Ann: Response to ASX Price Query, page-13

Extract from response:

Whilst Australian Mines is unable to talk to the exact reasons why other such funds may have invested in Australian Mines, the company does note that Canadian broking and investment firm, Canaccord Genuity, released a BUY recommendation on Clean TeQ holdings (ASX: CLQ) on 29 October 2017.

The target price for this BUY recommendation was $2.00, which values the Syerston project (having a mineral resource tonnage of 101 million tonnes at an average grade of 0.13% cobalt and 0.59% nickel) at $1.1 billion.

In comparison, Australian Mines, whose Sconi project has a mineral resource tonnage of 89 million tonnes at an average expected feed grade of 0.11% cobalt and 0.80% nickel, was valued at only $208 million.

This market capitalisation of $208 million for Australian Mines overlooks the inherent value of the company’s Flemington Cobalt-Scandium-Nickel Project in New South Wales, which is the immediate continuation of Clean TeQ Syerston project.

Great response