IPO - QEM Limited, page-59

I see your opinion but I think your not giving QEM a chance. You mention many many raises to come but they are actually in the most perfect position to limit dilution unlike some of the other listed Vanadium peers. Even mentioning a billion shares by 2019 for QEM is highly unlikely in my opinion. If management take advantage of the vanadium price and interest over the next 6-12 months then they won’t put the company into a position to have billions of shares. They should have the smarts and intellect to manage the interest and manage any future raisings to garner the cash the require for PFS and DFS studies along with drilling the resource into higher jorc categories.

KRC and AVL are perfect examples where huge dilution has occurred. I’m not bagging those stocks either because I have a sizeable parcel of AVL but the shares on issue have always been a negative for me. Lets say QEM more than doubled and traded up around 50 cents which I still consider cheap. It would only take 15 million shares placed on market to sophisticated investors at say 40 cents to raise 6 million. So your completely disregarding the advantage that QEM also have.

Also don’t forget QEM are far from late to the party. The VRFB battery market is only at 5% of the current vanadium supply. What is going to happen over the next 3-5 years when the VRFB battery market explodes? QEM have been operating and planning as a private entity for many years and after having 1 on 1 discussions with management they are very serious on the future development of Julie Creek and the potential of supplying vanadium to the VRFB battery market. Whether or not any successful developments of Julia Creek eventuates is speculative and unknown but that’s where the individuals appetite for risk comes in.

The project has the capability to be huge and this is definitely ground floor and highly speculative investing.