TIDMSO4

RNS Number : 3143C

Salt Lake Potash Limited

16 October 2020

 
 16 October 2020   AIM/ASX Code: SO4 
 
 
 SALT LAKE POTASH LIMITED 
------------------------- 
 

September 2020 Quarterly Report and Issue of Shares

Salt Lake Potash Limited (SO4 or the Company) is pleased to present its Quarterly Report for the period ending 30 September 2020. The Company is focussed on rapidly developing the Lake Way SOP Project in Wiluna, Western Australia.

The Company also announces that it will be issuing 1,248,788 new SO4 ordinary shares of no par value ("Ordinary Shares") in consideration for the extension to the Bridge Facility as detailed below.

Quarterly Report Highlights

Lake Way Project continues on schedule

-- At the process plant site concrete foundations poured by Flanco are 97% complete, installation of structural steel supplied by Metro Steel commenced and first carbon steel tanks have been installed by Proweld.

   --    Major vendor procurement packages over 93% committed with fixed costs. 

-- Long lead procurement items have commenced arriving on site including the Veolia crystallisers with associated components and tanks, and transformers from Wilson. Vendor packages currently in transit to site include lump breaker, flotation cells, attritioners, wet screens and centrifuges.

-- Design and procurement of the gas fired power plant continued, and Gas Transport Agreement, Development Agreement and Licence Agreement executed with APA.

-- All permanent buildings are now on site and installed including the permanent village, construction village, warehouse, workshop, administration, reagents, laboratory, ablutions, crib rooms and 4G communications has been installed across site.

-- Development of On-Lake infrastructure continues to progress. Work commenced on the fourth pond train and 62km of trenches have now been completed.

-- The Paleochannel drilling programme continues with the seventh bore completed. All bores have intercepted basal sands in line with the model prediction.

Lake Way Project funding package delivered

   --    Financing package included two components: 

-- US$138m (A$203m) Syndicated Facility Agreement (SFA) with Taurus Mining Finance Fund No.2 L.P (Taurus) and the Clean Energy Finance Corporation (CEFC).

-- A fully underwritten A$98.5m Placement and accelerated non-renounceable entitlement offer (ANREO) at A$0.50/share completed in September 2020.

-- In combination, these funds will enable the Company to complete the funding and deliver the Project on schedule, with first Sulphate of Potash (SOP) production expected in the March quarter 2021.

-- The incorporation of the CEFC into the Taurus SFA provides a strong endorsement of the Company's contribution towards reducing carbon emissions from the global fertiliser and agriculture industries and follows the grant of 'Green Label' certification for debt issued to develop the Project.

-- SO4 is working closely with its debt partners to achieve financial close and is substantially advanced in satisfying remaining conditions precedent, with initial drawdown and repayment of Bridge facility expected in November 2020.

Upcoming milestones/activity

   --    Financial Close and initial SFA drawdown, repayment of Bridge facility. 
   --    Ongoing delivery of major plant components to site. 
   --    Process plant and non-process infrastructure construction continues. 
   --    Paleochannel borefield drilling and pump testing continues. 

On-lake operations

Brine extraction: Trenches

Trench development continued during the quarter with total trench length extended to 62km by the end of September (from 48km at end June quarter).

Paleochannel drilling

During the quarter, paleochannel exploration drilling continued at Lake Way, with brine abstraction bores drilled into the Paleochannel Basal Sand at pads 12, 14 and 23.

Table 1 provides a summary of the completed abstraction bores (see Appendix C for further detail).

Test pumping results to date at pads 18 and 21 are presented in Table 2. Test pumping of the abstraction bores will continue in the current quarter.

Brine grades during test pumping at pad 18 averaged 6,915 mg/L potassium and at pad 21 averaged 7,234 mg/L potassium (BFS bore grade 6,100 mg/L). Brine grade in the weathered basement aquifer at pad 30 located outside the paleochannel (and outside the currently defined Mineral Resource) was 5,170 mg/L potassium.

Table 1: September Quarter Paleochannel drill programme summary

 
                                                                                             Average 
                                                                                              Potassium 
                             Basal                Basal             Airlift                   Grade During 
 Drill               Depth    sand intersection    Sand Thickness    Yield    Test pumping    Pumping 
  Pad    Bore Name    (m)     (mbgl)               (m)               (L/s)     Rate (L/s)     (mg/L) 
------  ----------  ------  -------------------  ----------------  --------  -------------  -------------- 
 Test pump results to date: 
===============================================  ========================================================= 
 8(1)    LYPBB004    114     99 - 111             12                22.6      10             5,370 
 17(1)   LYPPB001    113     95 - 113             18                35        18             7,240 
        ==========  ======  ===================  ================  ========  ============= 
 18      LYPBB006    112.5   88 - 110             22                10        10             6,890 
 21      LYPBB002    114     92 - 111             19                16        12             7,260 
        ==========  ======  ===================  ================  ========  ============= 
 Drilled but test pumping not 
  commenced: 
 12      LYPBB009    113     81 - 109             28                41                       6,380(2) 
        ==========  ======  ===================  ================  ========  ============= 
 14      LYPBB008    108     88 - 103             15                39                       6,770(2) 
 23      LYPBB010    111     92 - 109.5           17.5              33                       6,260(2) 
------  ----------  ------  -------------------  ----------------  --------  -------------  -------------- 
 

Note: 1) Test pumped and reported in the June 2020 Quarter. 2) Potassium Grade from Bores LYPBB008, 9 and 10 are from airlift samples.

During test pumping at pad 21, drawdown was observed in both the shallow and deep monitoring bores at pad 21 as well as in deep monitoring bores on pads 17 and 18, and the monitoring bore at pad 30, some 2.4km to the east of pad 21, drilled into the weathered basement. This is in line with ground water model predictions.

Table 2: Test Pumping Results

 
                           Pad 18 (LYPBB006)   Pad 21 (LYPBB002) 
 Hydraulic conductivity 
  (K m/day)                        7                  6.3 
                          ------------------  ------------------ 
 Aquifer thickness 
  (b m)                           18                  20 
                          ------------------  ------------------ 
 Transmissivity (T 
  m2/day)                         126                 126 
                          ------------------  ------------------ 
 Specific Storage 
  (S)                           0.00005             0.0009 
                          ------------------  ------------------ 
 

The pumping test and drilling results demonstrate:

   --    Lateral continuity of the Paleochannel Basal Sands Aquifer. 

-- Downward brine flow and depressurisation of the overlying Paleochannel Sediment Clays during pumping.

-- Lateral brine flow and depressurisation of the Weathered Basement Aquifer that bounds the paleochannel basal sand during pumping.

   --    High brine grade in the weathered basement aquifer (5,170 mg/L K at Pad 30). 

The contribution of high grade brine inflow from the weathered basement aquifer into the paleochannel basal sands aquifer presents an additional source of brine that was not incorporated in the Mineral Resource Estimate and not incorporated in the production plan underpinning the Ore Reserve.

The results from the paleochannel exploration drilling campaign continue to validate and indicate potential upside to SO4's BFS brine production model in terms of the location, continuity and depth of the paleochannel basal sands and brine grades.

Pond operation

The Stage 1 and 2 pond networks (Trains 1, 2 and 3) both continued to operate at steady state during the September quarter. Brine chemistry across the pond network continues to align with modelled outcomes.

Construction progressed on the fourth pond train and commissioning commenced during the quarter.

Off-Lake Operations

Process Plant construction and procurement

Progress at the process plant and non-process infrastructure site accelerated during the September quarter.

Concrete installation to all wet areas of the process plant including the Dryer foundations was completed, with installed concrete 97% complete at quarter end. It is anticipated that the remaining primary concrete will be completed during October, enabling the contractor to complete concreting for product handling and storage infrastructure and the power station slab and footings.

The bulk of the underground trenched services are now over 50% complete including process plant and utilities area, workshop, laboratories and administration buildings.

Structural steel commenced being erected at site with 19% completion at the end of the quarter. Of note, steel erection for the SOP Crystalliser and Schoenite Crystalliser support structures including fit out of all grid mesh and hand railing was completed.

Erection of the Conveyor truss sections commenced with preliminary fit out of stringers and take up towers now well advanced on certain conveyors.

Surge bin and structure, grid mesh and handrails are well advanced.

In parallel, assembly and welding of the stainless steel Crystallisers and Leach tank continued, with the Leach tank well advanced in its final position. The assembly and welding of the Carbon steel tanks commenced during the period with 22% completion at the end of the quarter.

Procurement advanced during the quarter with the project now over 93% procured for major packages and all key vendor contracts executed.

