Ann: Balama Incident and Rectification Update, page-55

Dr. F.

Who cares if SYR made 60 capital raises and used them to establish an operating mine. Multiple and delayed investment gives a higher return because funds are only applied as required. It is the NPV of the mine economics that matter. Now, of course SYR are also working at moving downstream which requires capital, as well, to build an anode material factory. The company is certainly forward looking and ambitious. Whether it is too ambitious, time will tell, but they alm to deliver into what should be a growth market. While they use output from the largest quality graphite reserve in the world supply should not be a problem (excepting any future Mozambique political issues).

I agree with whoever said that the fire at Balama is not a small incident but a thorough investigation needs to be undertaken with review of procedures, training, and hardware set-up. Nevertheless, I am prepared to regard it as a hiccup, provided there are no further incidents reflective of deficient practices.

Your clarification of off-take is appropriate. The text of an agreement makes all the difference as to its nature and we should have an expectation that companies make it clear as to the level of commitment embodied in an agreement. Without any clear reading, then we should assume that it is no more than an indication of intent, or as you put it, an MOU. My observation is that when a higher level of contractual commitment has been secured, then the parties will make this clearly known because of the impacts on their business. As usual "investor beware".