Ann: Annual Report to shareholders, page-2

wow wee anyone read the Chairmans letter and all the assets we have,

30 June 2017

The past year has been a tumultuous period for Jervois culminating in a new board of directors with a clear focus on
maximising value for all shareholders. This includes the appointment of Mr Bryce Crocker to the position of CEO, effective 1
October 2017. Mr Crocker is a seasoned mining and natural resources executive with significant experience in base metals
including cobalt. Mr Crocker has broad experience from his time at Xstrata plc including nickel/cobalt roles at Xstrata plc’s
nickel division. Mr Crocker was a Director on the Xstrata Nickel Board, an Xstrata nominee Director to the Nickel Institute
Board (global body representing the industry) and an Xstrata nominee to the Kabanga Shareholder Advisory Committee.
We have achieved much in a short period but recognise that this would not have been possible without the inherent value of
the assets assembled in Jervois over many years by the former directors and the geological team.
Jervois was without any discernible business plan or basic systems essential for delivering value to shareholders. Your new
board has rectified this.
Jervois is now in a strong financial position with ,at the time of writing ,over $5 million in cash and short term investments
being shares in Explaurum (ASX:EXU) and Elementos (ASX:ELT).
To some extent value realisation on various assets below is outside of our control whereas delivering value on our nickel
cobalt and tin projects are paramount. The Ni Co Young deposit in NSW is 100% owned by Jervois and contains an Inferred
Resource of 82MT @ 0.79%NI and 0.06%Co (2012). This deposit has the potential to supply raw materials to the Electric
Vehicle battery market which is forecast to expand significantly in the coming decade. A revised JORC Resource is being
prepared and a further drilling programme is being planned.
The Company holds the Khartoum tin prospect in Queensland –the Carbonate Creek and Khartoum tenements, which
provide an exploration play with a potential target of over 100 million tonnes of 0.25 % tin. A specialist geological consulting
company has been appointed to determine prospective tin targets in these tenements. The proposed work program will
include on-ground mapping, surface sampling, review of existing diamond cores and data, and design and targeting for a
drilling program. This work is expected to be completed by end of September 2017, with a drilling program proposed for the
second Quarter, 2018.
Of the other assets, the most advanced of these is the option agreement to sell the Flemington Scandium project to
Australian Mines Limited (ASX:AUZ). Should Australian Mines exercise its option to purchase Flemington we will receive a
further $4.5 million along with a 1.5% royalty. The exercise of the option is due in September 2018, unless exercised earlier,
and has resulted in Jervois recording an income in the current year of $5,345,172 on the transaction.
Your company should also be in a position in the coming year to value its royalty over the Nyngan scandium deposit it sold
to Scandium International (TSX:SCY). Under the terms of this sale SCY must pay a royalty of 1.7% for the first 12 years of
production. SCY has received all necessary government approvals and is planning on a production start up of 2019. At the
planned production rate of 38,000kg per year and assuming a scandium price of $2000 per kg the royalty will be worth
approximately US$1.3 million to Jervois at full production.
The board will have an independent expert assess the value of this royalty once development of the mine is underway. The
royalty has nil value in the books at present. The other royalties in the Jervois portfolio also have no carrying value and
include the Bullabulling and Forest Reef gold royalties.
The Bullabulling royalty is by far the most significant and is $30 an ounce on the first 400,000 ounces of production and $20
an ounce thereafter for the life of the mine. We have reviewed this royalty agreement and are exploring a number of
options including sale to realise the inherent value.
The board is pleased with the progress the team has made in the last 6 months of the financial year and will continue to
work on achieving value from the asset portfolio held by the Company for its stakeholders.
We look forward to a busy yet successful year and thank you for your ongoing support of the Company.​

John Byrne