Long lead time items are arriving and being assembled at site. The Veolia crystallisers arrived at the beginning of August, three weeks ahead of schedule.

Many other packages including Dryer, Screens, Centrifuges, Lump breaker, Flotation cells and Attritioners are currently enroute with the Lump breaker, Flotation cells and Attritioners due on site in October for installation in Q4 2020.

Smaller packages including conveyor equipment and weighing systems are also now on site.

Non-process Infrastructure

During the quarter, a Gas Transport Agreement, Development Agreement, and Licence Agreement was executed with APA. Design and approvals for the gas lead-in between the Goldfields Gas Pipeline and the Lake Way site progressed, and procurement of the line pipe and other long-lead items also commenced during the quarter.

Design and procurement of the gas fired power plant continued during the quarter. Several Cummins HSK78 gas generating sets were despatched from the United States and will land in Western Australia in the current quarter.

Construction of the warehouse and workshop facility continued during the quarter, with minor service works still to be installed. The Administration complex, onsite laboratories, crib room, and ablutions were all installed during the quarter.

The site VHF radio system has been installed and commissioned, providing significantly improved communication for work crews across the Lake Way site.

Commissioning of the Waste Water Treatment Plant (WWTP) commenced during the quarter. The WWTP currently supports the SO4 Village and will also be connected to the site buildings.

Approvals

SO4 continued the advancement of the remaining permitting required to support full-scale operations with ongoing liaison in regard to the Environmental Review Document (ERD) submitted. The EPA has determined that the full project scope requires formal assessment with no public review. Board members of the EPA visited the site during the quarter and the Company received advice from EPA services. A revised ERD in response to these comments was submitted. The Company is not aware of any major impediment to obtaining EPA approval.

Some surveys, studies and management plans were updated as part of this revised submission including:

   --    Flood study modelling 
   --    Salt Dissipation study 
   --    Mine Closure Plan 
   --    Tecticornia Monitoring and Management Plan 

In addition to the EPA submission, the Company continues to seek other project approvals as required.

Project funding package

During the quarter, the Company executed a US$138m (A$203m) debt financing package and completed a fully underwritten equity placement (Placement) and accelerated non-renounceable entitlement offer (ANREO) for A$98.5m at A$0.50/share (Equity Raising).

Debt Facility

In August 2020, the Company executed the SFA which is a loan agreement between SO4 (and its subsidiaries), Taurus and CEFC. Key terms of the facility are detailed in Table 3.

Table 3: Syndicated facility agreement

 
 Facility Amount                 US$138m (Taurus US$91m, CEFC US$47m) 
------------------------------  ---------------------------------------------- 
 Tenor                           4 Years (30 September 2024) 
------------------------------  ---------------------------------------------- 
 Availability Period             Financial close until 30 June 2021 
------------------------------  ---------------------------------------------- 
 Interest rate                   9.0% per annum payable quarterly 
                                  on drawn funds 
------------------------------  ---------------------------------------------- 
 Upfront Fee                     2.75% 
------------------------------  ---------------------------------------------- 
 Undrawn Commitment fee          2.5% per annum 
------------------------------  ---------------------------------------------- 
 Tranches                        Bridge: US$45m currently drawn 
                                  SFA: US$138m (including Bridge repayment) 
------------------------------  ---------------------------------------------- 
 Amortisation/Repayment          No scheduled repayments or debt amortisation 
                                  until 31 March 2022 (approximately 
                                  12 months after first production) 
 
                                  Additional cash sweep of 70% of surplus 
                                  cash available for debt service accelerating 
                                  SO4's deleveraging 
------------------------------  ---------------------------------------------- 
 Debt Service Reserve Account    A$10m prior to project completion, 
                                  thereafter greater of A$10m and principal 
                                  and interest payable in next 6 months 
------------------------------  ---------------------------------------------- 
 Bullet                          US$92m (67%) at 30 September 2024 
                                  (less early repayments) 
------------------------------  ---------------------------------------------- 
 Refinancing Restrictions        Nil 18 months after signing 
------------------------------  ---------------------------------------------- 
 

Conditions for Financial Close

Since execution of the SFA, the Company has been working closing with the Lenders to satisfy the conditions for initial drawdown which are standard market conditions including signoff on cost to complete, confirmation of the base case financial model and deposit of equity raise funds. Substantial progress has been made and the remaining conditions are expected to be satisfied enabling initial drawdown and repayment of the Bridge facility in November 2020.

Taurus has agreed to extend the date for repayment of the Bridge facility from 15 October 2020 to 30 November 2020. SO4 will issue 1,248,788 Ordinary Shares at a deemed price of A$0.502 per Ordinary Share in consideration for the extension to the Bridge facility.

Repayment

The Facility must be repaid by the termination date of 30 September 2024.

Quarterly amortization commences 31 March 2022, approximately 12 months after planned first production, with minimum amortization totalling US$42.9m before a cash sweep for excess cash.

The cash sweep is 70% of the cash available after debt service (interest and scheduled repayments). The cash sweep is forecast to substantially accelerate de-leveraging and is a mechanism that is designed to improve the refinancing risk associated with the substantial bullet repayment at maturity.

Early Repayment

The Facility can be repaid without penalty on or after 18 months from execution of the SFA. Should the Facility be repaid within 18 months from execution, there is a make good requirement on the interest that would otherwise be payable until that date.

Renewable Energy Commitment

As part of the financing with CEFC, SO4 has committed to powering part of the Lake Way Project with renewable energy through a 5MW solar farm and an 2MW battery. Third parties have expressed interest in delivering the solar facility at no upfront cost to SO4 under a build, own, operate (BOO) model. The solar facility will reduce the overall cost of power at the Project.

In addition, SO4 is also investigating the potential to improve project economics and increase renewable energy penetration with on-site wind power and other sustainable initiatives. These initiatives all form part of SO4's goal to set new sustainable benchmarks for Australian industry and demonstrate how resources projects can be decarbonised economically.

The introduction of CEFC into the Taurus syndicated facility is a strong endorsement of the green credentials of the Project and its contribution towards reducing carbon emissions from the global fertiliser and agricultural sectors.

Taurus Mandate

In 2019, SO4 mandated Taurus to provide project financing with a staged facility for development of the Lake Way Project. Following execution of the SFA, Taurus holds a 2% Net Revenue Royalty for the Project (including the Royalty for the Bridge facility) in accordance with terms of its mandate and was granted 15 million options at $0.564 and expiring 28 September 2024.

About the Lenders

Taurus provides debt and equity funding to the mining sector globally. Taurus has significant experience in the financing of mining projects globally across the commodity spectrum including the precious metals, base metals, steel making raw materials and industrial metals space.

The CEFC is a Commonwealth statutory authority that was established to facilitate increased flows of finance into clean energy projects to address some of Australia's toughest emissions challenges - in agriculture, energy generation and storage, infrastructure, property, transport and waste. The CEFC is responsible for investing A$10 billion in clean energy projects on behalf of the Australian Government and works to deliver a positive return for taxpayers across its portfolio.

Equity

As part of the project financing package, the Company successfully completed a fully underwritten A$98.5m equity raise by way of a Placement and ANREO (together, Equity Raising).

The Equity Raising consisted of the issue of 197m new ordinary shares (New Shares) at a fixed offer price of A$0.50 per share (Offer Price). Under the ANREO, eligible shareholders were invited to apply for 1 New Share for every 3.2 shares held as at the Record Date.

Euroz Securities Limited and Canaccord Genuity (Australia) Limited were appointed as joint lead managers and joint underwriters and bookrunners to the Equity Raising.

Convertible Notes

In July 2020, the Company raised A$15m through the placement of unsecured convertible notes. The notes were structured as deferred equity with zero coupon and mandatory conversion into equity at the lower of A$0.45 per share or a 5% discount to any future equity raising of at least A$10m. The Convertible Notes were exercised following completion of the institutional component of the Equity Raising and converted into equity at A$0.45 per share.

Settlement and Dealings

Application has been made to the AIM Market of London Stock Exchange Plc (AIM) for the admission of the 1,248,788 new Ordinary Shares, which rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading. Dealings on AIM are expected to commence at 8:00am on or around 21 October 2020 (Admission).

