General Discussions, page-1831

DC was happy to get back to me with a couple of questions I had regarding, the potential for using a graphite auction platform like PLS.
Secondly Whether Port Adelaide has been in consideration of ease of shipment.

'Thanksfor your email.

Auctionswork very well in hot markets. I sold uranium in the bull run days when avery small producer from Texas (Mestena) pushed the price to record levels viaauctions. Basically, the auction mechanism is a way to re-shape the spotprice.

Weare too early for this. Our challenge is to get good offtake partnersthat will justify our capital requirement. Of course, we want to maintainthe upside of pricing (and this needs to be weighed against having uncommittedmaterial you can sell into the spot market via an auction or other mechanism).

PortAdelaide is South Australia’s only port that attracts shipping containertraffic. We will ship our graphite in containers (rather thanbulk). We could use closer ports, but we would incur port charges to getcontainer traffic our way. We could also use interstate ports. Forexample, I was involved in another South Australian mining operation where formany years we used Darwin (rather than Port Adelaide). For us, itwill be a question of the least expensive option.

Ihope these explanations help.'

I love how DC operates!