"QEM completed a scoping study in June 2016, based on the results of its initial exploration program undertaken in 2015. The conclusions of the study were positive and indicated that an opportunity exists for a significant vanadium and oil shale project. Whilst the Company's primary focus at the Julia Creek Project is on the strategic metal, vanadium, it has an advantageous by-product in the form of oil, as the vanadium is itself hosted in the same rock. The Company's distinct advantage is the potential to extract two product lines from the single resource base. In March 2018, QEM upgraded the size of its JORC Inferred Resource to its current level of 1,700Mt @ 0.34% V2O5. In addition, within the same 1,700Mt, a Contingent 3C Oil Shale Resource of 589 MMbbls is estimated. It is important to note that at this stage, the vanadium Mineral Resource and oil shale Petroleum Resource stand on their own as there has been insufficient work completed by QEM to confirm that the vanadium Mineral Resource and oil shale Petroleum Resource can be extracted together."
