Q4 2023 American Resources Corp Earnings Call

None: [music].

Okay.

Operator: Greetings and welcome to the American Resources Corporation's fourth quarter and year-end 2023 conference call. At this time, all participants are listening; a brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

None: Greetings and welcome to the American Resources Corporation fourth quarter and year end 2023 conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.

None: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.

Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark LaVerghetta, Vice President, Corporate Finance and Communications. Thank you. Thank you, and good afternoon, everyone.

None: It is now my pleasure to introduce your host Mark lover, Getter, Vice President corporate Finance and communications. Thank you you may begin.

Mark C. Jensen: Thank you and good afternoon, everyone on behalf of American Resources Corporation I'd like to welcome everyone to our fourth quarter and full year 2023 conference call and business update.

Mark J. LaVerghetta: On behalf of American Resources Corporation, I'd like to welcome everyone to our fourth quarter and full year 2023 conference call and business update. We always welcome this opportunity to provide an update on our businesses and discuss the accomplishments we have made over the past several months and how we are uniquely positioned within the markets that we serve for our American carbon, American metals, and re-element technologies divisions. On the call today is Mark Jensen, our CEO; Kirk Taylor, our Chief Financial Officer; and Tom Salvey, our President.

Mark C. Jensen: We always welcome this opportunity to provide an update on our businesses and discuss our accomplishments we made over the past several months and how we are uniquely positioned within the end markets that we serve for our American carbon American metals and rail technologies divisions.

Mark C. Jensen: On the call today is Mark Jensen, our C E L F.

Mark C. Jensen: Taylor, our Chief Financial Officer, and Tom solving our president.

Mark J. LaVerghetta: We'll provide some prepared remarks today, and then we'll go into some questions and answers. But before we kick things off, I'd like to remind everyone of our normal cautionary statement. Certain statements discussed on today's call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those discussed in a forward-looking statement.

None: We will provide some prepared remarks today and then we'll go into some question and answers.

Mark C. Jensen: Before we kick it off I'd like to remind everyone of our normal cautionary statement certain statements discussed on today's call constitute forward looking statements within the meaning of the private Securities Litigation Reform Act.

Mark C. Jensen: Looking statements are subjects to risks uncertainties and other factors, which could cause actual results to differ materially from the results discussed in the forward looking statements.

Mark J. LaVerghetta: Considering forward-looking statements, you should keep in mind the risk factors, uncertainties, and other cautionary statements which are laid out in our press releases and SEC filings. We also do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Lastly, for anyone wanting to ask a question today, I believe you will need to dial in by phone to get into the queue.

Mark C. Jensen: Considering forward looking statements you should keep in mind, the risk factors uncertainties and other cautionary statements, which I laid out in our press releases and SEC filings. We also do not undertake any obligation to update or revise any forward looking statement, whether as a result of new information future events or otherwise.

None: Lastly for anyone wanting to ask a question today I believe you will need to dial in by phone to get into the queue.

Kirk P. Taylor: We're going to begin today with a few comments from our Chief Financial Officer, Kirk Taylor. Thank you, Mark, and thank you, everyone, for taking a few minutes out of your day to listen to our fourth quarter earnings call. Over the past several months, we've continued our execution on solidifying our strategic positioning within our adjustable markets, which we believe positions ourselves and our company for attractive long-term value creation. In doing so, and in conjunction with the directive of our strategic committee from our board of directors, we've embarked on several initiatives to unbundle our unique platform of assets to better unlock value for all of our shareholders and position each entity as a standalone company. Much of our focus over the past several months has been to position and prepare both American Carbon as well as ReElement Technologies, a standalone public company.

None: We're going to begin today with a few comments from our Chief Financial Officer Kirk Taylor.

Kirk P. Taylor: Thank you Mark and thank you everyone for taking a few minutes out of.

Kirk P. Taylor: Have your day to listen to our fourth quarter earnings call.

Kirk P. Taylor: Over the past several months with our execution on fortifying our strategic positioning.

Kirk P. Taylor: Within our addressable markets, which we believe positions ourselves.

Kirk P. Taylor: Our company more attractive long term value creation.

Kirk P. Taylor: And doing so in conjunction with the directive of our strategic committee of our board of directors and embarked on several initiatives to unbundle, our unique platform of assets.

Kirk P. Taylor: Better a lot value for all of our shareholders and position each entity as a standalone company.

Kirk P. Taylor: Much of our focus over the past several months has been physician prepare both American carbon walls relevant technologies as a standalone public companies.

Kirk P. Taylor: These efforts include securing growth capital, such as a $45 million tech industrial bond for Wyoming County Coal Complex, and recently announced, or as of today, announced securing $150 million net of fees, industrial development bond to develop what we believe is the nation's first of its kind lithium and critical mining mineral refinery in Kentucky. Both of these examples show that we have successfully capitalized near-term and intermediate-term growth plans for both American carbon as well as Today's closing of our second Texas-Zent bond is another tremendous milestone for our company as we continue to put the necessary pieces in place to execute on our mission.

Kirk P. Taylor: These efforts include securing growth capital, especially with a $45 million.

Kirk P. Taylor: Industrial Bond bar, Wyoming County, called how box and our recently announced or as I'd say no.

Kirk P. Taylor: During the $150 million net of fees industrial development bonds bodes well, we believe that the nation's first I guess, Cai lithium and critical binding.

Kirk P. Taylor: Mineral refinery in Kentucky.

Kirk P. Taylor: Both of these examples.

Kirk P. Taylor: Show that we have successfully capitalized near term or intermediate term growth.

Kirk P. Taylor: Plans for both American carbon as wallet technologies.

Today's closing of our second tax exempt bond another tremendous milestone for our company and they continue to put the necessary pieces in place execute on our mission is another monumental moment for a relevant technology division and for our country, our Kentucky lithium projects and such a Great example, how we can efficiently execute our nations energy trade.

Kirk P. Taylor: This is another monumental moment for our re-element technologies division and for our country. Our Kentucky Lithium project is such a great example of how we can efficiently execute on our nation's energy transition goals. The Planned Transformation of our Knott County Facility enables us to utilize controlled land, resources, and already-in-place infrastructure and a tremendously skilled workforce to quickly meet the needs of the rapidly growing energy storage market, along with utilizing our groundbreaking refining process, produce ultra pure battery grade products in an environmentally safe and low cost process. This region of the country is well positioned geographically within the developing battery belt and comes with a long steaming We appreciate the leadership of Knott County, Kentucky, working with us and sharing in our vision, and again, working with Hilltop Securities and their exceptional execution throughout this process.

Kirk P. Taylor: Gulf.

Kirk P. Taylor: The planned transformation of our Knox County facility.

Kirk P. Taylor: [noise] enables us to utilize controlled land resources already in place infrastructure in a tremendously skilled workforce to quickly meet the needs of the rapidly growing energy storage market, along with utilizing our groundbreaking refining process to produce ultra pure battery grade products.

Kirk P. Taylor: Environmentally safe low cost process the region of the country. This region of the country is well positioned geographically, but then developing battery belt and causes a long standing history of pride and Knowhow and the raw material commodity processing industry.

Kirk P. Taylor: Appreciate the leadership of not county, Kentucky, and working with Us and sharing our vision and again working with hilltop securities and their exceptional execution throughout this process.

Kirk P. Taylor: We are also in the process of working to secure additional sources of project development and growth capital through the tax and bond market, government incentives, and grants, as well as bringing in strong equity partners, both strategic and financial, across both American carbon, American metals, and real technology. I'll briefly go over the year-end American Resources Consolidated Summary. Over the past year, we have showcased our operational flexibility while also prioritizing the most accretive uses of capital and securing additional non-dilutive capital to position our unique set of assets and execute on our value-creating mission. Our full year 2023 revenues of $16.7 million, which is a decline from 2022, are attributed to our decision to allocate capital to the most creative uses throughout all of our businesses. 3-Element, American Metals, and American Carbon.

Kirk P. Taylor: We're also in the process of working to secure additional sources of project development and growth capital through the taxes in the bond market government incentives and grants as well as bringing a strong equity.

Kirk P. Taylor: <unk> is both strategic and financial that doesn't cross both American carbon American Battle every all the technologies.

Kirk P. Taylor: I'll briefly go over a year and American resources consolidated summary over the past year showcase our operational flexibility while also prioritizing the most accretive use of capital.

Kirk P. Taylor: Hearing additional non dilutive capital to position, our unique set of assets and execute on our value creating initiatives. Our full year 'twenty two 'twenty three revenues of $16 7 million, which is a decline from 2022.

Kirk P. Taylor: Alright are attributed to our decision to allocate capital than most accretive uses throughout all of our businesses.

Kirk P. Taylor: Re element American metals and American carbon.

Kirk P. Taylor: As such, our management and board chose to aggressively advance the development of re-element technology, which includes operating and expanding our Novoselic facility for customer qualification and validation, large-scale domestic project development, which includes the Marion Super Campus, as well as the Kentucky Lithium Project, international expansion, adding to what we feel is a world-class team and procuring feedstock and off-take agreements. Now, additionally, while we've also been focusing on streamlining our balance sheet and continuing to reduce our bonding costs, our long-term environmental liability, at the corporate level and at the operating subsidiary level. As such, we chose to keep our metallurgical carbon extraction and processing activities in the development stage while working aggressively to mitigate ongoing environmental liabilities attached to the permits that we acquired through the previous bankruptcies of prior legacy producers. Throughout the year, we did not take on any meaningful new operational debt, and the only new project debt we took on was associated with the issuance of a tax-exempt bond for the development of our Wyoming County-West Virginia Mining Complex. As you pray,

Kirk P. Taylor: As such our management and board chose to aggressively advancing development of reality technologies.

Kirk P. Taylor: Which include operating expand here in Dublin facility for customer qualification and validation large scale domestic project development, which includes the Marion.

Kirk P. Taylor: Super campus as well as talking about the project international expansion, adding to our what we feel the world class team and procuring feedstock and offtake agreements.

Kirk P. Taylor: Additionally, while we've also been focused on streamlining our balance sheet and continuing to reduce our bonding cost or long term environmental liability.

Kirk P. Taylor: At the corporate level and at the operating subsidiary level.

Kirk P. Taylor: As such we chose to keep our metallurgical carbon extraction and processing activities.

Kirk P. Taylor: I know in the development stage, while working aggressively to mitigate ongoing environmental liabilities attached to them.

Kirk P. Taylor: We acquired through previous bankruptcies prior legacy producers.

Kirk P. Taylor: Throughout the year, we did not take on.

Any meaningful new operational debt and the only new project that we took all of it was associated the issuance of the tax them on the development of our Wyoming County, West Virginia mining complex.

Kirk P. Taylor: How does it play.

Kirk P. Taylor: Our current shares outstanding are just over 79.1 million class A common shares, cash on hand, and the 2023, including funds held for the development of Wyoming County, the full complex, and $37.3 million. And again, as a reminder, all of our excess cash is held within FDIC limits at a top tier U.S. based bank. Our unique platform of assets is in a tremendous position to deliver attractive returns and value to our shareholders. I'd like to now turn the call back over to Mark LaVerghetta for some additional comments. Mark.

Kirk P. Taylor: Our current shares outstanding of just over 79 one.

Kirk P. Taylor: 1 million class a common shares.

Cash on hand.

Kirk P. Taylor: At the end of 2023, including funds held for development of Wyoming County, all kind of bikes and 37.3 million and.

Kirk P. Taylor: And again as a reminder, all of our excess cash is held in the FDIC limits and top tier U S based bank.

Kirk P. Taylor: Unique platform of assets is in a tremendous position to deliver attractive returns and value to our shareholders. I can now turn the call back over to Marc Mehlman got up for some additional comments mark.

Mark J. LaVerghetta: Thanks, Kirk. I'm going to make a few comments on the re-element technologies. You know, and as we frequently state, our re-element technologies division represents an incredibly exciting and very strategic opportunity for us. We've never been involved with an entity that, in our opinion, has as much upside as downside. Our mission has always been focused on how to most efficiently and effectively deploy critical mineral refining outside of China. And it has always been our belief that attempting to deploy legacy Chinese refining technologies in the US or Europe, really any other part of the industrialized world, would pose a real challenge. Those types of facilities and technologies are extremely expensive to build and operate due to the harsh chemicals, waste output, and maintenance at a large scale, and they are not sustainable outside of.

Kirk P. Taylor: Yeah.

Mark C. Jensen: Thanks Kurt.

Mark C. Jensen: I'm going to make a few comments on re element technologies.

Mark C. Jensen: As we frequently state a relevant technologies division represents an incredibly exciting and very strategic opportunity for us.

Mark C. Jensen: Never been involved with an entity that in our opinion has as much upside then re element.

Mark C. Jensen: Our mission has always been focused on how to most efficiently and effectively deploy critical minimum refining outside of China.

Mark C. Jensen: And then it always been our belief that attempting to deploy legacy Chinese refining technologies in the U S or Europe.

Mark C. Jensen: Really any other part of the industrialized world would pose real challenges.

Mark C. Jensen: Those types of facilities and technologies are extremely expensive to build and operate due to the harsh chemicals waste output and maintenance at large scale.

Mark C. Jensen: Not sustainable outside of China.

