Ann: First Cobalt Proposed MergeCo Presentation, page-46

Thanks Gwaihir. You make two points.

1. Holders will be diluted. This is a problem for those who seek control. For the rest, owning a smaller percentage of a larger and better business is irrelevant and can be shrugged at - IF the business combination is greater than the sum of the parts.

2. CO1 at 13c values First Cobalt at C90c. It is very easy to forget 13c is 30% more than 10c. While CO1 is being merged into FCC, CO1 is the larger part - and it has 190m additional shares set to dilute holders in the form of options and refinery shares.

This is serious and deserves attention.

My back of envelope calculation is FFC @ C76c x .145 (the conversion factor See: CO1 announcement 26 June) = C11.02c

The $A to $C is near enough parity and I ignore ($A1 = $C.99)

FCC may well trade higher after its trading halt, driven by the value of the new combination and the greater relative weight of CO1's share price. Or CO1 will fall to match FCC.

The CO1 SP appears well supported at 10c, but this 'bottom' may not survive the merger calculus, particularly in view of the options and refinery shares overhang.

We shall see.

Ash