Ann: Proposed issue of securities - PNN, page-2

Summit will secure a 30% interest in a proposed JV for Incahuasi via:

i. A strategic investment of up to US$3m in Power, in two tranches with an initial tranche of US$2m by subscribing in a placement of PNN Ordinary Shares at AUD$0.50, within four weeks from the execution of the BTS;

and ii. Completion of successful pilot testing of the Incahuasi brines to provide key input data for a Prefeasibility Study at Incahuasi Summit may also earn a further 15% interest in the JV by participating in a Definitive Feasibility Study at Incahuasi.

So, Summit will earn 45% interest of Incahuasi and 6M shares of PNN by only paying $3M, if Summit just invests in PNN for 6M share at $0.35/share, need to pay $2.1M, so that means they only pay $0.9M to earn 45% interest of Incahuasi project, which we value Incahuasi project only $2M, this is too cheap?????