General Discussions, page-31824

I am sharing this with the express permission of DC.

Hi TenX,

Thanks for the message.

You raise some good points on the negative impact of dilutive financingoptions on current equity holders. Our duty as directors is to manage thecompany in the best interests of current holders.

I wouldn’t be so quick to assume that the only way to start productionis with an equity injection at current low prices from an offtakepartner. I understand that current market circumstances make this looklike one of the most viable solutions. However, this is largely becausewe are seeing equity market fatigue after a period of low commodity prices, soone might conclude that strategic users might be more amendable to putting uprisk capital in the current market than anyone else.

The easy solution is that the commodity price changes. We sawquick swings in lithium prices not so long ago that opened up debt and equitywindows. I know of one lithium company that turned down a strategicequity investment and decided to raise on market at better prices. Others(e.g., Pilbara Minerals) were even more astute by using debt at the right time.

Another side of this issue is that you may find offtake that allows you to getinto operation, but that caps your upside. Prior to the webinar we gotscores of questions on the timing of binding offtake. I tried to shareour thinking behind ensuring that we get the right deal on offtake for ourequity holders.

Of course, the same applies for financing. We need to put together the deal that sees equity holders with the best result. The good news is that we are in a good position to do this. Having the half the equity in hand puts us in a position of strength. The EFA loan is also a major plus, as we have options to vary the leverage ratio. Also, we have a shareholding base that has been quite supportive of our plans, and we will continue to be very transparent with shareholders to ensure you all get the best deal. Finally, the kind of staged equity investment with strategic investors isn’t uncommon for the very reasons you mention, so this is an option too.

I hope I’ve provided some more insight into our strategy here. Ifyou have further questions, please reach out.

Kindregards,

David

David Christensen

MANAGINGDIRECTOR

Level5, 149 Flinders Street

Adelaide,South Australia 5000

Australia