Mark J. LaVerghetta: Given the projected growth in demand, the geopolitical landscape, the monopolistic position China has facilitated over the past couple of decades, In the rapid execution we've achieved to date, ReElement is uniquely positioned to solve complicated and pressing problems that exist today. As such, we sit at where I say is the intersection of critical mineral supply chain health and resiliency and national security. As we continue to strategically position ourselves in the global supply chain for critical minerals, it is becoming more and more evident that we are separating ourselves from the pack as the preeminent refining solution outside of China and the most efficient critical mineral refining platform in the world, our ability to produce high purity lithium products, battery elements, rare earth oxides and critical defense elements for both recycled feedstocks as well as from natural feedstocks showcases our platform's flexibility and certainly differentiates us from anyone else out there.

Mark C. Jensen: Given the projected growth in demand geopolitical landscape, the monopolistic position, China has facilitated over the past couple of decades.

Mark C. Jensen: And the rapid execution, we've achieved to date reality is uniquely positioned to solve complicated impressing problems that exist today.

Mark C. Jensen: As such we sit at where I say is the intersection of critical minerals supply chain health and resiliency and national security interests.

Mark C. Jensen: As we continue to strategically position ourselves in the global supply chain for critical minerals. It is becoming more and more evident that we are separating ourselves from the pack as the preeminent refining solutions outside of China, and the most efficient critical mineral refining platform in the world.

Mark C. Jensen: Our ability to produce high purity lithium products.

Mark C. Jensen: Hattery elements rare Earth oxides, and critical defense elements for both recycled feedstocks as.

Mark C. Jensen: As well as from natural feedstocks showcases our platform's flexibility and certainly differentiates differentiates us from anyone else out there.

Mark J. LaVerghetta: All our platforms' flexibility uniquely positions us across multiple supply chains. We also have to stay focused on the particular end markets we serve, and as we continue to execute and scale, those end markets are. Production of rare earth oxides that are predominantly used for the manufacturing of permanent magnets, which are critical components within high efficiency motors in applications such as electric vehicles, windmill turbines, power tools, as well as critical defense technology. Also, the production of either ultra-pure lithium carbonate or lithium hydroxide, which are precursors for battery cathodes that are used in a variety of lithium-ion battery technologies. And then, as well, another end market is critical defense elements, which are highly unique for certain defense or military applications.

Mark C. Jensen: While our platform's flexibility uniquely positions us across multiple supply chains.

Mark C. Jensen: We also have to stay focused on a particular end markets, we serve and as we continue to execute and scale.

Mark C. Jensen: Those end markets are.

Mark C. Jensen: The production of rare Earth oxides that are predominantly used for the manufacturing of permanent magnets, which are critical components within high efficiency motors and applications such as electric vehicles, when they'll turbines power tools as well as critical defense technologies.

Mark C. Jensen: Also the production of either ultra pure lithium carbonate or lithium hydroxide, which are precursors for battery cathode that are used in a variety of lithium ion battery technologies and then as well. Another end market is critical defense elements. These are highly unique for.

Mark C. Jensen: For certain defense or military applications.

Mark J. LaVerghetta: The feedstocks that we're currently most focused on are both primary ores as well as recycled feedstocks, which, again, you know, contributes to the unique aspect and our unique positioning throughout the global marketplace. These feedstocks include end-of-life, rare-earth permanent magnets, which can come to us as magnets themselves or part of decommissioned wind turbines, electric vehicle rotors and motors, or any other consumer goods such This is really where we cut our teeth and how we began ReElement Technologies with our partners at Purdue University in extracting the rare earth elements from the magnets and refining them back into magnet-grade rare earth oxygens. Another key feedstock for us is black mass, which is Shredded Cathode Material from Lithium, excuse me, Lithium Ion Batteries and Lithium Ion Battery Waste or Scrap. Not all black mass is the same. There is a very wide range of qualities and a variety of different battery chemistries that have different inherent elements and minerals.

Mark C. Jensen: The feedstocks that were currently most focused on are both primary ores as well as recycled feedstocks, which again.

Mark C. Jensen: Now contributes to the unique aspect and our unique positioning throughout the global marketplace.

These feedstocks include end of life rare Earth permanent magnets, which can come to us as magnets themselves or part of decommissioned wind turbines electric vehicle rotors, and motors or any other consumer goods, such as power tools and other E waste.

Mark C. Jensen: That's really where we cut our teeth in how it began relevant technologies with our partners at Purdue University and extracting the rare earth elements from the magnets and refining them back into magnet grade rare Earth oxides.

Mark C. Jensen: Another key feedstock for us is black mask, which is.

Mark C. Jensen: Shredded cathode material from lithium lithium excuse me lithium ion batteries and lithium ion battery waster scrap.

Mark C. Jensen: Not all black masses Hussein out there is.

Mark C. Jensen: Wide range of qualities and a variety of different battery chemistries that have different inherent elements and minerals.

Mark J. LaVerghetta: We've taken in black mass from well over a dozen producers worldwide and validated the efficacy of our tech. It is important to note that the battery recycling industry's competency is really in the collection and aggregation of batteries and shredding them to produce a black mass material. However, black mass cannot be used in the manufacturing of new cathodes or batteries and requires further refinement of the material to produce battery grade precursor products.

Mark C. Jensen: We've taken them black mass from well over a dozen producers worldwide and validated the efficacy of our technology. It is important to note that the battery recycling industries competency is in the Israeli and the collection and aggregation of batteries and shredding them to produce a black mass material.

Mark C. Jensen: Black mass cannot be used in the manufacturing of new cathode or batteries and requires.

Mark C. Jensen: Further refinement of the material to produce battery grade prisa precursor products.

Mark J. LaVerghetta: The competency of those platforms is not separating the high-value elements in black mass and refining them back into battery grade precursor products. That is where we come in. Additionally, our ability to handle different types of black mass chemistry is another distinct differentiator of ours. Typically, battery shredders require NMC or nicomanganese-cobalt type battery chemistries in order to monetize the inherent nickel-co

Mark C. Jensen: Competency of those platforms is not separating the high value elements in black mask and refining them back into battery grade precursor products that is where we step in.

Mark C. Jensen: Additionally, our ability to handle different types of black mass chemistries is another distinct differentiator of ours typically battery shredders require NMC or nickel manganese cobalt type battery chemistries in order to monetize the inherent nickel cobalt value.

Mark J. LaVerghetta: Well, most, if not all of the lithium is either lost or. A lot of NMC Black Mass is sold today into China for reflux, which we believe will eventually be restricted or banned. And we are having success as a value-added partner to separate and refine NMC-based elements for certain recycling platforms all over the world. However, our ability to economically refine LSP or Lithium Iron Phosphate black mass is extremely unique, and we believe we are the only ones in the world that can economically extract the lithium and refine it back to a battery-grade product. LFP chemistry is the largest subsegment of lithium ion battery chemistry today in the world and growing, which also sets us apart from any other critical mineral refining platform and showcases the value of our platform to the recycling industry. Our value-added position in the recycling market as a sustainable supplier of critical minerals is strategically important as we move towards a highly mineral-dependent electrified economy. And from our perspective, traditional solvent-based processing methods don't work efficiently within the recycling industry for a variety of reasons, including performance, CAPEX, and OPEX.

Mark C. Jensen: While most if not all of the lithium is either lost or wasted.

Mark C. Jensen: A lot of NMC black masses sold today into China for refinement, which we believe will eventually be restricted or band and we are having success as a value added partner to separate and refine NFC based elements.

Mark C. Jensen: For certain recycling platforms all over the world. However.

However, our ability to.

Mark C. Jensen: However, our ability to economically refined L. S P or lithium iron phosphate black mass is extremely unique and we believe we are the only ones in the world that can economically extract the lithium and refine it back to battery grade products.

Mark C. Jensen: L F P chemistry, as the largest subsegment of lithium ion batteries chemistry today in the world and growing.

Mark C. Jensen: It also sets us apart from any other critical mineral refining platform and showcases the value of our platform to the recycling industry.

Mark C. Jensen: Our value added position in the recycling market and a sustainable supply of critical minerals is strategically important as we move towards the highly mineral dependent electrified economy.

Mark C. Jensen: And from our perspective traditional solvent based processing methods don't work efficiently within the recycling industry for a variety of reasons, including performance Capex and Opex fundamentals those challenges are beginning to manifest themselves in a big way across the recycling industry.

Mark J. LaVerghetta: Those challenges are beginning to manifest themselves in a big way across the recycling industry. The ReElement product offering, which is a collaborative and flexible refining service within the recycling industry, has tremendous growth opportunities to efficiently scale alongside the growth of the recycling industry, while also being able to adapt to different and evolving battery chemistry, and we are beginning to see success with some early adopters and partners. While recycling feedstocks are important from a sustainability perspective and provide us with a tremendous opportunity, natural ores will allow us to move the needle faster to meet the rapidly growing demand of the energy storage market. Our current focus is mainly on hard rock lithium-bearing ores, given the efficiency of our process and technology to refine lithium very cost-effectively. However, we are also currently working on different types of ores, including cobalt and nickel-bearing ores. Unique and Specific Critical Mineral Defense Minerals

Our powered by every element product offering which is a collaborative and flexible refining service within their recycling industry has tremendous growth opportunities to efficiently scale alongside the growth of the recycling industry, while also being able to adapt to different and evolving battery chemistries and we are beginning to see the success with some.

Mark C. Jensen: Early adopters and partners.

Mark C. Jensen: While recycling feedstocks are important from a sustainability perspective, and provide us a tremendous opportunity natural or will allow us to move the needle faster to meet the rapidly growing demand of the energy storage market.

Our current focus is mainly hard rock lithium bearing a worse given the efficiency of our process and technology to refine lithium very cost effectively.

Mark C. Jensen: We also apparently are working on different worst types, including cobalt nickel bearing ores.

Mark C. Jensen: Unique and specific critical critical mineral defense minerals.

Mark J. LaVerghetta: And we are also in the early stages of incorporating rare earth ores into our development platform. Our commercial qualification plant in Noblesville, Indiana, has been extremely busy taking in these different feedstocks and validating our process and products with a variety of existing and potential partners in a variety of industries, including the renewable energy space, automobile OEMs, battery recycling, consumer power tools, and miners of minerals and ores from across the globe.

Mark C. Jensen: And we are also in the early stages of incorporating rare Earth wars into our development platform.

Mark C. Jensen: Our commercial qualification plant in Noblesville, Indiana has been extremely busy taking in these different feedstocks and validating our process and products with a variety of existing and potential partners in a variety of industries, including the renewables renewable energy space.

Mark C. Jensen: Automobile Oems battery recycling consumer power tools and miners of minerals in doors from across the globe.

Mark J. LaVerghetta: These customer qualification and validation processes have sometimes been lengthy, sometimes taking over a year, but they have also been successful in showcasing our distinct advantages. Additionally, our Noblesville facility has been hard at work utilizing these feedstocks to validate and design our process at larger commercial scale for our two U.S.-based large-scale projects in Knott County, Kentucky, and Marion, Indiana, as well as other co-located facilities in the United States and abroad Our two large-scale U.S.-based critical mineral refining projects exemplify how we are leading the charge and are uniquely equipped to address probably the largest choke point in the critical mineral supply chain, which we believe is midstream processing and refinement. Our Kentucky Lithium Project is upcycling one of our carbon processing facilities in eastern Kentucky and transforming it into a large-scale critical mineral refinery with initial focus on hard rock lithium ores as It is currently being designed with an initial capacity to produce 15,000 tons per year of battery grade lithium and will have the ability to incrementally add modular capacity beyond.

Mark C. Jensen: These customer qualification and validation processes, sometimes it's been lengthy sometimes taking over a year.

Mark C. Jensen: They have also been successful in showcasing our distinct advantages.

Mark C. Jensen: Additionally, our noblesville facility has been hard at work utilizing these feedstocks to validate and design our process at larger commercial scale.

Mark C. Jensen: For our two U S based large scale projects and not county, Kentucky, and Marion, Indiana. While also other co located facilities in the United States and abroad.

Mark C. Jensen: Our two large scale U S based critical mineral refining projects exemplify how we are leading the charge in our uli uniquely equipped to address probably the largest chokepoint in the critical mineral supply chain, which we believe is midstream processing and refining.

Kentucky lithium project is upcycling, one of our carbon processing facilities in eastern Kentucky, and transforming it into a large scale critical mineral refinery refinery with initial focus on hard rock lithium bores as its primary feedstock.

Mark C. Jensen: It is currently being designed with an initial capacity.

Mark C. Jensen: Produced 15000 tons per year of battery grade lithium and we'll have the ability to incrementally add modular capacity beyond that.

Mark J. LaVerghetta: As previously discussed, this project is now funded with the closing of our tax-exempt bond we announced today, and I cannot think of another project that defines energy transition better. Our Marion, Indiana, Supersite project is converting what was once a beacon of U.S. innovation and manufacturing. It was once the largest television manufacturing facility in the world and is transforming it into a first of its kind critical and rare earth mineral refining campus with the focus on recycled feedstock. This facility has been undergoing renovations and is being designed with initial capacity to produce 5,000 metric tons of battery grade lithium and 1,000 tons of rare earth oxides per year. I cannot think of another project that defines the reshoring of U.S. manufacturing better than this project. Our innovative and advanced separation and purification methods using chromatography replace the guts within a typical hydrometallurgical process. In essence, we use a modified version of hydromet, but without the harsh solvents and acids that are typically used in the separation phase of refinement.

