Ann: KV Project enhancements identified for updated PFS, page-85

The KV pegmatites, containing spodumene, are fairly homogenous containing little contaminants however, the **bro surrounding the pegmatites does contain some contaminants, namely Fe. There is inevitably some **bro mixed with the spodumene during the mining of the ore body, this is dilution.

LTR modelling includes the **bro and mine planning is targeting to minimise dilution, i.e. <10% for the open pit and much less than this figure again for the underground sourced ore. A key driver in recent work is to make mining in the pit more selective (=less dilution in the ore) and likewise a key upside for the underground mining is selectivity, as you are mining essentially ‘Ore only’ not waste.
The primary driver for the WOF flowsheet is tantalum extraction, using a magnetic separation technique before flotation and producing the spodumene concentrate. As an added bonus, Fe can also be reduced in addition to the techniques above.

LTR plan to mine the pegmatites and avoid much of the **bro as demonstrated in the 2019 PFS.

The pegmatites are more than thick enough to be mined by both open pit and underground mining techniques, the mine planning focusses on both the pegmatites and the **bro to ensure maximum value for the project

The figures quoted for the composite sample, containing 10% **bro and producing 6.1% Li2O and 1.42% Fe2O3, are from 2019, i.e. based only open pit minable ore diluted with 10% waste material and a resource of 75Mt.

LTR now have a much larger resource (156Mt) with higher grade and are revising the mining techniques to reduce dilution plus have revised the flowsheet and added magnetic separation into the circuit… therefore LTR expect this to change. Certainly the recent work reported on the 9th June has demonstrated achieving grades of 6%+ Li2O is far more certain with the Whole ore float processing route.

Per announcements on the 9th June and recent presentations, LTR plan on being selective in mining plus they have demonstrated the ability to remove 55% what little iron does enter the WOF flowsheet. By way of example, if nothing changed from a dilution perspective, and LTR just added the magnetic separation stage to a WOF flowsheet, LTR would remove 55% of the iron which halves the iron figure from previous work …..and this is before any focus on dilution/ mining techniques etc. etc.

G