Ann: Hengda Update, page-7

Sorry Vic, I'm not trying to insult you but what is your problem.

The company strategy is to sell the graphite from its 2 mines in WA & South Korea for as much money as it can. That is the same as every other Graphite producer.

To this end it has 2 binding sales contracts, as against virtually every other player in the Graphite space that are running around with non binding MOU's that have been seemingly quite a long time in upgrading.
And those MOU's are the sum total of all other Graphite companies strategies.

Lamboo has taken the extra step & developed a strategy to participate not just in the mining of it's Graphite but also in the processing & manufacturing of the end products. This is to participate in the downstream profits that come from Lamboo's material.

What is wrong with this?

Unfortunately the deal with Hengda has gone sour but I think you will find that a number of other parties are most willing to have Lamboo participate in some sort of profit sharing arrangement with them to gain access to it's material.

As a shareholder I fully agree with this approach & am very happy with Richard Trevillion & the boards approach. I do not think they are teating us like mugs at all & whilst I am as disappointed as you with the share price performance I am confident that we will come out of it with much stronger 'partners' than we went in.

Meanwhile the operational matters are still being progressed by Tony Cormack who is a very experienced mining operator working through the processes of getting McIntosh to production.