Ann: Eyre Peninsula Community Development Taskforce -Presentation, page-3

Hey Reichman,

I spoke to Gerard about a week ago and had a good conversation on several things. He is of course disappointed at the share price and like me feels it should be valued at four times what it is now, but the market being what it is at the moment, it's sad to see it undervalued so much. I've been watching the other graphite plays and their not doing much better either - a very volatile market at the moment

He's down half his own money from the options exercising so there is is incentive there to achieve results.

On the CSIRO it's obliviously still in testing, but when I heard about it last time it was about 5 weeks and the results were out, so hopefully not long now. I meant to ask Gerard about this but got side tracked

I did ask if there was still interest in Leigh creek and the answer was " Oh yes, most defiantly " There's several parties that are interested in the resource and I guess due diligence must be done by all parties involved and this takes time, but he was adamant they wished to keep the share register tight and avoid a capital raising if possible. I looked at possible prices for the resource from previous magnetite sales and although the climate for selling the resource is not the best a 8 figure sum is still not out of the question for such a high quality and large resource. Fingers crossed Gerard can sell the resource for a decent price and not give it away.

I'm hoping like everyone else, there's is an announcement soon on the Leigh creek - would certainly be a Christmas in July event for me

I'm sticking to my guns and picking up more when I can.

Tonza