Ann: Security Purchase Plan, page-63

H@AussieBryan

This is going to be very interesting to watch how it plays out. If we do not get the PFS in the next couple of weeks then there will be no incentive for people to participate in the SPP given that the share price is very likely to remain at these levels until then.

To purchase on market versus the SPP is an interesting challenge as there may be some people who will buy on market @3.3 or less as opposed to providing cash for the company, I suspect this will be the short term traders. In all likelihood it will be the long term holders that will support the SPP but I am not confident it will be well subscribed unless the PFS is out shortly and it gives people time to consider their options.

I recently had the same proposition with NXT who offered a SPP @$7.80 to fund significant expansion plans around their data centres, very topical at the time given the Covid 19 panic. The share price ran up to over $10 prior to the close off date and a number of people sold on market, at these levels, to fund the purchase of the SPP, me included, which was uncapped at $30,000, it proved easy money and NXT is now back over $10.

Could this scenario play out with KRR, if it does, then supporting the SPP is a no brainer but there will be strong on market selling to allow people to accumulate funds to support the SPP. It would make sense to put the money in the companies coffers rather than on market. For this to be effective we will need new investors on top of the short term traders to suck up the on market sales, a great PFS, announcement of drilling recommencing, a clear strategy for the Vanadium etc and a possible off take agreement would help massively.

Interesting times as one waits with some degree of fear and trepidation as well as excitement that one can see inside the tunnel and a small like in the distance as KRR moves towards the DFS.

Just my thoughts

Rayda