Mark C. Jensen: As previously discussed this project is now funded with the closing of our tax exempt bond, we announced today and I cannot think of another project that defines energy transition better.

Mark C. Jensen: Marion, Indiana Super site project is converting what was once a beacon of U S innovation in manufacturing. It was once the largest TV manufacturing facility in the world and is transferring transforming it into a first of its kind critical rare earth mineral refining campus with a focus on recycled feedstocks. This facility will be.

Mark C. Jensen: Undergoing or has been undergoing renovations and is being designed with initial capacity to produce 5000 metric tons of battery grade lithium and a thousand tonnes of rare earth oxides per year.

Cannot think of a another project that defines the re shoring of U S manufacturing better than this project.

Our innovative and advanced separation and purification methods using chromatography replace the guts within a typical a typical hydro metallurgical process in essence, we use a modified version of hydro met but without the harsh solvents and assets that are typically used in the separation phase of refinement. This allows us to displace the toxic.

Mark J. LaVerghetta: This allows us to displace the toxic conventional methods used in China and what many are trying to attempt to deploy outside of China. We are lower cost and more efficient because we utilize a smaller footprint. We don't use harsh chemicals, meaning our op-ex is much lower, and our environmental footprint is much cleaner.

Mark C. Jensen: No Matt methods used in China, and what many are trying to attempt to deploy outside of China were lower cost and more efficient because we utilize a smaller footprint, we don't use harsh chemicals, meaning our opex is much lower and our environmental footprint is much cleaner.

Mark J. LaVerghetta: Our process is modularly scalable, contributing to a meaningfully lower capex. Also, our speed to market is faster than anyone else. Disruptive technologies come down, in my opinion, to cost and know-how, and we are in a unique and fortunate position to have both. Our intellectual property has been developed and commercialized over approximately 40 years and over $40 million invested across multiple industries. Our best-in-class team leverages the know-how from research and development, commercialization, and operational expertise coupled with our asset base and relationships to execute on our, and we are able to produce high-demand products at a cost competitively, if not lower than China. We believe our platform technology is an important linchpin in making the United States competitive within the electrified economy, as well as for national security.

Mark C. Jensen: Our processes modular scalable contributing to a meaningfully lower capex also our speed to market is faster than anyone else does.

Mark C. Jensen: <unk> technologies comes down in my opinion to cost and Knowhow and we are in a unique and fortunate position to have both.

Mark C. Jensen: Our intellectual property has been developed and commercialized with approximately 40 years and over $40 million invested across multiple industries are best in class team Leverages. The knowhow from the research and development to commercialization and operational expertise, coupled with our asset base and relationships to execute on our Mrs.

Mark C. Jensen: Sure.

Mark C. Jensen: And we are able to produce high demand products cost competitively, if not lower than China.

Mark C. Jensen: We believe our platform technology is an important lynchpin in making the United States competitive within the electrified car economy as well as for National security objectives.

Mark J. LaVerghetta: The value proposition for reELEMNT is the world needs advancements in refining these raw materials that power our modern day technologies, and we believe we provide the most efficient solution while also being in the lead position to do so. We truly believe reELEMNT has the opportunity to create substantial and meaningful value for our shareholders, and the decisions we make and the time associated with the entire process, while sometimes certain things being out of our control, are based on maximizing that value the very best that we can. I'd like to now turn it over to Mark Jensen for some additional comments. [inaudible] Thanks, Mark, and thanks, everyone, for joining us.

Mark C. Jensen: The value proposition for re element is the world needs advancements in refining these raw materials to power our modern day technologies and we believe we provide the most efficient solution. While also being in the lead position to do so we truly believe re element has the opportunity to create substantial and meaningful value for our shareholders.

Mark C. Jensen: And the decisions, we make and the time associated around the entire process, while sometimes certain things being out of our control are based on maximizing that value. The very best that we can.

Now I'll turn it over to Mark Jensen for some additional comments.

Mark C. Jensen: Mark.

Thanks Mark.

Mark C. Jensen: And thanks, everyone for joining.

Yeah.

Mark C. Jensen: I would also like to applaud our entire team.

Mark C. Jensen: I would also like to applaud our entire team for their efforts. Their diligent planning and their positioning of all of our assets. We're a unique company. We have three platforms underneath one umbrella.

Mark C. Jensen: For their efforts.

Mark C. Jensen: Diligent planning.

Mark C. Jensen: And their positioning of all of our assets.

None: We're a unique company.

None: We have three platforms underneath one umbrella.

Mark C. Jensen: Those assets aren't being fairly valued, and, more importantly, we recognize that. So what we're focused on doing today is positioning our assets to unlock that value, to give our team members the tools that they need to execute upon that plan to drive value for our shareholders through individualized and upon the separation of what they're able to accomplish. The past several months have been highly focused on preparing for the positioning of these businesses for the separation and operation of stand-alone companies. That means that it involves having board members in place for corporate governance, having the team members in place for execution, and giving them the tools that they need to take these businesses to the next level. Thankfully, we are very well suited to do that. We have boards in place for each one of our divisions.

None: Those assets aren't being fairly valued.

None: And more importantly, we recognize that.

None: So what we're focused on doing today is positioning our assets to unlock that value.

To give our team members the tools that they need to execute upon that plan to drive value for our shareholders through individualized entities.

None: Upon the separation of what they're able to accomplish.

None: The past several months I've been highly focused on preparing for these disease. This positioning these businesses for the separation and operation of Standalone companies that means and that involves having board members are in place for corporate governance.

None: Having the team members in place for execution, and giving them the tools that they need.

None: You take these businesses to the next level.

None: Thankfully, we are very well suited to do that today.

None: We had boards in place for each one of our divisions.

Mark C. Jensen: We have teams in place for each one of them, and we have the assets in place and technology in place to absolutely crush it. We have focused on driving the highest value aspects of our business forward for the launch. We've shared and communicated a number of very significant milestones that we've been able to achieve, and we have a number of significant milestones yet to achieve.

None: We have teams in place for each one of our divisions.

None: And we have the assets in place and technology in place to absolutely crush it.

None: We are focused on driving the highest value aspects of our business forward.

None: For the long term.

None: We have shared and communicated a number of very significant milestones that we've been able to achieve.

None: And we have a number of significant milestones yet to come.

Mark C. Jensen: But we are in a very favorable position within the marketplace, not only at the American Carbon Division, where we have some nameplate assets that are some of the lowest cost mining operations that are getting ready to ramp up production aggressively between our Wyoming and McCoy complexes, as well as our ReElement Technologies division, which Mark and Kirk had the luxury of sharing some of the opportunities that we have in front of us. We're extremely excited about these entities, and we're extremely excited about where they can go upon the separation of the businesses so that they have their core focus, and their ability to focus solely on their operators. Over the course of the last quarter, we have been investing heavily in the businesses.

None: But we are in a very favorable position within the marketplace not only at the American carbon division, where we have a nameplate assets that are some of the lowest cost mining operations that are getting ready.

None: To ramp up production aggressively between our Wyoming and Mcquay complex. It is.

None: As well as our reality technologies, the division, which mark and Kirk and luxury of sharing some of the opportunities that we have in front of ourselves.

None: We're extremely excited about these entities and we're extremely excited about where they can go upon the separation of the businesses. So that they have their core focus.

None: And their ability to focus.

None: Solely on their operations.

None: Over the course of the last quarter, we have been investing heavily into the businesses Wyoming has been developing from.

Mark C. Jensen: Wyoming has been developing, from the tax-exempt bonds, McCoy has been positioning the ramp-up of our Carnegie mine, and ReElement has been focused on proving out and running production in our Noblesville facility but developing our Kentucky Lithium site, our Marion site, as well as our international opportunities where we have made significant milestones. In the world of critical minerals, the supply chains are broken. We rely upon China for 95% of everything we do. Our military

None: From the tax exempt bonds Mccoy has been positioning the ramp up of our Carnegie minds.

None: And re element has been focused on proving.

None: Proving out.

None: And running production in our Noblesville facility been developing our Kentucky lithium site, our Marion site as well as our international opportunities that we have made significant milestones on.

None: Yeah.

None: The world of critical minerals.

None: Why change the broken we rely upon China for 95% of everything we do.

None: Our military.

Mark C. Jensen: And the only thing they all care about is cost. We can provide products at the same cost, if not better than what China can do for them. That's a game changer.

None: Our commercial enterprises and the only thing they all care about is cost.

None: We can provide products at the same cost if not better than what China can do today, that's a game changer, we're gonna break the monopoly.

Mark C. Jensen: We're going to break the monopoly. We're going to bring technology to the forefront, and we're going to execute upon our mission. And we're going to do that in a very rewarding way for our customers. We've been laying the groundwork for that. We've put the assets in place, we've proven that the technology works and works extremely well, and our operational team has done a phenomenal job. Now we're putting the financing in place with the $150 million tax-exempt bond we closed today and another tax-exempt bond we're working on as we speak. We've applied for government grants.

None: We're gonna bring technology to the forefront and we're going to execute upon our mission.

None: And we're going to do that in a very rewarding way to our shareholders.

None: Yeah.

None: We've been laying the groundwork for that.

None: We put the assets in place we've proven that the technology works and works extremely well and our operational team has done a phenomenal job at that.

None: Now, we're putting the financing in place with the $150 million taxes of Mommy close today and another tax exempt bond we're working on as we speak we've applied for government grants, we'll see if we get them.

Mark C. Jensen: We also have a significant number of international financing operations that are in place that can unlock our international efforts, especially in Africa. They need what we offer. We offer refining solutions that they can't get anywhere else other than China, and that product goes to China. It doesn't develop a manufacturing society.

We also have a significant number of international financing operations that are in place that that can unlock our international efforts, especially in Africa.

None: They need what we offer we offer refining solutions that they can't get anywhere else other than China and that product goes to China. It doesn't develop a manufacturing society.

Mark C. Jensen: It's exploitation where we're focused on developing economic relations. Our technology enabled that, developed out of Purdue University here in Indiana. We're extremely proud of that. We're extremely proud of the efforts that our Purdue team has put in place and the support that they've given our operational team to drive our technology forward. Our team has worked countless hours to be where we are today.

None: It's exploitation, where we're focused on developing economic relationships.

None: Our technology enables that developed out of Purdue University here in Indiana, where.

We're extremely proud of that we're extremely proud of the efforts that are pretty pretty team has put in place and the support that they've given our operational team to drive our technology forward.

None: Our team has worked countless hours to be where we're at today.

Mark C. Jensen: Today, it's about running production every day in our Noblesville facility and gearing up for our Kentucky site as well as our Maryland site. Our team has been working countless hours in Africa, traveling numerous times over there to develop relationships and share what we bring differently to the table to drive economic value for our show. Turles Thompson has been leading our American Carbon Division to position these assets to light the fire of production at low cost. It's everybody wants revenue on a daily basis, but we care about long-term value. We care about making sure we turn these minds on to optimize them. We've reduced environmental liability significantly over the course of the last year, including in the last quarter, and we'll showcase that here shortly. Our intent is to... spend these assets off and ramp up production at all.

None: It's about running production every day, and our Noblesville facility and gearing up for our Kentucky site as well as our Marion site. Our team has been working countless hours over in Africa, and traveling numerous times over there to develop the relationships and share what we bring differently to the table to drive economic value for our shareholders.

None: Turtles Thompson has been meeting our American carbon division to position. These assets can light the fire our production at low cost.

None: It's everybody wants revenue on a daily basis, we care about long term value we.

None: We care about making sure we turn these minds on to optimize them, we've reduced environmental liability.

None: Over the course of the last year, including over the last quarter.

None: And we'll showcase that here shortly.

Our intent is to.

None: When these assets off and ramp up production at all divisions, and we're going to do that and we're going to share that news here very very shortly I'll talk about that little further early on during this call.

Mark C. Jensen: And we're going to do that, and we're going to share that news here very, very shortly. I'll talk about that a little further here later on during this call. As Kirk mentioned, we have not taken our foot off the gas.

As Kirk mentioned, we have not taken our foot off the gas we've been aggressively planning working positioning.

Mark C. Jensen: We've been aggressively planning, working, and positioning to execute upon the strategy. We've spun off our Novostar asset, a phenomenal business, gotten one contract with the Air Force and the Army through Kenai Defense, and working on getting through their S-1 process to IPO later this year. We will very shortly here next week announce when we're spinning off our American Carbon Division so that we can ramp up production there, and the team can focus solely on being the lowest cost producer of met coal to the steel industry. And we'll then shortly thereafter announce where we're spinning off ReElement into its own standalone platform so it has a clean focus on being the world supplier of refining solutions for critical minerals beyond China, and I truly believe we will be Financing is in place to protect our shareholders. We could hit the easy button tomorrow, easily.

None: To execute upon the strategy, we spun off our neurostar asset a phenomenal business gun won contracts with the Air Force and the army through can I defense.

