Ann: All Bunyu Stage 1 Product Sold, page-91

Hi @Vaughan94,

Some thoughts on your questions above...

"1: Does the Chinese offtake conflict any American offtakes?"

The recent offtake with the Chinese company Qingdao Baixing Graphite co is specifically for the coarse flake graphite portion of Bunyu graphite, which is not typically suitable for Battery Anode Material. The fine flake graphite is what gets processed into Spherical Graphite and goes into lithium-ion batteries. Hence, this offtake shouldn't conflict with potential USA offtakes as the use-case for the graphite sold is entirely different.





"2: How is the 24m deal moving along?"

A commercial deal with 24M or their licensees is dependent on the successful completion of the "Testwork" which can typically take 6-12months. This involves cycling batteries for weeks/months to confirm their lifespan, capacity & properties and making adjustments along the way to optimise. I've heard Talga MD say testwork could even take up to 2 years. Assumption is this is still in progress and will probably conclude in H2 2023. An update on timing would be useful.

"3: Zavaliesky status"

Ukraine situation is still volatile. The war will have to end one day but when? ZG was suspended due to energy supply disruptions and winter. Potentially might be able to restart, but would need to have some certainty on power / energy supply and costs. Because of uncertainty, I'd only be in favor of a restart if the "cost" requirements are minimal and the mine can fund itself going forward e.g. production + sales support operational expenses.


"4: small indication of finance details coming in the near future"

In his first ~3.5 months PC has delivered on his commitments on delivering 2 binding offtakes. He also committed to reducing expenses (to be confirmed in upcoming Quarterly Report). Given his track record, I'm of the view Bunyu Finance will finally happen and within the timeframe communicated.

Also, the Updated Feasibility study for Bunyu being prepared by GR Engineering might be close to completion and should re-affirm Bunyu's status as a high value project, noting it's Pre-tax NPV for Stage 2 was estimated at US$1.31B (~AUD$1.95B equivalent) in the 2018 Feasibility study.



GLTAH