Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-2

Finally some news.

For me, biggest interests are this:

Consultant appointed for site selection and business incentive assessment services for a Phase 2chemical plant in the United States. Submissions have been received for 66 sites across 6 States. Aprocess of elimination has started with the objective of generating a list of sites for more detailed assessment, in May. Final shortlist selection is planned for early in the September 2023 quarter,which along with the Feasibility design for the Phase 1 chemical plant could support a domestic debtfunding application. Work has also started, using internal resources to identify sites for a Phase 2 development in Namibiaand the UAE, with the objective of completing this scoping level work in mid-2023 and allowing a Pre-Feasibility Study to begin.

Where should phase 2 be, should there be 2 stage 2's? Is this a part of DFC funding negotiation? To think about, how much more delay would US stage 2 add (approvals, design, supply chain), compared to replicating and building in location 1? (not forgetting different timeframes)Talk of US options and bringing in feed from elsewhere has definitely increased in my opinion.

DFC’s legal counsel continues its due diligence of the integrated Phase 1 Project. Separate counsel was appointed during the quarter for the Namibian due diligence, which is expected to be completed in the June 2023 quarter. In parallel, debt advisor Lion’s Head Global Partners is advancing discussions with other Development Finance Institutions, commercial lenders and export credit agencies for debt finance for the chemicalplant development in Abu Dhabi, with credit approvals expected to be sought by lenders followingcompletion of due diligence.Lion’s Head is also advising Lepidico for a strategic collaboration on the KEZAD chemical plant withan Abu Dhabi state owned organisation.Other strategic equity options are also being pursued that along with debt are intended to providealternatives for a full funding package for Phase 1.

I think this confirms, timelines are continuously being push back. This isn't an easy ride. The collaboration with the state is a buildup of hints given on the funding structure a few months ago. I still think this might be the get out of jail card for a maths equity raise and probably the right choice this early in the game. Now they just need to get the god damn thing built so they can prove that it works at commercial scale and it is profitable. The empire building can begin after that.

Cornish Lithium started construction of an L-Max/LOH-Max pilot plant designed to treatzinnwaldite and polylithionite rich ores; unsolicited interest continues to be received from third-parties for the licencing of Lepidico’s process technologies. additional sources of concentratefrom third-party lithium mica mines continue to be evaluated, which could support the development ofa global market for lithium mica concentrates; Lepidico’s ultimate objective.

This is the attraction to the gamble. Currently a MC of only $84million, this tech if proven commercially would be worth a lot more (a huge pop upwards). Unfortunately, if one is in a rush, I would not be expecting any big moves soon. This is still a wait and pray game until financing is determined. Entry around here could be attractive, but even at this price is still very high risk. Things are moving forward, snails pace, but is moving forward that can be seen. Good luck holders. I hope diversification in this sector is a part of your strategy.