Sprott Equity Research EMR., page-10

It should be noted that the document was published by Sprott and was directed at their shareholder clients. Hence it was protected and could not be copied directly. However I had a cunning plan to defeat them, but it resulted in a poorer quality copy than I would have hoped for.

This document is Sprotts view of the deal. It is not Emeralds position and should not be taken as an actual forecast of how the full debt funding will happen.

I could never understand why Sprott would lend US$60m, promise another US$100m for expansion and then leave us with US$45m (their estimation) to find elsewhere. I just didn't believe it. Zuluman said it, but because it was not mentioned at the AGM, I thought it was not an issue. We had already raised A$28m by CR last year to fund the mine. Sprott are in it for themselves and they are also brokers to their client base. They would love to get the bulk of US$45m in EMR shares to sell to their clients. Beware of Sprotty bearing loans. For them it is an additional bonus.

Gwaihir, you comment that it might be a lot easier to raise the shortfall via bank debt. Yes, and a bank debt would be a lot easier to attain now that we have the MIA and Sprotts US$60m, also with construction flagged to begin Q1 2020, lenders will be easier found..

Without another share dilution Sprotts targets of 6c and 7.2c will have to be considerably lifted to somewhere higher.