PLL General Discussion, page-1120

At least on this side of the fence the view is 100% that is a life of mine off-take, until agreed otherwise.

Its important to remember that NAL (the Abitibi Hub) has a collective 119.1Mt @ 1.05%. Typically companies with 100Mt+ hard-rock resources have plans for faster extraction than the current NAL plan of up to 226ktpa noting that until recently smaller volumes like 168kt and 180kt were mentioned. As context, PLS's last annual report noted 308.9Mt at 1.14%. They have plans to speed up production to 1Mt/yr. If NAL were to pro-rata speed up their production/resource ratio to match PLS 1Mt plan, something nearer 350ktpa would be required. Bigger deposits than NAL are being mined more aggressively. Smaller deposits are also being mined or planned to be mined more aggressively with some LOM in the low teen's. There is a distinct chance that the optimum decision would be for NAL to increase production levels beyond 226kt. This is where PLL having a 50% of off-take for life of mine becomes important. While any hydroxide or carbonate plant takes preferential delivery, if delivery exceeds what this plant needs, PLL still gets an off-take. For example if Carbonate needed 200kt and production was 250-300kt, the other 50-100kt would all go to PLL at the $900/t rate. Only some people have realised that its only when Carbonate/Hydroxide commissioning is completed and nearing nameplate that residual volumes will fall away substantially.

At least four major permutations exist around Carbonate/Hydroxide:

• This is agreed at a different percentage than 25/75 which would make it easier to be value accretive to PLL despite losing off-take volumes
• It remains agreed at 25/75 but there is a secondary agreement to target increased production beyond 226kt. PLL therefore loses offtake to carbonate/Hydroxide but starts to regain off-take volumes as production increases beyond what is needed for Carbonate/Hydroxide
• The agreement to proceed with Carbonate/Hydroxide also results in other relationship agreement changes such as mine ownership percentages, T&C's within the off-take, or even PLL's ownership percentage within SYA.
• Agreement isn't reached, Carbonate/Hydroxide doesn't progress and any penalty necessary is paid. The 113kt (or 50% if larger) offtake continues.