Ann: Response to ASX Appendix 5B Query, page-2

Interesting comment in here in response to para 2:

"The Company has entered into a loan facility during the quarter which has raised funds of US$500k. These funds were received on 20 November 2018. The Company is currently investigating funding opportunities include offtake negotiations and debt financing in relation to its Kipushi Cobalt Copper Tailings Project. The Company holds approximately $6.8m of investments as at the date of this letter which can be liquidated to fund ongoing commitments..."

Firstly, no mention at all of the Kitwe Copper/Cobalt tailings project with reference to offtake discussions. Correct me if I'm wrong here, but I thought both the Kipushi and Kitwe projects were at similar stages, albeit Kitwe requires a plant to be built and Kipushi has a plant requiring substantial upgrades. I recall that both Kipushi and Kitwe were being drilled at about the same time, so should expect to get the drill results for Kitwe soonish given they've given an update on Kipushi earlier today...

Secondly, seems like CFE might have to start selling down its holdings in FEL/CXU/EUR to fund future operations, which if that occurs will dissipate the market cap.