Ann: Regional Review Enhances Lithium Potential of Widgies Tenure, page-10

Hi Crom

It seems to me that Widgie has three irons in the fire.

• my view that the recent m&a action where Breaker was paid about $90m by Global Lithium for its early stage Manna project and, disappointingly for me, IGO and the Chinese have offered Essential Metals about $140m for its Dome North project that has an MRE of 11m at 1.16% have given a fair sighter of what Widgie's Faraday lithium prospect is currently worth. And that would not be much more than Widgie's current market cap, so at this stage at least lithium is not be a game changer for Widgie.

• And then there is the Gillett area nickel where the announcement of 12 December said that they were waiting on 9 assay results from Gillett and another 8 from Gillett North, all of which were drilled out since the start of September. As you rightly say the time the labs are taking is rubbish, for one thing any sense of momentum from a drilling campaign gets extinguished by having to wait months for results before the next steps can be taken. So I reckon any progress on this front will be grindingly slow.

• Steve N has recently said that Armstrong will be have its dancing shoes on before the end of June and that given current nickel prices he expects Armstrong to generate considerably more free cash flow than the previously estimated $69m. So not only is there a jump in free cash flow but that flow will begin much sooner; a winning combination.

So my own guess is that the kicker announcement in the next little while will be if Widgie signs up BHP and its Kambalda plant as a customer for Armstrong nickel. It's one thing to put the dancing shoes on but entirely different when you've lined up your dance partner (especially so if the partner is BHP).