Ann: Clarification - Walkabout Signs Sales Agreements, page-23

Foghorne There seems to be little doubt that the use of graphite is going to be taken up. What concerns me is the transition period for this to take place. The main risk is in start up years and being in a position to take advantage of that. High volume projects that rely on total or majority sale in early years may not eventuate if Moores report is close to the pin. The giga factory's are being proposed and scale up will eventuate but where does that leave current projects and funding. Most of these projects are well advanced but the giga factoy's that will drive the economics are yet to arrive.It would appear that they will not hit the ground running and more likely need to scale up as demand grows. This is the immediate concern for large scale projects and crucially funding prospects. We already know that SYR have a lot of unsecured product so this will likely be sold on to the spot market. Early years will be a price takers market and if project economics are unable to compete with China they need an alternative path way. Walkabout Resource are leaders in this concept and other's will follow such as TON with Anchuabe and VRC modified plan.



Walkabouts Strength comes from a resource that is very unique with robust economics using small volume of high grade on start up. With an alternate market to EV on start up will prove very important in closing the deal for funding.

Croc