Mining Lease Ratification, page-29

Modular DMS ProcessingThe Company has taken the decision to remove early ore processing using a modular Dense Media Separation ("DMS") unit, which had been previously included in the Ewoyaa Definitive Feasibility Study ("DFS"), from the development schedule for the Project.The modular DMS unit had initially been identified by the Company as an opportunity to capitalise on heightened lithium prices to generate early cashflow ahead of achieving full production from the main DMS plant in H1 2026, as well as a means to train staff on the operation of a smaller-scale plant and test the Project's logistics before the commencement of full operations at the main plant.Considering a median consensus price of US$3,000/t FOB Ghana for spodumene concentrate (SC6) in 2025, the DFS indicated attractive margins to be generated through production from the modular DMS unit, easily justifying its inclusion in the Project's development. At current spodumene concentrate prices below US$1,000/t, however, margins would be cut significantly.While the Board believes that lithium prices will recover from current lows, it is considered unlikely that they will rebound to the highs experienced in late 2022 in the short term. As such, the Board believes it to be more prudent to conserve cash and focus on delivery of the main DMS processing plant, rather than committing it to delivering the modular DMS unit.In addition, with the Mining Lease yet to be ratified by parliament, the window of time between the ratification of the Mining Lease and intended initial production from the modular DMS unit, as indicated in the DFS, continues to shorten. This not only means less time for the Company to deliver the modular DMS unit and for staff to train on the smaller plant, but also a diminishing timeframe of early cashflow being generated from the unit.With all this being considered, the option to exclude Modular DMS unit processing from the Project's planned development now outweighs its inclusion.Subject to the Mining Lease being ratified by parliament in line with the current schedule for the development of the Project, the Company remains on track to commission the main DMS plant at Ewoyaa in H1 2026, as detailed in the DFS.