RISK

Risks are an inevitable part of any operation and the Company recognises that a considerable range of risks are associated with its venture.

Because mining and exploration is considered as a highly speculative investment, the Company has sought to identify a range of factors that should be taken into account when reflecting upon the information given, and the potential identified for our projects.

A list of risk factors is set out below. These are not to be taken as exhaustive of the risks faced by the Company, or indeed by future investors in the Company. They are given solely to show that the Company is cognisant of its responsibilities to provide balanced and measured information. Any of the following factors, and others not specifically referred to, may in the future materially affect the financial performance and value of the Company.

As with all financial decisions, any potential investor should be aware that any investment in the Company, at any stage, is highly speculative. Accordingly, they should consult their professional advisers before making any investment decisions.

Tenure and access risks on exploration licenses, grants, applications, conditions, access agreements, ability to renew and ability to be granted rights required to facilitate production in the future.

Exploration risks as no assurance of the discovery of a viable resource. Even if a commercial deposit is identified, it may not be able to be economically exploited.

Mine development risk to any possible future mining and processing operations, which is highly dependant on the successful outcome of many other factors.

Technical risk on processing of silica sands, metallurgy including ability to remove contaminants, and the ability to satisfy the minimum specifications required to achieve commercial viability.

Silica sand risk in that failure to achieve market specifications for purity, particulate size and strength and silica content may result in selling at a discount or not being able to sell at all.

Logistics risk including the ability to commercially and economically transport and ship to market, as bulk commodities are susceptible to the distance, logistics and cost to market.

Price and demand risks whereas a reduction in price and/or demand will materially affect the viability of the project and could result in economic loss.

General advances in industry or manufacturing systems or methodology risk in that it changes in the way silica is used in glass manufacture, or the availability of alternative products that will materially affect the viability of the project and could result in economic loss.

Limited history risk as the Company is in start-up phase and has no history in silica sand operations. Supply agreement risk as the Company does not have any supply agreements in place.

Climate change risk being regulatory or environmental, including taxation, that may impact the viability of the project and could result in economic loss.

COVID-19 risk impacting economic markets or other unforeseen factors such as Government or industry measures taken in response to this.

Reliance on Key Personnel risk and the ability to attract and retain personnel within the requirements of the economics of the project.

Costs risk as the project requires the performance of substantial activity and capital investment, and its assumptions as to costs are subject to significant uncertainties.

Operational risk as future operations can be affected by various factors that have not yet occurred.

Approval risks not limited to, but associated with factors such as environmental, native title and all other items that require Federal, State and Local Government approvals.

General risk such as economic conditions, interest rates and inflation, commodity price and volatility, exchange rates, taxation, competition and market conditions.

Commercial risk in its own management, and in the uncontrollable management of third-party suppliers or contractors used by the Company.

Requirement for capital and additional requirement for capital risk as the Company will require capital or loan funding and may not be able to achieve it.

Risks outside the control of the Company include those described as force majeure, litigation, and claims made on the Company or the ability to access insurance.