The future of Graphite, page-18

Very difficult to work out today, but will become easier to ascertain in the next 1/4 or 2. Conservatism would suggest to add a further 20% as a margin of error. This can be wound down over time.

As well we need to factor Millies part A. Iff we hit B then a re rate will occur on the Lithium so I would not factor B at this stage,

• a) $US100,000 in cash and $US50,000 in shares on the acquisition of the mining permits and completion of the transaction;　

• b) $US100,000 in cash and $US50,000 worth of shares upon establishing a JORC compliant resource of >5 million tonnes at >1.5% Li2O;

• c) $US100,000 in cash and $US50,000 worth of shares upon the tabling of a feasibility study for Millie’s Reward;

• d) $US100,000 in cash and $US50,000 worth of shares upon first sales of either Direct Shipping Ore (DSO) or Chemical Grade (>6% Li2O) lithium concentrates; and

• e) Bass will pay to the Vendor a 0.25% concentrate sales royalty on any future lithium concentrate or DSO sales from Millie’s Reward for a period of 12 years from first concentrate or DSO sales, up to US$US2m.