Ann: Highly Fractionated Pegmatites Confirm Drill Target, page-137

The critical paragraph in the announcement (pasted below at the bottom) refers to sample H909418. This is the sample which has caused so much confusion leading to the price fall over-reaction. It states that this sample is NOT spodumeneas was first thought and identified as such in the previous announcement . It now turns out to be another mineral species that looks uncannily similar to spodumene. An honest mistake I suppose. Unfortunately Mr Market at first glance did not fully appreciate this leading inevitably to a draconian collapse in the share price which can now be seen to be not warranted. It never was spodumene, full stop. The actual mineral species is suggested in the announcement and its apparent as they indicate that it’s formed as a result of intensive fractionation in the peripheral part of the pegmatite field under conditions where high lithium content is NOT EXPECTED. Basically, its where the lithium depleted fluids ( after the lithium crystallized out) have resided in the surrounding rocks distal from the granite source. The spodumene zone which we are hunting for is expected by the company to be closer to the source granite rocks which they think is more towards the south-east and /or deeper down. Its where the fluids were hotter and where as a consequence lithium will crystallize from the fluids. I feel the company could have explained this more succinctly, instead we got a very detailed and somewhat complex announcement that has been utterly misinterpreted or misunderstood by Mr Market. In summary, its meaningless for posters to lament that C1X’s spodumene has minimal lithium, as the company is now admitting the sample H909418 originally thought to be spodumene ( 80%) was NOT SPODUMENE. The fact that the pegmatites are showing fractionation as indicated by the K/Rb ratios underscores that a spodumene zone is nearby closer to the granite source rocks. This is explained and they believe the spodumene zone is to the south-east direction in the magnetic low area and / or at depth. So basically we had a free fall in the share price based on misinterpretation, firstly because H909418 was not spodumene in the first place and secondly by Mr Market misinterpreting the assay data as relating to it being spodumene. So as yet the jury is still out on whether or not we have fertile lithium pegmatite field on our lease. So nothing has really changed until we do the drillingReferenced paragraph from the announcement is below………………………..

"The results suggest the primary mineral is an unusually lithium and caesium-rich beryl variety with visual characteristics incredibly similar to spodumene. The XRD analysis also confirms the presence of the lithium ore mineral petalite. Both minerals are known to occur in a highly evolved and fractionated rare metal pegmatite field in very close proximity to and overlapping the spodumene field (Figure 2B). In fact, the extremely caesium-rich and petalite lithium mineralogy are often considered to be at the lower temperature and lower pressure outer edges of the fractionated system and the spodumene zone occurs very close but slightly closer to the granite source (Figure 4)."