Mining the Market, page-13

Thought I'd chime in with a few points that I believe many people fail to understand. Just for some background, I am a geologist and I am experienced in applying for tenements, applying to conduct works on tenements and finally conducting actual work within the tenements. I have some experience and background in the lithium space although not in the salar variety. I also hold reasonable equity in AGY.

The main point that I would like to get across is about managing expectations and in particular about timing and just how long it takes to get projects off the ground. Argosy have secured options to rights on 3 Argentinian salars all highly prospective for the recovery of lithium and other accessory minerals. In order to proceed with works on the ground, they require clearances and permissions form local stakeholders (government) before they can even drill a hole or dig a trench let alone conduct definitive exploration works. Just getting these permissions can take many months (certainly in Australia and I expect its no better in Argentina) before then arranging contractors and eventually conducting the work itself. To complicate this, throw in weather delays logistical and availability delays and before you know it, 6 months to a year have passed and you've accomplished nothing.
A second point relates to the type of deposit we are dealing with. My experience is in conventional geology with largely static environments so definition of resources is relatively straightforward. In this case, it is a fluid environment and although an aquifer volume can be determined and generalised grades can be ascertained, the resource is somewhat mobile (this is just my logic, I am not a hydrogeologist) but contained within the overall aquifer. This suggests to me that the grades and volumes are of less importance than the chemistry and determination of economic extraction methods. AGY have thus far seemed to be focused on this with the engagement of world renowned experts in the field in that of Pablo Alurralde and Carlos Sorentino specifically in the case of Rincon where the first part of the deal is based on demonstrated lab scale production of lithium carbonate or equivalent product. This is the calculated risk management have taken as an effective demonstrated process is far more value adding than determination of a resource when there are well known issues with extraction in the industry.

I could go on and on but I realise this is a public forum not a technical paper so I'll conclude with AGY is in my opinion on absolutely the right track but the time frame is not over a few months and money will need to be spent in development in the short to medium term. So, manage your expectations on realistic outcomes and don't get disillusioned if you don't get constant news flow. Now is the time for knuckling down and process development.