Ann: Lindi Jumbo Maiden Ore Reserve Statement, page-87

GL77 This is a recap of comments by our new chairmen from November 2016.Since the below statement was made the scoping study was released early while the the DFS was also released early and with some extra exposure in paydirt and the IRR research report.Of note the IRR reported a a 62 cent mid range price target but that was based on extra dilution which may not transpire.The figures for report also used the same discounted basket price of $1687 while our peers have used >$2500 for a basket with less favorable distribution to Walkabout Resources.Walkabout Resource have the best resource how ever have differentiated them self and opted for funding and development in parallel as apposed to sequential funding using large volumes combined with high start up cost's.It should be noted that the modular concept does not limit us for growth into known markets with certainty.(Rapid expansion)

The developments in North Korea would not be helping.So lets hope for every ones sake that this is resolved diplomatically.

A couple of key points before funding. "Are the reason for funding warranted in the first"

1. Do we have a solid case for funding?
2. For a lender do the fundamentals allow for a solid case?
3. Are we competitive in all markets and can we compete with China?
4. Our distribution is important but what is the likely hood that an over supply of premium flake graphite becomes a reality short term.
5. Thru research and development will there be new markets for our product to further expand into the future?
6. Can the current competition squeeze us out of the market with lower running cost's and supply of material?
7. It may be said that operations need to remain under $600 per tonne for run of mine cost's so are we competitive at $292 plus $60 delivered to port.
8. Were figures used for the DFS NPV scrutinized enough?
9. Is it likely that upside could be assumed for NPV?
10. IF we have the right Resource.... Do we have the right people with experience for securing such funding?

Croc