Ann: TVN Tivan to Acquire Speewah V-Ti-Fe Project, page-8

Great Announcement!

The first SOLID announcement from the company in MANY years.

Positives:
- GRADE. Grade is king. 2.4% V concentrate from Speewah is a massive advantage of the 1% concentrate being produced by the Peake Ore. Speewah much more suited to Mag separation. GAME CHANGER.

- SIZE. We’re going to need a bigger boat! Holy Moly over 4500 Million Tonnes V at Speewah vs sub 250 million Tonnes V at Peake. This is a crazy difference.

- STRATEGIC. With the announcement last week re. move of refinery back to Darwin and this acquisition the project review is obviously going well. I would not expect to see this if Grant thought that he had to turn the lights out. The company are thinking big and appear to have completed this review very holistically.

- BINDING. While still a few conditions to satisfy this is the first binding agreement that I’ve seen in some time.

- PROXIMITY, Speewah is well located to Darwin. I long suspected that we would have needed a rail spur into Peake rather than the haul road that Burton proposed. While the logistics at Peake were doable they were not as easy as they may have been previously sold to us.

- COST. The deal is fair. Let’s be honest KRR are not negotiating from a position of strength. Their deposit is marginal without TIVAN. The script is at a significant PREMIUM to our last SP, when has this ever happened? I think that it’s fair for the KRR holders to get some of our script to have a chance at seeing the benefit of the time and $$ that they have put into Speewah and not been able to capitalise on. It is clear that both companies have previously had sub par management, this is a real chance for success for both companies. The way that this deal has played out so far gives me great faith that GW can raise the rest of the capital on good terms.

Lots more to digest people, but for me the biggest thing is that the lights are staying on! We now have a project of SIGNIFICANT national importance that will attract lots of interest from both Govt and development partners. Our new management has just proved themselves to be very credible and capable.