Undervalued, page-6

1. instead of getting tax breaks, under the Tanzanian mining laws, MNS will probably lose at least 10% of the project, which it must give to the Tanzanian govt as a free-carried interest

2. this will be the 1st mining licence negotiated under the new laws, which originally had talk of 15% free-carried interest. therefore, MNS may lose up to 15% of the project revenue

3. valuation of the company cannot be done unless the graphite prices received are known. since the off-takes are at market price, this is an unknown. recent reports have stated jumbo flakes have not been receiving the great premium they previously were

below is a rough guide of potential valuation (last column) dependent upon graphite pricing (5th column), which has factored in a 90% project share to MNS: