Market Update

General - Venturex - Graphex

Good afternoon

markets are relatively quiet today, ahead of the G-20 meeting on the weekend…Gold is consolidating the recent, strong rise, while nickel is having another positive day, probably helped by production problems atone of Glencore´s larger mines.

The strike at Codelco´s large copper mine, Chuquicamata, is continuing and is also affecting El Abra, owned by Freeport, because of road blackages by striking workers.

AnotherAustralian small cap fund manager with 450 mill A$ or so under management is closing down…I can only assume, that they own one or the other esourcxes company as well…

Durable Goods Orders in the States relatively weak - Cap Goods Orders ex transportation were relatively strong. But the last few economic numbers from the States indicate, that growth over there is definietly slowing down. This is rather a question of trade plotics, than interest rates , in my opinion!

Graphex - the company issued a long statement today, explaining why they have not enered into any off-take agreements. Basically, the company believes, that it´s not very worthwhile to enter into such a greement at a stage, where the mine is not even in construction yet. In tendency, I agree with them - most of tehse agreements with Chinese offtakers are probably not worth the paper tehy are written on! And Graphex make very clear, that their thinking is aligned with their major financier, Castlelake, What is important, though, is teh fact, that Graphex has had numerous meeting with a large number of potential off-takers in Vhina, most of which are very keen to get their hands on GPX´s unique product for flame retardent products in the buiding industry - prices for which command a large premium to graphite used in the battery industry.I fear we need some more patience here, while the company is finishing the bankable feasibility study this Quarter, and until the Tanzanian government has satisfied all demands made by financiers. They are on a good path - but time is as always not a thing, which African governments believe to be in short supply!

Venturex - the second drill hole has been announced, drilled only about 15m from the first, very succesfull hole. This one was nearly as good - 63m with 1,89% copper and 10m with 10.8% Zn from 45m will increase the indicated resource, once again - given the close proximity to the existing resource, the tonnage will be li ited. Still - this is a project on the cusp of getting the final investment decision, and every little bit helps at this point! The mineralisation should also continue into eastern direction.

Have a nive evening - I am sitting here in shorts without a shirt ( not a nice sight, in fact!! )- no air conditioning, as usual in Germany, and 35 degrees!