investor presentation, page-10

Hi Wiilbur,

In my conversations with management I was informed that they were in the process of consulting with REE processing facilities to determine what requirements or specifications are required for feedstock. The aim, I believe, is to direct our processing route in a direction that produces a REE concentrate with wide ranging acceptability to processors.

As far as selling the concentrate, I agree with Shady and Jaded that there is much to be determined yet before this is established as the best direction for the company to take.

One possible senario is that we produce a concentrate and sell it to the Chinese who would surely have little problem processing it. This would be amendable to them preserving their own REE resources and continue exporting. The Chinese would probably just buy us out though if they wanted to get their hands on Ngualla, as they tried with Lynas. It will be interesting to see what transpires over the next year or so as far as takeover activity is concerned.

Cheers

Retrac