General - West African - Metro Mining - Prairie Mining

Good afternoon

investor confidence in Germany is falling further…US producer prices rise by the least in a year…

Metals are trading strongly today, as are equites - both like the positive outcome of “trade”-negotiations between the US and Mexico.

West African Resources - announced infill drilling results from grade control drilling on a 12.5x12.5m spacing, some even on 12.5m6,5m spacing. Results have been very positive, confirming 30-50m wide mineralisation and even giving some indications for upside from the resource estimate. This is very good news, and not to be underestimated as part of the derisking process of a new gold mine - as we could all witness with Gascoyne and Dacian recently , not always straightforward! - in both cases, grade problems have been a big part of the mayhem. Sanbrado is 30% finished - all going according to plan on costs as well as time. The stock continues to be outstanding value, while investors are putting a large discount on the country, and comissioning-risk. Perhaps understandable follwing recent bad experience with a few start-ups - but in my opinion, very harsh on the company. I am still waiting for some corporate to come out of the bush and raise it´s hand!

Metro Mining - their Bauxite has had a few little problems, leading them to downgrade production guidance from 3.4-3.6 Millt of bauxite this year, to 3.3-3.5 millt. MMI has had a few minor issues like slightly delayed integration of the new 7.000t barges, and late delivery of the new triple-trailers. Both are up and running, and mining rates have increase substantially. The main reason for this slightly reduced guidance , though, has been a late cyclone ( wet ground conditions ) and very unusual winds, which led to high tides and extended time needed to load ships. This lead to a strong increase of stockpiles of 100.000t, which is a good thing tohave. Except for these minor issues as above, all is going well - and these issues appear to have been overcome. And let´s face it - guidance is down by 3% or so, while the stock fell by 20% over the last couple of month, and halfed ove rthe last 12 month - without any real reason. Alumina prices in China ( benchmark for I believe 60% of sales ) have recovered nicely and it´s ttrading currently higher than average levels of last year - while the A$ is nearly down by 5% , having a strong effect on profits.

Prairie Mining - stock is down 20% in Poland today, as JSW board has dismissed the CEO Ozon, who has been a strong supporter of the idea to take over Prairie, or buy into it´s assets. I hate politics!

Have a nive evening

WS

WS

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General - Syrah - gold on the move!

Good afternoon

weak Industrial Production in Germany, and weak labor numbers in the States push up bond prices around the world…the US$ is weak, metals also slightly weaker - but equities are racing - obviously being priced more on interest rate differentials, than on earnings…Big stocks like Salesforce and Visa making new highs!"

But as you can imagine, gold is still on the run…hitting a new recent high in US$ and a new alltime-high in A$…I have not seen the gold price that actively traded for a while! Gold is knocking at strong resistance levels of around 1350-1360 US$/oz

Iron ore stockpiles are falling again - prices holding just above 100 US$/t

Syrah Resources - updated guidance today - and it´s yet another downgrade : from 50-55.000t to 45-50.000t of graphite for the current Quarter. Price received is also a touch weaker at 446 US$/t - but the owrst is probably the product mix, as still only 14% of production is course graphite, which trades at higher prices than fines. The company is forecasting cash of 43 mill US$ by Quarter end, with no debt. If the company had any debt, I would be very worried…I think the most important thing is to get the product mix improved…and that looks doubtful at this stage. Some people believe, that the plant will never be able to produce the product in sufficient quantity, which is needed by the market. If i´d be a holder, I would hold them…there is still a chance, that this company will be an important graphite producer and one of the leaders - but problems of Syrah have been so many, that the risks are outweighing the equation. I would stay clear….

Not that much new to report today…

Have a nice long weekend!

WS

Lucapa - Genex - Peak - Highfield - Graphex - RIO

Good afternoon

German factory orders were slightly up vs expected unchanged numbers.

Equity markets slightly better again - interest rate expectations seem to be stronger than the trade war in the moment…not much happening in base metals - gold stronger, again.The A$ gold price at a new high - currently 1911 A$/oz!