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules (DTRs), following Admission, SO4 will have 585,312,487 Ordinary Shares in issue with voting rights attached. Salt Lake does not hold any shares in treasury. This figure of 585,312,487 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

 
 Tony Swiericzuk / Richard Knights   Salt Lake Potash Limited                    Tel: +61 8 6559 5800 
 Colin Aaronson / Seamus Fricker     Grant Thornton UK LLP (Nominated Adviser)   Tel: +44 (0) 20 7383 5100 
 Derrick Lee / Peter Lynch           Cenkos Securities plc (Joint Broker)        Tel: +44 (0) 131 220 6939 
 Rupert Fane / Ernest Bell           Hannam & Partners (Joint Broker)            Tel: +44 (0) 20 7907 8500 
 

For further information or to view a full version of this announcement, including diagrams, please visit

https://www.so4.com.au/asx-announcements/   or contact: 

This announcement has been authorised for release by the Board of Directors.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

APPIX A - COMPETENT PERSON STATEMENT AND DISCLAIMER

Competent Persons Statement

The information in this announcement that relates to Exploration Results for Lake Way is based on, and fairly represents, information reviewed by Mr Ben Jeuken, who is a member of the Australasian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake Potash Limited's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Salt Lake Potash Limited, which could cause actual results to differ materially from such statements. Salt Lake Potash Limited makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.

APPIX B - DISCLOSURES IN ACCORDANCE WITH ASX LISTING RULE 5.3

Summary of Mining Tenements

 
                                 Project                                      Status                                         Type of Change                                    License Number                                    Interest                                     Interest 
                                                                                                                                                                                                                                  (%)                                          (%) 
                                                                                                                                                                                                                                  30-Jun-20                                    30-Sep-20 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Western 
                                 Australia 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake Way 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central                                      Granted                                        -                                                 E53/1878                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 East                                         Granted                                        -                                                 E53/2057                                          100%                                         100% 
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                                 South                                        Granted                                        -                                                 E53/1897                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E53/2059                                          100%                                         100% 
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                                 South                                        Granted                                        -                                                 E53/2060                                          100%                                         100% 
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                                 West                                         Application                                    -                                                 L53/208                                           100%                                         100% 
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                                 Central                                      Application                                    -                                                 M53/1102                                          100%                                         100% 
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                                 Central                                      Application                                    -                                                 M53/1103                                          100%                                         100% 
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                                 Central                                      Application                                    -                                                 M53/1104                                          100%                                         100% 
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                                 Central                                      Application                                    -                                                 M53/1105                                          100%                                         100% 
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                                 Central                                      Application                                    -                                                 M53/1106                                          100%                                         100% 
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                                 Central                                      Application                                    -                                                 M53/1107                                          100%                                         100% 
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                                 East                                         Application                                    -                                                 M53/1109                                          100%                                         100% 
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                                 Central                                      Granted                                        -                                                 E53/1862                                          100%                                         100% 
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                                 West                                         Granted                                        -                                                 E53/1863                                          100%                                         100% 
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                                 North                                        Application                                    -                                                 E53/1905                                          100%                                         100% 
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                                 North                                        Application                                    -                                                 E53/1952                                          100%                                         100% 
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                                 West                                         Application                                    -                                                 E53/1966                                          100%                                         100% 
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                                 North                                        Application                                    -                                                 E53/2049                                          100%                                         100% 
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                                 North                                        Granted                                        -                                                 P53/1642                                          100%                                         100% 
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                                 West                                         Granted                                        -                                                 P53/1643                                          100%                                         100% 
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                                 West                                         Granted                                        -                                                 P53/1644                                          100%                                         100% 
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                                 West                                         Granted                                        -                                                 P53/1645                                          100%                                         100% 
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                                 Central                                      Granted                                        -                                                 P53/1666                                          100%                                         100% 
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                                 Central                                      Granted                                        -                                                 P53/1667                                          100%                                         100% 
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                                 Central                                      Granted                                        -                                                 P53/1668                                          100%                                         100% 
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                                 North                                        Granted                                        -                                                 M53/121                                           100%                                         100% 
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                                 West                                         Granted                                        -                                                 M53/122                                           100%                                         100% 
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                                 West                                         Granted                                        -                                                 M53/123                                           100%                                         100% 
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                                 West                                         Granted                                        -                                                 M53/147                                           100%                                         100% 
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                                 Central                                      Granted                                        -                                                 M53/253                                           100%                                         100% 
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                                 Central                                      Granted                                        -                                                 M53/796                                           100%                                         100% 
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                                 Central                                      Granted                                        -                                                 M53/797                                           100%                                         100% 
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                                 Central                                      Granted                                        -                                                 M53/798                                           100%                                         100% 
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                                 Central                                      Granted                                        -                                                 M53/910                                           100%                                         100% 
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                                 West                                         Granted                                        -                                                 L53/51                                            100%                                         100% 
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                                 West                                         Granted                                        Granted                                           L53/207                                           -                                            100% 
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                                 West                                         Granted                                        -                                                 L53/211                                           100%                                         100% 
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                                 North                                        Granted                                        -                                                 L53/212                                           100%                                         100% 
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                                 West                                         Granted                                        Granted                                           L53/214                                           -                                            100% 
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                                 West                                         Granted                                        Granted                                           L53/215                                           -                                            100% 
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                                 North                                        Granted                                        Granted                                           L53/216                                           -                                            100% 
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                                 West                                         Application                                    -                                                 L53/217                                           100%                                         100% 
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                                 West                                         Granted                                        -                                                 L53/218                                           100%                                         100% 
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                                 West                                         Application                                    -                                                 L53/210                                           100%                                         100% 
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                                 West                                         Application                                    -                                                 L53/219                                           100%                                         100% 
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                                 South                                        Application                                    -                                                 L53/225                                           100%                                         100% 
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                                 West                                         Application                                    -                                                 L53/226                                           100%                                         100% 
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                                 West                                         Application                                    -                                                 L53/228                                           100%                                         100% 
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                                 West                                         Application                                    Application                                       L53/229                                           -                                            100% 
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                                 West                                         Granted                                        -                                                 G53/24                                            100%                                         100% 
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                                 West                                         Granted                                        Granted                                           G53/25                                            -                                            100% 
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                                 Lake Wells 
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                                 Central                                      Granted                                        -                                                 E38/2710                                          100%                                         100% 
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                                 South                                        Granted                                        -                                                 E38/2821                                          100%                                         100% 
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                                 North                                        Granted                                        -                                                 E38/2824                                          100%                                         100% 
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                                 Outer East                                   Granted                                        -                                                 E38/3055                                          100%                                         100% 
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                                 Single 
                                  Block                                       Granted                                        -                                                 E38/3056                                          100%                                         100% 
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                                 Outer West                                   Granted                                        -                                                 E38/3057                                          100%                                         100% 
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                                 North West                                   Granted                                        -                                                 E38/3124                                          100%                                         100% 
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                                 West                                         Granted                                        -                                                 L38/262                                           100%                                         100% 
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                                 East                                         Granted                                        -                                                 L38/263                                           100%                                         100% 
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                                 South West                                   Granted                                        -                                                 L38/264                                           100%                                         100% 
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                                 South                                        Granted                                        -                                                 L38/287                                           100%                                         100% 
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                                 South 
                                  Western                                     Granted                                        -                                                 E38/3247                                          100%                                         100% 
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                                 South                                        Granted                                        -                                                 M38/1278                                          100%                                         100% 
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                                 Central                                      Application                                    -                                                 E38/3380                                          100%                                         100% 
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                                 North                                        Application                                    -                                                 E38/3469                                          100%                                         100% 
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                                 Central                                      Application                                    -                                                 E38/3470                                          100%                                         100% 
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                                 Lake 
                                 Ballard 
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                                 West                                         Granted                                        -                                                 E29/912                                           100%                                         100% 
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                                 East                                         Granted                                        -                                                 E29/913                                           100%                                         100% 
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                                 North                                        Granted                                        -                                                 E29/948                                           100%                                         100% 
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                                 South                                        Granted                                        -                                                 E29/958                                           100%                                         100% 
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                                 South East                                   Granted                                        -                                                 E29/1011                                          100%                                         100% 
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                                 South East                                   Granted                                        -                                                 E29/1020                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South East                                   Granted                                        -                                                 E29/1021                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South East                                   Granted                                        -                                                 E29/1022                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E29/1067                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E29/1068                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 East                                         Granted                                        -                                                 E29/1069                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North                                        Granted                                        -                                                 E29/1070                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake Irwin 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 West                                         Granted                                        -                                                 E37/1233                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central                                      Granted                                        -                                                 E39/1892                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 East                                         Granted                                        -                                                 E38/3087                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North                                        Granted                                        -                                                 E37/1261                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central 
                                  East                                        Granted                                        -                                                 E38/3113                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E39/1955                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North West                                   Granted                                        -                                                 E37/1260                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South West                                   Granted                                        -                                                 E39/1956                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake 
                                 Minigwal 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 West                                         Granted                                        -                                                 E39/1893                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 East                                         Granted                                        -                                                 E39/1894                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central                                      Granted                                        -                                                 E39/1962                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central 
                                  East                                        Granted                                        -                                                 E39/1963                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E39/1964                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South West                                   Granted                                        -                                                 E39/1965                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake 
                                 Marmion 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North                                        Granted                                        -                                                 E29/1000                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central                                      Granted                                        -                                                 E29/1001                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E29/1002                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 West                                         Granted                                        -                                                 E29/1005                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 West                                         Application                                    -                                                 E29/1069                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake 
                                 Noondie 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North                                        Granted                                        -                                                 E57/1062                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central                                      Granted                                        -                                                 E57/1063                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E57/1064                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 West                                         Granted                                        -                                                 E57/1065                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 East                                         Granted                                        -                                                 E36/932                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central                                      Granted                                        Granted                                           E36/984                                           -                                            100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central                                      Application                                    -                                                 E36/985                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake 
                                 Barlee 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North                                        Granted                                        -                                                 E30/495                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Central                                      Granted                                        -                                                 E30/496                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E77/2441                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake 
                                 Raeside 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North                                        Granted                                        -                                                 E37/1305                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake 
                                 Austin 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North                                        Application                                    -                                                 E21/205                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 West                                         Application                                    -                                                 E21/206                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 East                                         Granted                                        -                                                 E58/529                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 E58/530                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South West                                   Granted                                        -                                                 E58/531                                           100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Northern 
                                  Territory 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Lake Lewis 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 South                                        Granted                                        -                                                 EL 29787                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 North                                        Granted                                        -                                                 EL 29903                                          100%                                         100% 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
                                 Project                                      Status                                         Type of Change                                    License Number                                    Interest 
                                                                                                                                                                                                                                  (%) 
-------------------------------------------  ---------------------------------------------  ------------------------------------------------  ------------------------------------------------  -------------------------------------------  ------------------------------------------- 
 

