Ann: Trading Halt, page-21

I wouldn't be too hard on management (even though I think this CR could have been done after the resource upgrade).

The Tanzanian government pretty well screwed everyone invested in the country's mining sector when they proposed changes to the mining act in mid 2017. Didn't matter which company you were invested in, everyone suffered, and is still suffering today because of how slow the government has been in getting its sh!t together.

Phil on the other hand has been proactive and has not used this time to sit on his hands. He's been actively engaging with the Tanzanian government to get clarity on issues that, quite frankly, were the responsibility of the Tanzania government to make perfectly clear to the mining sector. Without this engagement and clarity, it's unlikely any funding partners would proceed to finance any project, especially when 10's of millions of dollars are required.

In this time, the company has also achieved the following:

- Completed their PFS (which shows just how good the Chilalo economics are, especially when you compare it to its peers),
- Secured an US$80M funding package with Castlelake to fully fund Chilalo to production. It's important to note that GPX is the only graphite company to have an official funding proposal on the table (subject so certain conditions being met, one of which is clarity from the Tanzanian Government).
- Completed a drilling program with a resource upgrade expected any day (which will help underpin an extension of the LOM in the BFS, further improving economics)
- Currently completing their BFS, due in Q4 2019 (one of the conditions required to unlock the funding package, subject to Castlelakes satisfaction).

The above is in addition to the time Phil has dedicated to developing relationships with potential customers, end users and traders in China, having spent more than 200 day over 30 separate trips in China since 2015.

Now, I've done my research and looked at the other graphite hopefuls, but none of them come close to GPX (except WKT), especially if your investment thesis for buying into a graphite company is to take advantage of the growing demand in the expandable graphite sector. There simply isn't much choice out there, as most of the other hopefuls are leveraged to "vanilla" markets, which will find it extremely hard to finance (if at all), given what we know with SYR. Just have a look at BAT as a perfect example. Its been 1.5yrs since they started clearing their site in preparation for construction and have still not managed to secure full funding to actually start proper construction.

As I said previously, I have nothing against, WKT, its probably the only other graphite company that I would invest in as i'm not interest in vanilla flake companies, however, at current prices, GPX has much more upside for my money.

All IMO IMO