Ann: EcoGraf Development Update, page-3

Hi Folks

A good update. In a nutshell:

1. Kwinana in WA is now the preferred site for the first ECOGRAF hub, presumably because of the incentives being offered by the WA government to make that state a global leader in lithium-ion battery production - tick;

2. The German are on board with their money and European contacts - tick;

3. All the froth about the timing of the International Patent is not the explosive issue that some holders were concerned about - 'The PCT (International Patent Application) is NOT a requirement for any agreements, funding or development' (tick); and,

4 There has been no retraction nor amendment re the undertaking in the recent KNL Quarterly that 'subject to satisfactory completion of due-diligence by KfW IBEX Bank, the submission (re finance for Epanko mine) is expected to be made to the German Government by KfW IBEX Bank during the CURRENT QUARTER.' (double tick).

GLTAH