Ann: Appendix 2A - Exercise of options, page-5

Hi Hemmo, EGR also to receive US$40m to develop its battery anode material facility in Western Australia. Funds will go towards their phase 2 expansion plans, they have enough cash to fully fund stage1. EGR proposed mine is in Tanzania, it developed plans to source graphite from external sources for its Kwinana facility.

So to answer previous posters question on where TON went wrong, perhaps in not looking at down stream processing opportunities in Australia?

When you look at what G companies are doing well it’s largely those that have developed plans for downstream processing, particularly in the battery anode area. Even relative newcomer BEM have recently signed a J/V to produce Expanded graphite with Indian company Metachem in addition to their battery material plans via Urbix. They hope to be producing expanded graphite product at a new facility in India latter this year.

What has TON done?