Ann: Letter to Shareholders from John de Vries, Managing Director, page-4

The first, is that the deal provides real evidence of customer demand for our graphite product.

Secondly, validation of our graphite product by a credible blue chip player represents strong customer validation.

And lastly, qualifying Mahenge graphite concentrate to meet battery grade requirements as Lithium-Ion Battery anode pre-cursor means that we know our plant will work, as designed, in production to make saleable product from day one.

Another feature of our agreement with POSCO is price discovery. Mahenge -195 concentrate will be priced using a reported index from Asianmetals.com, a widely reported transparent industry e-marketplace. This has positive implications for us as we can now direct financiers and investors to an independent and transparent pricing source.


Aside from the first three points, don't underestimate how significant the last point is for the business. This should bode well for the company when they meet with the insto / fund managers from mid January onwards. I've heard the company has a few meetings booked with groups who are done for the year and wanting to get a handle on the business + Posco transaction early in the new year.