Ann: Clean TeQ Water signs Cooperation Agreement, page-64

Thanks Lekki, I was aware of this announcement; but on reflection, IMO, it has no negative bearing on the likelihood of a LOM off-take with CLQ, nor any impact on the likelihood of a project-level equity involvement in CLQ or a factory in NSW.

1. It just shows Easpring has an appetite that CLQ is unwilling to satisfy on its own.

2. It is a fact that negotiations with Easpring on LOM off-take and project involvement have been in progress and continue, since last August. This is major. Think about it.

Why are negotiations still continuing six months after the initial 5 year off-take has been announced ? What do you think are the subjects of the negotiations ?

Q: Why has nothing been announced after six months of negotiations ?

A: There is no FID or financing yet on Sunrise. So no announcement on a JV for cathode factory can be made yet. How can you announce a factory build commitment when the mine supplying it has not been financed and there is no official BFS or FID ??

3. I have said all along that I think Congolese cobalt will get into the market. But do you think, if you were in Easpring's position, that you would pass on owning a factory with sure supply in NSW, because of a contract in the DRC ?? The options just argue for nailing down a sure thing in Australia, even if it is not enough to completely satisfy the needs of Easpring.

4. The context of the remark was during the announcement concerning CLQ. They are still in negotiations with CLQ. They are not getting everything they need. They responded to a question.
What else would you expect them to say ?

In sum, let Easpring look for more. Let them get on the next Air France flight to the DRC. The announcement means nothing, really, as far as CLQ is concerned.

It has no bearing on their need or interest for a mine in Australia with nearby metals in friendly hands that will supply a major portion of their needs for 20 or 30 or 40 years at lowest quartile C1 costs and proximity to port and the Chinese mainland. And their source has been approved by SASAC, was probably brokered by SASAC, has the backing of the bigwigs, and is clearly the best possible pick for a counterparty in the entire mining industry.