Ann: Significant Goulamina Resource Upgrade 48% Increase to 211Mt, page-171

Ganfeng needs Leo to manage Goulamina project, Ganfeng doesn’t mind paying management fees to Leo, even tolling 150ktpa spodumene concentrates and help build a converter jointly in Europe. Ganfeng wants to be more aligned with Leo. That’s why Ganfeng is happy to inject $106m cash in Leo at a premium.

re Minerals Resource and Ganfeng mutually terminated the tolling agreement, is not a breakup of their relationship, is simply a commercial transaction termination. Because fast falling lithium chemical price had an adverse effect on tolling profit. MIN was meant to receive more tolling profit, but lithium chemical price fell more than spodumene concentrate price. This tolling agreement had a negative impact on their profit, therefore MIN terminated it, imo. Other offtake agreements never changed, imo. This tolling agreement was quite new as MIN wanted more profit from tolling.