Ann: Thackaringa Joint Venture Agreement, page-3

I’m not a lawyer, nor do I have experience in mining or joint ventures.

When I try to look at the situation unfolding, and try to apply logic and common sense I think BPL signed to a joint venture without anticipating such an event. When the consultants advised an extension of a year or so to ensure the viability of the project, BPL decided to refuse to cooperate by agreeing to extend the agreement by an additional year or so and demand the 7.5 million payment, in addition to the 2% royalties. This behaviour is not collaborative, cooperative or in the spirit of a joint venture partner. It is combative, win-lose mentality, and very short sighted (especially seeing the golden opportunity that exists for cobalt for a very narrow window, before supply catches up with demand)

COB management knew the holes in the Joint Venture, and decided, since their partner has shown no inclination to cooperate, to act in a similar fashion, and start acting combatively. Every move they have done since 25th of October shows they are calm, calculating and in control. By comparison, every announcement by BPL show they are in unchartered territory, with their CEO winging it as he goes along. I have never read a statement detailing an action plan with one of the points “to live within our means”....he seems to be out of his depth.

this situation will produce no winners, as evident by the share price of both companies. The faster they can sit down and start talking common benefit to seize the opportunity and refocus all efforts on maximising the potential for Thakaringa and the return for shareholders, the better it is to everyone. We need both companies to succeed.

i’m just weary of the personality of the CEO of BPL.