Ann: March 2019 MD&A, page-2

I discover the 9.6m eCobalt shares were acquired by issuing 21.2m FCC shares. I don't claim to be misled, somehow I had it in my mind they paid cash. With $C2.7m in cash and $C2.2m in current liabilities, FCC is not in a position to enlarge its eCobalt holding and interfere with the Jervois Mining takeover. eCobalt's Idaho project is further advanced than Iron Creek and would sit nicely within FCC.

FCC is likely to issue more equity this quarter simply to keep operating.

The US government is increasingly exercised about ex-China access to strategic minerals, including cobalt, and is talking about 'economic incentives' for producers. Sorry, I lost the link to this statement. A low interest US government loan to fund the refinery would be very welcome. FCC could then buy concentrate from Glencore rather than toll refine.

Ash