Ann: KBR MOU and DFS Update, page-60

Achieving nameplate levels of nitric acid recycling in the TECH Project has been identified by financiers as significant advantage of the TECH project. Under the MOU, QPM and KBR have agreed to negotiate commercial terms that involve granting of a Performance Guarantee for KBR technology and equipment which will assist in demonstrating the commercial benefits of the DNi ProcessTM.

QPM’s strategy has been to deliver a Feasibility Study that is bankable and de-risks the TECH Project in the eyes of financiers. Working with globally recognised vendors for key equipment is a key component of this strategy.
Successful nitric acid recycling at nameplate rates (>98%), is part of the strong project economics for the TECH Project. KBR is the global leader in supplying this technology and equipment through its Plinke and Weatherly brands.

As part of its ongoing discussions with financiers, QPM understands that obtaining Performance Guarantees on major equipment will assist obtaining credit approval. A testwork program is being undertaken in conjunction with KBR which further enables the optimization of the flow sheet of the TECH project.