Ann: Corporate investor presentation, page-14

It seems we have turned the corner here with volume increasing of late.

Drilling continues at Yinnetharra, it seems to be one of the most desired areas of land in WA, I see Tim Goyder and his team from LTR are the latest movers in, all citing their neology to RDT discovery hole.

The latest assays from Yinnetharra had me thinking about Li grade around 1% in respect to SC6 production, however these assays begin at surface!

An interesting reponse from Scarpa when I asked him about grades

Short answer is yes. It is about impurities and coarseness and how easy the spodumene can be liberated from the ore. That then says what process you use which translates to cost, unless of course you are seeking to produce a product well above 6% grade, meaning floatation is the only option - Post #: 54283727

Infact the former AJM resource graded 1% - 1.1% and IMO will become the jewel in the crown for PLS IMO as it is coarse and low on deleterious elements - refer Post #: 40787702 and Post #: 41474370 PLS IMO will end up mixing the former AJM mine product IMO with its initial mine product IMO, and that will achieve/strengthen the appropriate moisture content as well in its sales products as well and probably better help it achieve selling 6% grade spodumene as against I think mainly 5.5% - 6% now - Post #: 50568752 If the former AJM survived, IMO it would have done a PLS IMO - just the wrong time for it with the debt it had which shows the risks for newcomers of trying to move from an exploration company to a mining company. SYA has a large part of its resource grading around the same as the former Ajm as well IMO - Post #: 66527893

The key point though is you would prefer a higher grade deposit because it translates to cost - at 1.5% Li20 you need 5 tonnes of ore to produce 1 tonne 6% spodumene concentrate at 80% recovery rate, whereas at 1% Li20 need 7.5 tonnes. But if the depsoit is near surface then that helps costs to - a key is simply strip ratio and proximity to surface when you have a deposit around the 1% grade mark, but they can be profitable is my point and too early to say here anyway without drilling.

However, with the lithium shortfall, I suspect as long as you can produce 6% grade spodumene, and have a recovery rate of over 70% you will be fine. Spodumene prices are well above what most have been factoring into their DFS of late as well, and I expect prices to average above what most have put into their DFS in the past (i.e. that is those DFS produced say in 2022. Background info on demand supply is here - Post #: 66329253