Essential Metals Limited announced work has commenced on the Feasibility Study with the immediate focus on designing and implementing a comprehensive metallurgical testwork programme. Exploration: A drill programme is being planned to test several targets developed from the structural review study and field reconnaissance exploration completed in the March Quarter. Information on potential water sources for a Concentrator plant will also be gathered.

Expressions of Interest for off-take and funding. Re-engagement has commenced with the parties who had shown interest in participating in the Expressions of Interest process covering spodumene concentrate off-take and the provision of funding for the project development. Corporate.

TLEA Scheme: The Scheme of Arrangement (the Scheme), under which Tianqi Lithium Energy Australia Pty Ltd. (TLEA) proposed to acquire all the shares in Essential for $0.50 per share in cash (the Scheme Resolution), was not approved by Essential shareholders at the Scheme Meeting held on 20 April and the Scheme Implementation Agreement has been terminated. Mineral Resources Limited now holds 19.55% of the issued shares in Essential. In its March Quarterly, MinRes stated: "Essential's Pioneer Dome Lithium Project is approximately 100km from Mt Marion.

MinRes' interest in Essential is consistent with the Company's focus on lithium opportunities in the Mt Marion region." This was reaffirmed during a recent meeting with MinRes management. The 450km2 Pioneer Dome Project (ESS: 100%) is in the core of Western Australia's lithium corridor in the Eastern Goldfields, approximately 130km south of Kalgoorlie and 275km north of the Port of Esperance. A Mineral Resource2 of 11.2Mt @ 1.16% Li2O has been defined at Dome North in the northern area of the Project.

The southern Yilgarn area is recognised as being well-endowed with spodumene deposits, including Pioneer Dome, the Bald Hill Mine, the Mt Marion Mine, the Manna Project and the Buldania Project all of which are located within a 90km radius. The world-class Greenbushes Deposit, the Mt Holland Mine and the Mt Cattlin Mine are located further west, south-west and south-south-west, respectively.