Ann: Full Year Statutory Accounts, page-15

Hi guys, I share with you even more good pleasant news ! I asked management how are they willing to implement their "zircon premium" strategy and if it is capital intensive or not. It turns out that the Mineral Separation Plant (MSP) in Picton (owned by "Doral", leased by MZI on a month on/Month off basis) has already a Zircon Premium Circuit !

This Zircon Premium circuit is already used by "Doral" to produce and sell Zircon Premium product. MZI uses currently another circuit able to produce only a zircon concentrate. MZI are investigating/negotiating with Doral the possibility of lasing "Doral's" already existing Zircon Premium circuit and identifying the SMALL/LOW CAPEX modifications they need to implement in order to produce a zircon premium product (66% zircon) instead of the currently Zircon Concentrate (56% Zircon) they produce and sell (around 5000 - 8000 tonnes per quarter !).

Zircon Premium is more than DOUBLE the price of Zircon concentrate ! This would ensure high margins/profits ! Hopefully MZI could implement this new strategy soon !

I like our new management team approach (New CEO, New Chairman), since they came on-board they are transforming MZI into a serious Mineral Sands cash cow company through careful and smart step by step planification and improvements to the Keysbrook difficult and innovative (first of its kind in the world) Leucoxene-focused project ! (Iluka owned this deposit more than a decade ago and decided not to pursue it due to its relatively small size for a big company like Iluka and the risk involved in trying to extract leucoxene, which has never been done before on this large scale, as management told me its more like a R&D project on a large scale which explains the 9.5M$ cash grant from government !) : they started with the new 5.25 Mtpa expansion (to increase revenue and reduce unit costs through economies of scale), they are now improving recovery rates (to firther lower unit costs, increase revenue and margins) and are already planning to introduce a new Zircon premium high margin product !