Lucapa Diamonds - sold 10 mill US$ worth of stones from Lulo, not including the recently found 130ct white diamond, and a potentially even more valuable 46ct pink stone. The company approved a 3.3 mill US$ exploration program in Angola, to find the source of it´s alluvial diamonds. The stock is slowly edging higher - but in my opinion, is way undervalued…

Peak Resources - this old rare earth hopeful, having a completed a feasibility study two years or so ago, should be on the radar of the Americans! According to the German press, an American representative of the Ministry of Defence said at a Chikago conference, that the US would be contacting companies around the world to help alleviating the UD-dependance on Chinese rare earth. Well - Peak should be one of the more advanced companies, being run by the American Rocky Smith. Rocky, in his previous role, has been the General Manager of Mountain Pass, which is the only US mine of the stuff. I am surprised, that they have not contacted him as yet…Peak need better prices for Nd/Pr ( about 80$ vs current prices of 50 $) - but in the case of sanctions, those prices will be several times higher than needed, potentially. A good punt…

Genex - great announcement - but it bit difficult to value! Electric Power Development Co , a 4 bill US$ market cap company, has signed up to spend a max of 25 mill A$ in a placement to get 19,99% of GNX max, and a minimum of 15%. They will pay the price of the stock at financial close of the project ( see exact details of the announcement ). So what does this really tell us in numbers??? If the share price is unchanged from today, they will pay about 22 Mill$ to get to 19,99%…if the share price is 32ct, they will pay exactly 25 mill A$ for 19,99% - and if the share price is 45ct, they will pay 25 mill A$ for 15% of the company. This is a bit difficult for the market to judge…the company has been quoted very recently as being highly confidentto get the NAIF funding within this month, and also highly confident of getting a substantial grant ( = gift ) from Arena, another government body, also this month ( I believe this grant could be 40-50 mill A$ ). Also, they continue to be in deep discussions with Energy Australia re a transmission agreement. So we have 3 very price-sensitive and most probably positive announcements coming within the next month or so…and financial close relatively soon thereafter ( I suspect only weeks ). The placement to the Japanese is conditional of having received these 3 agreements, and of Financial Close to take place before the 31st of December ( which really is a worst case timetable ).

As all stock overhang should be removed now ( 25 mill A$ should be more than enough equity - the company so far has said that 15 millto 20 mill are needed )…and the three above announcements would dramatically de-risk the company. I would be very surpised to see the stock still tarde at below 32ct by then…so 32ct for the placement is really my base scenario. This announcement today has been very positive and very important - GNX are a strong buy at these levels. Valuations in the market based on this announcement are between 35-and 70ct……There is no such thing as a no-brainer…but I think at 26ct, GNX are very close to it!

Graphex - good announcement today: They received an official letter from the Ministry of Minerals, stating the Tanzanian ownership of 16%, as wella s stating the ability to export concentrates of above 65% ( the company plans to export a 94% concentrate ). These two conditions are very important for the Cstlelake-financing, which ahs been conditional on those things. What is still missing is a fiscal stability agreement -mining permit as well as enviromental permit have already been received. I have not bene able to talk to them - MD is on a mining trip with analysts in Tanzania - but will get further clarity as soon as possible. In any case, this has been positive progress towards getting the project construction-ready! One point on the side - the US are entirely relying on non-US supply of graphite, and largely also on lithium…

Highfield _ I am not holding them anymore - but some of the readers might do. They received their enviromental approval for the phospate project in Spain! I visited the project 4 years ago - enviromental approval was imminent, then!! Anyway - stock made a nice jump today! But now, tehy need to get the mining license - which is meant to be a formality…but obviously, nothing seems to be a formality in Spain! This might only take a few month - but to get into production, the company will need to conduct a very substantial equity raising. I would sell the stock - unless a corporate comes in , this will be hard to do!

RIO - announced some more drilling results from their Winu discovery in Australia. Pretty incredible intersections - up to 500m with around 0,45% copper and o,4g gold, and many similar results. The ore body is under 30-70m of cover - not too bad. This is clearly a very large ore body - but to early to quantify. There is a 180-strong workforce in the outback, exploring this thing. Clearly, one of the largest - if not the largest - RIO exploration projects in the world. A little disappointing, that it did not infect otehr stocks, which are active in the area, especially Antipa, which si also in JV with RIO ( but only in neighbouring areas, not Winu itself ). RIO wants to have enough susbtance by teh end of teh year, to know what tehy have on their hands. Currently, there are 11 drill rigs drilling this thing!

Have a nice evening,

WS

Schröder Equities GmbH

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The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by

General - Dacian - Genex - St Barbara

Servives Industries in Europe as well as in the US are still doing well - manufacturing ok in the US, but weaker in Europe. Machinery Orders in Germany 11% weaker than a yer ago!

Markets are expecting more rate cuts around the globe…some people talking about negative ECB-rates!

The IMF reduces it´s optimistic forecast of 3.6% world growth this year to 2,6%…

GDP growth in Australia only 1.8% vs year ago in the first Quarter

Equities can hold yesterday´s strong gains - metals mixed to slightly weaker. A relatively strong rise of nickel LME-stocks today, by 5100t to 164.000t ( which is still low! ). Gold traded as high as 1344 US$ - but as I am going home, only up a few $ to 1329 US$.

