TON Offtakes, page-19

Hi George, the 90% figure is taken directly from the TON announcement, which states, in the section headed:"Key Terms of Binding Off-take:"

"Graphite Purity: 90% Total Graphitic Carbon"

TON's words, not mine. However, from the viewpoint of the miner, be it TON or SYR, the end application does not matter. Once the product is in the client's hands, supplied at the agreed quality, the client alone decides what to do with it.

The real point of interest here, from the perspective of SYR, is that even a low-grade product can still command a significant price. Obviously, SYR wants to sell as much graphite as possible the value-added markets, such as spheroidal graphite. But the market for lower-grade material, for use as a recarburiser, remains huge - possibly larger than for battery-grade material, for some time to come. The MOU with Asmet (even though not yet replaced with a firm offtake agreement) demonstrates this point. And that MOU is for supply at about US$1000 per tonne, like the floor price in the TON contract. We need to note that the product supplied to Asmet by SYR will be of higher grade than TON has agreed to ship to the Chinese company, YXGC.

That's why there's good news for SYR in the TON announcement.

Cheers,

Prime1