Ann: Projects Update - Argentina, page-29

Just returned from a business trip to China.  Was astonished by the number of electric vehicles - especially in Shenzhen.  The Chinese are now focusing on two things. GDP growth and Renewable Energy. They see a massive opportunity in renewables - especially solar - and the focus is now on developing high efficiency batteries.  From my discussions with them they see Lithium ion as the only viable alternative in the short term. They are experimenting with hydrogen / fuel cells but that will be well into the future.  My guess is that China is about to embark on a lithium company acquisiton drive. They forsee a shortage of Lithium (they disagree with the Morgan Stanley report).  LRS has a huge potential resource but they must get on and prove it ASAP. By sitting on their hands, management are doing shareholders a huge disservice.  When China starts buying LRS must be market ready.