None: I'm working on getting through the rest one process to the IPO later this year.

None: We will very shortly here.

None: Next week announcement, we're spinning off our American carbon division.

None: So that we can ramp up production there and the team can focus solely on being the lowest cost producer of met coal to the steel industry.

None: And we'll then shortly thereafter announce where we're spinning off for element into its own standalone platform. So it has a clean.

None: Focus on being the world's supplier of refining solutions for critical minerals beyond China.

None: And I truly believe we will be the only solution that works economically in this country as well as in others.

None: That separation purification step, which is really the heart of what we do.

None: We've also been focused on putting these non dilutive capital.

The financing is in place to protect our shareholders, we could hit the easy button tomorrow.

Mark C. Jensen: We can go out and raise equity capital and do what every other company does, but we actually care. Our team actually cares.

None: We can go out and raise equity capital and do it every other company does but we actually care R.

Our team actually cares our team is motivated by the shares and equity that we all own.

Mark C. Jensen: Our team is motivated by the shares and equity that we all own, and that our families own. That's important to us. So we don't hit the easy button.

None: And that our families zone.

None: That's important to us so we don't hit the easy button, we fight the hard fight to put our position businesses in place to be successful.

Mark C. Jensen: We fight the hard fight to put our position businesses in place to be successful. We've closed a $45 million tax-exempt bond in one of the most challenging markets you can find with a phenomenal investor. And that capital is being used to develop the Wyoming County Complex to be an absolutely phenomenal complex. It's a focus on producing met coal and then, as a byproduct, producing concentrates of rare earth elements, of which we'll share those results very shortly, which are better than the largest, one of the largest mining operations that have announced rare earth elements to date on a parts per million basis. Absolutely phenomenal. Ahem.

None: We've closed a $45 million tax exempt bond and one of the most challenging market. She can find with a phenomenal investment and that capital is being used to develop the Wyoming County complex to be an absolutely phenomenal complex as the focus on producing met coal and then a byproduct of producing concentrates of rare earth elements of which we'll share those results very shortly.

None: Which are better than the largest one of the largest mining operations that are announced familiar with honest today on our parts per million basis, absolutely phenomenal results.

None: [laughter].

Mark C. Jensen: We've announced that we've had offers to sell the coal business, and the numbers, and the values were good. You're okay with them.

None: We've announced that we've had offers to sell the whole business.

None: And the numbers the values were good.

None: K with them, but concern was around structure, we're not going to put our investors at risk of not getting paid the full consideration of what those assets are worth.

Mark C. Jensen: The concern was around structure. We're not going to put our investors at risk of not getting paid the full consideration of what those assets were. So our focus next week, we'll announce the record date and the payment date of when we're going to spin American Carbon Off. Now, we are still focused on monetizing the assets, and we're still going to evaluate opportunities to monetize those assets. We have signed agreements, binding agreements to sell the Dean complex, yet they didn't pay it, and I'm fortunate that, being said, they owe us a lot of money, and we're pursuing that in court as we speak, And I think we'll get it. I feel very confident about that.

None: So our focus next week, we'll announce the record date.

None: And the payment date of when we're gonna spin American carbon off now we are focused on still monetizing the assets and we're still going to evaluate opportunities to monetize those assets.

None: We have signed agreements binding agreements to sell the Dean complex yet they didn't pay us. It's an unfortunate that being said there was a lot of money and we're pursuing that in court as we speak.

None: And I think we'll get it I feel very confident about that go very confident about our position to.

Mark C. Jensen: I feel very confident about our position to make sure we get that money for our shareholders. We also have other interests and other buyers that are interested in some of the non-core, non-focus assets for the quality of production that we're looking at targeting. And then post-spinoff, we are looking at further expanding American Carbon, and the American Carbon executive team has presented a plan of growth for the division organically, as well as acquisitions in the West Virginia region, as well as in other materials. During the course of the last short period of time, we acquired an iron ore asset, which is a phenomenal asset.

None: Do you make sure we get that money for our shareholders.

None: [laughter] Wilson, we also have other interests and other buyers that are interested in some of the noncore non focus assets for the quality of production that we're looking at targeting.

None: And then post spin off we are looking at further expanding American carbon and the team.

None: American carbon executive team has presented a plan of growth for the division organically as well as the acquisitions in the West Virginia region.

None: As well as in other materials.

During the course of the last.

None: For a period of time, we acquired an iron ore asset, which is a phenomenal asset we're doing a ton of work there right now on evaluating the reserve and spending actually a few team members out of that region here very shortly.

Mark C. Jensen: We're doing a ton of work there right now on evaluating the reserve and sending actually a few team members out to that region very shortly to further look at how we bring that into production and look at technologies to monetize that the most economically. So it's not only looking at the met carbon division but looking at the entire infrastructure landscape of how do we produce products to monetize that division and expand that. The American Carbon Division, as I mentioned, we will announce the date next week. We'll provide clarity on when we're going to dividend it out to our underlying shareholders, and then we'll share the growth curve of how we anticipate that. We have equity interest, and we have debt interest to further finance and expand that division, and we're going to focus on growing that division to make sure that the shareholders receive the entire reward of what it's worth. Re-element, the same thing.

None: To further look at how we bring that into production.

None: And looking at technologies to monetize that the most economically they're not only looking at the met carbon division, but looking at the entire infrastructure landscape of how do we produce product.

None: To monetize that division and expand the application.

None: Yeah.

None: [laughter].

None: The.

None: American carbon division, we we as I mentioned, we will announce next week. The date will provide clarity of when we're going to dividend it out to our underlying shareholders and then we will share the growth curve of how we anticipate that we have equity interests. We have debt interest to further finance and expand that division and we're going to focus on growing that division to make sure that the shareholders receive.

None: The entire reward of what it's worth.

None: Same thing.

Mark C. Jensen: We filed a Form 10 for both of these divisions. We're gonna push that through. We're working on closing the financing that was previously announced. We have a great interest in it. We don't need a lot of that with the tax-exempt bonds we just closed.

None: We filed the form 10 for both of these divisions were going to push that through we're working on closing the financing that was previously announced we have great interest in it.

None: We don't need a lot of that was the tax exempt bonds. We just closed so we're going to try to focus on minimizing dilution, but bringing in the necessary capital to continue to move the business forward as quickly as we possibly can.

Mark C. Jensen: So we're gonna try to focus on minimizing dilution but bringing in the necessary capital to continue to move the business forward as quickly as we possibly can. The opportunity today at ReElement has had us focusing on allocating capital to make sure that we're allocating it in the most accretive way. Our Marion facility is going through certificate of occupancy in the next few weeks, and we believe we'll get it. Our ability to finalize the renovations there over the next few months to start deploying equipment there will enable us to expand our production in Marion, as well as expand our refining capacity in Noblesville. And that's a beautiful thing.

None: [laughter] the opportunity today.

None: Every element has had us focusing on allocating capital to make sure that we're allocating it in the most accretive way.

None: Marion facility is going for certificate of occupancy in the next few weeks and we believe we'll get it.

None: Our ability to finalize the renovations there over the next few months to start deploying equipment, there will enable us to expand our production.

None: And maryann as well as expand our refining capacity in Noblesville, and that's a beautiful thing for US we are the only refining facility in the United States I can do.

Mark C. Jensen: We are the only refining facility in the United States that can do it, that can perform at the purity levels that we're able to achieve that are necessary to build a domestic battery. Internationally, we've made huge strides with our international footprint for ReElement. We've had conversations with groups out of Canada, Australia, numerous groups out of Africa; some of our largest sourcing of materials is coming out of Germany, that we're refining, that we'll be refining in our Noblesville and Marion facilities. Establishing those international relationships takes time. That being said, we've been putting a lot of groundwork there, and I think we've collapsed that time significantly due to the efforts of our team members and the willingness... And passion to travel to spend time away from their families to build a team and build a platform that can help us grow to that next level very, very quickly.

None: That can perform at the purity levels that were able to achieve that are necessary to build a domestic battery industry.

None: Internationally, we've made huge strides within our international footprint for element, we've had conversations with groups out of Canada, Australia numerous groups out of Africa. Some of our largest sourcing of materials that are coming out of Germany.

That we're refining that we'll be refining in noblesville and Marion facilities.

None: Stablish and those international relationships takes time.

None: He said, we've been putting a lot of groundwork there and I think we've collapsed that time significantly due to the efforts of our team members and the willingness.

None: And passion to travel to spend time away from their families to to build a team in and build a platform that can help us grow to that next level very very quickly.

None: [laughter] ultimately, it's about partnerships, we've announced numerous partnerships over the course of the last year, We've announced D. D. P. We have numerous partnerships we're not allowed to mention their name. It's unfortunate that being said, they're great partners and ultimately we're getting calls from numerous other partners that need the solutions that we provide.

Mark C. Jensen: Ultimately, it's about partnerships. We've announced numerous partnerships over the course of the last year. We've announced EDP. We have numerous partnerships, but we're not allowed to mention their names.

Mark C. Jensen: It's unfortunate, but they're great partners, and ultimately, we're getting calls from numerous other partners that need the solutions that we provide. Over the course of the next year, we'll be able to talk much more openly about who these partners are, we hope, as we continue to expand the relationships with them, not only for feedstock but also for sales. And we also look to continue to expand all of our platforms on the international... In closing, we remain very confident in the positioning of all of our assets and the long-term value that they provide to our shareholders. We remain hyper-focused on unlocking that value. That's why we're focused on these distributions.

None: Over the course of the next year, we'll be able to talk much more openly about who these partners are we hope as we continue to expand the relationships with them not only from feedstocks, but also on the sales side.

None: And we also look to continue to expand.

None: All of our platforms on the international footprint.

None: In closing we remain very confident in the positioning of all of our assets in the long term value that they provide to our shareholders. We remain remain hyper focused on locking and unlocking that value.

None: That's why we're focused on these distributions that's why we're focused on spinning them off and Microcap conglomerate it doesn't make sense.

Mark C. Jensen: That's why we're focused on spinning them off. A microcap conglomerate doesn't make sense. We're fortunate that we built a microcapacitor conglomerate. We did it based on effort. We did it based on. We put ourselves out there, the technologies worked, the platform worked, the platform is positioned, and now it's time to let them go off on their own and be successful, and we have the teams to be able to do that. These milestones were the distribution of Novosteris shares over the course of the last quarter.

None: We're fortunate that we built a microcap conglomerate, we did it based on effort we did it based on.

None: We put ourselves out there the technologies worked the platform worked the platform is positioned and now it's time to let them go off on their own and be successful and then we have the teams to be able to do that.

None: These milestones were the distribution of Novus their shares over the course of the last quarter.

Mark C. Jensen: Closing of our tax-exempt bond to finance both our carbon division as well as our re-element division and our ability to showcase the results of what our technology can produce. We have ample liquidity on our balance sheet. We do not foresee us needing to issue equity at the AREC level to raise additional capital.

None: Closing of our tax exempt bond to finance, both our carbon division as well as our re element division.

None: And our ability to showcase the results of what our technology can produce.

None: We have ample liquidity on our balance sheet, we do not foresee us needing to issue equity at a rack level.

None: To raise additional capital we do want to position the individual entities to do their financing on the American carbon side and remember the time.

Mark C. Jensen: We do want to position the individual entities to do their finances on the American carbon side and the re-element side. American Resources, after the distribution of these assets, will expand aggressively into the critical mineral space on the mining front. We have numerous opportunities in front of us as well as for the utilization of the products that we produce through very good partnerships that we've been working on for numerous, numerous months, if not years. Just to reiterate, the management and the families of our management are some of the largest shareholders of American Resource. Our management team is committed to maximizing the value of all of our business and believes our continued execution and unbundling of these assets will help us achieve it. I thank you for all your time, and I'd like to turn it back over to the moderator for some Q&A. Thank you. We'll now conduct our question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue.

None: American resources post distributions these assets will expand aggressively into the critical minerals space on the mining plan.

None: We have numerous opportunities in front of us as well as on the utilization of the products that we produce.

None: Very good partnerships that we've been working on for numerous numerous months if not years now.

None: Just to reiterate the management and the families of our management are with some of the largest shareholders of American resources. Our management team is committed to maximizing the value of all of our businesses and believe our continued execution and unbundling of these assets will help us achieve this.

None: Thank you for all your time and I'd like to turn it back over to the moderator for some Q&A.

None: Thank you we will now conduct a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue.

Operator: You may press star 2 if you would like to remove your question from the list. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key. Once again, to ask a question, press star 1 on your telephone. And our first question comes from Heiko Ihle on HC Wainwright. Please state your question. Hey Mark, can you hear me all right?

None: You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys. Once again to ask a question press star one on your telephone keypad.

None: And our first question comes from Heiko with H C. Wainwright. Please state your question.

Heiko: Hey, Mark can you hear me all right.

Heiko Felix Ihle: I can't. Perfect, excellent. Hey, you've got these executed MOUs with the German battery recycling platforms, the Duesenfeld deal and the battery damage service MOU. Obviously, there is arguably a very big market opportunity there, but can you maybe give some figures of what you internally think about how big of a market opportunity there might be in your collaboration going forward? Yeah, absolutely. So Duesenfeld, I mean, a phenomenal partner, same with Battery Damage Services. Duesenfeld is actually just, I think, is putting on the boat, one of our containers, I think, a 50 or 53 foot container or 40 foot container with some black mass as we speak.

