Ann: Annual Report to shareholders, page-251

Hi Names,

Interesting interpretation on when WKT needs to hold the 2 Qtrs of debt servicing at all times,

Based on WKT's current borrowings from Gemcorp (US$24mil), WKT would be required to hold ~US$6mil to satisfy the debt servicing requirements on the first of January 2025 which is only 11 weeks away,

With the lackluster demand for Lindi Jumbo Graphite, WKT is unlikely to secure these sales within the next 11 weeks to have the cash backing by the start of FY 2025 and cover all of their operational expenses, which have been reported to be US1.4-1.5mil per month just for operating the production facilities, we also have the directors fees of $300k for the QTR and the month interest of US$380k, the 800 tonnes that WKT has secured in sales, is not going to put a dent in these costs or provide any free cash flow to put toward Gemcorps 2 QTR's of cash backing (At all times)

if WKT was required to raise these funds on market to satisfy the debt servicing requirements, it could cause significant shareholder dilution as US$6mil is equal to $9mil AUD. These funds would not be able to used to help cover the costs associated with operating the plant, which will mean WKT would need to raise additional funds.

The other day you mentioned a few scenarios as to why WKT had not raised funds, had you considered that WKT was unable to raise the required funds from investors?

This would leave the company in a situation where they needed to prove the plant was able to produce the DFS production and lock in those much needed sales. I cannot see too many investors wanting to take on the risk of investing in WKT which has failed to achieve any of its forecasts. Commissioning was expected to only take 2 months, yet after 11 months, we are still waiting for Jinpeng to satisfy the requirements of the EPC contract.

Lets hope Sparecash can find some more sales in the coming weeks, the significant increase in sales during September is well below my expectations as Wogan has had a sales and marketing agreement for the past 3-5 years. Are they struggling to find clients for WKT or is the graphite concentrate failing to live up to the expectations of the lab scale samples?