RNU - GRAPHITE and Lithium OPPORTUNITY

[SCHUMACHER]

Hi Schu,
Thanks for your energy and effort.
Am interested your view of TLG in comparison to RNU. Have held TLG for a number of years and are down around 20% now.
cheers

Hi Aotea- if we comparing TLG to RNU its probably a bit unfair on RNU as TLG are more advanced in their road to production life cycle - I think that we really want to look at our peers who are at similar stages to us otherwise its not comparing apples with apples

The previous comparisons i was doing with SYR also dont amount to a lot either as they are currently around $5.60 share and well advanced with production starting Q2 2017 - I was basically trying to see where their share price was 4 years ago

Anway heres a bit of info on TLG then we probably should focus on the companies at similar stage to us to get an idea of how undervalued we are - in saying that i think a run for RNU over next few weeks to around 5-6c ( in line with the BUY recommendations currently in the market ) is about where we should be sitting today - we have more drilling this month to look forward to and Metallurgy tests as we head towards a scoping study due for completion in September ( 6 weeks away) which should then move us higher IMO

Looks like TLG's recent capital raising at 28c share to investors and issue of shares has dragged the share price back down from the 40c range to 29-30c region- this is normal IMO always happens with CR as some people (traders) sell out as high as they can after getting their parcels at 28c to lock in profit - TLG price range of 30-40c looks about right in terms of what they have achieved to date but could also be higher and think the recent CR has affected shareprice. The price we all pay for dilution however inconsequential in the long run
Should stabilise around here and remember its run from 5c share to 40c + in past 12 months so good returns for getting in early which is one of the reasons why i like RNU

As you can see they have higher grades and at first glance they have slightly more than twice (2 x) our resource tonnage with better grades ( good for us that our deposit is shallow and flat ) so understandably they are at the price levels and more advanced than us - if we are talking about short term price % opportunity to make quick money then i think RNU could return a higher % in the next month than TLG if people are trading both for a profit - i.e RNU 2.8c to 6c is approx. 110% verses TLG at 29c to 40c (28% gain) but who knows aye

TLG 43.2 MT
RNU 16.8 MT (More drilling coming) RNU mentioned they have a further exploration target of 15 MT so that would place our tonnage closer to TLG but they also have exploration targets well over ours - also their grades are exceptional - one of RNU's advantages is that we have a flat, shallow and massively thick rich deposit , great infrastructure and close to Shipping ports and i think it matters to point out that our ore-body at Siviour is at 1 location as opposed to 3- 5 seperate graphite deposits.


TLG
Price 29c
Location : Sweden 3 KEY JORC resources

High Grade Graphite Pipeline
JORC Resource Total 7.6Mt @ 24.4% Cg
JORC Resource Total 4.3Mt @ 7.1% Cg
JORC Resource Total 31.5Mt @ 14.9% Cg
Drilled flake sizes <75µm to >400µm
Drilled flake sizes 80% >300µm

‣ 100% ownership of five graphite projects in Sweden containing multiple deposits
‣ Full range of graphite flake sizes from graphene, micrographite to jumbo and larger
‣ Three JORC resources


RNU- (on track for scoping study by September 2016 ) Austalia's largest high grade Graphite deposit -

Current share price 2.8c
Location : Eyre Peninsula, South Australia - 0% political risk due to Location in Australia -
Size of Deposit: 17 MT Resource Mt Grade (TGC 8% approx.) Contained Graphite
Flake size: The ore-body is shallow and flat lying.Over 80% of samples tested are large, jumbo or super‐jumbo flake size
Indicated 590,000
Inferred 650,000
Total 1,243,000 MT
Stage: Exploration drilling
Our attraction: Australia/ largest high grade Graphite resource in Aussie
Dont forget : RNU also holds the Munglinup graphite project in WA as well as copper, gold,
base metals and uranium prospects in SA.*

Note: based on potential known size of deposit there is likely hood of increasing reserve by multiples meaning possible upgrade in resource we could get to 10 million Mt of ore thus putting us on level pegging with BKT


Cheers Schu