Nigel Ferguson's Confused Messages: Media Release v Email to Shareholders

Letter sent from AVZ Managing Director Nigel Ferguson to DRC Prime Minister on July 30, 2024:

Although meetings were organized with the highest government authorities, between May 24 and 26, 2024 with DRC delegated lawyers from Ministry of Justice and Ministry of Mines in Brussels and on June 21, 2024 with the Head of Business Climate Cell and his team in Kinshasa, we regret to note the lack of progress on the draft MoU.

And …

We were shocked to learn that, on July 26, 2024, Manono Lithium SAS (a joint-venture between Cominière and Jinxiang Lithium Limited, a subsidiary of the Zijin Group)’s application for a mining license (permis d’exploitation), i.e., to convert the exploration permit no. 15775 (permis de recherche) into an operating permit, had been approved (see Appendix 1).

And …

The Minister of Mines is obviously fully aware of these decisions, but seems to think he can sanction violations of the injunctions against the Democratic Republic of Congo and Cominière on the grounds that "the defense team, under the coordination of the Ministry of Justice, is busy drafting briefs to be filed with the Arbitral Tribunal by July 31, 2024 at the latest", blatantly ignoring the fact that these injunctions do not relate to the merits of the case.

We therefore question the effectiveness of such talks if, in the meantime, the Congolese authorities continue to support Cominière in the development of the Manono Project to the exclusion of the AVZ group, in defiance of decisions handed down by international arbitration authorities.

TWO DAYS LATER…

Email from AVZ Managing Director Nigel Ferguson to AVZ shareholders on August 1, 2024:

Dear Shareholder,

I am currently telephoning shareholders to provide a one on one update on discussions with the DRC Government and the legal actions pending for AVZ.

As you will be aware, AVZ is running out of funds and we are in the process of securing extra funds to support the ongoing corporate and legal costs of the company.

(translation… we are raising funds)

A resolution is near at hand given the mounting pressure on the DRC Government from both the ICC and ICSID proceedings…

Umm…Nigel, could you please help me understand how:

1. On July 30, 2024 you noted:

• the lack of progress in negotiations with the MOU

• the conversion of Manono Lithium’s exploration permit no. 15775 into an operating permit, effectively closing the door on AVZ participating in the development of the mine

• that discussions were ineffective and going nowhere

1. Yet, just two days later, you represent to investors that “a resolution is near at hand”