Confidence, page-122

Hi Heeman, thanks for the reply. Just trying to get my head around the potential sales agreement with Sojitz not being conditional on the bulk sample testing for battery grade. Is it reasonable to think that an initial sales contract with Sojitz might focus on the mentioned refractory and high end markets, with an intent to scale up the order size to include graphite specifically for Li-Ion markets once bulk testing and end user qualification is complete?

I having trouble reconciling that Sojitz will agree to buy battery material at a certain price without knowing approximate production economics, and also to sign up before they have specific battery end users to reliably sell to. I think that if test results are positive Sojitz will JV a BMF, but given the lengthy qualification period for battery material for sector contenders (SYR 18 months, MNS ongoing 12+ months), is it realistic to expect such a quick turnaround from MOU to BOA before end user qualification?

The dynamics of it are interesting as funding is not reliant on the Sojitz agreement, whether Sojitz has end users locked in at the time of signing an agreement is largely irrelevant for medium term. Interested to watch the story unfold.