Ann: Outstanding Kangankunde Stage 1 Feasibility Study Results, page-52

Hello. The bottom line numbers are below. They are difficult for me to follow.

* AISC of $3.71/kg. Difficult to believe unless the concentrate is quite unrefined. PEK have US$5.80/kg (although I recall PEK studies from the distance past had higher OPEX).

* 8,259 tonnes of REE in concentrate per annum for US$113,700,000 average revenue per annum, which equates to a basket price of US$13.77/kg after payability discount from around a 60% payability.

* However, the current LIN basket spot price appears to be US$9.82/kg and on 50% payability is US$4.91/kg on a difficult for me to believe US$3.71/kg opex (including royalties).

* At current spot prices this appears to equate to average EBITDA of 8.3Mkg x US$1.21 gross margin = US$10Mpa EBITDA. Then deduct, depreciation, 30% tax, etc and convert into AUD$.

* Therefore, at current spot prices, the EBITDA appears to be 1/11 of what the LIN study suggests will occur in the future.