Heiko: Okay.

Perfect excellent Hey, you got these executed Mou is with the German battery recycling platforms with Doosan felt deal and the battery damage service more U.

Heiko: Obviously, arguably a very big market opportunity there, but can you maybe give some some some figures of what you internally think how big of a market opportunity there might be in your collaboration going forward.

None: Yeah, absolutely so do some fold I mean phenomenal partner I'm, saying he was battered damage services. This is what I would actually just I think it's putting on the putting on a boat one of our containers I think are a 50 or 53 foot container a 40 foot container with some black math as we speak.

Mark C. Jensen: The attractiveness of the partnerships and what we do, we're one of the few players, if not the only, that can recycle LFP batteries profitably, and that's due to the technology, the process flow of how we extract the lithium out of it. The size and scale of what that means, I mean, Duesenfeld's a phenomenal company, phenomenal technology, and their business model is to operate their existing recycling footprint, but also license it out And what's great about that is we've got a really fun, collaborative relationship with them, where they refer us to their partners that are also buying their shredders. So this could be pretty substantial. Our goal right now, I mean, we're in Noblesville, a small footprint, 7,000 square feet. Our Marion facility is 400,000 square feet.

None: The attractiveness about the partnerships and what we do we're one of the few players if not the only that can recycle L. P batteries profitably and that's due to the technology.

None: The process flow and how we extract with him out of it the.

None: The size and scale of what that means I mean, so do the belt is a phenomenal company phenomenal technology and they their business model is to operate their existing <unk> tech.

None: Recycling footprint, but also license it out and what's great about that is we got a really fun collaborative relationship with them, where they refer us to their partners are also buying their centers.

None: So this can be pretty substantial our goal right now we're in noblesville small footprint 7000 square feet or Marion facilities 400000 square feet. So getting certificate of occupancy there was obviously quite important.

Mark C. Jensen: So getting a certificate of occupancy there is obviously quite important for us to rapidly expand our production, but the meaningful nature of it is one, obviously domestically, there's a lot of black mass today that goes to China from the US. Unfortunately, that's going to stop, I think soon. And we'll be the solution here for that. We are the solution for refining. In Europe, I believe it's the same thing.

None: For us to rapidly expand our production.

None: But the meaningful nature of it is one obviously domestically theres a lot of Black Master data goes to China from the U S. Unfortunately, that's going to stop I think soon.

None: And what will be the solution here for that where the we are the solution partner, you're finding here domestically.

None: In Europe I believe it's the same thing were getting beyond relationships, there, but also helping them source product as well and those relationships could be very meaningful for us from a revenue basis going in to the next 12 to 24 months.

Mark C. Jensen: We're getting beyond relationships there but also helping them source product as well. And those relationships could be very meaningful for us from a revenue standpoint going into the next 12, 24 months. That's very helpful.

None: That's a very helpful. Also your your royalty income in 2023. It was quite strong just looking over the income statement can you provide some longer term guidance on where we should model royalty income going forward in 'twenty four and after it up and speaking of the longer term modeling.

Heiko Felix Ihle: Also, your royalty income in 2023 was quite strong. I'm just looking over the income statement. Can you provide some longer-term guidance on where we should model royalty income going forward in 2024 and after that? And speaking of longer-term modeling, where do you think we should see G&A in 2024, please? So that's a good question. Um, so GNA is, so you got to understand where we're at with the platform right now. So I'll answer your, you're last, question first. It's going to change pretty dramatically because the divisions are going to separate.

None: Which do you think we should see G&A in 2024. Please.

None: Yeah.

None: So that's a good question. So I mean G&A is so you got to understand we're out of the platform right now so I'll answer your.

None: Your last question first.

None: It's going to change pretty dramatically because the divisions are going to separate so each division will have their own G&A, but it'll be a fraction of what they obviously holding company instead of that so our G&A overall, though will I think stay pretty consistently where it's at today, it's not going to rise and substantial amount.

Mark C. Jensen: So each division will have its own G&A, but it will be a fraction of what the obviously holding company is today. So our G&A overall, though, will, I think, stay pretty consistently where it's at today. It's not going to rise by a substantial amount.

Mark C. Jensen: Obviously, with revenue increases, that will, and we're getting ready to do that. So we're obviously getting ready to expand our revenue base on the re-element side. We're getting ready very quickly here to expand our revenue base on the mining side with the spinoff announcement next week and then also the ramp-up production. The DNA will, I would say, on the whole, if you look across the entire platform, will be pretty consistent where it's at today.

None: Obviously with revenue increase.

That will and we're getting ready to do that so we're obviously getting ready to expand our revenue base on the element side, we're getting ready very quickly here to expand our revenue base on the mining side and with a spin off announcement in the next week and then also the ramp up production.

None: So G&A will be I would say on a whole if you look across the entire platform will be pretty consistent where it's at today, it's not going to not going to expand what if any.

Mark C. Jensen: It's not going to, it's not going to expand a lot, if any. The royalty income, I would also say, is pretty good. It'll be, I think it'll be pretty consistent going forward based on where it's at right now. Fair enough. Appreciate it. I'll get back in queue.

None: The royalty income I would also say it's pretty consistent.

None: It'll be I think it'll be pretty consistent going forward based on where it's at right now.

None: Yeah.

None: Fair enough I appreciate it I'll get back in queue. Thanks, guys.

Heiko Felix Ihle: Thanks, guys. Excellent. Thank you.

None: Excellent. Thank you.

None: And our next question comes from Mike <unk> with Roth Capital Partners. Please state your question.

Operator: And our next question comes from Mike Niehuser with Roth Capital Partners. Please state your question. Mike Niehuser, your line is open, go ahead. Now you can hear me, okay?

None: Yeah.

Mike: Your line is open go ahead.

Mike: Now you can hear me okay.

Mike Niehuser: Yes, I'm coming through, go ahead. Yeah, thank you. Sorry about that.

Mike: Yes coming through go ahead.

Mike: Yeah. Thank you sorry about that yeah.

Mike Niehuser: The, um, you mentioned your very bold statements about breaking the monopoly with China, and I have to get you to explore that a little bit more. And I think that hinges on costs. And as you look at costs, when you make that statement, comparing yourself to China and having lower costs, is that on a currency basis? Or does that impute environmental savings?

Mike: You mentioned that your.

Mike: Very bold statements about breaking the monopoly with China and I have to get you to explore that a little bit more.

Mike: And I think.

Mike: That hinges on costs and as you look at cost when you when you make that statement comparing yourself with China, and having lower cost is that on a like a a currency basis or does that impute, an environmental stable because I I get the feeling that both China and U or the other into the.

Mark C. Jensen: Because I get the feeling that both China and you are on the other ends of the spectrum as far as the environmental impact where, you know, they've tortured some areas in China and, you know, you're a nothing burger in the environmental footprint. So are you figuring that into breaking the monopoly? Or are you just looking at cold hard dollars?

Mike: Spectrum as far as the environmental impact, where you know they've tortured you know they've tortured some areas in China and you know you have your own nothing Burger and environmental footprint. So are you figuring that into breaking the monopoly or are you just looking at cold hard dollars.

Mark C. Jensen: Yeah, that's a great question, Mike. Nobody cares, in reality, about non-cash costs, meaning that you could have the best environmental footprint in the world, but if you're 50% more expensive, nobody's going to buy it. You have to compete head-to-head on cost. Now, thankfully, we do that because we have a great environmental process. Our technology is environmentally sound, we don't use harsh chemicals, it's closed-loop systems, we don't discharge elements into waterways, we use columns and resins versus emulsions and catalysts. So we compete on cost because of our environmental footprint, but we compete head-to-head on cost. That's the only thing that matters when it comes to commodities, and I don't care what anybody says. Critical minerals are nothing but a commodity.

None: Yeah, that's a great question Mike.

None: Nobody cares.

None: Nobody.

Yeah.

None: In reality.

None: About noncash costs.

None: Meaning that.

None: You could have done.

None: The best environmental footprint in the world, but if you're.

None: 50% more expensive nobody's going to buy it.

None: You have to compete head to head on costs now thankfully, we do that because we have a great environmental process.

None: Our technologies environmentally sound, we don't use harsh chemicals.

It's closed loop system that we don't discharge elements into waterways, we use.

None: Columns and resins versus the motion and chemicals.

None: So we compete on cost because of our environmental program, but we compete head to head on cost. That's the only thing that matters. When it comes to commodities and I don't care, what anybody says critical minerals are nothing about commodity.

Mark C. Jensen: We've been in the commodity industry for over 20 years, and if you can't compete on cost, you don't win, and you don't survive. So absolutely, when I say we could be head to head against China, and it's not us vs. China, but it kind of is.

None: We've been in a commodity industry for over 20 years.

None: And if you can't compete on cost you don't win and you don't survive.

None: Absolutely when I say, we compete head to head against China and.

None: It's not our first China, but it kind of it.

Mark C. Jensen: They're the dominant producer of rare earth elements today, and they're the dominant producer of critical. They also refine neobium, zirconium, all the other products that we rely upon in our great country. We compete head-to-head on cost with those products. In the United States, not counting logistics, not counting any non-cash numbers, we compete based on dollars. Not only do we compete, we win based on dollars. If you look at lithium, just to give you an example, lithium got down as low as about $13 a kilogram. Lithium carbonate, which is one of the products we produce, we can produce hydroxide.

None: They are the dominant producer of rare earth elements today, and Theres, a dominant producer of critical minerals.

None: They also refine the Ob M zirconium all the other products that we rely upon it and our great country.

None: We compete head to head on costs for those products.

None: In the United States, not counting logistics not counting any noncash numbers, we compete based on dollars.

None: Not only compete we win based on dollars.

None: If you look at lithium just I guess to give you example, lithium got down as low as about $13, a kilogram lithium carbonate, which is one of them. We produce we can produce hydroxide, we we focus on carbonate today.

Mark C. Jensen: We focus on carbonate today. When you saw lithium get down to $13, at scale and our 5,000 metric tons of lithium carbonate out of our Marion facility or Kentucky Lithium site, we're profitable, sub, missing only sub. China and other players within the industry started cutting back production because the legacy method is expensive.

None: When you saw lithium to get down to $13.

None: Scale and are at 5000 metric tons of lithium carbonate out of our married facility or or Kentucky, lithium site, where profitable sub significantly above that.

None: China and other players within the industry started cutting back production because the legacy method is expensive.

Mark C. Jensen: That's a phenomenal place to be when we are. The natural hedge we have in place is the cost structure. And that's because of the team and the way that we push our team and the way that we focus on making sure that we survive commodities. So yeah, it's purely dollars, Mike. Excellent answer. Thank you.

None: That's a phenomenal place to be when we are the natural hedge we have in place and its cost structure and that's because of the team and the way that we push our team and the way that we focus on making sure that we survived commodity markets.

None: So yes, that's it's purely dollars Mike.

Excellent answer thank you on the American carbon side I've I'm not.

Mike Niehuser: On the American carbon side, I'm not. It's not clear to me what's operating and what isn't. It sounds like the Carnegie mines that have been operating are not now. Is that incorrect? Nope, that is correct.

None: It's not clear to me, what's operating and what is it it sounds like that the.

None: Carnegie mines that had been operating or not now is that incorrect.

None: No. That's that is correct. So we are well I mean, let me show you where we're at so we're getting ready we're doing development in Wyoming, and we spent a lot of time and energy doing development of Carnegie.

Mark C. Jensen: So we'll let me show you where we're at. So we're getting ready. We're doing development in Wyoming, and we spent a lot of time and energy doing development at Carnegie. We've also been working with some international customers that would be long-term customer bases outside of our traditional platform of who we sell products to. Gives us more stability. A problem with some of our existing customers is that it's been on again and again. https://www.youtube.com.uk We have over $30 million to allocate to the deployment of that. Also, deploying the concentration technology, the ability to concentrate critical minerals, which we'll share over the next week or two, the results we got, which are phenomenal, as a byproduct, not mining critical minerals or rare earth elements from coal You'd never make money doing that.

None: We've also been working with some international customers that would be long term customer bases outside of our traditional platform of who we sell product to you today.

None: Gives us more stability problem with some of our existing customers as its been on again off again.

None: Really challenging to run our mining business, where it's like that what is a phenomenal situation for US right. Now is the quality of the products that we have the ability to produce a lot of product from a very low cost our Wyoming complex as the mid vol complex.

Oh, we have over $30 million to allocate on the deployment of that.

None: Also deploying the concentration technology and ability to.

None: Concentrated critical minerals, which where we will share that over the next week or two the results, we got which are phenomenal.

None: As a byproduct not mining critical minerals of rare earth elements on coal based deposits you'd never make money doing that you're only Utica only make money doing it as a byproduct.

Mark C. Jensen: You'd only make money doing it as a byproduct, um, but where are we on the mining side? Why aren't we operating today? One, the market is on again, off again, and two, we wanted to be in a position where we can ramp up Wyoming and Carnegie in relatively similar ways, and most importantly, ramp them up at very, very low cost structures. So Carnegie One; it was a single section mine for a long time. We finished in the last quarter developing the second section there. So we can operate it today as a two-section mine. Carnegie Two was already being developed as a two-section building.

