Ann: Exploration update - Nevada Lithium Brine Drilling, page-65

Very disappointed to see another unfortunate drill...

Have been in contact with management to get a clearer picture on the way forward for reedy.

I strongly recommend all shareholders to also do so if you have any questions - (03) 9420 6280 will put you through to Geof Fethers.

But from my understandings, the next set of work programs will be further geophysics to help identify precise drill targets. The first set of drillings were undertaken on very light geophysics work (just MT surveys) so this time around, we will do a more thorough program at one of the projects. Combined with the diamond core data from each drill hole, management hopes to get a better understanding of the local geology (flows, aquifers etc.) and ensure the third drill is a success. I understand that different drill locations will yield different flow rates so I believe the plan is to find a location on the tenements that hopefully yields greater flows before drilling again. G. Balfe is still in Nevada to oversee all this.

Note* The Big Smoky South project has not been written off like CM and "remains prospective for lithium-bearing brines".

We are also fully funded for the abovementioned geophysics program and currently sitting at shell prices. Notwithstanding this, all holders should acknowledge the risk and sentiment here.