Taking stock of the situation

Hi All
As we head towards the close for the day I thought I would like to communicate my thoughts on the current situation.

1. There are people who short, there are companies that can use algorithmic trading which can distort share prices and there are less sophisticated investors who may think that the sky has fallen in and the sun will never rise again. There are also LT holders who with the wisdom gained from seeing sell offs such as PLS has had are but a blip on the graph when viewed over say a year. It is of course disconcerting while it is happening but these SP changes have done nothing at all to affect the intrinsic value of the Pilgangoora project.

2. If you use the results from the DFS and 4m TPA PFS then it doesnt take much business nous to realise that when the project is up and running at 2m TPA the SP will be more than double what it currently is.

3. Assuming the sales price of 6% spodumene falls back to say US $700/ ton that compares incredibly favourably with the forecast operating cost of US $205 / ton. In short, the new mine should be capable of paying off the entire cost of building the mine within 1 to 1.5 years. The DFS had a payback of 2.2 years assuming a sales price of US $450/ tonne. There is a great margin of safety in the DFS selling price when compared to current selling prices at US$900 / tonne and the Macquarie Bank forecast of US$720 /tonne.

The future success of PLS does depend on signing agreements with good customers and obtaining finance for the rest of the mine build. Ken Brinsden has yesterday given assurances that permits are not far off and that finance is at a very advanced stage. With a few more weeks patience IMHO we will all see our aspirations come true. I am sure by mid May all of this weeks mayhem will be a thing of the past.

Congratulations to those investors that had the insight and smarts to buy more shares at sub 38c prices.

Regards W2

Cheers W2