SP, page-4

I attended the AGM this morning and got a good understanding of where AL's focus is.
- Addressing the processing issues in P1. Progress is being made and she confirms P1 can and will operate at nameplate on a sustained basis going forward. They have employed specialist engineers intimately familiar with the operating Kiln's of the type at LAMP and have showed measurable improvement in achieving this end.
- Focusing on quality on spec and not focusing on volume output/nameplate production levels. AL made note that she is far less interested in the tonnage of RE produced than they type of minerals contained in that tonnage. NdPr is what she wants and is willing to take lower volumes of production to achieve this.
- 2015 will look to separate out Nd and Pr to maximise the ASP
- Building customer basis and long term reliable end user supply chain - Japan is obvious focus for major source of it's revenue
- AL said the cap raising in Oct was based on a conservative outlook for RE prices and is confident there are sufficient capital reserves to keep LYC going well into next year.
- AL clearly said LYC will be cash flow positive in the next 2 qtrs.
- AL repeatedly said LYC is here to stay.