Ann: Sconi Project Offtake Agreement with SK Innovation, page-1019

Hang in there Ted.

I will not disagree the Company has had some "hits" recently which are concerning

(1) Marcus leaving is a worry for me
(2) SKI exiting after the announcement in September they were extending till the end of October is also worrying as I had assumed that that short extension indicated a finance deal was close (did one fall over?)

Boh of these would indicate that Finance for the project is proving difficult which is not surprising in the current world environment and the amount of financial commitment required.

A fair chuck of my holding is sub 1c so I am definately not suffering as much as many who may have bought in after the original SKI announcement.

At the end of the day the company has 3 good potential projects with resources which are likely to increase in demand and upside on increasing the resources - with one project ready to go with all approvals in place, a demonstration plant that has proved the feasability of their process and the quality of the product - albeit the project is subject to getting substantial project finance across the line.

I am comforatble Benjamin Bell has the ability to get things up an running - will he do so? - that is yet to be seen as transitioning a spec resource company into a producer is not easy and a lot of companies do not successfully navigate the process successfully.

I can potentially see the price back down at 1c or even slightly lower if there is not something positive coming out of the AGM - I have to assume the BOD is aware of this especially as their cash position would indicate a CR is going to be needed sometime next year.

Realisitically if they are working with a new offtake partner and finance negotiations are still ongoing you would not expect anything to come of that until sometime next year at this stage.

The next 6 to 12 months are certainly going to be interesting for AUZ shareholders