Ann: MRC Secures Funding Support for Growth Strategy, page-26

Good Morning Shellbell,

I find it pretty funny the three amigos have made no comments about what MRC is planning to spend the funds from the CR on.

We all know the issues at Tormin, Jacob had determined the best solutions to transition the company back into profitability, where these improvements and expansion will significantly increase the company's profitability which will help fund our downstream ambitions for the graphite business.

I am honestly surprised MRC didn't move into producing finished Garnet and ilmenite years ago rather than paying shareholders dividends, the US$10mil investments payback period is around 12 months, which would have resulted in larger dividend in the future and would have protected the company from requiring to raise funds over the past 2 years when the HM grade declined from the beaches.

Having the~ $32mil cash injection from the Loan, Grants and Entitlement offer, will take MRC from a low-profit mining operation to a highly profitable project, (subject to processing the inland strands mineralisation) I can certainly understand why our largest shareholder is so supportive of the entitlement offer. If all of MRC's plans are successful the SP growth over the next few years could be extraordinary.