Ann: Quarterly Cashflow Report, page-33

I'm subtracting the $11m 2019 prepayment, because that hasn't been shipped yet, and was a forward payment. If so, then for me, there is an approximate $13 million loss for the quarter. Again, this is if the $11m 2019 prepayment isn't carried back into 2018, which is how I look at it.

I calculate the same shipping rates for the next quarter, at the same price, and include an interests payment, then I'd roughly estimate they need to raise an additional $8m in this current quarter to remain with one dollar ($1) in the bank at the next quarter.

This $8 million will need to come from a combination of production increases, and a capital raising, or something else, like the sale of the coal assets, or other assets, if they have them.

They clearly need to renegotiate the excessive 14% interest rate with their financiers. This was, and remains, almost a criminal rate of interest, at a time when North American Lithium operators were getting between 9% and 12% (which is still way too high, and unreasonable).

At the moment, it's a challenging job to remain solvent quarter on quarter. Hopefully, little by little, they might find ways of gradually lowering (or extending out) the debt. They have their job cut out.

Overall, they have achieved a great project, bringing this mining operation into production. It's been hard work, and they have done well, and can be proud, for sticking with it and grinding it out. It's a testament to their strong characters, for which they should be congratulated. They are obviously working incredibly hard at making this positively go forward.

The next quarterly will be just as interesting. And a decent gold strike wouldn't go astray either, especially if they could off-load that project for a few million. It all helps.

Gw