting activities, particularly drilling, in the
UK - this is a convoluted process and can lead to delays, and slow news flow.
Costs and Prices – These are always price and cost risks in mining, however given the
robustness of Lindi the Project will be able to more than adequately absorb any adverse
movements, and still maintain good returns - however there could be headwinds in pricing,
especially in the “base load” products with a lot of forecast supply coming onto the market.