Conference call 3Q2018, page-7

The main points in my view:

1. That SDV work will begin properly in early 2019 and that it will be more than fully funded from POSCO money and the joint venture partner, once that is decided by the end of this year.

2. That SDV is planned to be in production by 2022 and that it could be producing as much as 50kt of battery grade lithium p.a. rather than the 25kt earlier envisaged. the drilling program presently being conducted will determine whether that's possible.

3. That GXY should have raised an excess of capital from sale of northern tenements and money from joint venture partner and a share buyback or a special dividend is a real possibility. IMO a one-off dividend is the more likely option in early 2019.

4. That the reduced production from MC was due to several factors that have been, or are being, resolved and that the coming quarters will see an increased production and recovery rate and return per ton.

5. That the upgrade at MC was delayed and will be done by the end of the year with minimal disruption to production (48 hours downtime).

6. That the pilot shipment to POSCO of 3kt may indicate that POSCO will become a significant customer for MC spod. and suggests that further synergies may also develop.

7. That the abandonment of plans for tolling in favour of developing conversion options suggests to me that GXY is thinking at some point of establishing a conversion plant in WA. Nothing else makes sense, as we already know that conversion plants are envisaged for SDV and JB.

8. That GXY is sticking with a 12 month contract rather going to a three month contract, since it has been beneficial for the company to date.

Overall, I found the call quite encouraging, albeit that the quarter's results were disappointing. It just confirms to me that these are the sort of speed bumps that all lithium companies will encounter as they attempt to increase their production and it reinforces my conviction that the predictions of oversupply will not be borne out. The contract price announcement in December should confirm this.