To Neil1959 from Zessina, page-12

Hi @ZessinA,

Thanks for your questions and let's try and address some of your points.

The company fully understands the frustration being felt by our mining investors, when they see, what seems like, a constant stream of news, almost weekly, about the Cannabis/Hemp investment vs. infrequent news about the Bauxite. The company equally recognizes that those shareholders who joined purely for the Mining investment would like to see a little more action from the Bauxite.

The company has two core projects:

1) MINING - Long Term (mining exploration development cycles avg 10 years; from 3 months+ reporting cycles, on average, for miners on the ASX)
2) MEDICAL CANNABIS/HEMP - Short Term consumables (daily/weekly/monthly reporting cycles)

The two core businesses have COMPLETELY different reporting cycles.

Mining simply has a slower reporting cycle, whereas Hemp, as has been seen, can have very frequent reporting cycles. This, in turn, has caused some frustration, particularly for our mining investors.

Contracts for Hemp/Cannabis/JV’s etc can be completed in 1 or 2 meetings with the main players. Mining contracts, Offtake agreements, can take as long as they need to. Ore samples must be sent, visits to the prospective site, discussing logistics, road/rail to shipping considerations, early/mid/ upper level management meetings.

Hemp/Cannabis contracts, on the other hand, can be negotiated from term to term, seasonal contracts, which can be there for one season and gone the next, depending on how good your negotiation and pen skills are.

Mining contracts/Offtake agreements are Long-term contracts requiring millions of dollars of capital investment and infrastructure by the Offtake partner. They do not rush these negotiations. 2 to 6 months, can easily be an average for signing contracts. We have one of the best, native speaking, Bauxite negotiation teams dealing with these matters. We can assure you that under the team leadership, of Dr. Robert Coenraads, it is being dealt with in a very professional manner.

On the whole, though, the project has been progressing very quickly, in the 4 years since the Bauxite deposits were found, and during that time we have proven up the data, overcome all the environmental and government hurdles, secured the necessary licenses and permits, negotiated the logistics costs from site to port to shipping, and, we are actually 6 years ahead of the average time other mining exploration companies take to get Offtake deals discussed in Board Rooms.

To bring in revenues, in the meantime, we have secured a second Core business that will cover both businesses until the mining deals are properly secured. We are looking out for our investors.

A quick look at 3 key dates for the South Johnstone project up until 2018

TIMETABLE
On the 21/07/2010 Australian Gold Investments (AGI) entered into a binding agreement to acquire 80% of the South Johnston Bauxite province in Queensland. (8 years)

On the 23/02/2011 a change of name from Australian Gold Investments (AGI) to Queensland Bauxite Limited, QBL occurred (7 years)

On the 12/06/2014, QBL's Geoscientist, Dr. Robert Coenraads discovered significant Bauxite deposits at the South Johnstone Bauxite project. (4 years)

Zess, the company remains focused on achieving results for its mining projects with teams on the ground in Australia and China.

Reports will be made available to the market as soon as the negotiation team can report back with tangible evidence of commitments from our prospective clients.


Thanks,

Neil1959
HC QBL rep
QUEENSLAND BAUXITE LIMITED