Related Party Payments

During the quarter ended 30 September 2020, the Company made payments of $153,000 to related parties and their associates. These payments relate to existing remuneration arrangements (executive salaries, non-executive director fees and superannuation).

APPIX C - PALEOCHANNEL DRILLING SUMMARY

During the quarter, paleochannel exploration drilling continued at Lake Way, including:

   --    Brine abstraction bores were drilled into the Paleochannel Basal Sand at pads 12, 14 and 23. 
   --    Monitoring piezometers were installed into the Paleochannel Basal Sand at Pad 14. 

-- Monitoring piezometers were installed into shallower Paleovalley Sediment Clay at Pads 12 and 14.

-- A regional monitoring piezometer was installed at pad 30, located 2.4km to the east of pad 21. This piezometer is completed in weathered basement outside the paleochannel.

 
                                                                                                                            Constant 
                                                                                                                             rate 
                                                                                              Abstraction                    test 
                                          Total                    Basal          Basal        Bore                          pumping 
                                          Drilled     Geological   sand           Sand         Airlift      Potassium        flow        Observed 
 Drill   Bore                             Depth       Unit         intersection   Thickness    Yield        Concentration    rate        Drawdown 
  Pad     Name       Easting   Northing   (m)(1)      Screened     (mbgl)         (m)          (L/s)        (mg/L)           (L/s)       (m) 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                    Paleochannel 
                                                           Basal           99 - 
 8       LYPBB004     251750    7028285       114           Sand            111          12          22.6           5,630           10      15.79 
                                                    Paleochannel 
                                                           Basal           99 - 
 8       LYPZB004a    251756    7028272       114           Sand            111          12                         5,340                   10.93 
                                                    Paleochannel                                                                  Bore 
 8       LYPZB004c    251749    7028295        71           Clay                                                    4,600       failed        n/a 
                                                    Paleochannel 
 8       LYPZB004b    251746    7028294        47           Clay                                                    4,100                    0.05 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                                                                                            Monitoring 
                                                    Paleochannel                                                                  bore 
                                                           Basal           74 -                                                No test 
 9       LYPZP003a    251082    7028856        97           Sand             95          21                          5390      planned 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                    Paleochannel 
                                                           Basal           95 - 
 17      LYPPB001     239815    7040118       113           Sand            113          18            35           7,240         17.7      26.44 
                                                    Paleochannel 
                                                           Basal           95 - 
 17      LYPZB001a    239807    7040112       115           Sand            113          18                         7,260                   21.45 
                                                    Paleochannel 
 17      LYPZB001b    239810    7040121        72           Clay                                                    6,890                     6.8 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                    Paleochannel 
                                                           Basal           88 - 
 18      LYPZB006a    238340    7042468       112           Sand            110          22            10           6,960           10       38.1 
                                                    Paleochannel 
                                                           Basal           88 - 
 18      LYPZB006b    238341    7042441     112.5           Sand            110          22                         6,890                   11.42 
                                                    Paleochannel 
 18      LYPBB006     238768    7041324        64           Clay                                                    6,300                 0.00(2) 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                    Paleochannel 
                                                           Basal           92 - 
 21      LYPBB002     238759    7041333       114           Sand            111          19            16           7,230           12         59 
                                                    Paleochannel 
                                                           Basal           92 - 
 21      LYPZB002a    238769    7041332       108           Sand            111          19                         7,200                      20 
                                                    Paleochannel 
 21      LYPZB002b    238779    7041335        68           Clay                                                    6,320                    0.04 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                    Paleochannel 
                                                           Basal           86 -                                                Not yet 
 12      LYPBB009     247517    7032027       113           Sand            110          24            41           6,380       tested 
                                                    Paleochannel           70 -                                 No result 
 12      LYPZB009a    247518    7032031        76           Clay             76                                       yet 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                    Paleochannel 
                                                           Basal           88 -                                                Not yet 
 14      LYPBB008     244523    7035593       108           Sand            103          15            39           6,670       tested 
                                                    Paleochannel 
                                                           Basal           88 - 
 14      LYPZB008a    244524    7035602       108           Sand            103          15                         6,650 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                    Paleochannel 
                                                           Basal           96 -                                                Not yet 
 23      LYPBB010     248494    7030923       112           Sand          109.5        13.5            33           6,260       tested 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
                                                                                                                            Monitoring 
                                                                                                                                  bore 
                                                       Weathered                                                               No test 
 30      LYPZB030     241106    7041418      60.4       basement                                                    5,170      planned 
------  ----------  --------  ---------  --------  -------------  -------------  ----------  ------------  --------------  -----------  --------- 
 

Note: 1) Drilled depth equates to end of hole and all holes are vertical. LYPBB denotes pumping bore. LYPZB denotes piezometer.

2) Pumping test at Pad 18 was short duration and insufficient to induce drawdown in the clay bore.

APPIX D - JORC CODE, 2012 EDITION - TABLE 1

Section 1 - Sampling Techniques and Data

 
 Criteria            JORC Code explanation                                          Commentary 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Sampling                                                                           Drill cuttings were sampled 
  techniques          *    Nature and quality of sampling (e.g. cut channels,       every 2m. The mud rotary 
                           random chips, or specific specialised industry           method used means that the 
                           standard measurement tools appropriate to the            samples are only considered 
                           minerals under investigation, such as downhole gamma     representative of the geology 
                           sondes, or handheld XRF instruments, etc.). These        which is sufficient for the 
                           examples should not be taken as limiting the broad       purposes of planning the 
                           meaning of sampling.                                     construction of the brine 
                                                                                    pumping bore in this instance. 
 
                      *    Include reference to measures taken to ensure sample     A brine sample and duplicate 
                           presentively and the appropriate calibration of any      were taken from every bore 
                           measurement tools or systems used.                       after development. Brine 
                                                                                    samples and duplicates were 
                                                                                    taken from the pumping bore 
                      *    Aspects of the determination of mineralisation that      at 1 hour after pumping commenced, 
                           are Material to the Public Report.                       24 hours after pumping commenced 
                                                                                    and every 24 hours for the 
                                                                                    remainder of the test duration. 
                      *    In cases where 'industry standard' work has been done, 
                           this would be relatively simple (e.g. 'reverse           Samples were taken manually 
                           circulation drilling was used to obtain 1 m samples      from a sampling valve on 
                           from which 3 kg was pulverised to produce a 30 g         the side of the pump headworks. 
                           charge for fire assay'). In other cases, more            Prior to taking the sample 
                           explanation may be required, such as where there is      the bottle was rinsed with 
                           coarse gold that has inherent sampling problems.         brine from the pumping bore. 
                           Unusual commodities or mineralisation types (e.g. 
                           submarine nodules) may warrant disclosure of detailed    Samples were analysed for 
                           information.                                             K, Mg, Ca, Na, Cl, SO(4) 
                                                                                    , HCO(3) , NO(3) , pH, TDS 
                                                                                    and specific gravity. 
 
