Ann: Share Purchase Plan Prospectus, page-24

Notaboutluck

They are spending A$4,000,000 process engineering costs (including costs related to the demonstration plant operations)

The demo plant has been instrumental in

1)Proving to the likes of SKI and their customers i.e Mercedes the actual Nickel and Cobalt sulfate product purity and quality that AUZ can produce from a scalable plant in order to win SKI's commitment. This has almost definitely meant SKI producing demonstration/test battery packs with AUZ Nickel and Cobalt Sulfate for Mercedes to confirm in their prototype EV vehicles.
I am assuming SKI that is winning more and more orders from vehicles manufacturers and have in production in build or commitments to 1 Battery plant in Korea 2 in Europe 2 in China and 1 in the US. I believe that like Mercedes wherever SKI are committing batteries with AUZ Nickel and Cobalt sulfate to EV manufacturers then like Mercedes the other EV manufacturers will want to have test batteries with AUZ Nickel and Cobalt sulfate.

Scandium: AUZ has sent test Scandium Oxide product to Metalysis in the UK and the AUZ artner in India working on new batteries that incorporate Scandium. It now looks like SKI might also be interested in Scandium oxide and 3 D printed metal components, so if we have not already done so I think we might be sending them some of our Scandium product. I am sure in the next 2 years AUZ will be working hard to get a firm off take / off takes for all of our Scandium Oxide product as well. It seems looking like Scandium's time as a in demand metal is fast approaching for EV's / aircraft etc and their components.

2) While they have optimized for now the metallurgy and process flow I am sure that they will still be trying to tweak it further as new ideas are tried to make it better, faster, cheaper. Plus I am assuming that as new deposits around Sconi and later Flemington are explored and JORC'd they will all need to be tested through the process as I am sure each ore body maybe a little different. (Flippa would probably be able to tell us).

The Demo Plant has probably been one of AUZ's best investments and is clearly still needed