Ann: Presentation to the Australian Graphite Conference, page-6

This is a like Malcolm Turnbull's engergy plan for pumped snowy river upgrade... quickly rush out, to get a pat on the back.

Investors need to understand the graphite market in full.

1.1million tons 2016
750000 is currently natural flake
Rest is synthetic
China controls 70% of production

Yes it will grow but there are many mines rushing into production or ramping up production. FACT.

THIS IS NOT IRON ORE. You don't just make a plan to dump 50,000 -100,000 ton into the market in one year. You plan a market entry around 10,000tpa and scale up. Once you have a base you build up your market share.

Under this plan you are adding around 7-15% addtional natural flake from one mine. It will flood the market and crash the graphite price in a already distressed arena.

The other thing is to build a plant to process these amounts stated you are looking 100-200 million.

Understanding how buyers purchase graphite is also another step. You don't barge out 5000 or 10,000 tons in a bulker to China. It's sent on 20-40 foot containers direct to uses.

I'm not impressed by this plan its full of holes.

I also don't understand why you would extend the resource drilling before you put into production. It will just delay the process. Do the technical drilling in what you have and aruger 10-15 quick holes to get your run of mine ore for samples that's sufficient.

If it stays on this so called path. It will waste time and money, dilute shareholders hard earned money and end up missing the market.