Quarterly Summary - Briefly

Clearly the grubby shorters didnt get the memo: The Quarterly was very positive and full steam ahead.

GL, Chair, Project Manager and CFO were all on the call that will be a regular event.

Here is my quick summary for our overseas guys such as chok etc. Others may have rememebered more or may add to my summary, this is off the top of my head.

Offtake –there is no concern with any of the offtakers. In fact, are negotiating betterarrangement for ARU due to the excess offtakes available.

Capital Costof $1.68B – Already includes the $100M already outlaid on pre-construction andpurchased long lead items/village etc. , so doesn’t need to be added again.

March guideline- datedshown in the Quarterly is the date they are basing all their projections on - best estimate.

SiemensGamesa – They are not concerned about this company, and not been told otherwiseby either funders or the parent company. None the less, contracts cater for ourinterests.

NdPr Price –There was a hint that it is being manipulated by China, and that the Chinese companiesare now complaining as it is below cost. None the less, all offtakers are notconcerned. So this will not hold up any contracts. Hence their expectation thiswill have to increase soon.

GE – Is atadvanced/ advanced stage of negotiation.

Korea ECA –Introduced to guarantee the loans, depending on how much offtake they provideGerman companies, and subsequent offering by German ECA.

Strategic Equity Partners– All in discussion to take up equity, including the other automobile companythat has not been disclosed as yet (They are a household name).

Debt toEquity- ratio is circa 50:50

Governmentsupport- It didn’t sound like any further support is required or on the way.

Elon Muskengineering out NdPr – This one is non-event to me but was mentioned by anothershareholder (old news). And sounded that to ARU as well. i.e. GL stated Elonwas negotiating the Magnet contract whilst releasing this noise on socialmedia. Further, too many other uses in the car and other industry and also, the car would have to give uppower.

Shorters- Theywere rather deflective, probably the only item not addressed.

Debt: Aust.Govt. - US$225M, Commercial bank US$250M, and EDC US$300M = US$775 which is farmore circa AU$1.2M, so given the $100M already used, I’m not sure how they havea shortfall of $500M. It looks far less to me. Ideas here?

Recent USvisit- Potential no seat at the table given we have limited US funds and alsoofftakers are generally Japan, Europe and Korea.