Ann: REEtec Increases Offtake of Vital's REO by 50%, page-27

This increase in production doesn't require another leaching vessel. I am flagging that presently it appears that only 25% of total production is exposed to market prices or other potentially far more lucrative offtake agreements. There is capacity to double production from current expected levels at the Saskatoon plant, but in order to do that (i.e to maximise exposure to market prices in the event they explode, or indeed in the event that we want to provide any meaningful quantity to a North American client), what would be necessary (granted - the only thing necessary, which leads me to believe it is anticipated) is a further leaching vessel (as per the 5 October 21 release). Unfortunately, it appears that the leaching vessel is the most expensive piece of plant and to fund would likely require more capital.

I'm investing as much in VML for its physical location and its primacy in the American market as a producer, as much as I am for the actual marketable product. Have we not consistently heard "Canada's first producer" and "North America's second producer." The point I am making is that the location and exposure is all for naught if the vast majority of feasibly produceable product (at current levels of investment) is being shipped to the first company that signed an offtake agreement. They are the ones that will benefit from the exposure to market prices.

I am troubled by the lack of exposure to market prices for a producer that is so early and so well situated to the North American market. When the boom comes, I just hope that we are well placed to benefit from it. I trust management and the plan, and the likelihood that this has been considered and accounted for, but I cannot help but see 75% of all material going to one client as being a form of (what are currently) golden handcuffs that keeps us alive when its going to take another raise to expand it and really benefit shareholders.

Inshallah we don't miss the Rare earth boom boat for just that little bit more certainty now.

I have a sizeable position, and will continue to add to it, but I refuse to simply accede to what I believe are short term gains at the expense of long term ambitions. We clearly develop a very good and marketable product. I don't want it all going to REEtec in Europe to flog to Volkswagen when there's a looming tiger of a market a few hundred clicks to the south.

Just my thoughts all. Appreciate those who don't agree and to reiterate, I am firm in my assessment that management have likely done some form of analysis on the trade off that makes sense. If they haven't, I would be worried. Hopefully they can fund expansion of the plant from this offtake and that's the plan. Just food for thought.