Another reply from Hugh, my questions followed by his responses:...

Another reply from Hugh, my questions followed by his responses:

On 10 Jul 2018, at 10:09 am wrote:

Hi Hugh,

Thank you for your prompt reply. There are a number of concerns regarding Arcadia amongst the Hotcopper (ASX stock forum) community:

1. Why would PSC award an earth moving contract before securing finance for entire project (excluding the refining stage)?

2. Market was spooked because there is a sentiment out there that finance for Arcadia will not be secured - is this likely?

3. The free option for additional lithium
ground is seen as taking focus away from Arcadia, which is regarded as the primary focus externally.

4. The election in Zimbabwe is another matter entirely, but the sentiment is that PSC won't announce finance news until after the election?

I hope the PSC team can provide the ASX a note assuring investors that PSC is not aware of why the share price dropped 20% since the latest announcement.

Regards
XXXX

Hi XXXX

1. Earthmoving. We are doing the preliminary work and site preparation. This will speed development once full finance is done.

2. I think we will secure the finance and sign the balance of the off-take. It takes time. These are big deals for both parties. Remember our product will be a major contributor to an off-taker’s business. So they take the DD seriously.

3. Yes, it certainly seems to be the case however, we have an exploration team and a development team. Keeping both teams busy is not a lack of focus. I would say we are deploying our resources properly. An exploration geo is not a production geo. We also suffered the same comments when we bought Arcadia.

4. We will announce as soon as we are done. We understand the urgency of finalising funding.

Regards

Hugh


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