POSCO Joint Venture, page-57

- Binding offtake agreements for minimum 200,000 tonnes per annum of lithium concentrate signed with multiplecustomers for 5 years
- 100% of total planned lithium concentrate production from Mt Cattlin sold for contract term
- A portion of Mt Cattlin lithium concentrate to be converted on Galaxy’s behalf into lithium carbonate and or lithiumhydroxide
- Galaxy to commence selling lithium chemical products to the end-user market in 2018
- Offtake arrangements to settle through Mitsubishi Corporation

We also know they have a +/-10% allowable variance on the supply of 200,000 t pa.

Galaxy has also agreed for a portion of the Mt Cattlin lithium concentrate sold under the offtake agreements to be converted on Galaxy’sbehalf into lithium carbonate and or lithium hydroxide. Detailed agreements evidencing these arrangements will be prepared in early 2018.This will allow Galaxy to commence selling its own lithium chemical products into the end-user market, which is currently exhibiting a robustdemand and pricing environment.

According the to Esperance port shipping website, Galaxy has shipped 15tk for the quarter. Yet forecast to produce 40kt-45kt for the quarter, which has been re confirmed again in the half yearly report.

It's very easy to say on face value that they are not shipping the remaining supply as the prices are weak. This would be very naive and show a real lack of understanding for how business negotiations/rapport. I think by understanding what is transpiring here will paint a much bigger picture.

It needs to be important enough to re neg on contractual obligations. Yes, its a yearly contract, but think about it for a minute.