Ann: Vittangi Expansion Interim Scoping Study - Clarification, page-9

At least someone out there in investment land has read the article and asked for clarification on how the inferred portion of reserves are allocated over the 0.6Mtpa, 1Mtpa and 2Mtpa scenarios. To an arm chair analyst, inferred reserves means extra risk.

My understanding of inferred resources is that they are resources outside of two hole drilled and an expert geologist (authorised by JORC) acknowledges the ore body is most likely to extend a little bit further. There is a risk that it may not.

With current knowledge of how the graphite ore body was formed coupled with some knowledge of the upheavals since, then Talga is entitled to regard their "ET Model (leapfrog)" showing a 450kl meandering circle circle which links up all the surface graphite discoveries. Is probably a continuous seam of graphite mostly top soil.

MT has stated verbally and in writing that there is no way that this can be proved to JORC standards. I agree. The cost of this surface drilling over a 450km suspected seam would be prohibitive, even to a BHP.

What Mark has done is selected 5 locations where the seam is not hidden by over burden and financed the drilling of them to JORC standards and used that to derive a mining program for the 3 different (0.6Mtpa, 1Mtpa and 2Mtpa) demand scenarios.

My guess is doesn't for an instant, believe that this is how the future will unfold.

Take the 0.6 Mtpa scenario for example. Nunasvaara South provides the first 14.4 of a 39 year life of the 5 JORC measured drill sites.

Nunasvaara South drilling acknowledges (by JORC) that the seam is open to the north, to the south and at depth.

With underground operations, with the ability to follow the seam (north, south and down) with exploratory short length drills to extend the mine as and when desired. It is quite possible that this Nunasvaara South mine will still be operating at the end of 39 years, without any requirement of the next 4 mines.

It would be nice to hear an opinion from a mining engineer. I would assume that MT has had opinions from many of them and he still persists in displaying his "ET Model (leapfrog)" graphic.