Dacian - that´s the enxt shocker! Not as bad perhaps as the share price fall from 1,58 A$ to 0,51 A$ might suggest, though! But things are pretty bad…the market had been assured as recently as 29.4. with a guidance for the current Quarter of 50-55.000oz at 1050-1150 A$ AISC. Only 5 weeks later, they are warning of only 36-38.000oz at 1500-1600 AISC!! They are citing lower grades, underground contractor issues, and a ball mill failure, leading to a 3 day shut down of the plant. I really wonder, weather none of this was on the cards 5 weeks ago?! The company is now expecting 160-180.000 yearly production ( no AISC given ) for the enxt 5 years…that well down on around 210.000 expected very recently. The company has limited ebt - I think net debt is around 80 mill A$, which appears managable…But the market has lost all confidence in them …understandably so! A lot of talk about a corporate coming in, taking a placement - we will see. But too risky for me to get involved. These guys would be in real trouble, if not for this fantastic A$ gold price! Certainly not good for our market - too many stocks with problems! The next one is:

St Barbara - their profit-warning came right in the middle of their retail offer to finance the recent aquisition. Bad enough - but the company will pay back those retail investors, which had already subscribed….that is certainly debatable ( even though nice of them ! ), and the underwriter, Deutsche Bank, will have a nice fight on their hands! Nothing to improve sentiment for gold stocks!

Genex - the AFR after market is reporting about japanese hydro power company Jpower buying a 19.9% stake in GNX, at well above market prices. That would be nice I guess - but let´s wait for the news to come out tomorrow ( that´s what the AFR expects )

Have a nice evening

WS

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The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by

General - Gascoyne - Liontown - Strike

Good afternoon

there is hardly a day now, when we do not have to cope with new atrocities from Mr. Trump…they are numberless, and I just hope, that this episode of US-history really is just an episode! My fears are , that the people who elected him last time, actually endorse him…I think in no other civilised country a leader with so many lies and little - and not so little - scandals could surivive in such a job!

The FED is indiacting the possibility of interest rate cuts….Australia actually does it, for the first time in 3 years, to 1,25%

Inflation in Europe is hardly existant

China is pushing the car industry …number-plate restrictions in some large cities have been relaxed, making it easier to be allowed to get licenses for new cars. According to the news here, only every 400th person applying for a number plate, did get one.

Gold in A$ hits a new historic high of 1900 A$/oz. Finally, gold has seen a busrt of activity and buying - not sure, though, wheather I should like this…I think the trade war is getting serious now, and is creating a lot of Angst!

Very said, that the strong gold price was not enough to save

Gascoyne - from probably going bust! The administrator has been called in , and I have very rarely seen this procedure leaving anything for shareholders! Very unlucky for those guys, who signed up in the recent emergency-rights issue - notably ( experienced ) resources investor Commonwealth Bank, and German investors around the Balaton Group. Apparently, the resource model still did not work out, leaving the company with a much reduced headgrade especially over the next few month, and resulting in continued negative cash flow. The company had raised 24 mill$ of fresh equity in April and May - even that has not been enough to avoid the terrible!

I am sorry, that I invited them a while ago to one of our conferences - I hate it, when investors are loosing money this way! But the most important thing to me is, that the people involved with Gascoyne have not bene crooks, but very reasonable people - that is important to me!

Liontown - well at least a company from the last conference, which is delivering! Unfortunately though, I think only few people bought them at around teh conference time just a few month ago at 2ct! Even taking some profit-taking over the last few days into account, they are still up by more than 400%. LTR announced more drilling results yesterday - the best being 45m with 1,7% Li2O. They appear to be well on their way to increase their resource towards the upper end of their recent resource target of 9-30 millt of additional ore at 1,4% or thereabouts, which should put them firmly into sights of major corporates

Strike - has started drilling the West Erregulla well on the weekend.- full results will be known before the end of July - but some minor targets will be hit earlier. On the R&D issue, the company has appealed the negative finding, under which STX will have to repay the 2016 R&D subsidy of 6,3 Mill A$ in stages, starting 4 month after the appeal-ruling - which usually takes up to 18month. The company just raised 12 mill$ ( less 5,3 mill$ debt with CBA ) and received 5 Mill$ in option payment for an off-take agreement. Totherther with it´s recent cash position of a little over 7 mill A$, all good for the drilling of West Erregulla, and to finish the testing of JAWS. So for now, they can concentrate of the development of - potentially - two major gas assets - but at some stage, they will have pay!

Have a nice evening in the sun!

WS

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The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by