Ann: SungEel Hitech Recycled Anode Material Performance, page-19

According to the narrative provided by management, any and all offtake for our BAM product (regardless of whether it be produced in Germany, Korea or Kwinana) requires the reliability of vertical integration. In other words, the prospective offtake for SPG from say Posco, hinged on TanzGraphite being part of that equation. So, whilst some of us believe that Kwinana could have been a standalone operation by sourcing concentrate from a third party, costs of shipping graphite concentrate to Kwinana from overseas is impractical. The same applies to any BAM manufacturing plant, which is why when TanzGraphite came back on the agenda under the new Tanz presidency, plans for the micronisng & spheronising part of the BAM process is now under consideration. Not only does it greatly reduce shipping costs (with the micronising of the material minimising the volume), it also sweetens the deal for the Tanz Govt.

Every graphite project in Tanz is still a project and not a producing operation (other than a few small Chinese ones). All have been waiting and waiting for Magufooli to leave office. The country is only now becoming a place of serious and viable interest for international investors and miners. Just look at all the top companies now interested in Tanz. The doors of Tanz are really opening up to the rest of the world thanks to the progress under President Mama Samia.

Our wait now has nothing to do with the speed at which AS or anyone else works within EGR management. The wait is dictated to by the wheels of motion of the Tanz Govt. Every govt's wheels of motion are naturally slow. But at least we have catalysts for serious progress ahead of us such as the Framework Agreement signing, our updated BFS to inc expanded operations and SML granting. This would still be just a pipedream under the former presidency. No one can deny that there looks to be real progress in Tanz and that our time is near. The past is the past and the HC crew love to plant seeds of FUD.