Ann: Fluorspar Scoping Study, page-53

The Scoping Study has well and truly delivered what it is meant to.

1. It is to scope if it is reasonable to progress towards a PFS

2. It is the PFS that will detail the cost of production, IRR, net profit, sensitivity analysis, etc

HIGHLIGHTS

❖ Scoping Study outlines path forward for the development of the Fluorite Project.

❖ Positive business case supports progression of the study to the PFS stage.

❖ Indicated Mineral Resources 100% of planned mining scenario on existing mining leases.

❖ KRC will now pursue the selection of an optimised project development plan.

The scope of work for the PFS includes appointment of a project manager; confirmation of processingoptions and optimisation; geotechnical analysis; optimum production rate selection; completion ofenvironmental and social studies; hydrology study; capital and operating cost estimation, and marketanalysis including a memorandum of understanding (MOU) or an offtake agreement with potential buyers.

Cost estimates:The capital and operating cost estimates used in the scoping study are preliminary in nature and arebased on values for similar operations and activities in the CSA Global database of benchmark costs. Thenext stage of study will address increasing confidence in the accuracy of the project cost estimates totypical PFS levels of (+/-25%).

The study found:

The study demonstrates a project cashflow that supports continued investment in developing the project.When testing for sensitivity, it was found that after a 20% reduction in product price to AU$500/t acidgrade fluorspar, the project returned a positive cashflow and an acceptable return on investment.

The Study does not state the cost of extraction, the PFS will. The study does state that even with a 20% reduction in product price, the project would still be cashflow positive!

I also note as others have that $USD 0.8 to $AU has been used for pricing indicators.

Today we are at $USD 0.707 to $AU

At the higher end of pricing indicators US$500/tonne is used.

USD$500 @ 0.7 exchange is AU$714/tonne x 800,00 tonnes per year is = AU$571,200,000 per year potential. (521 million dollars/year)

To top it off, a project payback estimate of 3 to 4 years.

Of course it is positive! AND... look out for the gold, the vanadium all combining to create synergies to improve efficiency and profitability.