Ann: Galan Response to AFR Street Talk Article, page-127

These things are typically leaked by a bidder to force the target's hand in my experience. What makes this unusual is the timing, right before Galan's presentation at diggers. Suspect that was intentional by the bidder but again people are free to speculate as they like. The fact JP specifically referred to the CA sitting with energy X I.e. the ball is in their court suggests so, why mention it otherwise.

If memory serves correctly liontown had fielded 2 unsolicited offers from Albemarle before they came out with it some 6months later. Not unusual to withhold releasing news of unsolicited highly conditional and non-binding proposals.

Re the proposal, it would have been based on a desktop review of the business and assets. The CA would open up the books for a more thorough dd which Gln would be hoping would entice a revised, higher proposal or a partnership opportunity if energy x has the funds. Essentially saying once you have an in-depth understanding of the assets, let's sit down and see if we can come to an amicable agreement which may or may not be endorsed by the board and shareholders. Perhaps a change of hands at the asset decouples from Glencores offtake. In any case it is the first and non-binding offer. There are usually a few bites at the apple in these scenarios.

Those hoping for a firm rejection by the board, while at the same time asking for a funding solution, probably are not fully across the situation the company is grapling with.

Sure JP had a strong preference for a non-dilutive funding option 12months ago and there have clearly been a number of missteps since then, however the biggest culprit over that time has been the persistent decline in li pricing and sentiment. This has caught out a lot of players in the sector not just Galan. Could they have done things differently, absolutely but that's the beauty of hindsight. Like everyone else, they were banking on a sector recovery while continuing to build.

With all that said I have been very critical of their decisions to date and will continue to be until proven otherwise. The funding as is monumental now relative to their valuation, scale of stage 1 and committed offtake with glencore.

Aimo