Comments from the CDO of CLQ

Dr Stephen Grocott, Australian Institute of Mining and Metallurgy Presentation, November 2019:

"Sunrise is an unusual nickel laterite... it has moderate nickel grades, extremely high cobalt grades, and extremely high scandium grades"

"In our financial model we don't include any value from the scandium because world consumption at the moment is about 20 tonnes, we can produce about 300 tonnes per year... that will sit in a warehouse."

"Importantly, all permitting is done for everything we need to do and this is not easy."

"The next generation of electric vehicle battery technologies will be more nickel intensive. But a lot of the world's nickel resources can't be converted into nickel sulphate for electric vehicle batteries."

"Nickel will come from the conversion of class 1 nickel into very high purity (99.99%) nickel sulphate market (which is being taken away from the stainless steel market OR you can do what CLQ are doing in converting the ore direct to nickel sulphate"

"The Sunrise project will be the largest producer of cobalt outside of the DRC. There is also likely to be a premium for an ethically sourced cobalt"

"Most cobalt produced through the DRC is from legitimate miners, but there is a significant proportion of artisanal miners whose cobalt ends up in the supply chain"

"We don't want to sign away all of our offtake just yet because we are still trying to raise the equity component (partnership)."

"The technical team we have put in place is comprised of very good technical people. THE TECHNICAL TEAM WE HAVE IN PLACE HAS WORKED ON EVERY SINGLE NICKEL LATERITE PROJECT IN THE WORLD, EXCEPT ONE. (emphasis is mine)