                                                                                    Test pumping entailed pumping 
                                                                                    from between 80 and 90m below 
                                                                                    ground level depending on 
                                                                                    the bore (4m above the top 
                                                                                    of the screens) using a 
                                                                                    submersible 
                                                                                    electric pump. 
 
                                                                                    Water levels in the pumping 
                                                                                    bore and monitoring bores 
                                                                                    were measured manually and 
                                                                                    by pressure transducers with 
                                                                                    barometric pressure and brine 
                                                                                    density correction. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Drilling                                                                           Mud rotary drilling was used 
  techniques           *    Drill type (e.g. core, reverse circulation, open-hole    in all cases. The pumping 
                            hammer, rotary air blast, auger, Bangka, sonic, etc.)    bores at Pads 12, 14 and 
                            and details (e.g. core diameter, triple or standard      23 were drilled to 113m, 
                            tube, depth of diamond tails, face-sampling bit or       108m and 112m respectively 
                            other type, whether core is oriented and if so, by       at 15" diameter and completed 
                            what method, etc.).                                      with 10" PVC casing and wire 
                                                                                     wrap screens, 18m of screen 
                                                                                     was placed in the Pad 12 
                                                                                     bore from 86m to 110m, Pad 
                                                                                     14 bore from 86mbgl to 104mbgl 
                                                                                     and Pad 23 bore from 93 - 
                                                                                     111mbgl. 
 
                                                                                     In all pumping bores the 
                                                                                     annulus was gravel packed 
                                                                                     with 1.6 - 3.2mm washed gravel 
                                                                                     from total depth to 10m above 
                                                                                     the screens then a 10m cement 
                                                                                     plug was installed from and 
                                                                                     the bore backfilled with 
                                                                                     gravel to surface where a 
                                                                                     6m sanitary cement seal was 
                                                                                     emplaced. 
 
                                                                                     The deep monitoring bore 
                                                                                     Pad 14 was drilled to 106m, 
                                                                                     at a diameter of 9 7/8" and 
                                                                                     cased with 6" slotted at 
                                                                                     the base and blank PVC, the 
                                                                                     bore was gravel packed to 
                                                                                     the surface using 1.6 - 3.2mm 
                                                                                     washed gravel. A 6m sanitary 
                                                                                     cement seal was emplaced 
                                                                                     at the surface. 
                                                                                     No deep monitoring bores 
                                                                                     were installed at Pads 12 
                                                                                     and 23. At pad 12 the old 
                                                                                     WMC bore 3_4 was deemed to 
                                                                                     be sufficient for monitoring 
                                                                                     purposes whilst at Pad 23 
                                                                                     based on the test pumping 
                                                                                     results to date the proximity 
                                                                                     of the deep abstraction bore 
                                                                                     at Pad 12 (1.6km) and the 
                                                                                     deep monitoring bore at Pad 
                                                                                     9 (3.3km) were deemed to 
                                                                                     be sufficient. 
 
                                                                                     The clay monitoring bore 
                                                                                     at Pad 12 was drilled to 
                                                                                     a depth of 76m at a diameter 
                                                                                     of 6" and cased with 6m of 
                                                                                     slotted 50mm PVC at the base 
                                                                                     and blank 50mm PVC to the 
                                                                                     surface. The bores were gravel 
                                                                                     packed with 1.6 - 3.2mm washed 
                                                                                     gravel and a neat 10m cement 
                                                                                     seal with 5% bentonite was 
                                                                                     installed via tremmie 5m 
                                                                                     above the 6m slotted PVC 
                                                                                     section. A 6m sanitary cement 
                                                                                     seal was emplaced at the 
                                                                                     surface in all cases. 
 
                                                                                     The regional monitoring bore 
                                                                                     at pad 30 was drilled to 
                                                                                     60.4mbgl at 6" diameter. 
                                                                                     The bore was completed with 
                                                                                     6m of slotted 50mm PVC at 
                                                                                     the base and blank PVC to 
                                                                                     the surface. The bore was 
                                                                                     gravel packed with 1.6 - 
                                                                                     3.2mm washed gravel to 6m 
                                                                                     from the surface from where 
                                                                                     a cement seal was emplaced 
                                                                                     to the surface. 
 
                                                                                     All bores were developed 
                                                                                     using airlift techniques 
                                                                                     including surging until the 
                                                                                     discharge was clear of drill 
                                                                                     muds and sand. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Drill sample                                                                       Drill cuttings were collected 
  recovery             *    Method of recording and assessing core and chip          at the top of the hole using 
                            sample recoveries and results assessed.                  a sieve every 2m. Chip trays 
                                                                                     were also completed for future 
                                                                                     reference. 
                       *    Measures taken to maximise sample recovery and ensure 
                            representative nature of the samples.                    The sample provides an indication 
                                                                                     of the lithology only. There 
                                                                                     is not a relationship between 
                       *    Whether a relationship exists between sample recovery    the lithology and brine grade. 
                            and grade and whether sample bias may have occurred 
                            due to preferential loss/gain of fine/coarse             Flow and grade cannot be 
                            material.                                                sampled during drilling when 
                                                                                     the mud rotary method is 
                                                                                     used. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Logging                                                                            The geological logging is 
                       *    Whether core and chip samples have been geologically    sufficient for the purposes 
                            and geotechnically logged to a level of detail to       of identifying variations 
                            support appropriate Mineral Resource estimation,        in sand/ clay and silt fraction 
                            mining studies and metallurgical studies.               within the paleochannel lithology. 
 
                                                                                    For a brine abstraction project, 
                       *    Whether logging is qualitative or quantitative in       the key parameters are the 
                            nature. Core (or costean, channel, etc.) photography.   hydraulic conductivity and 
                                                                                    storativity of the host rock, 
                                                                                    which will be determined 
                       *    The total length and percentage of the relevant         during test pumping of the 
                            intersections logged.                                   bores. 
 
                                                                                    The logging is qualitative. 
 
                                                                                    The entire bore depth was 
                                                                                    logged in every case. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Sub-sampling                                                                       Not applicable, mud rotary 
  techniques           *    If core, whether cut or sawn and whether quarter,        drilling. 
  and sample                half or all core taken. 
  preparation                                                                        Not applicable, cutting sampled 
                                                                                     at the borehead only. 
                       *    If non-core, whether riffled, tube sampled, rotary 
                            split, etc. and whether sampled wet or dry.              The brine samples were taken 
                                                                                     after airlift development 
                                                                                     when each bore was clear 
                       *    For all sample types, the nature, quality and            of drilling mud and residual 
                            appropriateness of the sample preparation technique.     sand. 
 
                                                                                     Brine samples and duplicates 
                       *    Quality control procedures adopted for all               were taken during the test 
                            sub-sampling stages to maximise representivity of        pumping at approximately 
                            samples.                                                 11am each day of the test 
                                                                                     pump in order to identify 
                                                                                     any variation in brine grade 
                       *    Measures taken to ensure that the sampling is            during the test pump duration. 
                            representative of the insitu material collected, 
                            including for instance results for field                 All the samples taken were 
                            duplicate/second-half sampling.                          incorporated into a rigorous 
                                                                                     QA / QC program in which 
                                                                                     Standards and Duplicates 
                       *    Whether sample sizes are appropriate to the grain        were taken. The samples were 
                            size of the material being sampled.                      taken in sterile plastic 
                                                                                     bottles of 125ml or 250ml 
                                                                                     capacity. The samples were 
                                                                                     labelled with the alphanumeric 
                                                                                     code Y20001, Y80002 ...etc. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Quality of                                                                         The brine samples were sent 
  assay data           *    The nature, quality and appropriateness of the           to Bureau Veritas Laboratories 
  and laboratory            assaying and laboratory procedures used and whether      in Perth, WA with the duplicates 
  tests                     the technique is considered partial or total.            being held by SO4. Every 
                                                                                     10th duplicate was sent to 
                                                                                     Intertek, an alternate laboratory 
                       *    For geophysical tools, spectrometers, handheld XRF       for comparison purposes. 
                            instruments, etc., the parameters used in determining 
                            the analysis including instrument make and model,        No analysis was undertaken 
                            reading times, calibrations factors applied and their    with geophysical tools. 
                            derivation, etc. 
                                                                                     QA/ QC procedures are considered 
                                                                                     acceptable for this type 
                       *    Nature of quality control procedures adopted (e.g.       exploration and sampling. 
                            standards, blanks, duplicates, external laboratory 
                            checks) and whether acceptable levels of accuracy        Samples and their duplicates 
                            (i.e. lack of bias) and precision have been              have been compared for their 
                            established.                                             relative difference from 
                                                                                     the mean and the individual 
                                                                                     charge balance. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Verification                                                                       Not applicable for brine 
  of sampling          *    The verification of significant intersections by        sampling. 
  and assaying              either independent or alternative company personnel. 
                                                                                    Not applicable, however monitoring 
                                                                                    bores have been drilled to 
                       *    The use of twinned holes.                               measure changes in water 
                                                                                    levels during test pumping. 
 
