AGM presentation pedestrian. A few questions elicited...

AGM presentation pedestrian. A few questions elicited information.

LH "Eritrian Government said the standard (original?) proposal was not good enough". STB not sure yet what Eritrian Government want - which explains the vagueness of recent ANN's.

Interest from Qatar and Saudi Arabia for MOP for NPK fertilizer plants.

Some Chinese interest in financing (favoured?).

Some thicker intersections (25m)in the central area between Area A & B currently being drilled.

ESS1 out of date. Higher recovery of sylvanite in ESS2 following more testing - 90 -91% claimed.
ESS2 only one barge needed not two - saving $18m.
Can reduce CAPEX by contracting out supply of fuel etc - proposals (unsolicited?) received.
Expect LOM OPEX to be even lower (presumably by this outsourcing).

Yara International ASA who have 51% of Ethiopotash BV are recovering kainite (MgSO4·KCl·3H2O) by solution mining - which STB could possibly do (later?).

STB allowed two years to negotiate a deal with Eritrean government - this will not stop development work but at the end of the day like most African countries (and China) you must rely on goodwill, as there is not way of legally enforcing rights. Relationships are really important - so STB must tred softly - all on trust. Azure Capital And Tony Keirnan will have work cut-out.

A question was asked about the royalty; LH wasn't sure if it was on gross value or profit based royalty - a bit scary. Terry Grammar and Liam Cornealius set him straight. 3.5% gross royalty and 35% company tax. LH said there would be a "different deal" - presumably that these rates would be going back into the mix.

Conclusion: Project is progressing well. Up to the Board to maximise the benefit for STB shareholders. Crucial that they reach a "binding" agreement ASAP - otherwise SP will languish.