Potential discovery of REE mineralised "Yangibana style" ironstone, page-20

Hi darkhorse,

This is the A$50 million question (my conservative value of this official JORC "inferred" resource at Tolukuma EL2531).

FNT have indicated that they may already have enough data from Newmont's historical drill cores (these drill cores have never been assayed before!), as well as the necessary grades and intervals, in order to establish an official JORC "inferred" resource at Tolukuma EL2531. This would of course be a huge bonus for FNT, as well as for its shareholders. It should therefore also send the SP north.

However, if FNT cannot establish an official JORC "inferred" resource from Newmont's historical drill cores, there will of course need to be additional drilling.

Having said this, FNT will need to do additional drilling anyway, in order to progress Tolukuma EL2531 to an official JORC "probable" resource, accordingly, to an official JORC "proven" resource.

Of course this additional drilling may not end up being undertaken by FNT at all i.e. if a JV partner steps into the ring and takes over FNT's Tolukuma EL2531 tenement entirely and therefore does all the heavy lifting. Under such a scenario, FNT would probably end up being "free-carry" and holding 20% of Tolukuma EL2531. This would of course be a very nice earner in the future.

However, and perhaps most importantly, if a JV partner were to take over the heavy lifting at Tolukuma EL2531 (and FNT were "free-carry" and still holding 20% of Tolukuma EL2531), this would then allow FNT to focus all of their manpower and capital on their newly acquired and 100% owned REE Projects in Australia.

Considering that FNT have already and continually indicated that they are looking for an experienced JV partner in order to accelerate the development of Tolukuma EL2531, and in light of FNT's newly acquired REE Projects in Australia, it is my opinion, that the directors of FNT clearly intend to focus almost all of their attention on FNT's newly acquired REE Projects in Australia i.e. IMHO, this is the real end game, not Tolukuma.

IMHO, such a move by FNT would be a very smart strategically, i.e. it would allow all of FNT's newly acquired REE Projects to be fast tracked in order to take advantage of the current high levels of international interest in REE projects, and if ultimately successful, it would then mean that one or more of these REE projects would be able supply REE's to the world market in order to help meet the huge demand for REE's that is already emerging, and which will continue to increase over the next couple of decades i.e. FNT will be striking while the iron is hot. Such a strategic move would no doubt also attract a number of major institutional investors, which of course would be a huge plus for FNT, its existing shareholders, as well as for the FNT SP.

Of course down the track, it is highly likely that FNT's will also seek a JV partner to do all the heavy lifting at one or more of their newly acquired and 100% owned REE Projects in Australia (the successful ones). In this respect, and due to its close proximity to HAS's Yangibana Deposit (FNT's tenements are at both ends of HAS's Yangibana Deposit as far as I know), I can well imagine FNT entering into a 80/20 JV with HAS (HAS has already received approval to construct a hydrometallurgical plant at Yangibana).

Summarising, the next few weeks and months should be highly interesting.

Cheers.