Ann: Red Valley Drilling Update, page-507

I have been considering the possible scenarios (not including delays and left field announcements)



So take the exact numbers with a grain of salt - I am basing this off our cash position, potential market sentiment on the results, current share price, etc. Also these are just short term numbers.

Lithium is the biggest unknown in the equation, while cobalt is fairly likely to proceed. Given this the two most likely outcomes are -42% and 131%+. In the cobalt only scenario while we had short term pain there would be longer term potential that we could get decent drilling results. So if you were not able to get out without taking heavy losses holding LT may be an option.

If everything goes south we are in a bad situation of course but there is still some light at the end of that tunnel too. With 3M in the bank it is possible that we may find other projects in the future. This is very long term and no one wants their cash sitting around doing nothing but management have shown that they can negotiate excellent earn-in deals and have done a good job getting us this far.

Finally if we hit lithium and proceed with the cobalt project then we will all be laughing all the way to the bank. We will have more drilling to do and a lot of work to get it to a point where we can earn money, although a T/O or sale may be considered. We will also have the cobalt operation but most of our focus will be using our funds here.

Overall more upside than downside but there is still some serious risk. Everyone BUCKLE UP because either way it is going to be one hell of a ride.

Please share your thoughts - is this far off the mark? How could we improve it?