Ann: Quarterly Activities Report-MNS.AX, page-23

I can see why you might not be confident the Chinese off-takes will go ahead due to the company focusing on Western off-takes recently. Here is my take on it.

What I got out of the EGM discussion was that the Chinese off-takes are fine and still valid. These agreements were written when it was normal practise for graphite producers to sell a 95% concentrate.

Now that Magnis has developed a unique process to generate very high purity with no chemicals they find themselves in a position to be able to sell this unique product direct to end users as the value adding and purification in China is no longer required.

They are trying to go down the path of selling this high purity product in addition or instead of the deals at 95%. If they are not successful in selling the 99+% then they can just continue with the existing 95% deals.

They are taking this approach as there is less competition, more money to be made per tonne and is what the end users that are testing our G right now have been asking for (to bypass China)