Ann: Quarterly Activities Report, page-18

Tsibis, I would like to jump into your discussion with CaptainTakai. I am from Europe too and I disagree with your evaluation of the situation which has changed substantially since the populist PM Babis made an election campaign on the back of "losing the national lithium treasure" to foreigners.

1. Babis as the Prime Minister is most likely not going to be in the next government formed after the Autumn general elections, it will be the progressivist Pirates party and a bunch of centrist parties. I don't see how anyone would benefit from making obstacles to the project which is about half-controlled by the state now. People in the CR are not stupid, if the EMH project doesn't take off as soon as possible, others will conquer that market, but not only in lithium mining but in all related areas from battery making to EVs and all their suppliers, with all the implications for the Czech economy extremely dependent on car-making. I think the MOU was not with a government, a social-democratic minister of industry and trade signed a non-binding collaboration MOU between the ministry and EMH. Babis from ANO party started his campaign on the back of this beck then, employing typical populist tactics, not bothering with facts. The stake in Cinovec by the state is his political victory and he has no reason to question the current setup. The Czech Republic needs a gigafactory to be built too, it is a matter of survival. Cars these days are the batteries on wheels.

2. The mine itself in Cinovec is a historic mine in an impoverished area and the rules on granting such permits are clearly defined. Why would the state shoot its own leg? Again, I don't see any major threats here, especially if you compare to Spanish or Portuguese failed projects.

3. I am not sure about the extent of possible grants, Rodney Hopper mentioned Securing an EU grant of USD 100M for Geomet, but there is a huge amount of money in the EU being redirected to EVs and to vertical integration of the industry right now and only a handful of good lithium projects. "EIT InnoEnergy will support Geomet in the financing and development of Cinovec by assisting Geomet in securing construction finance for Cinovec, potentially up to the full amount of the capital expenditure and working capital required to put the mine and lithium chemical plant into production. It will also secure grant funding from applicable EU, national or regional grant schemes, for project enhancement studies and economic development objectives, for the development of green/sustainable energy projects." I have no indication to think they should not be able to pull something off.

4. I agree, the tin price is great and it will be interesting to see if it holds up. I am with Robert Friedland when it comes to the "revenge of miners".

5. Rodney Hooper thinks in his February analysis the feasibility should be guided to increasing chemical production to 50KT a year (two eight hour shifts up from one currently). I suppose Rodney has solid intel?

6. What I can see in 4 years, is a growing number of gigafactories completed in the EU, EVs produced by every major car brand, the states expanding the network of charging stations, more energy storage applications and even more emphasis on local sourcing of raw materials. The next Czech government will likely be a coalition government composed of many centrist parties, I think nothing extreme can be expected in the next 4 years in this regard.