Ann: Hawsons Enters into a Research Project with CSIRO, page-7

It is good to hear that there will be some studies on by-products over the coming months, in particular the hematite as a by-product as that could easily add some more revenue with minimal additional capex and operating costs and therefore have a big impact on NPV.

However, I am more excited to hear that there will be testing on Hawsons iron ore to see how it performs as pallets. It is not just about the grade of the iron ore, but also how the iron ore concentrate will perform as pellets that will determine its demand for use in Electric Arc Furnaces. For example, and I didn't think about this until I read it being tested on ore from another resource in Canada, but how strong will a pallet be if made from Hawsons iron ore? Will it be easy to get the right combination of ore and binding agents to make pallets that stay in tact as a round ball when tipped into an EAF with a few tonne of other balls on top of it?

Knowing what the characteristics of what pallet feed made with Hawsons iron ore will behave like is another element of de risking the project.

Further, if the pallet characteristics are what is sought after, then:
- it will mean that a greater premium would be paid for the iron ore concentrate, and
- it will mean that investing in the Hawsons project will be more attractive to potential partners.

I like the little things like this that Tom is doing that don't cost much too do, but can have a big impact on de-risking the project and making the project more attractive.