Shareholder Action Group Mk II, page-105

Recent correspondence sent early this week; this only came about as there has been no response from the previous letter, nor any acknowledgment of the letter being received or standing/status of the shareholder Nominated Director.

Dear Sir,

We refer to Matt Mitchell being the subject as a Director Nomination submitted by a shareholder of the Company to the Board for inclusion (Resolution) at the Annual General Meeting.

Does the Board have any views or comments on Matt's eligibility and/or suitability?
~ does the Board need additional information to be included in the Meeting Memorandum appendix other than what has been provided?
~ will the Board be offering any recommendations for or against Matt's election?

With respect to both the Boards of Firefinch Limited and Leo Lithium Limited, have they been appraised of the imminent events, the rules and regulations of the governing bodies and the timelines that need to be adhered to?

We also refer to our previous correspondence dated 1 April 2024, re;
(i) Holding the Annual General meeting
(ii) Estimated timeline for the return of available Capital (cash) that will be in excess of the requirements for the Company to maintain the entity's status, working capital and provisions for creditors.
(iii) Will the Company be including an Agenda item for the next convened meeting of shareholders, a Resolution to effect the return of cash as per the Company's undertakings across multiple Company announcements.

Is the Company considering or has the Company requested Leo Lithium to re-apply for a waiver, which would position the Company to be able to expedite the time frames for the distribution of the escrow shares by;
(iv) allowing the Company to be in a position to include a Resolution as an Agenda item for the next convened meeting of shareholders, to effect the in Specie distribution of all Leo Lithium Shares being conditional of their release from ASX escrow restrictions?

To date, we have not received any replies nor acknowledgment the Company are in receipt of the correspondence (albeit other than Michael Weir advising it had been forwarded to the Company) nor any views the Company may have on the content.

This is again somewhat disappointing if consideration is given that Mr Fraser as the Chairman of the 2023 Annual General Meeting re-iterating for and behalf of the Board, that the "Board/Company" are always available to talk/correspond and/or meet with shareholders.

There has been no correspondence in relation to the "Return of Capital" or to be more specific, what is/was the rational the Return of Capital (cash component) could not be progressed given that the Company's undertaking this was to occur immediately on termination of the "Process" and the "Treadstone Mandate", but is now contingent on finalisation and sign off of the interim account and the audited financial report for the year ending 2023, which are contingent of the disposal of Morila SA.

As much as the "good faith" discussions with the Government of Mali have restrictions as to what the Company may be in a position to disclose, it doesn't give the Company "carte blanche" to withhold corresponding with shareholders on the normal operational functions of being an entity governed by the various acts and listing rules.

Has the Company had any engagement with large shareholders to garner support for the Remuneration Report that has the possibility to receive a second strike at the upcoming Annual General Meeting? With the ramifications of this occurring would be a hindrance to closing the Firefinch Limited saga, be delaying closure and the added finances to hold a further meeting if the Board is spilled.

Has the Board given any consideration to post delisting to get any remaining value (after the completion of Capital/Assets being returned) out of what was once a $ billion company?

Does the Board have any views of the following (taken from previous correspondence)
Is the Board considering the value of tax credits/offsets available for a possible sale of the shell for scrip as consideration of a back door listing? With the current shareholders to receive proportional distribution of any consideration shares of a New Company ("NewCo") after FFX shares are consolidated as not to disadvantage NewCo, also including a minimum of 6 months escrow period of any distribution of consideration shares received by Firefinch shareholders in NewCo.

Points for consideration working in the interests of FFX shareholders to the advantages of an ASX backdoor listing available to both FFX shareholders and NewCo, are but not limited to;
(i) utilisation of the Firefinch share registry (post consolidation) to satisfy the minimum spread requirements imposed by ASX;
(ii) Firefinch Limited with be a moribund entity, a backdoor listing transaction will potentially enable shareholders of FFX to regain some of their capital in owning FFX shares, which would otherwise be lost if FFX were to delist and be liquidated;
(iii) A capital raising undertaken by NewCo in relation to the backdoor listing may be undertaken at a issue price of at least $0.02 rather than the minimum $0.20, although conveniently Firefinch's last trading price was $0.20.

Furthermore, with respect the Company needs to show some empathy and transparency to their SHAREHOLDERS and make disclosures of what is going on as the Company heads towards delisting.

Regards


Michael Weir replied:

Thanks for the email. I have passed this onto to the Board.

The Company is also due to release its Quarterly report before the end of the month, which will provide an update.

Kind regards

I don't know about anyone else, I was expecting more than just an update with the last announcement expecting the accounts to be completed during April.

My thoughts were:
Morila settlement (or whatever you want to call the "good faith discussions") -- completed
Interim and Annual Audited Accounts -- completed
Notification of the AGM

cheers