Ann: OFFTAKE MOU WITH LEADING CHINESE VANADIUM NITROGEN PRODUCER, page-37

the DFS state’s 12800 tonnes or (27.9 million pounds) of V205 @ @ 99.36 grade

current price of $8.00 approx for 98%min

27.9 million pounds * $8.00 = $223.2 million per annum / 0.70 = $318 milllion revenue AUD. - tax etc.

Average All in sustaining costs US$5.75 / pound

27.9 * $5.75 = $160.4 million / 0.7 = $229.7 million AUD. / annum

long term average price of $10.88 US per pound @ 70 cents AUD.

at current prices payback would be $5 - 6 years....I don’t see any problems with that if I was a bank!



important to note the above grade is roughly that now at the near bottom of the market.