None: But where are we out on the mining side. So why why are we not operating today as one of the market is.

None: On again off again.

None: And two we wanted to be in a position, where we can ramp up Wyoming.

None: And Carnegie and relatively similar Timeframes and most importantly ramp them up at very very low cost structure. So Carnegie one it was a single section mined for a long time, we finished over the last quarter developing the second section. There. So we can operate it today is a two section mined Carnegie two has already developed as the two section line.

Mark C. Jensen: The ability to ramp those mines up to get to that 60,000 tons a month number based on the efforts of our team in a really low-cost way because we didn't allocate a ton of capital to the McCoy complex over the last year or the last six months. That being said, TARLIS and the operational team did a phenomenal job there to condition that and set them up for success. These are effectively virgin mines and pretty low cost, less than five miles from our Bevins Branch facility. So we're ramping up production there. Tying that in with High Vol B, High Vol A, and tying that in with our Mid Vol product out of Wyoming makes an absolutely phenomenal blender at that 100 to 120,000 tons a month when they're both fully ramped up. And that's where we wanted to be upon the spinoff of American Carbon. So that's Carnegie will probably be the first to open. It'll open a few months before Wyoming, which is eminent in the next. I would say over the next 30 days and time it with the spinoff.

None: The ability to ramp those minds up to get to that 60000 tonnes a month number.

None: On the efforts of our team and a very low cost way because we didn't allocate a ton of capital to them are quite complex over the last year or last six months I think that that being said tireless and the operational team did a phenomenal job there to position that and set them up for success. These are effectively Virgin mines.

None: And pretty low cost less than five miles from our Bevans branch facility.

None: Ramping the production up there.

None: Tying that in with high Vol, B product, a high vol, a and tying that in with our mid vol product out of Wyoming, making absolutely phenomenal blender at that 100 to 120000 tonnes a month when they're they're both fully ramped up and that's where we wanted to be upon the spin off and the American carbon.

None: So that's Carnegie will probably be the first to open up and I'll open up a few months before Wyoming, which is eminent in the next hour.

None: I'd say over the next 30 days and the timing it with the spin off.

Mike Niehuser: And then Wyoming will be ramped up. Carnegie two will ramp up, and Wyoming will ramp up here shortly thereafter. So when we look at the first quarter, as will be reported soon, we shouldn't be expecting a lot in the way of carbon sales, if any. And could I assume that we're going to start to see a little bit of a trickle of rare earth sales, as product sales start to come in? In the first quarter, you will not see a lot of revenue.

None: And then Wyoming will be ramped in Carnegie two will ramp up in Wyoming on ramp up here shortly thereafter.

None: So when we look at the first quarter it'll.

None: It would be reported soon.

None: We shouldn't be expecting a lot in the way of carbon sales if any.

None: And could I assume that we're gonna start to see a little bit of a trickle of rare earth sales product sales start to come in.

None: In the first quarter, we will you will not feel out of revenue in the second quarter, you'll start to see all that from both sides.

Mark C. Jensen: In the second quarter, you'll start to see all this from both sides. I imagine you're going to have a very, very, very busy second quarter. Well, and we've had a lot of fun. I mean, I will say that our teams have worked seven days a week for the last couple years, but getting all the corporate stuff and getting spin-outs done are really complicated, including the Novostera one. Thankfully, we got that done and completed, and all the shareholders that held shares should have those Novostera shares in their accounts if they don't call their brand brokers and make sure that they deliver them to you because they've been delivered out of our account. Getting American Carbon spun out, which will be very timely and give the team focus, right? The teams want to be motivated based on it.

None: I imagine you're going to have a very very very busy second quarter.

None: Well.

None: So we've had all of that's going to be fun.

None: And then I will say that I think our teams work seven days a week for the last couple of years, but I, but be getting all the corporate and getting spin out has done a really complicated.

None: Excluding the Nova steroid one thankfully, we got that done and completed and all the shareholders that helps here's why should that doesn't have a serious here isn't their accounts that they don't call their prime brokers.

And make sure that they deliver them to you because they've been delivered out of our accounts are getting American carbon spun out which over the next well announce that next week.

None: We'll be very timely and give the team focus right. It seems one of your motivated based on their success and so putting those into their isolated platforms gives them the ability to focus on their growth and and making sure that they have the corporate structure in place to do that.

Mike Niehuser: And so putting those into their isolated platforms gives them the ability to focus on their growth and making sure that they have the corporate structure in place to do that. So yeah, I mean, we've laid a lot of groundwork, so now we're focused on ramping up production. In our Noblesville facility, the team's done a phenomenal job at ReElement, so they're focused on ramping up production, running production every day. I think we're going to three, I think we're going to almost essentially have three shifts at our Noblesville facility, which is awesome. I really need to see the planning there.

None: Yeah, I mean, we're.

None: I will say, we laid a lot of groundwork for now it's focused on ramping up production and our noblesville facility. The team has done a phenomenal job of re elements of their focus on ramping up production and running production every day I think we're going to three I think we're going to almost essentially three shifts at.

None: I Dunno, Belleville facility, which is awesome I really need to see the planning there and then at the mining side I.

Mark C. Jensen: And then on the mining side, I mean, TARLIS is pretty aggressively wanting to ramp up and get the complexes at full throttle based on where they're at today. I mean, this is the first time we've ever been in a position where the mines could be fully expanded, and working with some of the international customers that we have that we're finalizing some relationships with, hopefully, very shortly, will put us in a really good position. And if I can ask one more question, We're really at an historic time in our country's history or the economy's history here of re-establishing a rare-earth circular, Supply Chain, and not only with the ores but also with the recent announcements of End-of-Life Materials from an unnamed auto manufacturer, along with the relationships that you have with a couple battery, or excuse me, magnet manufacturers. Can I get you to comment upon the state of reconnecting the links of a circular economy? Because I don't think it will ever be quite like this again.

None: Tireless is.

None: Pretty aggressively wanting to ramp up and get get them get the complex is at full throttle based on where they're at today. I mean this is the first time, we've ever been in a position where the the mines can be fully expanded and working with some of the international customers that we have that we're finalizing some some relationships and hopefully very shortly we will put us in a really good position.

None: Yeah.

None: And if I can ask one more question were really at an historic time in our country's history or the economies history here of reestablishing a rare earth circular supply.

None: Light chain and not only with the ore, but also with the recent announcement.

None: At the end of life materials from an auto unnamed auto manufacturer along with the relationship.

None: Do you have with a couple of battery or magnet manufacturers.

None: Can I get you to comment upon that the state of reconnecting the length of a circular economy, because I don't think that'll ever be quite like this again and it's really starting to take form in multiple ways with the work you've done.

Mike Niehuser: It's really starting to take form in multiple ways with the work. That should be my last question. Yeah, that's a... We could talk for a while about, I mean, you look back over the course of the last two years of, One, communicating what we can do, showing what we can do, and then bringing in the partners that are slow to act. And I will say today that people aren't as scared as they should be of the supply chains that we have today. Our military relies upon China for products. That's scary. I have two brothers in the military.

None: And that should be my last question.

None: Yeah, that's a.

None: We can talk about we could talk for a while about I mean, you you look back over the course of the last few years of of one communicating what we can do showing what we can do and then bringing in the partners that are that are slow that.

None: And I will say today.

None: People aren't scared and they shouldn't be.

None: On the supply chain that we have today, our military your lives on China for product.

None: That's scary and two brothers in the military if they didn't have the tools they they they needed to defend ourselves that'd be.

Mark C. Jensen: If they didn't have the tools they needed to defend themselves, that'd be... that'd be a scary situation. And so today, getting those recycling, I mean, there are billions of dollars of magnets going to landfill every year in the United States alone. And batteries; most of the black mass, meaning the shredded lithium ion batteries today, go to China. It's unfortunate. And a lot of those companies were funded by the U.S. government that are sending products to China. That's gotta stop. That being said, it's starting to stop.

None: That that'd be a scary situation and so.

None: Today getting those recycling I mean, there's there's billions of dollars of magnets and go to landfill every year in the United States alone.

None: And batteries most of the black mass, meaning the shredded lithium ion batteries and they go to China.

None: And.

None: Unfortunate that a lot of those companies were funded by the U S government that are sending product in China, that's got to stop.

None: That being said, it's starting to stop we're starting to get a substantial amount of feedstock and of course more of it on our team our chief commercial officer has done a phenomenal job of opening up some doors and bringing in product that we can produce now working well thankfully going to three shifts because we have so much product coming in that's a great thing and and focusing aggressively on the Maryland facility to ramp up.

Mark C. Jensen: We're starting to get a substantial amount of feedstock, and Chris Mormon on our team, our chief commercial officer, has done a phenomenal job of opening up some doors and bringing in product that we can produce. Now we're thankfully going to three shifts because we have so much product. That's a great thing.

Mark C. Jensen: And focusing aggressively on the Marion facility to ramp up that 400,000 square foot facility, 42 acres, that's huge for the technology that we utilize. The recycled market's phenomenal. It's a phenomenal platform for us because we can refine that. We're replacing that bottleneck. We're replacing what's done in China today. Lifecycle tried to do it, but they failed. Not to throw digs at them, but they couldn't build a traditional hydroelectric plant.

None: That 400000 square foot facility 42 acres, that's huge for the technology that we utilize them.

The recycled market's phenomenon, it's a phenomenal platform for us because we can refine that where we're replacing that bottleneck, we're replacing with done in China today.

None: <unk> tried to do it they failed not to their digs out them, but they they couldn't build a traditional hydro plant. It's one really hard to permit to really hard to operate solvent extraction in the United States I think it's almost impossible to operate economically in repositrak impossible to maintain over the long term.

Mark C. Jensen: It's one, really hard to permit, and two, really hard to operate. Solvent extraction in the United States, I think it's almost impossible to operate economically and impossible to maintain over the long term, on the rare side. And there's a rare producer in the US trying to do that today. Great. I think they're doing a great job at the company. I just think they're going to struggle with that.

None: On the on the rare site in Israel, a producer in the U S. Trying to do that today, great banks are doing a great job for the company I, just think they're going to struggle with that we can provide a solution that we haven't we have a platform that we're gonna be announcing here shortly that on the re element side that showcases how we can work collaboratively with those partners to bring that separation purification steps to them to help them be better too we need it.

Mark C. Jensen: We could provide a solution that we have a platform that we're going to be announcing here shortly, that on the re-element side, that showcases how we can work collaboratively with those partners to bring that separation purification step to them to help them be better too. We need to protect our supply chains for our country. And ultimately, that works really well for us as a business because that's revenue and growth. Then on the OR side... Why are we in Africa? Africa is one of the most resource-rich nations in the world.

None: Our supply chain for our country.

None: Ultimately it works really well for us as a business because that's revenue and growth.

None: Then on the or side.

None: [laughter] why were in Africa Africa is one of the most resource rich nations in the World and it's one of the fastest growing populations in the world and we have phenomenal relationships there between.

Mark C. Jensen: It's one of the fastest growing populations, and we have phenomenal relationships there between Shane Tragethon, Vice President of National Strategy, Ben Kincaid, our CEO of ReElement Africa, and Baba Kamar, who just joined us on the board of ReElement Technologies Africa. Just a phenomenal group of people that know Africa really well, but more importantly, know how to work with Africa and not exploit them, and work in a partnership-based model with them to help drive value locally in the countries, but also give us a tremendous amount of feedstock that we can process domestically as well as in Africa to drive economic growth there, but also secure our supply chains here. So it's about securing those feedstocks, which takes time I mean, you think you can go to somebody and say, hey, give me your end-of-life magnets because you're not doing anything with them today. That's an easy conversation to have. You'd be surprised.

I guess on a vice president of National strategy banking cater CEO of realm in Africa Baba Kumar, who just joined US on the board of re element Technologies Africa, just a phenomenal group of people that know Africa, really well, but more importantly know how to work with Africa, not exploit them and work in a partnership based model with them to help drive value.

None: Locally in the countries, but also give us a tremendous amount of feedstocks, we can process domestically as well as in Africa to drive economic growth there, but also secure our supply chains here back at home.

None: So it's about securing those feedstocks, which which takes time I mean, you. You think you can go to somebody and say Hey give me your enterprise Magnus because you're not doing anything with them today, that's an easy conversation to have you'd be surprised if it's not their core focus of every day, what they get paid to do it takes some time to get comfortable to do that and but thankfully. We're at that point now where it's starting to flow in and that's.

Mark C. Jensen: If it's not their core focus every day, what they get paid to do, it takes some time to get comfortable with doing that. But thankfully, we're at that point now where it's starting to flow in, and that's putting us in a really, really good position to really ramp up aggressively. And how soon do you think you'll see product coming out of Marion? Merian Fertility.

None: Getting us putting us in a really really good position to really ramp up aggressively.

None: And how soon do you think you'll see product coming out of Marianne.

None: Maryann facility.

