Ann: Update on Epanko Graphite Project and Pilot Plant Strategy, page-61

The facts that ISO certification, regulatory requirements, government adherence and safety (i.e. ATSB, NTSB, ETSC, JTSB, MOT, ), as well as safety testing requirements will only INCREASE in response to the higher demand for battery formats and applications where consumer safety is of upmost importance.

Li-Ion batteries are still some of the most dangerous batteries produced today...why do you think that airlines, postal, specific transportation modes and carriers restrict the transport and handling of Li-Ion batteries? They can over heat, rupture, explode (i.e. mobile phone), and do not stop burning until the lithium is consumed.

Can you envision countries and industry transportation safety administrations relaxing testing, qualifications processes, field trials, and consumer safety all to yield to raw material suppliers? The fatality indices would increase without subterfuge...Chaos!

It does not matter how economics 101 will play out in the market place, keep in mind the over the past few years secondary battery production and demand is increasing yes, but lets compare to another market that has boomed over the past few years being e-cigarettes.

E-cigarette products have seen increased regulations and legislation in many developing and first world countries over the past 5 years...the tobacco industry as well as health activities have put increased pressure on imports, safety (also li-ion battery operated in some models), and distribution...with increased demand has lead to more regulations, not less to favor a raw material supplier.