                       *    Documentation of primary data, data entry procedures,   All sampling and assaying 
                            data verification, data storage (physical and           is well documented and contained 
                            electronic) protocols.                                  on SO4's internal database. 
 
                                                                                    No adjustments have been 
                       *    Discuss any adjustment to assay data.                   made to assay data. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Location                                                                           All bores locations and heights 
  of data points       *    Accuracy and quality of surveys used to locate drill     on pads 8, 9, 17, 18, 21 
                            holes (collar and down-hole surveys), trenches, mine     have been surveyed by a qualified 
                            workings and other locations used in Mineral Resource    surveyor, the coordinates 
                            estimation.                                              are considered accurate to 
                                                                                     +/- 20mm. The surveyed heights 
                                                                                     were measured at the ground 
                       *    Specification of the grid system used.                   surface and at the top of 
                                                                                     casing and are considered 
                                                                                     accurate to +/-50mm, these 
                       *    Quality and adequacy of topographic control.             variations are considered 
                                                                                     sufficient for this application. 
 
                                                                                     All bores at pad locations 
                                                                                     12, 14, 30 and 23 have been 
                                                                                     surveyed using a hand held 
                                                                                     GPS, when a surveyor is available 
                                                                                     these bores will be resurveyed 
                                                                                     as above. 
 
                                                                                     The grid system is the Australian 
                                                                                     National Grid Zone MGA 51 
                                                                                     (GDA 94). 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Data spacing                                                                       The results provided represent 
  and distribution     *    Data spacing for reporting of Exploration Results.       a single point at each bore. 
 
                                                                                     Sample compositing not applicable 
                       *    Whether the data spacing and distribution is             . 
                            sufficient to establish the degree of geological and 
                            grade continuity appropriate for the Mineral Resource 
                            and Ore Reserve estimation procedure(s) and 
                            classifications applied. 
 
 
                       *    Whether sample compositing has been applied. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Orientation                                                                        The target aquifers are contained 
  of data in           *    Whether the orientation of sampling achieves unbiased   within paleovalleys incised 
  relation                  sampling of possible structures and the extent to       into the granitic or greenstone 
  to geological             which this is known, considering the deposit type.      basement. There are no structural 
  structure                                                                         controls that impact brine 
                                                                                    flow within the basal sand 
                       *    If the relationship between the drilling orientation    aquifer. 
                            and the orientation of key mineralised structures is 
                            considered to have introduced a sampling bias, this     Geological influence on the 
                            should be assessed and reported if material.            brine is limited to the aquifer 
                                                                                    parameters of the host rock, 
                                                                                    namely the hydraulic conductivity, 
                                                                                    total porosity and storativity. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Sample security                                                                    SO4 field hydrogeologists 
                       *    The measures taken to ensure sample security.            were responsible for collecting, 
                                                                                     labelling and recording brine 
                                                                                     samples prior to shipping 
                                                                                     to the BV lab and the SO4 
                                                                                     offices in Perth. The security 
                                                                                     measures for the material 
                                                                                     and type of sampling at hand 
                                                                                     was appropriate. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 Audits or                                                                          No audits or reviews of sampling 
  reviews              *    The results of any audits or reviews of sampling         techniques and data have 
                            techniques and data.                                     been undertaken. 
------------------  -------------------------------------------------------------  ----------------------------------- 
 

Section 2 - Reporting of exploration results

 
 Criteria                  JORC Code explanation                                             Commentary 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Mineral tenement                                                                            Bore Pads 12, 14, 17, 21 
  and land                   *    Type, reference name/number, location and ownership        are on E53/1878, Pads 23, 
  tenure status                   including agreements or material issues with third         9 and 8 are on E53/1897 
                                  parties such as joint ventures, partnerships,              and 
                                  overriding royalties, native title interests,              bore Pads 18 and 30 are 
                                  historical sites, wilderness or national park and          on 
                                  environmental settings.                                    E53/2057. 
 
                                                                                             All tenure is granted to 
                             *    The security of the tenure held at the time of             Piper Preston Pty Ltd, a 
                                  reporting along with any known impediments to              wholly owned subsidiary 
                                  obtaining a licence to operate in the area.                of 
                                                                                             Salt Lake Potash Limited. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Exploration                                                                                 There has been 
  done by other              *    Acknowledgment and appraisal of exploration by other       significant 
  parties                         parties.                                                   mineral exploration on 
                                                                                             and 
                                                                                             around Lake Way. The 
                                                                                             primary 
                                                                                             source for the 
                                                                                             information 
                                                                                             is the publicly available 
                                                                                             Western Australian 
                                                                                             Mineral 
                                                                                             Exploration (WAMEX) 
                                                                                             report 
                                                                                             data base. 
 
                                                                                             Some bores drilled by WMC 
                                                                                             in 1992 for the Mt Keith 
                                                                                             mine water supply have 
                                                                                             proved 
                                                                                             useful in determining 
                                                                                             paleochannel 
                                                                                             grade and aquifer 
                                                                                             parameters. 
 
                                                                                             The data has been shown 
                                                                                             to 
                                                                                             be useful in the 
                                                                                             determination 
                                                                                             of the top of the 
                                                                                             paleochannel 
                                                                                             basal sand and for the 
                                                                                             calibration 
                                                                                             of the passive seismic 
                                                                                             data. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Geology                                                                                     The deposit is a 
                             *    Deposit type, geological setting and style of              paleochannel 
                                  mineralisation.                                            brine deposit lying 
                                                                                             beneath 
                                                                                             the eastern shore of Lake 
                                                                                             Way. 
 
                                                                                             The lake and paleochannel 
                                                                                             setting is typical of a 
                                                                                             Western 
                                                                                             Australian palaeovalley 
                                                                                             environment. 
                                                                                             Ancient hydrological 
                                                                                             systems 
                                                                                             have incised paleovalleys 
                                                                                             into Archaean basement 
                                                                                             rocks, 
                                                                                             which were then infilled 
                                                                                             by Tertiary-aged 
                                                                                             sediments 
                                                                                             typically comprising a 
                                                                                             coarse-grained 
                                                                                             fluvial basal sand 
                                                                                             overlaid 
                                                                                             by palaeovalley clay with 
                                                                                             some coarser grained 
                                                                                             interbeds. 
                                                                                             The clay is overlaid by 
                                                                                             recent 
                                                                                             Cainozoic material 
                                                                                             including 
                                                                                             lacustrine sediment, 
                                                                                             calcrete, 
                                                                                             evaporite and aeolian 
                                                                                             deposits. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Drill hole                                                                                  Bore coordinates and 
  Information                *    A summary of all information material to the               elevations 
                                  understanding of the exploration results including a       were located by surveyor 
                                  tabulation of the following information for all            which is sufficient for 
                                  Material drill holes:                                      this 
                                                                                             type of exploration 
                                                                                             activity. 
                             *    easting and northing of the drill hole collar 
                                                                                             All bores are vertical. 
 
                             *    elevation or RL (Reduced Level - elevation above sea       Total drilled depths, 
                                  level in metres) of the drill hole collar                  basal 
                                                                                             sand interceptions and 
                                                                                             screened 
                             *    dip and azimuth of the hole                                intervals are included in 
                                                                                             a table in Appendix C for 
                                                                                             the abstraction bores and 
                             *    downhole length and interception depth                     deep monitoring bores. 
                                                                                             The 
                                                                                             screened interval is also 
                             *    hole length.                                               stated for the clay and 
                                                                                             regional 
                                                                                             monitoring bores. 
                             *    If the exclusion of this information is justified on 
                                  the basis that the information is not Material and         No information related to 
                                  this exclusion does not detract from the                   the drilling and test 
                                  understanding of the report, the Competent Person          pumping 
                                  should clearly explain why this is the case.               of the bores has been 
                                                                                             excluded. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Data aggregation                                                                            No cut-off grade is 
  methods                    *    In reporting Exploration Results, weighting averaging      stated. 
                                  techniques, maximum and/or minimum grade truncations 
                                  (e.g. cutting of high grades) and cut-off grades are       No data aggregation has 
                                  usually Material and should be stated.                     been 
                                                                                             undertaken. 
 
