1 Previous Phase 1 testwork confirmed a 30X upgrade was...

1 Previous Phase 1 testwork confirmed a 30X upgrade was achievable using simple gravity concentration.

through gravity separation, produced a high concentrate grade of 21% V2O5, 14% Zn and 53% Pb.

2 Newly released mining study indicated: the first stage mining will focus on high grade ore of 873,000 tonnes at an average grade of 1.6% EqV (approximately 1% V2O5). so the finished products should have a concentrate grade at 30% V2O5 14%Zn 53%Pb

Given feedstock 100%V2O5 price is 1/3 of the 98% finished product price, plus the Zn+Pb credit ,we work out 3.33tone concentrate worth U$7600, ie. price per ton is U$2300 for the 30%V2O5 14%Zn 53%Pb concentrate product which is roughly in line with 50% operating margin indicated by the mining study--as V2O5 price increased 23% since study released.

3 The first stage mining targets to produce concentrate roughly 6000t/year , "724,000 tonnes at 1.5% EqV (approximately 1% V2O5)" with target profit margin of U$750/t or roughly A$1000/t, hence the annual operating profit target should be A$6.0million. Outstanding

4 Exploration Potential identified

historical mining in Abenab (produced 102,000 tonnes concentrate @ 18% V2O5, 13% Zn, 42% Pb) indicate two points:

1 shipping & infrastructure is not an issue-as no problem 70 years ago

2 through gravity separation, produced a high concentrate grade of 21% V2O5, 14% Zn and 53% Pb, is reliable as people already operated 70 years ago with much less advanced technology & toolsI.