Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-32

Validly made points Weapon, and I think we have likely all heard what James Marsh has said in interviews.

In my view, the issue is that saying in effect that ADN will take 100% of the profits from HPA it has produced from feedstock (Great White or otherwise) is a conclusion. It is the how and the why of the bases and reasoning that underpins the conclusion that has yet to be explained clearly.

In other words, the explanation lacking is arguably:

1. Whether the terms of the JV agreement are no impediment to ADN going it alone with HPA; and / or

2. Whether ADN and MEP have otherwise negotiated and agreed arrangements with respect to ADN’s proposed solo HPA operations.

ADN and MEP are joint venture partners (with respect to quite a unique venture) and there will be a raft of legal rights and obligations arising from the same. Hence one cannot strictly liken the relationship between ADN and MEP to a completely arm’s length relationship with a third party customer (e.g a purchaser of Great White CRM who then uses it to make ceramic products).

In my opinion, unless one has non-public information with respect to the answers to (1) and (2) above then it is simply not possible at this stage for one to say “it is clear”. To assert otherwise misses the nuance of what is a complex theoretical issue.

Presuming for now that ADN moves forward with commercial arrangements with AEM, I anticipate that the position will be clarified at that juncture and look forward to the same.

Until that time, some shareholders may continue to feel some level of discomfort about the matter. The reason that greater clarity is likely to be important to some shareholders is because we all have capital at stake in ADN (and / or MEP) to lesser and greater degrees, and seek reassurance that the HPA matter will not give rise to some form of dispute between the JV partners in the future, claims for account of profits, etc etc.

For the avoidance of doubt, I only hold ADN (and not MEP) and as such have no objection to ADN pursuing HPA business activities in its sole right!

The above represents my personal commentary and opinion only. Best wishes to all shareholders for the weekend.