Ann: Quarterly Activities Report, page-16

@Shellbell

Thank you shellbell. Very interesting.

I have a couple of questions for you, too:

1) Do you think it makes sense for BSM to go downstreams? How do you see the likelihood of that happening / to be successful?

2) Do you believe large flake graphite prices will go up in the near future? Would that be enough for BSM to be profitable? I see your points that pricing is not straight forward but has a lot to do with negotiations. Could this also play in BSM's hands since they have quite a big resource and 4-5 years of experience? This of course in regards to a potential shortage in large flakes in 2-4 years.

3) Do you believe they can supply the battery industry with their material? In their presentations they claim they can.

4) Do you see a real chance that BSM manages to drastically reduce cost, f.e. with hydraulic, or any other way?

5) Graphite already is declared a critical resource, do you think at some point even "expensive to mine resources" will be of interest again for western countries or western companies?

6) Is the Graphmada project just too expensive to mine at current prices or do you see any issues with the quality of the asset itself?

Last question:
7) How high or low do you see the likelihood of BSM getting funding in any form and therefore surviving?