Why the increase?, page-37

Adriano1 doesn't like either TON or SYR because they are:

"in the middle of nowhere, in war-torn Africa, thats got no infrastructure. Long way away from graphite markets"

Can we set the record straight, on some of these assertions?

Africa is a continent, not a country. The civil war in Mozambique ended more than twenty years ago, and there is a stable, democratically-elected government.

Currently, infrastructure available to SYR and TON differ somewhat. This may change with time, as TON gets closer to proving mine potential. Both have good road access to ports, about four hours drive away. SYR also has in place low-cost power from the national grid, and ample water supply.

Distance from markets is only relevant if freight will make a mine uncompetitive. We do not have costings for TON as yet, but the SYR Scoping Study shows total delivered costs (production, processing, freight to port, and ship to China, Europe or US) far below published mine-gate production costs of nearly all competitors.

At this stage, both companies appear to be much better-placed than any of the North American hopefuls.

Cheers, Prime1