Ann: Response to Speculation, page-768

• Recent spodumene concentrate prices around $900 USD or $1160 AUD/t (Company presentation p7)

• Cost for AJM of producing a ton of concentrate is $317 AUD (Company presentation p7)

• Stage 2 DFS likely to show 440,000 tpa with LOM of at least 10 years is viable. (ASX ann 13.11.17)

• Shares on Issue 1,751,400,000 (MD presentation 2017 AGM)

Now some very simple numbers:

Over 10 years AJM will likely produce 4,400,000 tons of concentrate (440ktpa x 10).

At $580USD ($750AUD)/ton the value of the resource would be ($750AUD - $317AUD) x 4,400,000 or $1.9B AUD.

Divided by the 1.751B shares on issue the value of the resource would be $1.09AUD per share.

It may be a subtle distinction, but IMO JRO are not interested in our business they are interested in our spodumene; they are battery makers not miners. They clearly don’t believe SQM’s self interested downramping or the MS report.

Their choice is bit like someone wanting to lock in a fixed interest rate during a credit squeeze. They might just think that locking in a concentrate price of $580USD for 10 years is a pretty good deal. Time will tell.

In my opinion $1 ps doesn’t sound anywhere near as rampy as it did when I first read it coming from some posters here.