Email from MD Ben Bell, page-19

Afternoon Guys,

AUZ have 3 interesting projects in the 'hot' sectors of green-metals.

I am not an expert in the met of these deposits but have been advised by an industry insider. There are certainly issues surrounding acid consumption with the Australian Ni-Co plays and the logistical/ input costs to extract the paying metals from the ore.

In time, these may be overcome, but it is why I am staying away from the bulk of the Aussie Ni-Co opportunities. Additionally, when you look at the grades and reserves/ resources out of the DRC it is questionable that Aussie hopefuls will be economic (or even get to production) barring a major civil war in the DRC.

However, what appeals to me is the progress being made by CLQ in the Co-Sc-Ni project and AUZ's adjacent tenement.

Whilst I realise that there are differences in IP, stage of development, possible water rights issues, etc ... the two reasons why am I investing in AUZ are:

(1) This map



(2) The relative MC's between CLQ (A$500m) and AUZ (A$28m).

The key assumption is that CLQ has a viable business model and intends to create a Co-Ni-Sc mine.

Robert Friedland is not renown for f'ing around nor is he renown for small scale.

I have also been informed that his eye is on the Sc - that is the sausage but Co is the sizzle.

To my mind, given the proximity to surface of the deposit (this is one deposit), the common met, the open pit mining methodology and the geometry of open pit mines ...

There is no way CLQ will progress their Syerston project without taking out AUZ for the Flemington deposit.

CLQ could offer AUZ a 100% premium right now, in script, and based on the resources added it would still be hugely accretive to CLQ on a resources added basis.

To me, it is as simple as that.

Cheers
John