Ann: Lindi Jumbo Definitive Feasibility Study, page-104

Hi All,

Just thinking about and comparing WKT & MNS and can't help it think/conclude that WKT is even better than the most loyal long-termer is thinking.

Facts at this stage are:
   - MNS has achieved better purity through simple flotation than WKT of 99.6%, at this stage, but they've been at it and refining/improving theirs for longer - WKT is targeting 99.5% so if they announce that any day now than not only will WKT's in-ground stuff be better than MNS's but the refining process/refined product will be equal too.

   - MNS used US$2,350 as their basket price in their BFS while WKT used a very very conservative US$1,687.  MNS is claiming that their basket price is achievable as over 40% of their graphite is >300 microns and they have high purity. WKT has over 54% of their graphite in >300 microns size and purity should be the same as MNS's shortly as WKT announced a while ago that they're working on achieving 99.5%.

With the above information in mind, in reality by the time MNS & WKT are producing they could/will be achieving the same/similar price for their product.

In saying that, and not being super conservative like WKT Management have been, we can use the same basket price as MNS did and get the following:

WKT - Current US$1,687 basket price equates to NPV of AUD$423m.

WKT - Using MNS's basket price of US$2,350 equates to a WKT NPV of AUD$589m.

Not bad for a $13m Company aiming to be mining in QTR 4 of this year with average annual EBITDA's of AUD$62m.

Food for thought.

Cheers,

GB.