                             *    Where aggregate intercepts incorporate short lengths 
                                  of high grade results and longer lengths of low grade 
                                  results, the procedure used for such aggregation 
                                  should be stated and some typical examples of such 
                                  aggregations should be shown in detail. 
 
 
                             *    The assumptions used for any reporting of metal 
                                  equivalent values should be clearly stated. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Relationship                                                                                The chemical analysis 
  between mineralisation     *    These relationships are particularly important in the      from 
  widths and                      reporting of Exploration Results.                          the test pumping has 
  intercept                                                                                  shown 
  lengths                                                                                    the that the brine 
                             *    If the geometry of the mineralisation with respect to      resource 
                                  the drill hole angle is known, its nature should be        is consistent and 
                                  reported.                                                  continuous 
                                                                                             within the section of 
                                                                                             paleochannel 
                             *    If it is not known and only the downhole lengths are       between Pads 18 and 21 
                                  reported, there should be a clear statement to this        and 
                                  effect (e.g. 'down hole length, true width not             between Pads 8 and 
                                  known').                                                   historic 
                                                                                             bore 3_4. Whilst 
                                                                                             continuity 
                                                                                             throughout the 
                                                                                             paleochannel 
                                                                                             from Pad 8 in the south 
                                                                                             to 
                                                                                             Pad 18 in the north is 
                                                                                             anticipated 
                                                                                             the zone between historic 
                                                                                             bore 3_4 and bore pad 17 
                                                                                             containing pad 14 has yet 
                                                                                             to test pumped, so 
                                                                                             confirmation 
                                                                                             of continuity remains to 
                                                                                             be proven. 
 
                                                                                             The unit is flat lying 
                                                                                             and 
                                                                                             the intersected thickness 
                                                                                             of the basal sands is 
                                                                                             equivalent 
                                                                                             to the vertical depth and 
                                                                                             the thickness of 
                                                                                             mineralisation. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Diagrams                                                                                    All location maps are 
                             *    Appropriate maps and sections (with scales) and            contained 
                                  tabulations of intercepts should be included for any       within the body of the 
                                  significant discovery being reported These should          report, 
                                  include, but not be limited to a plan view of drill        in this instance no 
                                  hole collar locations and appropriate sectional            sections 
                                  views.                                                     are provided although a 
                                                                                             typical 
                                                                                             cross section of the 
                                                                                             paleochannel 
                                                                                             has been previously 
                                                                                             reported. 
                                                                                             The intercept of the 
                                                                                             basal 
                                                                                             sands has been provided 
                                                                                             in 
                                                                                             the table contained 
                                                                                             within 
                                                                                             Appendix C. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Balanced                                                                                        A summary of the 
  reporting                  *    Where comprehensive reporting of all Exploration               brine grade 
                                  Results is not practicable, representative reporting           results is included 
                                  of both low and high grades and/or widths should be            in the 
                                  practiced to avoid misleading reporting of                     report and in 
                                  Exploration Results.                                           Appendix C. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Other substantive                                                                           All material exploration 
  exploration                   *    Other exploration data, if meaningful and material,      data has been reported. 
  data                               should be reported including (but not limited to): 
                                     geological observations; geophysical survey results; 
                                     geochemical survey results; bulk samples - size and 
                                     method of treatment; metallurgical test results; bulk 
                                     density, groundwater, geotechnical and rock 
                                     characteristics; potential deleterious or 
                                     contaminating substances. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 Further work                                                                                           The drilling 
                             *    The nature and scale of planned further work (e.g.                    programme is 
                                  tests for lateral extensions or depth extensions or                   ongoing with 
                                  large-scale step-out drilling).                                       further 
                                                                                                        regional 
                                                                                                        monitoring 
                             *    Diagrams clearly highlighting the areas of possible                   bores and 
                                  extensions, including the main geological                             shallow 
                                  interpretations and future drilling areas, provided                   monitoring 
                                  this information is not commercially sensitive.                       bores 
                                                                                                        targeting 
                                                                                                        the base of 
                                                                                                        the lakebed 
                                                                                                        sediments 
                                                                                                        within the 
                                                                                                        paleovalley. 
                                                                                                        SO4 
                                                                                                        have 
                                                                                                        constructed an 
                                                                                                        on lake 
                                                                                                        drilling rig 
                                                                                                        for the 
                                                                                                        purpose 
                                                                                                        of drilling 
                                                                                                        exploration 
                                                                                                        bores 
                                                                                                        into the basal 
                                                                                                        sands where 
                                                                                                        the 
                                                                                                        paleochannel 
                                                                                                        underlies 
                                                                                                        the lakebed, 
                                                                                                        this work is 
                                                                                                        expected to 
                                                                                                        commence in 
                                                                                                        November 
                                                                                                        2020 
                                                                                                        The locations 
                                                                                                        for the on 
                                                                                                        lake bores are 
                                                                                                        subject to 
                                                                                                        Government 
                                                                                                        approval. 
 
                                                                                                        Once drilled 
                                                                                                        all 
                                                                                                        abstraction 
                                                                                                        bores will be 
                                                                                                        test pumped. 
 
                                                                                                        All approved 
                                                                                                        off lake 
                                                                                                        locations 
                                                                                                        are shown on 
                                                                                                        maps included 
                                                                                                        in the report. 
------------------------  ----------------------------------------------------------------  -------------------------- 
 

APPIX E -

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

 
 Name of entity 
----------------------------------------------------- 
 Salt Lake Potash Limited 
 ABN                Quarter ended ("current quarter") 
---------------    ---------------------------------- 
 98 117 085 748     30 September 2020 
                   ---------------------------------- 
 
 
 Consolidated statement of cash                          Current quarter   Year to date 
  flows                                                                     (3 months) 
                                                              $A'000           $A'000 
               1.   Cash flows from operating 
                     activities 
 1.1                Receipts from customers                            -              - 
 1.2                Payments for 
                    (a) exploration & evaluation                   (399)          (399) 
                    (b) development                                    -              - 
                    (c) production                                     -              - 
                    (d) staff costs                                (542)          (542) 
                    (e) administration and corporate 
                     costs                                         (805)          (805) 
 1.3                Dividends received (see note                       -              - 
                     3) 
 1.4                Interest received                                 48             48 
                    Interest and other costs of 
 1.5                 finance paid                                    (4)            (4) 
 1.6                Income taxes paid                                  -              - 
                    Government grants and tax 
 1.7                 incentives                                    3,589          3,589 
                         Other (provide details if 
                          material) 
                          - Business Development                 (2,328)        (2,328) 
 1.8                      - Security Deposits                          -              - 
                                                        ----------------  ------------- 
                    Net cash from / (used in) 
 1.9                 operating activities                          (441)          (441) 
-----------------  -----------------------------------  ----------------  ------------- 
 
 2.                      Cash flows from investing 
                          activities 
                         Payments to acquire or for: 
                    (a) entities                                       -              - 
                    (b) tenements                                  (715)          (715) 
                    (c) property, plant and equipment              (756)          (756) 
                    (d) exploration & evaluation                       -              - 
                    (e) investments                                    -              - 
                    (f) other non-current assets 
                     - Mine Properties in development           (39,814)       (39,814) 
 2.2                     Proceeds from the disposal 
                          of: 
                    (a) entities                                       -              - 
                    (b) tenements                                      -              - 
                    (c) property, plant and equipment                  -              - 
                    (d) investments                                    -              - 
                    (e) other non-current assets                       -              - 
 2.3                Cash flows from loans to other                     -              - 
                     entities 
 2.4                Dividends received (see note                       -              - 
                     3) 
 2.5                Other (provide details if                          -              - 
                     material) 
                                                        ----------------  ------------- 
                    Net cash from / (used in) 
 2.6                 investing activities                       (41,285)       (41,285) 
-----------------  -----------------------------------  ----------------  ------------- 
 
