Ann: Operational Update - 23 August 2023, page-9

From the Operational update (on ZS Si)

"On 17 August 2023, Silex announced, in collaboration with Silicon QuantumComputing (SQC) and UNSW Sydney (UNSW), the award of $5.1m in funding fromthe Federal Government’s Defence Trailblazer Program for the design andconstruction of the first full-scale Quantum Silicon commercial production module. Thisalso includes facilities for the conversion of the SILEX process output (ZS-Si) into twodifferent product forms required by potential customers: gaseous Quantum Silane andsolid Quantum Silicon"

Is this the $5.1m a grant or a loan?

"The new 3.5-year Project has been awarded $5.1m in funding from the Defence Trailblazerfor Concept to Sovereign Capability Program, a strategic partnership between The Universityof Adelaide and UNSW, supported by the Department of Education through the TrailblazerUniversities Program. The Project has a total budget of ~$16m, with Silex currently resolvingother avenues of financial support for the Project"

A bit alarming to see that it's going to take 3.5yrs to have a ZS Si production project with revenue - I thought revenue for this was imminent now that the pre-project was producing ZS Si and that we would see revenue this year. Also seem that we have to find the balance of $16m-$5.1m=$10.9m which may either come from our funds, a debt (i.e bank) very hopefully a grant. To me not clear whether the $16.1m is going to be a current liability with promised revenue in 3.5yrs time.