Ann: Acquisition of 60% interest-Manono Lithium, Tin, Tantalum, page-4

We now own 60% of what could probably be the largest, highest quality hard rock lithium resource in the world, and the 2nd largest undeveloped tin resource. DYOR, plenty of information out there and in this forum and my previous comments.

My quick summary…

Lithium

Plenty of information out there…

Grade estimates range from 1.25% Li2O to 2.1% Li2O (the higher estimate is from the USGS)

Tonnage estimates range from 200 - 520MT, the tonnage estimates are using the known strike (5km + 5km) and depth (drill tested to 125m, which ended in mineralisation of increasing grade).

The spodumene crystals range from several centimetres in size to large metre long crystals, and are highly amenable to DMS recovery. No fine grain issues here.

Met testing has been done producing a concentrate grading 6%+ Li2O and at 80%+ rates of recovery, with very low iron content. This concentrate has also been successfully converted to lithium carbonate as part of prior feasibility studies done on producing carbonate on site at Manono in the 80s. (Have posted assays on these in this forum)

Tin

Grade estimates range from 0.1% - 0.3%

Contained Tin estimates range from 200 - 350KT of Tin metal. This puts Manono as the 2nd largest undeveloped Tin deposit in the world.

Apart from its size the other unusual thing about this deposit is the ability to potentially produce Tin and Spodumene concentrate from the same ore, Tin is currently worth $20,000/T. Normally the grade you need for hard rock tin production is around 0.5% and over, but in this case as it will be part of co-production of spodumene and tantalum it looks like it could be economic. Lab tests have produced decent Tin recovery at 2mm crush size.

Tantalum

Tantalum is said to be uniformly found in a ratio of 10:1 to Tin, so 20 - 35MT of Ta at grades of 100 - 300ppm, similar to the best Ta bearing pegmatites we’ve seen. There’s supposed to be Niobium as well in a ratio of 1:2 with Tantalum.

Other minerals of economic interest require drilling to verify but could include tungsten and rare earth metals.

It looks like a genuine DRC “geological scandal”.

Chairman - Klaus Eckhof, he usually acquires large scale assets, define a resource, proves feasibility then hand it over to a major. Proven operator with 16 years in the DRC and notably defined the 20moz moto deposit which he sold to Rand gold for $500m. Strong in country network and operating another tier 1 project, Amani Gold ANL, which is prospective for another multi million ounce resource. Klaus is a strong part of what makes this project attractive for me.

Location - DRC, I like the DRC. Having lived most my life in Africa and worked in 4 countries, I understand the many challenges but also how effective someone like Klaus can be in that same environment that others find cumbersome. It either works for you, or it really doesn’t. Don’t invest in someone who doesn’t have experience and a strong local network.

The project itself is near a hydro plant that the former operators used to power the plant, this will need refurbishing (I’m told $40m, see the note at bottom of announcement about this) There will need to be work done on roads, and we are likely looking at a full lithium concentration + conversion facility. The resource certainly justifies the investment.

Will be interesting over time and with further studies to see the production cost of lithium hydroxide from cheap to process spodumene concentrate produced as a co-product with tin / tantalum, using cheap potentially self or part owned hydro electric power.

I have studied documents stored in belgian archives by the Geomines company, former operators of the mine for 80 years, feel free to ask me any questions. The former operators performed met testing, conversion to lithium carbonate, feasibility on building a lithium chemical plant etc. Lots of interesting data, maps, cross-sections.

Some cross-sections I’ve seen show that we could also have extensions of the same pegmatites into the north and south extensions tenements we acquired to start with, which adds another ?5km? of strike?. I don’t actually agree with the model used to make that assumption (they assume its a horizontal lying body, but cross sections look vertical to me) but I thought it was worth mentioning in case I’m wrong. I also don't agree with the interpretation of Bassot and co in the announcement, the kitolo drill sections look like a very simple vertically dipping body. I think its all guesswork until we start drilling.

But it looks very very very promising, also very risky and something I'm excited to be part of as a shareholder.

Love that our JV partners are going to rebuild the local hydro power and roads.