Manono Project Update 21/07/25, page-4

I think Kobold have sought to gain leverage in negotiations with AVZ by striking an independent agreement with GDRC. In response, AVZ is sending a reminder of the ICSID case and awards as their own leverage.

Separate to all of this, AVZ and Kobold do still have that MOU referring to "fair value" compensation. I think, at the time of the MOU, potentially actual payout figures had not been discussed. Things sounded positive, but the numbers Kobold were throwing around regarding their exploration in DRC weren't really up to scratch (USD$1B).

Kobold probably tried to present a low-ball offer, to which AVZ countered. Now, Kobold has made it clear that they could potentially go around AVZ and the ICSID to strike a deal directly with GDRC (if they really wanted the risk to their reputation). In doing so, they probably gain the favour of GDRC who want to see AVZ dead, and have put some pressure back on to AVZ.

I still believe Kobold will provide an offer to make AVZ and the ICSID case disappear, but it may be lower than some might be expectIng. GDRC won't be happy if Kobold were to back out of the deal because they and AVZ couldn't find a resolution to the case. GDRC simply doesn't consider the case to be valid at all, so they will be expecting Kobold to follow through with development regardless of their ability to make a deal with us.