Ann: Quarterly Activities Report, page-2

Solid quarterly. I harpon about the importance of thoroughness during the development ofcompany-defining projects and I think the two statements below support AVL’scommitment to developing a project that will have every chance of succeedingthrough all commodity cycles. In my mind, this demonstrates that they arelooking to develop an extremely robust business case. Not many juniors do this.

From the CRC-P Updatesection………

“Milestone 4 concernsthe recovery of vanadium from low-grade ore. This represents significant potentialupside for the overall Project, by assessing ways to efficiently recoveradditional vanadium units hosted in the Project’s low-grade Resources3 whichare currently excluded from the Project’s processing schedule.”

“Milestone 6 is anongoing investigation of the change in the metallurgical response to variationsin ore character. The key factors investigated are the degree of oxidation(classed as fresh, transitional and oxide ore), magnetic susceptibility, thegrade of iron, vanadium and silica. It is anticipated that this work will aidin mine scheduling and the selection of ore to optimise mine to mill operationover the life of the Project.”