Ann: GT1 Increases to 80% Ownership of Lithium Projects, page-7

I was under the impression GT1 are deciding what's happening. They are doing the drilling and running the project. ADV have an interest in the project. Yes ideally GT1 would reach agreement that would enable acquisition of the remaing 20% of the project so that it is 100% controlled, but the position is what it is.

Google states that proven reserves have a 90% or higher chance of extraction. Probable reserves are above 50%. Typically that will require publication of a feasibility study that confirms ore can be mined. GT1 are yet to release a scoping feasibility or definitive feasibiltiy study so of course the reserves are still only classified as Indicated and Inferred. When written and published reserves will fall into P&P. The feasibility study is likely to show compelling economics due to:

• the ore being amendable to DMS with DMS having a lower capital cost than floation;
• a very high high DMS recovery rate (and even higher if they go with floatation);
• DMS processes FS getting the ore up to 6.0% not just 5.6% or 5.8%;
• The ore starting near the surface so extensive overburden removal to commence mining is unlikely;
• The ore having strong grade so early mining is likey to be planned around 1.4% to 1.5% ore;
• The increased likelihood that off-take's can be arranged with North American delivery keeping transport costs lower; and
• Given all of the above, the likelihood of a good cost structure in combination with current excellent lithium prices.

GT1 needs to do a better job in explaining the rationale behind looking to be vertically integrated. One logical reason is the large conversion margins that exist from converting Spod to either Hydroxide or Carbonate. A second is that if conversion capacity becomes limited in the mid-later 2020's this is a risk mitigation strategy. Hydroxide / Carbonate can be sold directly to battery manufacters where as a battery manufacturer can't do much with Spod bearing rock if there is no available capacity to convert it.

IMO the market is in holding pattern waiting for both assay and resource upgrades. Some of the selling will be punters wanting to be in on the next fast moving lithium stock, not just waiting until GT1 moves.