Running discussion on SP, page-20090

Thanks blu_afro

I think Nigel comes across pretty well in these podcast style interviews. I find him likeable anyway. Good knowledge. Not ostentatious.

And he can convey quite a bit of detail, nuance in the voice, without having to spend heaps of his time.

I think NF has made some mistakes - (1. some JORC terminology early on getting ASX attention, 2. CR with Pattos (though I don't think that was as bad as others - I see it as he sought support from retail and some independence from Huayou - he might not have had to pay so much if he'd gone at a different time but even that isn't certain, and 3) reaffirming unnecessarily the relationship with Huayou - so undoing some of the good that happened at 2 - getting independence from Huayou). And 4. Klaus (can't say much about that). But I still think Nigel is likeable. And I've never spoken to him.

In the transcript below - I think he is making clear that despite scoping studies he knows transport is still the biggest hurdle - so I think he does at 14 June 2019 have his head in the game - or I at least agree with him on that biggest hurdle (could be we are both wrong).

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Transcript - Boardroom Media - 14 June 2019 - Nigel Ferguson 5.43 duration.

19sec

NF - AVZ is an ASX listed junior developer/explorer of lithium in the dRC. We were listed first off back in the early two thousands and reinvigorated around about 2015. I became involved with the company about 2016. We've picked up the Manono project and we've drilled out resources in 2017 and 2018 and then we've been engaged in development studies over the last six months.

Interviewer - There has been a lot of talk about lithiumin the market. From an Australian shareholders perspective what should weconsider when looking at that sector?

NF - I think its just the tip of the iceberg to be honest. I think lithium is going to be the driving force in economies around the world. I think we are going to see much more demand coming for the products and for battery driven vehicles not only motorbikes and cars but trucks as well. Trains, possibility as well so look I think there is a lot more coming on. We've had a bit of a downturn in pricing of late and I think will continue for another six months or so and then I think there will be a revival in pricing as more of these battery factories start to come on line and supply starts to get a bit shorter again.

Interviewer - And theManono project is also a tin project - can we talk firstly just about the tinproject?

NF - Historically it was a tin mine. It has tin and tantalum in it. I think we are averaging about 7.15 ppm tin at the moment and about 38 - 40 ppm tantalum. It was mined from around about 1910 until 1982 first of all working on the historical alluvial beds and then moving into the soft rock weathered material and then the hard rock and then they fell on hard times with recovery rates going down and the tin price falling.

(2.13) We have 300,000 tons of tin defined in the resources at the moment and I think about 13,000 tons of tantalum as well. So its a considerable amount of money sitting in the ground when you consider that tin is sitting about 20,000 US a ton there is a lot to be added to the bottom line. We haven't defined the recoveries on those yet but even at 50% I think it will make a huge difference to our NPV and our cash flow.

(2.37)

Interviewer - Nigelwhat is AVZ's expectation of the project in relation to lithium?

NF - Well we completed a 2 million ton scoping study and more recently a 5 million ton scoping study to produce approximately 1.1 million tons of 6 percent concentrate. That doesn't include any tin credits to the system as I've just explained, however, we believe we will probably fall somewhere in between the 2 and the 5 million ton as a startup. If we really wanted to push the envelope and we had all of our ducks in a row with transport to the product we could probably flood the market and control the market.

(3.17) We are not constrained by geological size of resource. We have over a billion tons of potential resource there and as I said 400 million tons defined of which measured and indicated is 269 million tons. So we are not constrained in any way by that. Our biggest hurdle at the moment to navigate is thetransporting of product, which may, in the near future find us looking at a hydroxide plant to be tacked onto the back of the concentrate plant. Run it for a concentrate plant for a few years and then look to put a hydroxide plant onsite and move from there.

93.53) Interviewer - Andhave you had any initial interest from battery manufacturers?

NF - Quite a lot of interest very early in the piece. We've had numerous other companies come to the table. We are still engaged with some of those companies but certainly the level of interest is increasing now that we've got the 5 million ton scoping study out and we are going towards definitive feasibility. So yes they are starting to knock at the door.

(4.12) Interviewer - FinallyNigel what do the next few months look like for AVZ Minerals?

NF- Well we're in the middle of, pushing forward with, the definitive feasibility study. We've got 13 tons of metallurgical core being put through test work, comminution and recoveries including the tin and tantalum side of things so will have definitive studies on those. We'll be engaging with some engineering groups fairly soon really crank on with the design of the plant and optimise that plant from going from either 3million, 4million of 5million - we've still yet to work that out.

With regard to site works there is probably going to be dewatering of the pit. We are still waiting on a large pump to arrive. We are sourcing other pumps as we speak. We have environmental clearances on those.

We will be securing other assets within the area. Not mineral assets but land rights to certain areas of the licenses so that we have full control over those areas. And then it will be purely the definitive feasibility numbers coming out with the met test work, appointment of a new chairman, which we are lacking at the moment. And yes just all those good things that come out of definitive feasibility study.

(5.24) Interviewer - Nigel thank you very much for your time today ....

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