 3.                 Cash flows from financing 
                     activities 
                    Proceeds from issues of equity 
                     securities (excluding convertible 
 3.1                 debt securities)                            113,537        113,537 
 3.2                Proceeds from issue of convertible                 -              - 
                     debt securities 
 3.3                Proceeds from exercise of                          -              - 
                     options 
                    Transaction costs related 
                     to issues of equity securities 
 3.4                 or convertible debt securities              (5,166)        (5,166) 
 3.5                Proceeds from borrowings                           -              - 
                    Repayment of borrowings and 
 3.6                 leases                                        (357)          (357) 
                    Transaction costs related 
 3.7                 to loans and borrowings                     (5,880)        (5,880) 
 3.8                Dividends paid                                     -              - 
 3.9                Other (provide details if                          -              - 
                     material) 
                                                        ----------------  ------------- 
                    Net cash from / (used in) 
 3.10                financing activities                        102,134        102,134 
-----------------  -----------------------------------  ----------------  ------------- 
 
 4.                 Net increase / (decrease) 
                     in cash and cash equivalents 
                     for the period 
                    Cash and cash equivalents 
 4.1                 at beginning of period                        7,030          7,030 
                    Net cash from / (used in) 
                     operating activities (item 
 4.2                 1.9 above)                                    (441)          (441) 
                    Net cash from / (used in) 
                     investing activities (item 
 4.3                 2.6 above)                                 (41,285)       (41,285) 
                    Net cash from / (used in) 
                     financing activities (item 
 4.4                 3.10 above)                                 102,134        102,134 
                    Effect of movement in exchange 
 4.5                 rates on cash held                            (101)          (101) 
                                                        ----------------  ------------- 
                    Cash and cash equivalents 
 4.6                 at end of period                             67,337         67,337 
-----------------  -----------------------------------  ----------------  ------------- 
 
 
               5.   Reconciliation of cash and           Current quarter   Previous quarter 
                     cash equivalents                         $A'000            $A'000 
                     at the end of the quarter 
                     (as shown in the consolidated 
                     statement of cash flows) to 
                     the related items in the accounts 
 5.1                Bank balances                                 49,287              6,980 
 5.2                Call deposits                                 18,050                 50 
 5.3                Bank overdrafts                                    -                  - 
 5.4                Other (provide details)                            -                  - 
                                                        ----------------  ----------------- 
                    Cash and cash equivalents 
                     at end of quarter (should 
 5.5                 equal item 4.6 above)                        67,337              7,030 
-----------------  -----------------------------------  ----------------  ----------------- 
 
 
               6.    Payments to related parties of the entity    Current quarter 
                      and their associates                             $A'000 
                     Aggregate amount of payments to related 
                      parties and their associates included in 
 6.1                  item 1                                                (153) 
                                                                 ---------------- 
 6.2                 Aggregate amount of payments to related                    - 
                      parties and their associates included in 
                      item 2 
                                                                 ---------------- 
 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly 
  activity report must include a description of, and an explanation 
  for, such payments. 
 
 
               7.   Financing facilities                    Total facility      Amount drawn 
                     Note: the term "facility'             amount at quarter    at quarter end 
                     includes all forms of financing              end               $A'000 
                     arrangements available to                  $A'000 
                     the entity. Add notes as necessary 
                     for an understanding of the 
                     sources of finance available 
                     to the entity. 
 7.1                Loan facilities                                   63,309            63,309 
                                                         -------------------  ---------------- 
 7.2                Credit standby arrangements                            -                 - 
                                                         -------------------  ---------------- 
 7.3                Other (please specify)                                 -                 - 
                                                         -------------------  ---------------- 
 7.4                Total financing facilities                        63,309            63,309 
                                                         -------------------  ---------------- 
 
 7.5                Unused financing facilities available at                                 - 
                     quarter end 
                                                                              ---------------- 
 7.6                Include in the box below a description of each facility 
                     above, including the lender, interest rate, maturity date 
                     and whether it is secured or unsecured. If any additional 
                     financing facilities have been entered into or are proposed 
                     to be entered into after quarter end, include a note providing 
                     details of those facilities as well. 
-----------------  --------------------------------------------------------------------------- 
                     The Company mandated Taurus Funds Management (as manager 
                      of the Taurus Mining Finance Fund L.P., Taurus Mining 
                      Finance Annex Fund L.P. and Taurus Mining Finance Fund 
                      No. 2 L.P.) to provide project financing for the Lake 
                      Way Project. 
                      The Stage 1 Facility executed in August 2019 was extended 
                      from US$30 million to US$45 million 6 December 2020 and 
                      has been fully drawn down. The facility is secured and 
                      interest is payable at 9.75% pa. 
                      In August 2020, the Company and its subsidiaries and Taurus 
                      Mining Finance Fund No. 2, L.P. and the Clean Energy Finance 
                      Corporation entered into the Syndicated Facility Agreement 
                      for a US$138 million debt financing package (SFA). 
                      The SFA will be used to refinancing the Stage 1 Facility 
                      and for project development and working capital associated 
                      with the development of the Lake Way Project. The SFA 
                      will be secured and interest will be payable at 9.00% 
                      pa. 
                      Following execution of the SFA, the Company has been working 
                      closing with the lenders to satisfy the conditions for 
                      initial drawdown which included standard market conditions 
                      including signoff on cost to complete, confirmation of 
                      the base case financial model and deposit of equity raise 
                      funds. Substantial progress has been made and the remaining 
                      conditions are expected to be satisfied enabling initial 
                      drawdown and repayment of the Bridge facility in November 
                      2020. 
                      Taurus has agreed to extend the date for repayment of 
                      the Bridge facility to 30 November 2020. 
                      As the loan is denominated in USD, the facility amount 
                      and amount drawn down has been converted at an FX rate 
                      of $0.7108 USD/AUD, being the FX cross rate at 30 September 
                      2020. 
----------------- 
 
 
               8.   Estimated cash available for future operating                 $A'000 
                     activities 
                    Net cash from / (used in) operating activities 
                     (item 1.9) 
                     (Note cash inflows from R&D & Governments 
 8.1                 Grants has been excluded)                                    (4,030) 
 8.2                (Payments for exploration & evaluation classified                   - 
                     as investing activities) (item 2.1(d)) 
 8.3                Total relevant outgoings (item 8.1 + item                     (4,030) 
                     8.2) 
 8.4                Cash and cash equivalents at quarter end                       67,337 
                     (item 4.6) 
 8.5                Unused finance facilities available at quarter                      - 
                     end (item 7.5) 
                                                                                --------- 
 8.6                Total available funding (item 8.4 + item                       67,337 
                     8.5) 
                                                                                --------- 
 
                    Estimated quarters of funding available 
 8.7                 (item 8.6 divided by item 8.3)                                    17 
                                                                                --------- 
                    Note: if the entity has reported positive relevant outgoings 
                     (ie a net cash inflow) in item 8.3, answer item 8.7 as 
                     "N/A". Otherwise, a figure for the estimated quarters 
                     of funding available must be included in item 8.7. 
 8.8                If item 8.7 is less than 2 quarters, please provide answers 
                     to the following questions: 
                    8.8.1 Does the entity expect that it will continue to 
                     have the current level of net operating cash flows for 
                     the time being and, if not, why not? 
                   ---------------------------------------------------------------------- 
                    Answer: Not applicable, however the Company expects to 
                     have similar levels of total net operating and investing 
                     cash flows for the current quarter. 
                   ---------------------------------------------------------------------- 
                    8.8.2 Has the entity taken any steps, or does it propose 
                     to take any steps, to raise further cash to fund its operations 
                     and, if so, what are those steps and how likely does it 
                     believe that they will be successful? 
                   ---------------------------------------------------------------------- 
                    Answer: Not applicable, however it is noted that during 
                     the quarter the Company placed A$15m in zero coupon Convertible 
                     Notes and raised a further A$98.5m by accelerated non-renounceable 
                     entitlement offer (ANREO) to enable it to continue to 
                     deliver the Lake Way Project to schedule. In addition, 
                     the Company entered the SFA for a US$138 million debt 
                     financing package (refer 7.6 above). 
                   ---------------------------------------------------------------------- 
                    8.8.3 Does the entity expect to be able to continue its 
                     operations and to meet its business objectives and, if 
                     so, on what basis? 
                   ---------------------------------------------------------------------- 
                    Answer: Not applicable, however it is noted that Company 
                     expects to satisfy remaining conditions to enable initial 
                     drawdown of funds under the SFA in November 2020 (refer 
                     7.6 above). 
                   ---------------------------------------------------------------------- 
                    Note: where item 8.7 is less than 2 quarters, all of questions 
                     8.8.1, 8.8.2 and 8.8.3 above must be answered. 
-----------------  ---------------------------------------------------------------------- 
 

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

   2          This statement gives a true and fair view of the matters disclosed. 
   Date:                      16 October 2020 
   Authorised by:      By the Board 

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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