Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-6

Slowly getting there, at snails pace. We seem to have dry and wet commissioning completed but it's unclear where we are at with ore commissioning.

My reading is that there is about $4.455M funding availability which is made up of $32,000 in cash plus $4.423M debt finance as an extension of the current drawdown of $22M(bringing the total debt finance to $26.4M). Based on the $22M drawdown, we are paying now 14% interest on that loan which is about $2.6M interest/month or about $600,000/week. Problem is that we have no operating revenue. Not sure how they are making payments on that loan - I can only assume that they are using part of the drawdown to make loan payments. We really do need that $12.6M Tax Rebate soon otherwise there will be another capital raise! Cash-flow is becoming a real worry - "LMG’s cash position is being monitored to ensure that the progress of the development plant is not impacted, and that cash flow is managed until the end of May 2024, whilst MgO is being produced" Well we aren't producing MgO( and SCM) and we are burning cash, and the revenue we expected is not coming in. I expect we will have another capital raise on announcenent of production if that Tax Rebate has not come in. They will also need cash to progress stage 2 and 3.

This bit is interesting: "There has been a constant focus on addressing the typical challenges that occur during the final stages of construction and commissioning that can delay plant startup". If it's typical, then why didn't they factor it into the ghant chart?

Problems in the filtration area are genuinely unforeseen(no fault of LMG) and the vendor has not met the requirements under the contract - I hope LMG has withheld payment to renegotiate and also consider the impact of delayed revenue to service loans. This may take a while to fix as they are internally writing the code to drive the PLC's and also debugg and test the code's robustness. Only then they can test the hardware so I suggest it's more than just a minor delay.

It's a lttle confusing when they say "Heating of the Spray Roaster was delayed due to resourcing impacts in obtaining final regulatory approval" and in the same paragraph "During the quarter, the Spray Roaster has completed final commissioning" . Spray roaster is not fully commissioned until you heat it up to operating temperature. Let's hope they get that gas licence soon!

I'd say my prediction of end of May bagging MgO is looking very shaky and may have to be end of June. They may pump a few bags of MgO out as soon as possible just to tick the box however I think fully reliable operation may take longer. The production of ingots to 3rd quarter 2024 I assume implies at end of September, so this has now changed from June to September. I will assume Jan-March 2025 based on past performance.

Something odd going on in the Health, Safety and Environemhnt reporting. In the past quarterly's going back over 12 months we have got the standard statement "The Stage 1 project continues to progress with no health, safety, or environmental incidents to date.". This quarterly it's changed to " Latrobe Magnesium’s (LMG) Demonstration Plant Project (Demonstration Plant) maintains a Total Recordable Injury Frequency Rate (TRIFR) of zero." Such unexplained changes in reporting implies to me they are hiding something. They have reduced reporting to just TRIFR. That does not include near misses, accidents where people are not injured, regulator inquiries, etc and only reports injuries to people. Not a good look.

I maintain what I have said before that the management of this Company really needs improvement. - that's the reponsibility of the Board of 7. It's becoming rather exasperating

We will get to MgO and finally Mg production eventually. Unfortunately it will be from a lower base than it should have been. I think many have a beleif that once we get to production it all won't matter. Even if we look over the horizon, the impact of what has gone on with delays and poor managemet performance over the past year will be long lasting financially and reputational. Investors will be looking at past performance. The management issue can be fixed with a change of leadership.

We can only hold firm with resolve.