Ann: Extended Offtake Agreement with Chengxin Lithium, page-77

From my perspective PLS is just being prudent, for the next couple of years they are spending a lot of money on developing the P1000 project and have some joint venture costs to absorb. Prices are currently depressed and thus there may be an indeterminate period of low prices, no one can accurately predict just how long it will last before price rebounds. PLS has locked in customers at market pricing so it can focus on the job at hand, in a couple of years when these supply agreements expire it is very likely the market will look much different. I for one heartily applaud PLS for looking after the bottom line and not ending up like other companies who have over committed and under capitalized because of pricing. Look at LTR, SGML, ALB and IGO and others all suffering because they over committed and now have low prices to get through. Trust in PLS mgmt they have done a great job and they are steering us through a turbulent times.