Ann: Quarterly Activities Report, page-3

Just to complain a little more about the QTR report,

"Mining from the Inland Strands is expected to restart in the December 2022 quarter. The delay of
the Inland Strands mining compared to previous reports is based on additional test work to further enhance the
process flow sheet."

and
"Guidance for 2022 provided in the December 2021 quarterly is subject to delivery of Inland Strand production in
line with budget expectations. Any deferral of Inland Strand production may see ilmenite and non-mags
production below forecast, with the projected production potentially deferred into early 2023."

The QTR report is very vague with the reasoning why we need additional test work and further enhancement. What are our current recoveries? The financial study (test work) indicated we would see recoveries of 80-92% of the HM and the expected time frame to get the inland strands into production was only 16 weeks (4 Months).

If MRC exceeds the budget to get the inland strands into production, this will be quickly offset by the increased revenues and lower operating costs. the CAPEX for stage 1 was only US$3 mil. The time frame is also blown out significantly, we are already 1-2 months behind the forecast restart, with the QTR report providing confusing guidance that it might start 2-3 months time or in 5-6 months time.