Ann: Response to ASX Query, page-2

Our Indian partners requested the extension to the sunset date for the MOU to the end of August 2018. Their legal advisers were concerned that if the sunset date was set at 31 July and financial close was subsequently missed by even one day, then the MOU would expire, and a new agreement would be
required that would necessitate initiating the approval process again which would have delayed the project further than the potential one-month extension mentioned in our announcement.

NLCIL and NMDC have directly stated their desired target to review, approve and execute the sub- agreements before financial close on 31 July. ECT has agreed to and supports this date.


The reason the extension to the sunset date was not explained is twofold;
the parties agreed that the target for financial close would be 31 July (as separate to the
sunset date of 31 August) and;
should additional time be required, the Company did not consider that a modest delay of one
month was a material change to a lengthy and complex process in the context of a 4-year interaction that has culminated in the delivery of an unprecedented deal in India by an Australian company. In the Company’s view all material aspects were progressing satisfactorily as was evidenced by the signing of the agreement on 30 May 2018.