Ann: Quarterly Activities Report, page-62

I rang the company today with a few questions regarding the KML listing, recent and future exploration, the sale of leases to TAW, a breakdown of the expected cash inflow this quarter and an explanation why the complete change of direction since the RIU Conference I attended at Freo in February.

Having spoken to Matt, I can tell you the seed capital has been raised.

The listing date is still set for around the end of October. Further details about this will be released very soon.

Only 2 holes were drilled out of the 4 planned on the cobalt project. Other targets are being defined through sampling at both cobalt and lithium projects ahead of further drilling as the company wants to ensure drilling takes place at the most prospective locations.

The $750k coming in to the company in this quarter as per the last quarterly, is the $500k from the KML seed capital and around $250k from gov rebates on money spent.

The company raised money just after the Feb Conference from North American investors. Interest garnered from presentations given at the time dictated the new direction the company took. It seemed like the best chance to get the zinc projects off the ground and still retain a large holding in the project without large dilution of MCT shareholders.

The company is looking at acquiring new battery metals projects in the near future as mention in the last quarterly.

I asked what happened about the plan to sell the couple of leases to TAW that was announced late last year. They received the TAW shares and have sold a few and still hold some.

Once the company has confirmation of a couple of outstanding issues they will release an announcement.

I originally thought the sell off last week may have been from someone who had heard something negative about the KML ipo, but it now looks like it may have just been one or more frustrated holders. That's why I rang up today. I needed to confirm the listing was still on target.