Because Rowan is talking in his fast/high excited voice, I transcribed the conversation to help you follow along:
Rowan: Well, this is my sea lion and...
Me: Now wait a minute. What are you telling me about here?
Rowan: This is my sea lion made of your jewelry. And this is its nose, and it's holding a ball on its nose. See?
Me: That's cool. So did you make this?
Rowan: Yeah. Out of your jewelry. [If Rowan thinks that this is my jewelry, Kyle better buy me some nicer stuff! HA!]
Me: That's cool. Why did you decide that it's a sea lion?
Rowan: Because LOOK. See that? A ball on his nose? A tail like that! That's a sea lion. Except...it's not like a normal sea lion. It has a spot where water comes out.
Me: Oh, it has a spot where water comes out, so it's not like a normal sea lion?
Rowan: Nope, it's just like a fake sea lion. See that?
Me: Cool. K, give us a smile!