Ann: Appendix 3B, page-6

Perhaps it is desperation.

On 22 Feb 2018 PNN announced the purchase of the Salar dePular for US$1.075 million, with “an up front and non-refundable payment ofUS$300,000 for a period of six months exploration afterwhich PNN has the optionto pay in staged payments of US$50,000, US$350,000 and US$375,000 for a furtherthree stages totalling one year(12 months) for exploration.”

Probably the payments were arranged on 22 Aug ($50,000), 22Nov ($350,000) and a final one of $375,000 one year after they signed thepurchase. Assuming PNN has already paid the first $50,000, they must be due forUS$350,000 in about 5 weeks’ time.

Adding to this, must be the money they need to pay Directorsfees including RHK’s salary plus the trips and executive lunches.

Altogether they will be scratching the bottom of the barrel.

PNN can pull out of the deal “during any of these last threestages PNN can withdraw with no further payment required” but that will send anegative signal to a share that already looks like a lead balloon.

Also shareholders will start to ask questions about thewisdom of the emphasis on lithium and what’s happening with Musgrave and therest of the projects generated by PNN “gender balanced Board of Directors.”