total short share outstanding, page-1791

Hi Blitz,

You are wrong again, Most companies prefer oxide/surface mineralisation, it results in larger flake retention (higher basket price for the graphite), you can see by EGR test results there is a significant variation of the amount of high value large and jumbo flakes, this is significantly reduced when you process the Fresh Mineralisation.

The one benefit from Fresh Mineralisation is the higher TGC grade, i.e fewer impurities, this is why EGR is looking to use Fresh mineralisation to produce spherical graphite without any chemical purification, Magnis recently achieved this by mechanical grinding of the fresh ore to produce 99.5% TGC graphite, the further improvements to achieve battery grade were achieved during the coating process, where the baking of the graphite increased the purity to 99.95%.

Epanko with its two pits has the flexibility to either process weathered (oxide surface) mineralisation from the eastern and western pits, Or to continue to mine the fresh mineralisation of the eastern pit after year three. On the Wester pit, they can continue to mine deeper into the hill rather than focusing on the outside weather section.