Ann: Capao do Mel Resource Update Doubles Caldeira M&I Resources, page-15

Hello. CORNBRED will be betting OPEX on MEI will be coming in very very close to Aclara Resources Carina, albeit a tad higher because the throughput is around half (5 mtpa vs 9 mtpa). I am going to forecast OPEX of US$14/t ore feed, or US$70m annually in OPEX for a 5 mtpa plant. On a per kg rare earth basis, that is way too hard to predict given head grade (wildly varying from years 1-5 through 6+), recoveries (again wildly varying with head grade changes from years 1-5 through 6+), and downstream/global recovery (e.g. filtration losses, impurity losses that haven't been shared by MEI directly but Penco's demo plant achieved ~95% downstream recovery once they had it running optimally after a year).

The difference between VMM and MEI, as you have also noted, is that MEI has a high grade continuous cherry of +4000 ppm REO in Capao do Mel, which will facilitate a high grade starter pit. I cannot see a high-grade continuous section in VMM's MRE. Yes they can increase the resource grade by upping the cut off grade but when looking at the block model this would involve only taking 5-8 m out of a 2-15 m depth hole, or taking one hole but not the next "block" hole 10 m away. I.e., not practical when inputted into a pit optimisation and subject to serious dilution during mining or huge (high OPEX) strip ratios. The market is all knowing and I believe this high grade cherry is the key reason MEI is worth multiples of VMM right now despite both MRE's being around the same grade and similar size. Interested in other's thoughts? I think this will allow MEI to produce a much better scoping study, particularly for IRR and payback period on CAPEX over VMM. VMM has an advantage with much lower total royalty (no private royalty), but that should be overcome by MEI with this high grade CDM starter pit.

I have been waiting for this scoping study to make an entry here and so far it seems to be paying off with the stock price cooling off. Excited for an imminent entry on this one if the SS has the goods.