Mike Niehuser: So, as Mark mentioned during the call, you have to go through the trial, I mean, getting through the qualification process. And I think we're in the qualification process with seven different companies today, maybe more, that we ship them samples of lithium carbonate starting off at like grams, then it goes to kilograms, then it goes to tons. And obviously now, over the course of the next short period of time. We're actually starting to sell that product to one of our groups, and we'll be selling it to a few others. And obviously, on the Rare side, as we start to expand, we've announced contracts with USA Rare, which has been a great collaborative partnership. We have partnerships with AML, a phenomenal company, one of the coolest magnet companies. I've been working in this industry for a long time now, and their technology is absolutely phenomenal for producing magnets. Great, check them out.

None: Lithium carbonate we produce what we produce lithium carbonate everyday now.

None: So as Mark mentioned during.

None: During the call do you have to go through the trial and getting.

The getting through the qualification process and I think we're in the qualification process with seven different companies today.

None: Maybe more that we ship them samples or lithium carbonate starting off at like grams, and then it goes to kilograms and then it goes to the times.

None: And obviously now over the course of the next.

None: Short period of time.

None: We will well that we're actually starting to sell that product in one of our groups and we'll be selling into a few others, but obviously on the radio side as we start to expand we've we've announced contract with the USA Earth. It's been a great collaborative partnership we haven't we have parts of the AML phenomenal company one of the coolest Magna companies.

I've ever had been.

None: Working in this industry for a long time now.

None: And their technology is absolutely phenomenal for producing magnets.

None: Great check them out I'm on the board of the company, we're an investor in the company as well so extremely excited about them, but we will start we produce lithium carbonate everyday our goal when we get a chance to get occupancy and Marion is to start working on the magnet lines. There for recycling antibody magnets and preprocessing those magnets and then start turning those of oxide.

Mark C. Jensen: I'm on the board of the company. We're an investor in the company as well, so we're extremely excited about them. But we'll start... We produce lithium carbonate every day. Our goal, when we get the certificate of occupancy in Marion, is to start working on the magnet lines there for recycling the end-of-life magnets and pre-processing those magnets, and then start turning those into oxides as well. Okay, thank you

None: Well.

None: Yeah.

None: Okay. Thank you.

Operator: Excellent. Thank you. Thank you, and our next question... Steve Segal with KBB Asset Management. Hey Mark, how are you?

None: Excellent. Thank you.

None: Thank you and our next question comes from Steve Siegel with K B B asset management. Please state your question.

Steven Segal: Hey, Mark how are you.

Steven Segal: Great job on getting all this stuff done. You did a great job with you and your team. I was just wondering. I had two questions.

Steven Segal: Great job on getting all this stuff done.

Steven Segal: But you got you and your team I was just wondering I had two questions. One is on the.

Mark C. Jensen: One is on the, Um, spin-off of Carbon. Will Wyoming be part of that? Um and, and then, Okay, I guess that's a question. Yeah, so Wyoming will be part, so Wyoming County will be part of it.

Steven Segal: Spinoff of carbon Wyoming be part of that.

Steven Segal: And and then.

None: Oh, Okay I guess, that's the question.

None: Yeah, So Wyoming will be parts of Wyoming County will be part of this so let me let me.

Mark C. Jensen: So let me explain. When we spin off carbon, it's spinning off the American carbon complex. With that also comes the ability to produce concentrate. So where Rameco announced that they had billions of dollars worth of rare earths in Wyoming, I guess we, in theory, would have the same amount of rare earths in Kentucky and West Virginia.

None: When we spin off carbon it's spitting off American carbon complex with that also comes the ability to produce concentrate so.

None: We're <unk> announced that they're there they had billions of dollars worth of shares in Wyoming.

None: The state.

None: But we in theory would have the same amount of virus in Kentucky and West Virginia.

Mark C. Jensen: We can spend money on research reports and all that stuff, but what comes with the American Carbon Complex is, obviously, the Metco division, the iron ore platform that we bought. We're working on another acquisition as we speak around the infrastructure marketplace, and we have a couple of mining assets in West Virginia we're working on as well that we can post-spinoff look at on the acquisition front, but it also comes with that, the rare earth concentration side. So, as we produce met carbon, the waste material, the ionic clays that come out of that, have rare earth elements in them.

None: And what are we going to spend money on research reports and all that stuff but.

None: What comes with the American carbon complex is one obviously the met coal division the iron ore platform that we bought were working on another acquisition as we speak around.

None: Infrastructure marketplace, and we have a couple of mining assets in West Virginia, We're working on as well that we can post spinoff can look at on the acquisition front, but also comes with that the rigorous concentration side. So as we produce that carbon the waste material. The iron out claims that come out of that but in the rare earth elements in it. So all looked at also extract that as well, which would which is part of it.

None: Initial phase of that is Wyoming County.

None: In West Virginia, Okay.

Mark C. Jensen: So, we'll look to also extract that as well, which is part of the initial phase of that in Wyoming, in West Virginia. Yeah, so that's the realment that that's refining lithium ores from international sources. So predominantly from Africa, working on a partnership in Australia, as well as in Canada. The by-product that comes out of that actually goes into the ceramic industry, so there's really not a whole lot of waste that will come around there.

None: Okay. Thank you for explaining that and then the so the Bondi announced today for that facility that's could be on every element side correct.

None: Yes, so that's a that's where element that's that's refining with him ores.

None: From International sources, so predominantly from Africa, working on a partnership in Australia as well as in Canada.

None: The byproduct that comes out of that actually goes into the ceramic industry. So there's really not a whole lot of.

None: Waster that'll that'll come around there.

Mark C. Jensen: That's part of ReElement. That's being built at our Knott County complex. We have a complex there that has about $3.5 million in reclamation liability sitting on the American Carbon platform that we've assigned to ReElement that will be cleaned up here. Those bonds will be removed, less liability for carbon, a better platform for ReElement, and a phenomenal workforce that knows how to process commodities.

None: But that's part of re element that's being built on are not county complex that we have.

None: We have a complex there is about $3 $5 million in reclamation liability sitting on the American carbon platform that we've assigned to re element that won't even cleaned up here those bonds will be removed less liability for carbon better platform for.

None: We're re element.

None: And and putting a nominal workforce and knows how to process commodities I mean, our team and people who even we have an appointment in the region since 2015 and 16, they know how to process commodities better than anybody in the world that we're going to we're going to give them a long term stable opportunity for employment to stay in their community.

Mark C. Jensen: I mean, our team and people we've been employing in the region since 2015-16 know how to process commodities better than anybody in the world. We're going to give them a long-term stable opportunity for employment to stay in their country. Right, and that's not as backbreaking as coal, right? I mean, it's a less environmentally harsh process than coal. But it's more contained inside of a warehouse. There's no water discharge; we produce cleaner water than what goes into our system. So I mean, it just gives them a really good working environment and lets people in their communities stay in their communities. I mean, that community is a disaster. I mean, Knott County is in rough shape. They have no businesses going there.

None: Right.

None: That's not is that breaking as coal right.

None: [laughter] I mean, it it's a it's a less.

None: Less environmentally horse processing coal.

But its more contained inside of a warehouse there's no water discharge we produce cleaner water then when it comes into our system. So I mean is it just getting it gives them a really good working environment and unless people in their communities stay in their community I mean that that communities a disaster right now I mean, not county is in rough shape. They have no business is going there builder show a nice level.

Steven Segal: Corruption at the highest levels. And so we're going to help make it better. Is that from the flooding?

None: And is that so we're going to really help them talking about them.

Mark C. Jensen: No, just in general. No, from a lack of development. The judge executive there has done a phenomenal job recruiting us and bringing us in, but the rest of the community has nothing going for it. And so, we're excited. But there's a phenomenal workforce there, but they leave the area to work every day. So we're excited about helping bring a business there that can provide jobs there and start reducing some of the corruption that takes place. Okay, and then the other question is, I know it's an unnamed domestic manufacturer, but can you talk about what your agreement kind of entails now in highly without detail, too many details, and where you see it going? Yeah, so that was we have, we have numerous partnerships as we speak. I can't disclose all the names because it is confidential, just given their business where they're at in the world today.

None: Is that.

None: General not for lack of a development lack of the.

None: The judge exactly there has done a phenomenal job to recruit us they bring us in <unk>, but the rest of the community has nothing going for it and so.

None: Worksite and but there's a phenomenal workforce, but they leave the area to work every day. So we're excited about helping bring a business there that can provide jobs, there and start reducing some of the corruption that takes place there.

None: Good Okay and then the other question is I know it's.

None: It's an unnamed a domestic manufacturer, but can you talk about.

None: What you're.

None: What your agreement kind of Npls now.

None: Hi.

None: Without detail too many details and where you see it going too.

None: Yeah that was weird.

We have numerous partnerships as we speak I can't disclose all the names because it is confidential just given their business where they are at in the world today, but we take from on the magnet front, we take power tools than we take rotors, and we take all motors and from the automotive industry from the power tool market from the wind turbine market.

Mark C. Jensen: But we take from on the magnet front, we take power tools in, we take rotors in, we take old motors in from the automotive industry, from the power tool market, from the wind turbine market. And then we have I can't I can't disclose names other than EDP renewables, who's been a very, A very great partnership for us. They have a ton of repowers coming through.

None: And then so we have I can't I can't disclose names other than Edp renewables who's been very.

None: Oh, great partnership for Us they have a ton of Repower is coming coming through.

Mark C. Jensen: Great business as a whole, https://www.youtube.com. What our relationship with a lot of the magnet groups is that we take the non-spec rotors in, and then we share in a portion of the percentage of revenue that we generate out of that, or the profit that we generate out of it, I should say. And so that's a great thing for us because we're building a supply chain in a low-cost way for the industry so that the industry can rely upon us, not China, to get their supplies going forward. But hopefully, here in the near term, we should be able to talk a little bit more forthrightly about who our partners are. I can't tell very big companies that I can release their names if they won't let me.

None: Business as a whole.

None: Cited that we're able to disclose that partnership some of the other ones, where they're just cautious about disclosing a gift.

None: Given their own business interests, nothing with us we do a lot of stuff with them. So we're excited about that but taking those.

None: Our relationship with a lot of the magnet groups are we take the non spec rotors in and then we share in a portion of the percentage of revenue that we generate out of that where.

None: More of the profit that we generate out of it I should say and so that's the.

None: The great thing for US is we're building a supply chain and a low cost way for the industry. So that the industry cannot Rob can rely upon us not China could get their supplies going forward.

None: But hopefully here in the near term, which we should be able to talk a little bit more.

None: Forthright about who our partners are.

Can't tell you have big companies that I can release to release their name they won't let me.

None: Right, Okay, great that's fun explain what I mean.

Steven Segal: All right. Okay, great. That's you explaining why I had some views. Okay. Thank you very much.

None: I think some views on okay. Thank you very much.

Steven Segal: Steve, I appreciate you. Thank you, and our next question comes from Kyle Gallagher with Merrill. Yeah, hey Mark, uh, you got me?

None: Steve I appreciate you.

None: Thank you and our next question comes from called Gallagher with Marilyn Please state your questions.

Kyle Gallagher: Yep, I got you Kyle. Hey, uh, I gotta say, this seems to me, uh, to be an exciting time, uh, for you guys. And I feel like, in all the times I've been listening to your guys' conferences, this is about the most excited I've heard your voice and the prepared remarks, man. So, uh, a lot of good things are happening here.

Gallagher: Yeah, Hey, Mark you got me.

Gallagher: If I got you.

Hey, I got to say.

Gallagher: This seems to me to be an exciting time for you guys in and I feel like in all the times I've been listening to you guys as comprehensive as about the most excited I've heard your voice in the prepared remarks man so.

Gallagher: A lot of good things happening here.

None: My question is.

Kyle Gallagher: My question is... You had mentioned something about a company, I think, like Lee Cycle or Lye Cycle. [inaudible] As you build this up, you know, either through like co-locations or different partnerships, would those be like... Situations where you would be licensing the technology to like a third party to use, or what are you guys kind of thinking about?

None: You had mentioned something about a like a company I think like lease cycle or lifecycle.

None: Excuse me for butchering the name.

And there were some things that you could do not specifically with them, but a company like that too.

None: To help build out the industry are you thinking on the.

None: Re LMS side.

None: As you build this up you know either through like co locations or different partnerships.

None: Would those be like situations, where you would be licensing the technology to like a third party to use or how are you guys kind of thinking about.

Mark C. Jensen: Expanding and growing, you know some of those partnerships. That's a great question. So we want all the recycling companies in the U.S. to be successful, right? They do one component of the process, we do another component, we do the refining. Lifecycle was going to build a HydroMet plant. It didn't work out.

None: Expanding and growing you know some of those partnerships.

None: That's a great question.

None: So we want all the recycling companies in the U S to be successful right. There. They they do one component of the process. We do another component we do the refining.

None: Lifecycle was going to build a hydro plant it didn't work out glencore, they're great, they're great financial partner to them Great company. They they stepped in and are helping them now what we can offer to the whole entire industry is that separation purification refining step within hydro hydro so if they're producing a week.

Mark C. Jensen: Glencore is a great financial partner to them, a great company. They stepped in and are helping them. Now, what we can offer to the whole industry is that separation, purification, refining step within HydroMet. So if they're producing a leachate, they're taking the end-of-life batteries and turning it into a concentrated solution, we can then step in and refine that from them. The capex is roughly less than half, and the operating cost is less than half.

