Ann: ESS: Scheme of Arrangement Update, page-2

Hi all,

Oh "not fair but reasonable" well life is not fair. It is not fair that credit is tight and risk appetite is almost non-existent at present in capital markets.
It is not fair that you need a strong balance sheet and secure relationships in the industry to get a development done at this time.
It is not fair that some miners (aka Bill and the team) are just more productive and experienced than almost all other operators.

It is not fair that a 13: 1 strip ratio is just not tenable in this climate or that environmental trends are shifting away from the ESS model that could blow up in their faces.

I wont say why I wrote all this (following) up as somebody got titchy with me on another thread about promotion of a no name comment. I don't want to come across like that anyway: some words I wrote for another purpose:

If you have not done so already, I suggest you might gain value if you listen to Bill and the story at DVP. The brilliance lieswithin his business acumen. The most productive people in any given segment of the work force produce significantly more than the rest of the population. There are well known mathematical formulas expressingthis thesis; that some people are just built that way.

Bill saw an impending shortage of energy metals and underground mining staff as open pits diminish for environmental reasons. All that stripping waste and rehabilitation are now frowned upon. Bill assembled a team of the most productive UG specialists and they get paid based on their exceptional production habits. This is strong incentive for them and companies to hire DVP mining services. The contracts with DVP workersand those companies are performance based.

Thismeans that the best UG specialists (most productive) are attracted to the dreamteam that pays them based on performance. The companies only pay on production which de-risks their development costs. DVP mining services are protected by the contractual structure that you just must listen to in order to appreciate what he has done. Spot a shortage based on a trendshift, secure the optimum team, and commercialize it.

ESS (Essential Metals Ltd) is currentlyunder a scheme of arrangement for purchase by DVP. Bill is confident that they will be successful as the best option for ESS shareholders to gain value from the Pioneer Dome Li Project. Billexpects this will be the second project of the rank for DVP and has limited coverage at this stage until the deal is fully approved by ESS shareholders.

Thereare numerous reasons for this which I invite you to consider if you listen tothe presentation. ESS shareholders were about to face significant dilution for funding purposes. DVP’s local and macro mining expertise (UG instead of OP for instance) will value add significantly to the currentproject scoping estimates. The ESS Board are enthusiastically in favour of the DVP proposal. Bill explains other critical reasons for ESS shareholders to embrace this offer, including the 58% drop in Li prices since the offer wasmade, a lack of mining services needed to build the mine and plenty more.

I hope this is of assistance to shareholders of both companies.
GLTAH CW
PS I hope the links work as I cut and pasted them from my ..... (no name)