Afternoon trading June 3, page-225

DRX 33c open 4c close up 25% today from previous close of 32c one to watch Hot Copper forum got a mention too lol Response to ASX Query
We refer to your letter dated 30 May 2022 and respond as follows in line with the numbering in your letter:
1. Yes. DRX is currently in discussions with a third party regarding a potential investment in the company. The
discussions are at an early stage and are confidential. Final terms have not been agreed. In DRX’s view, it is
highly unlikely the recent trading in its shares is connected to the discussions regarding any potential
investment in DRX.
2(a). Yes. The discussions with the third party are incomplete and remain confidential.
2(b). No. Given the current status of discussions, a meaningful announcement cannot be made. In DRX’s view any
announcement at the current stage of the discussions would likely drive further speculation given it is uncertain
whether the investment will eventually proceed and, if so, on what terms.
2(c). An announcement regarding the investment will be made if and when a binding agreement is signed or
details of the transaction cease to be confidential. However, DRX cannot be certain of when (if at all) suitable
terms for any proposed transaction will be agreed and documentation signed.
3. The increase in price and volume in DRX shares observed by ASX (based on DRX’s review of stock chat
platforms such as Hotcopper and some broker feedback) appears to be related to:
• market speculation that a labour federal government with renewable energy (or de-carbonisation more
broadly) as a stated immediate agenda priority will see commodity or mining stocks that benefit from that
growth supported – DRX’s high quality silica projects are anticipated to benefit from any increased activity in the renewables sector market traders realising silica is fundamental to solar panel manufacturing and consequently DRX is well
positioned to benefit from any push into renewable energy in Australia or Asian markets more generally;
• renewed broker and institutional interest in this sector following silicon’s recent addition to the Federal
Government’s critical minerals list;
• recent strong market support for companies with strong ESG principals in their current or planned Project
development programs;
• the above factors combined with the current advanced status of DRX’s projects (in particular when compared
to its peers in Western Australia)
• some speculation on a transaction relating to the company’s Cyclone HM asset. DRX is not currently in
discussions regarding a transaction relating to that asset, but as has been previously announced, has a
number of parties in the Project data room considering whether the asset is of interest to them.
4. DRX is in compliance with the listing rules and, in particular, listing rule 3.1.
5. DRX’s responses above have been authorised by an officer of DRX with delegated authority from the board to