Ann: 2018 Annual General Meeting Presentation, page-4

Hi All,

I attended the AGM yesterday and whilst most of what was said is contained in the AGM presentation attendees were given a little more insight into the state of play in Tanzania. I also was able to get a bit more information from Bob and Howard after the meeting had concluded.

Firstly, don't be alarmed by KfW and EFIC's logos not appearing in the presentation. KfW's involvement in funding Epanko was discussed by Bob Pett at length during the metting and they are very much still in the picture. Nothing has changed on that front.

Christoph's presentation on EcoGraf was most interesting. He went into quite a bit of technical detail explaining the process (from flake graphite ----> to coated spherical) and the requirements of anode manufacturers. Christoph emphasised what we already knew and that is that the German Government's strong desire to see battery manufacturing in Germany and perhaps even the manufacture of the anodes (and presumably cathodes too). There are only a few companies with the expertise and ability to coat the spherical graphite, so at this stage this is the only part of the process which is likely to continue in Asia, at this stage.

During Q&A time I asked what exactly were the impediments (the issues in the mining legislation and regulations) for our KfW finance application. Bob advised that the issues related to security (the Government's lien over the minerals and the requirement for payment to go through an indigenous Tanzanian bank) and that they also require some clarification on the 16% free-carry and the warehousing of the processed minerals (I assume for inspection) prior to exportation. Bob also said that there is immense "pressure coming from above" for the Mining Commission to approve MLs and work through the issues of mining companies in order to get new projects into development.

I also asked whether we had a Plan B to fund the development of Epanko should KfW finance not eventuate or there are continued delays. Bob said that there are other funding options on the table but at the present time they remain confident in securing KfW finance and this very much remains their focus at this time.

I did ask a couple of other questions but they were more or less extensions of the above two questions. There were no questions from other attendees.

Just going back to the current status in Tanzania, I spoke with both Bob and Howard after the meeting and we talked about their recent trip to Tanzania. They said that the Bank of Tanzania, who apparently are quite influential, are actively assisting the Minister for Minerals and the Mining Commission work through the issues raised by mining companies. A separate committee has been established, at the request of the Minister for Minerals, to assist in providing clarification on various aspects of the mining legislation and regulations.

Christoph was quite a popular man after the meeting and unfortunately I didn't get the opportunity to speak with him. I sense that shareholder focus is shifting away from Epanko and more towards the commercialisation of EcoGraf. I feel that there is greater near-term potential in EcoGraf than there is with Epanko, I just simply don't have confidence in Tanzania's ability to get the mining industry back on track anytime soon, although I hope I am wrong.

If I recall anything else from the meeting or my conversations afterwards I will be sure to share it with you all.