Mining The Next 50 Years - Australian Strategic Materials, page-7

Hi Daubechies

I don't hold it against the company that they didn't raise when the SP was plump... yes it would have been wise and prudent but that is 20/20 hindsight.

But... I am agitated with the red flags which are starting to pile up.

I believed management (under DW) which promoted an accelerated timeline and had several hundreds of $M's of funds being promised, which didn't happen... statements which encouraged me to keep buying even as the share price kept falling. DW left (and clearly not for personal reasons since he quickly found another gig) and recently other important personnel have left (is not the future of ASM good enough for them?)... these are red flags.

Has ASM been played by the SK interests? Should ASM have secured off-take commitments from SK interests prior to building the KMP? Was DW gullible? Will Hyundai enter into meaningful off-take agreements for Dubbo? We will find out in coming months and if things go the way they have been projected all will be fine. However, I have seen examples in the past where a company seemingly with nothing but blue sky ahead gets circled by sharks and ends up being swallowed up for cents on the $.

I do not like the recent history of ASM. I want to see positive and concrete progress. I am losing confidence in management mainly due to the lack of transparency, another red flag, which has become a feature in recent months (starting with DW's departure).