Ann: Quarterly Activities Report, page-12

Hi Loop,

What are your thoughts on the refinery in terms of production. I have the following (rough) figures. My assumption is for the refinery to be profitable it will require at least (min) 70% of the nameplate capacity to be produced each year. (80% or more is a safer position)

Anyway based on my below figures it highlights a few key themes. Firstly Neometals strategy to source additional Lithium is a sound one (Mt Edwards, Hannans) and secondly with their minimum off-take agreement it may not be enough to achieve the 70% production from the refinery against their target capacity of 10,000t's.

Do you know if they (NMT) have rights to purchase more than the minimum off-take, or what conditions were placed in the contract?

Based on my rudimentary figures they will be short somewhere b/w 15-25 wmt required to achieve their full production of 10kt for the refinery based on my figures below.

Your thoughts would be appreciated.

	Column 1	Column 2	Column 3
0	Nameplat refinery capacity	10,000.00	Capcity of refinery output per year
1	WMT required for each T	7	7 wmt required for each 1t of refinery output
2	Total annual wmt required	70,000.00	Total wmt input required by Neometals for the refinery to operate at maximum nameplate capacity
3
4	Last Q wmt	95000	Last reported Q in qrtly activity report
5	Full scale wmt Q	109,250.00	Assumes 15% increase on last Q reported
6	(A) Per year (based on last reported q)	380,000.00	Last Q wmt * 4
7	(B) Per year (based on assumed full scale)	437,000.00	Assumed Full scale Q * 4 (assumes 15% increase over last reported q)
8
9	NMT min share	12.37%	offtake min option of 12.37%
10	(A) Per year wmt (based on last reported)	47,006.00
11	(B) Per year wmt (based on assumed full scale)	54,056.90
12
13	Planned refinery output (A)	6,715.14	(NMT share / 7)
14	Planned refinery output (B)	7,722.41	(NMT share / 7)
15
16	Name plate capacity	10,000.00
17	Percentage of name plate achieved (A)	67%	67% refinery output against nameplate capacity
18	Percentage of name plate achieved (B)	77%	77% refinery output against nameplate capacity
19
20	Total refinery output short (A)	3,284.86
21	Total refinery output short (A)	2,277.59
22
23	Addition wmt feed required (A)	22,994.00	(short position x 7 wmt)
24	Addition wmt feed required (B)	15,943.10	(short position x 7 wmt)
25
26	Assumed profitability point of refinery @ ~ 70% of name plate
27
28	(A) = reported on last quarterly acticity report from MM wmt output (more specifically tonnes shipped from mine)
29	(B) = Is an assumed wmt quarterly output (assumes 15% increase on last reported Q)