Ann: Cape Flattery Silica Sand Project Production Target, page-32

Hi MalcolmD,

I look forward to your factual posts and your continued interest in Metallica back from the days when it was "resurrected" from the depths with new competent management in charge and a new sense of optimism came about.

While your subject post foreshadows a positive future for Metallica I find the optimism a little dimmed on two counts:

1. The recent capital raise severely diluted existing holders equity to what seemed an unnecessary extent and your foreshadowed future capital raisings will greatly aggravate loss of equity. Why did you not foreshadow borrowings for capital raising as Cape Flattery would seem (at least to me) something that lenders would see as a pretty safe bet?
2. Your post of 11/11/2021 indicating potential prices for a high grade product (shown below), while perhaps optimistic were certainly realisable based on the finished product analyses released by Metallica. I would have thought that the potential indicated would have capital lenders quite keen to provide capital to establish a mine.

I hope the Board when looking at mine capital raising will take into account my concern expressed above as the sentiments expressed must surely be supported by the majority of shareholders.

I also hope that the foreshadowed PFS, in addition to having conservative bent, will also include one or more best case scenarios as the news we are receiving on the potential demand for the Cape Flattery (both high and medium quality) deserves inclusion.

Cheers.