Ann: Maiden Mineral Resource Estimate of 24.7Mt for Tampu Project, page-15

Firstly, well done to the team at CR9, unbelievable MRE announcement and a lot to unpack!

The most important aspect in the announcement for me and what makes Tampu so unique and raises it above its kaolin/HPA peers on the ASX, and possibly globally, is this statement within the announcement:

“Kaolin is exceptionally well-suited natural material toproduce High Purity Alumina (HPA) used in high end technology such as LithiumIon Batteries (LiB). The high purity bright white kaolin deposit at Tampu hasexceptionally low levels of impurities,which is critical to all existing markets and end user products. The ultra-high purity (at Tampu) distinguishesit as a leading kaolin project with the entire24.7Mt of resource once screened to -45 micron having thepotential suitability for use as a feedstock in the HPAindustry, subject to successful HPA test work.”

So CR9 has 24.7 Mt of literal “white-gold” which potentially 100% can be used for HPA feedstock, whilst ADN at their White Cloud deposit, in their own announcement has 1.2Mt or approx., that is a measly 3.4% of their deposit.

The next point that in equal measure interests and excites me, is this statement within the announcement:

“Extremely high quality HPA can attract premium prices of up to ~ $60,000 per ton.

In Cannacord Genuity’s Kaolin/HPA report in Aug. 2021, they summarised data from all current ASX listed kaolin or HPA listed companies using information from their own announcements/Scoping studies and compared the economics of each project.

The prices for kaolin ranged from $322/tn for WAK to as high as AND’s $720/tn for increasing grades of kaolin.

The prices for HPA ranged from $26,400/tn for FYI and $26,900/tn for ATC and they reference these prices are upon achieving 4N HPA, or 99.99% purity. A significant increase compared with kaolin and a consequence of their higher grades at their respective deposits and the end use application.

The increase in pricing from 4N to 5N HPA purity is parabolic and can be as high as $60,000 per tonne as stated in CR9’s announcement. (@hottuna I am going to assume CR9 management know a bit more about potential pricing than either you or I) what we can infer therefore is CR9 are confident in their prospects of achieving 5N based on the quality of the resource, especially when compared with FYI’s deposit.

Other interesting statements:

“The ability to achieve and maintain a reputation for thedelivery of reliable and consistent kaolin or HPA will become a very powerful marketing tool."

As far as I am aware, there is no other listed ASX company with a deposit with as high grades and of such size, consequently, the opportunity for CR9 to be THE supplier of significant quality and quality of premium HPA globally is VERY real.

"With demand outstripping supply and rapid market growthCorella sees tremendous potential opportunities for high purity kaolin feedstock offtake agreements arising in the near to medium-term.”

“Samples despatched for HPAtest work and to potential offtake partners to test bright white kaolin fromTampu using their own processes”

These statements are interesting, it represents the first time we have had any indication from management regardingoff-takes, for obvious reasons, however near to medium term means we could begetting validation of the commerciality and value of our deposit sooner than themarket thinks!!!

Finally, the belowstatement is impressive for several reasons:

“The maidenresource has significant potential to grow, given the 446% increase in thecompany’s landholding at Tampu since listing…themaiden resource covers only 15% of the entire Tampu project”

If we assumethat CR9 mines 100kt p.a. producing 50Kt p.a. of HPA, then we have a mine life of247 years on 15% of the landholding drilled. If the grade is as we expect and we can achieve even 4N's, there is no need to drill further, CR9 alone could meet the global demands from HPA for several years and then increase capacity.

As I am typingthis there is obviously a set of investors who are flipping. If you raise your nostrils to the air…yes I am familiar with that stench…smells like CPS…imagine a morning dump after a Spring carnival bender…I could be wrong but it has a certain repugnancy to it that once exposed to it, is hard to rid yourself of. Be gone with them I say…when the HPA results come out, we will get free air and will not be burdened with the type on the registry.