Ann: Lac Rainy Exploration Update, page-36

This is my opinion on the current situation:

- Waiting until now to release update on Lac Rainy: bad
- Delayed graphite project: bad
- Am I disappointed? Yes with the delay, but no with Manindi

Here is the alternative that you are implying would have been your preference:
- For management to release the delay on the spot when they found out possibly in Feb/March with a lot of "ifs" and "maybes"
- Provide an ann for shareholders saying "Oh no, drilling has been delayed for a few months. We don't know what is going to happen yet. Will let you know when we have a plan"
- At that time, they were planning drilling for Lac Rainy and Manindi lithium; shareholders like to see action and results, we have no idea what is happening with planning and logistics behind the scenes
- Without any 'action' on the projects yet, what do you think would have happened with the SP? Many investors lack patience

Are you a current shareholder? Would you have preferred the above scenario?

Instead what has factually happened is that:
- Management have spent the time to seek professional opinions on what would be the most efficient, cost-preserving option to proceed with the Lac Rainy project; this takes time
- Discussion with relevant authorities to seek viable options, and assess how to proceed with certain options; this takes time
- Discussion with local bodies to seek permits and licences to proceed with road work; this takes time

Each ann made costs the company a decent fee; I would prefer the company spend it on meaningful anns when plans are finalised, rather than little bits of detail here and there.

In other words:
1) Make ann advising delay with no confirmed plans
2) Make ann advising delay with confirmed plans

Which sits better with shareholders? Which option looks after the shareholders and the company?

Ultimately, the projects owned by MLS belong to MLS. The plan to prioritise Manindi lithium and Lac Rainy has not changed; the only difference now is that we will have results for Manindi lithium a lot sooner than anticipated, and a few months delay for Lac Rainy. It is still happening.

Another point to mention is that time is money. Management surely knows that. While waiting for the update and plans for Lac Rainy, there has been a pleasant surprise with Manindi lithium and its progression. Time was not wasted doing nothing. As I mentioned in a previous post, instead of sitting around and waiting until July for something to happen, management have been strategic to look out for shareholders by getting another of their projects into gear instead. And its lithium, yes please!

With this delay, things could have been terribly bad or amazingly stellar, but my feel for the current situation is that everything is just right. Delays and hurdles arise for any project, big and small. But here we have a plan sorted to overcome them for Lac Rainy with road access, resulting in lower capital expenditure = reduced likelihood of near-term CR, attractive infrastructure whether heading to production or selling. The only trade-off I can think of is the delay of 2-3 months; seems like an excellent deal.

- Lower capital expenditure for Lac Rainy: excellent
- Sooner than anticipated action on Manindi lithium: excellent
- Steady flow of results into Q3: excellent

One step back, two steps forward

Hence I respectfully disagree with your comments above. I don't intend on causing any offence and hope that I have not caused any. Everyone is entitled to an opinion, including you and I. Your points raised are definitely valid issues that I as a shareholder also acknowledge, but there are also many positives to be gained as well. I hope that I have shed some points from the sunny side up