Ann: March 2012 Quarterly Report , page-2

From a first read;

Positive - SRK mapping identifies potentially high grade hematite at least 50m thick in places, extending the full 7km of strike at Badondo, and 4km of strike at Belinga. Drilling to commence shortly and be the subject of a future announcement.

Possible negative - Equatorial is actively pursuing collaberation and partnership with both Exxaro and other mining companies, looking at both direct investment at the project level as well as in the company. My question would be, why? It obviously depends on the detail, but I would have thought EQX would have been able to develop Mayoko itself due to the low CAPEX required. It would want to be a great deal for shareholders to see our holdings diluted at either the project or company level, because I would have thought we could manage raising the CAPEX for Mayoko through a debt/equity mix, with the equity coming from existing shareholders. Free cash flows from Mayoko could then be able to be used to develop Badondo, meaning no further dilution required to get that project up and running. I'll be watching this space with interest, and if something arises, I'll be interested to see the reasoning given by management as to why it's needed. We look to be in a very strong position, so any deal would have to be extremely favorable to shareholders I would have thought.