General Discussions, page-13378

Hi Tassy,

They are yet to secure a suitable site, until they have a signed agreement it is more fluff that the RNU's retail shareholders love,

Until they successfully negotiate an agreement, they cannot progress with the regulatory approval to develop the site, which we know now takes up to 2 years to obtain.

Honestly, I cannot see RNU securing a site until after they have secured their PEPR for the graphite mine, then found offtake agreements to secure the government funding. I honestly don't think the Australian government will fund both the mine and the PSG facility at the same time, if the graphite mine doesn't provide the correct flake size or purity the PSG facility is a complete waste, And it is very very unlikely and anode manufacture will enter into a binding offtake agreement based on the small scale production RNU has provided,

Take a look at the ASX largest graphite producer, after successfully commissioning their graphite mine, the graphite output was 6% of the plants capacity. After 6 months they had increased the production to 25% of the planned production. The graphite recovery and flake size were well down on the DFS forecasts.

If this occurs at RNU's mine, they won't have enough graphite to feed into the PSG facility and the company will go broke.

Anyway I have said it before, if RNU had any significant interest in its PSG, they would be building the PSG facility first and use third-party graphite supply, they have the cash in the bank to build this facility now. they don't need to wait 2-3 years for the graphite mine to obtain all of its approval and go through 20+ months of construction and all of the commissioning risk.