Questions for Chairman

Hello fellow shareholders.
i have just posted the following letter to our Chairman. Perhaps the included questions might be of general interest :-

Dear Mr. Scrimshaw,
I do understand that next week’s General Meeting will be specifically to do with obtaining shareholder approval for the proposed “Offtake Agreement”. However, I ask if you could also answer the nine questions set out below, as they would be of general interest to all shareholders.

Firstly,I am very conscious that this has been an exceptionally busy year for you, Mr. Davis and the management team in advancing the Company in additional directions. All your efforts are appreciated.

Question 1. I remain troubled by the whole radioactivity matter. Earlier Announcements spoke of very low levels of radium and thorium, and that no special safety measures had to be taken when transporting our mine’s output of HMC. However, I have just read the extremely strict and expensive measures required of Arafura Resources to protect their workers and the environment. So:-
Do we have to do anything similar at our worksites? Like regularly testing our worker’s health, and keeping records for their lifetime.? I worry that this matter could be raised against the Company in later years.

Question 2. Do we have environmental approval from the Government for mining the NdPr mate rial? Or any of the newly found elements. If so, does this include reinstatement of the mine sites at the conclusion of mining? Meaning that provision for this should be included in our operating expenses from the first day of production.

Question 3. Is to do with the “Standstill Agreement” with Shenghe, which limited them to 19.9% interest in Peak. This agreement expired on the 31st. May - unless extended by mutual agreement. So :-
as there has been no announcement, what is the present position?

Question 4. I ask how the negotiations with Peak are progressing regarding their shareholding in the Ngualla UK company. This is of the greatest importance as it is the prerequisite for their funding the NdPr mine and refinery.

Question 5. What is the meaning of “sterilisation drilling”.?
This was mentioned in the last quarterly report.

Question 6. What does “EPS” stand for?
Shenghe is to prepare tenders for “EPC, EPS, and EPCM” solutions. That is, Engineering, Procurement and —- what does the “S” stand for?

Question 7. Is to do with “water treatment options” as mentioned in the last quarterly report.
Is this for the purpose of reducing the waste water’s radioactivity? Or perhaps getting potable water? Or just sewerage treatment?

Question 8. The appointment of Mr. Justin Joseph Gringeri as a Director of our Ngualla UK Company.
what is the thinking behind this appointment? Why as a Director? Why not as an “employee” or “ part time employee”? What are his duties? Does he have authority to spend company money? To whom does he report?
could you enlarge on this appointment please.

Question 9. This concerns the ultimate purpose of having the Ngualla UK Group company. Is it the Board’s intention to wind-down Peak Rare Earths in favour of the UK company, which would list on the London Stock Exchange. That is become a totally UK based company?

In conclusion, I have voted in favour of the proposed Takeoff Agreement, and look forward to attending the coming General Meeting. I am also very hopeful that your negotiations with Shenghe will soon reach an agreeable conclusion.

Alan Williams