None: They're taking the end device batteries, they're in there they're turning it into a concentrated solution. We can then stepping to refine that from them. The capex is roughly less it's less than half and the operating costs and less than half. So theres. No reason why they wouldn't want to do that and we're starting to get a lot of interest from multiple I am not saying over the lifecycle I don't Wanna represent that by any means but we're getting a lot of.

Mark C. Jensen: So there's no reason why they wouldn't want to do that, and we're starting to get a lot of interest from multiple... I'm not saying we're over the life cycle. I don't want to suggest that by any means.

Mark C. Jensen: But we're getting a lot of interest from a lot of really great partners that need that separation and purification. It will not be a license, though. We don't license our technology. The reason for it is that our team is innovative every day. And they're always developing better, more cost-effective solutions. We're already the lowest cost in the U.S. Now we want to stay the lowest cost in the U.S. To do that, Bob Gallion told me we need to constantly invest in research. When he joined our board, it was something he was adamant about. He did it at CATL when he built the company from $0 to $185 billion.

None: Interest from a lot of really great partners that need that separation purification steps.

Will not be a license, though we don't license our technology. The reason for it is our team every day isn't in England, and they're always developing better more cost effective solutions, we're already the lowest cost in the U S. Now we want to stay at the lowest cost in the U S to do that Bob Galleon told me, we need to constantly invest in research.

None: When he joined our board something he was adamant about he did it at the ATR when he built the company from zero to 185 billion and he sees that are our technology as a platform technology very similar to what CACI was when he joined our company and what's the one thing. He said to me was always invest in research and so we've done that.

Mark C. Jensen: And he sees our technology as a platform technology, very similar to what CATL was when he joined our company. And the one thing he said to me was, always invest in resources. And so we've done that, with Purdue University as well as within our internal team. Yiding on our team, the guy is phenomenal. I don't think he sleeps.

None: With Purdue University as well as within our internal team and our <unk> on our team and the Guy is phenomenal I don't I don't think he sleeps.

Mark C. Jensen: But, what we offer is the ability to partner with companies. We will help refine their materials or separate their materials from the rare earth element side to the lithium or the cobalt or the nickel or the niobium or the zirconium and provide that separation purification step in their facilities as a partnership-based model. That's something we offer today. Now, on the other front, we also offer a full suite. We'll take it all the way through, all the way to lithium carbonate, lithium hydroxide, cobalt sulfate, nickel sulfate, niobium, and then the oxides of the rare earth element.

None: But what we offer as we offer the ability to partner with companies. We will help refine their materials are separate their materials from the rare earth element side to the lithium or the cobalt or the nickel or the new yoga zirconium and provide that separation purification step in their facilities as a partnership based model that's something we offer today now.

None: On the other front, we also offer a full suite well, we'll take it all the way through all the way to a lithium carbonate lithium hydroxide cobalt sulfate nickel sulphate Neil B M.

None: And then the oxides I'll never Erith elements.

Mark C. Jensen: But the partnership, it's a partnership-based model. I want to be clear about that because we want to bring our innovations constantly. If we modify something within our process to drop our costs from sub $5 today for lithium carbonate at 5,000 metric tons a year, we want to, if we get it down to $4, we want to be able to bring that technology to the partnership, to make that partnership better. So in a license, it's harder to do that.

None: But the partnership it's a partnership based model and one of the key about that clear about that because we want to bring our innovations constantly if we do if we modify something within our process to make it to drop our costs from some $5 today of lithium carbonate 5000 metric tonnes a month a year.

None: We want to we get it down to $4, we want to be able to bring that technology to the partnership to make that partnership better. So in a license it's harder to do that and <unk> and Purdue doesn't necessarily want us to license out the technology, nor do we we want to work with them as a partnership and a quite a bit of way.

Kyle Gallagher: And Purdue doesn't necessarily want us to license out the technology, nor do we. We want to work with them as a partnership in a collaborative way.

None: Got it and then if you could just give.

Mark C. Jensen: And then if you could just give a little bit more color, you know, I don't know how many quarters back, but it was a while. I had kind of asked you what some of the bottlenecks you were experiencing at that time were, you know, getting access to a lot of good feedstocks. It seems to me from just your comments today and what I'm hearing is that the feedstock side of the equation is starting to get ramped up in somewhat of a material way. That's how I would think of it. How are you seeing that balance with the offtake side? You know, I think you mentioned that, hey, you do a lot of samples, you know, from a gram to a kilo, you know, to a ton. Are you seeing, you know, an equal ramp-up kind of on the offtake side as you are on the feedstock side? Or can you give any commentary on how those two sides of the equation are balanced for re-elementation?

None: Give a little bit more color you know Ah I don't know, how many quarters back but it was a while I had kind of asked you what some of the bottlenecks you were experiencing at that time, you know it was getting access to a lot of good feedstocks.

None: Seems to me from just what your comments today and what I'm hearing is that the feedstock side of the equation.

None: Is it starting to get ramped up.

None: And in a somewhat of a material way is how I would think of it.

How are you seeing that balance with the offtake side, you know I think you mentioned that a you do a lot of samples you know from a gram to a kilo ton or are you seeing you know an equal ramp up kind of on the optic side. As you are on the feedstock side or can you give any commentary on how.

None: Those two sides of the equation or are balanced for re element.

Kyle Gallagher: Yeah, I mean, listen, I don't want anything to go slow. I'm a pretty aggressive guy, and I'm pretty passionate. Our team's done a really good job at that, of securing those feedstocks. Ben Reitzman came on board, just a passionate guy. I think him and I are about as passionate as you get.

Yeah, I mean listen I won't I don't want anything to go slow like I'm, I'm, a pretty aggressive guy and I and I am pretty passionate care a lot about our company. So I wanted to do things as fast as we possibly can.

None: If you look back a year ago, I would say feedstock with kind of a bench to get pardon my language.

None: Our team has done a really good job at that of securing those feedstocks are been wrightsman come on came on board just a passionate guy.

None: I think Tim and I are about as passionate as of yet.

Mark C. Jensen: Chris Mormon's done a phenomenal job. Shane Tragathon and Ben Kincaid on the African front, on the OR side, have done a phenomenal job. The team has done a great job of building the feedstock relationships, but also feedstocks come in when you prove that our technology, And we've done that. And so now, I wouldn't say feedstocks are not a problem. Sales aren't. I wouldn't say sales are a problem either. I mean, one, there's long-lead items you got to get to ramp up production, like kilns and stuff like that, which our team's knocking down those barriers every day. You see a barrier, you run through it, or you walk around it, or you open the door.

None: Chris <unk> has done a phenomenal job change agathon in banking Kate on the African front on the ore side has done a phenomenal job just ever the team has done a great job of building the feedstock or it's just but also these stocks come in when you prove that our technology works and we've done that and so now I.

None: I wouldn't say leaseback not a problem sale sales aren't I wouldn't say sales are a problem either I mean, one there there's long lead items, you gotta get to ramp up production like kilns and stuff like that which our team's knocking down those barriers everything along you see a barrier you run through it or you walk around it are you open the door. It's finding a team that's willing to go through the efforts to do that and to continue.

Mark C. Jensen: It's finding a team that's willing to go through the effort to do that and to continue to push forward in the most economical way and the fastest growth way. On the sales side, we have a great partnership that we've been taking material from, and now we're getting ready to start selling that back to them in a lithium carbonate form. We're in the qualification process with over seven companies. A few of those said, we will legitimately take everything you can produce once we get through the qualification process. No, we don't want to do that.

None: To push forward in the most economic way and the fastest growth way.

None: Sales side, we have we have a great partnership that we've been taking a material in and now we're getting ready to start selling that back to them and now with him carbonate form.

None: We're in the qualification process with over seven companies few of those 10, we were legitimately take everything you can produce once we get through the qualification process and that we don't want to do that we wanted we want a diversified portfolio of customers, but as we're ramping.

Mark C. Jensen: We want a diversified portfolio of customers. But as we're ramping up production, especially as the Marion facility gets closer to fruition, our customers will be in line then. What I will say, IRA. So, you look at the Inve- uh, what is it?

None: Ramping up production that especially as the marine facility gets closer to fruition.

None: Well, our customers will be in line than what I will say.

None: Iraq, So you'll look at the inverter.

Mark C. Jensen: The Inflation Reduction Act. I forget the name of it because I don't think that's what it is, but uh, um..., then we will be, and we qualify under the Inflation Reduction Act. So when we produce lithium carbonate, we're one of the few players in the US that will actually be able to achieve that for our customers. And so we believe we're in a really good position. And we think you'll actually get a premium for that. But today in the market, you won't. You get zero premium if you produce IRA-compliant material.

None: What does it mean placement reduction act like I get the name them to I don't think that's what it is but.

None: The we will be and we qualify under the inflation reduction act. So when we produce lithium carbonate. We're one of the few players in the U S actually and be able to achieve that for our customer base and so we we believe we're in a really good position and we think you'll actually get a premium for that today in the market. You don't you get zero premium if you if you produce IRA compliant material.

Mark C. Jensen: Here shortly, we think you will. And that's why, as we're ramping up production, too, we could sell all the product we want on the commodity market, but we want direct customers that we're— and that's why we're going through all these qualification processes, and they're going really, really well. And then at that point, when you start saying, not only am I through your qualification process, but I'm your only IRA-compliant supplier, what does that mean? I think it's quite a bit. Yeah, Mark, really appreciate your patience on these calls and getting through all of our questions and the candid responses, man. Thanks a lot.

None: I'm here. Shortly we think you will and that's why we're ramping up production to we can we can sell all the product we want on the commodity market, but we want to direct customers that were and that's why we're going through all these qualification processes and they're growing really really well and then at that point when you start saying not only am I through your qualification process, but I'm you're only.

None: IRA.

None: Supplier, what does that work.

None: I think it's quite a bit.

None: Yeah as always Mark really appreciate.

None: Your your your patients on these calls and getting through all of our questions and the candid responses man. Thanks a lot.

Kyle Gallagher: Kyle, I appreciate it. We speak from the heart, we speak from where we are, we speak from the passion that our team shares, and honestly, where we want to see these divisions go.

Mark: Well Kyle I appreciate it.

Mark: We speak from the heart, we speak from where we're at we speak from the passion that our team chairs.

Mark: And honestly, where we want to see these divisions go I mean I.

Mark C. Jensen: I mean, I built the coal business from the ground up with my team, and I'm super passionate about it. I'm not going to give it away for what it's not worth.

None: I built the coal business from the ground up with my team.

None: Super passionate about it I'm not going to give it away from what its not worth I'm going to fight for it challenging industry. It is but we have great assets. The rehab them in division I've never seen I've never seen an opportunity like I've seen in reality today.

Mark C. Jensen: I'm going to fight for it. A challenging industry it is, but we have great... The Re-Element Division, I've never seen an opportunity like I've seen in Re-Element. I never thought I'd be in a position to be having a team as passionate as we have, but an opportunity as broad as we have, refining critical minerals in a state when our country needs it. Our country needs it for commercial enterprise; our country needs it for defense.

None: Doesn't I never thought I'd be in a position to be having a team as passionate as we have been an opportunity as broad as we have refining critical minerals in the state when our country needs. It our country needs it for commercial enterprises, our country needs it for defense.

Mark C. Jensen: So I didn't read remarks today; I kind of went off the cuff because, yeah, we're passionate and we're super excited about where we're at. It may not be the revenue numbers that people want, and we recognize that. But it's about positioning.

None: I didn't read the remarks today I kind of went off the cuff because yeah, we're passionate and we're super excited about where we're at.

None: May not be the revenue numbers that people want and we recognize that but it's about positioning it's about being in a position, where we can capitalize and take advantage of market opportunities as they exist.

Mark C. Jensen: It's about being in a position where we can capitalize on and take advantage of market opportunities as they exist and survive and thrive. And that's what we do. Awesome, man. Thank you. Thank you. Thank you, and there are no further questions at this time, so I'll hand the floor back to management for closing remarks. Yeah, one, I want to say thank you all for joining. As always, I'm a little bit longwinded, but I genuinely care about where we are as a business, care about our team, care about our shareholders, and our stakeholders. I thank you all for the time you've given us today. Thank you for taking an interest in our company. I'm super excited about where we go from here and about a couple more earnings calls that will have you hear some different voices as we separate these companies, but thankful for the position we're in and excited about the future. Thank you. And that concludes today's call. All parties may disconnect. Have a great day!

None: And survive and thrive and that's what we do.

None: Awesome. Thank you.

None: Thank you.

None: Thank you and there are no further questions at this time, so I'll hand, the floor back to management for closing remarks.

None: Yeah, one I want to say thank you all for joining as always I'm, a little bit long winded, but genuinely care about where we're at as a business care about our team here about our shareholders or stakeholders I. Thank you all for the time, you've given us today. Thank you for taking an interest in our company I'm Super excited about where we go from here about.

None: [laughter] via a couple more earnings calls that well that will have some youll hear some different voices as we separate these companies, but are thankful for the position we're in and excited about the future.

None: Thank you and that concludes today's call. All parties may disconnect have a great day. Thank you.

None: Yeah.