Ann: Quarterly Activities Report, page-30

Hi SBDavis,

What would you use to explain the announcement,

WKT confirmed they were a small flake producer, starting at 70% of -80 mesh (-180 micron), Which has slightly increased to being majority +80 Mesh +180 micron. There was no confirmation on the production of Jumbos or Super Jumbos. which were meant to make up 49% of WKT production.

Then we have the purity, WKT was expecting to produce graphite with a purity greater than 97% TGC, Yet WKT has only achieved 90-95%.

When you consider WKT stated they were achieving 92% from the commencement of processing and now they are selling grades at 90% purity, is the lower purity the reason they were able to achieve majority +80 Mesh?

But lets all cheer that WKT might have shipped its first sales into Europe, even though the purity and flake size is not even close to those DFS forecasts.