Ann: Presentation - RIU Explorers Conference February 2019, page-24

I think we’re quite safe either way.

Existing Hombre Muerto LCE is right near the bottom of the cost curve ($3k - 3.5k per tonne). And that is based on Fenix operating a 20 year old plant. With modern technology I’d be expecting us to do even better to be honest.

So as a very low cost LCE producer we can produce LCE cheaper than just about anyone, and if required I expect we could do LCE conversion and still be competitive. Note: I’m not 100% sure on LCE-hydroxide conversion cost, but I recall a McKinsey report that said brine-based hydroxide was about $500/T more expensive that spudomene. Therefore as a lower cost LCE producer I think we’re in the money either way. Happy to be corrected or enlightened n this point.

Ultimately hydroxide may be growing in popularity due to better performance with existing battery designs. However in my opinion long term demand will be driven by second generation batteries with solid state electrolyte. These are safer, higher energy and longer lasting. Lots of R&D dollars being spent in this area. I’m not sure what lithium chemicals will be required for solid state batteries at this early stage, but whatever it is will dominate the market long term, again just my opinion.

As an aside to all that the LCE market is much bigger due to the industrial grade applications.