Ann: March 2023 Quarterly Activities Report and Appendix 5B, page-13

Now we're told customers are wanting a different product from what we've been producing. Therefore, it would seem as if we DO NOT have 90% committed as previously reported.

Nobody from WAK has told us that customers want a different product. I invented that as as possible reason for a hiccup in orders in the March quarter. Even if I were correct, that somebody ordered six $20 bottles of wine, and then upgraded that order to six $40 bottles at a better profit margin, is hardly a matter to complain . As soon as K999 became available on 17/03/2023, the off-take mob (effectively Stanco) placed their largest ever order that WAK intends to commence shipping in April or May. I assume that is why WAK now plans a second shift. K999 is just a better version of K99 produced by the same plant at a small reduction in speed, but it commands a meaningfully larger price.

The fibreglass sector for which that product is intended is the one conspicuous sector where WAK has a huge advantage over competitors, because it suits a dry-processed product with a low particle size, and WAK's mine has two domains, one of which has a low particle size. Chines supplers can only get to part of the specification by burning off carbonaceous matter, and that means calcining it, and that aggglomorates the kaolin into larger particles. Brazillian kaolin is alluvial kaolin, and that usually has carbonaceous matter in it, which must be removed by calcination, as is the case with kaolin from Georgia, USA. Stanco, the company buyong that kaolin, would not have lent WAK $200,ooo years ago, and invested some $1.5m in the recent capital raise if it did not want WAK's K99F product, or better (K999F). Stanco specialises in providing feedstock to the glass industry in East Asia.

There are things to worry about, but Stanco not buying enough product is not one of them.