Ann: Appendix 3B & Cleansing Statement, page-72

Hi Cameron..

That is an interesting question,

And the short answer is NO.. we don’t have the information to know if a hazer plant at demo level as designed is profitable, as we don’t have the FEED study we have all been waiting for since mid November.

The technology itself is very solid and certainly be profitable at larger volumes of through put.. as Fluidised Bed Reactors ‘love to be scaled up’.. this is probably why the original demo plant was designed at 100kg/day and has recently been designed at 300kg/day..

As these plants become larger, my understanding is that their capex is offset by throughput.. i.e. a 100k/day plant might cost 5 mil when a 300kg/day plant might cost 10..

Double the cost triple the output.

Hope that helps