plv valuation by my calc, page-16

...also perhaps you would apprciate my view on the share pice since we came back from suspension.... IMO of course

1) There are stale holders who are very disappointed with PLV when SST pulled out and we have been in suspension for 3 long months.... they will sell and this puts pressure on the SP.

2) JPM had over 20m shares and have been selling for a long time.... they actually lowered the SP considerably before the suspension and the fact they are selling puts pressure on the SP.

3) A lot of people will be waiting to see that the $20m actually turns up..... who can blame them, we have been let down before.

4) A lot of people in the industry realise moving from explorer to producer is a danger period. It is expensive on working capital (ie: bonds, bank guarantees, paying very large invoices before the first shipment etc...). They will tend to wait until we get the first shipment away.... yes, when we do they may have missed the bottom but it is a safe and prudent thing to do.

5) People have lost faith in the company/management.... I understand this, SST pulling out almost killed us. Talk of we should have got money up front etc is ill-concieved. They put $7m up front at 35.5 cents/share. If we went under, which they tried their best to achieve, they would have lost it.

6) People simply don't trust the Chinese.... again I understand this. It really comes down to relationships because legal agreements mean little. The fact is China offer the cash for companies like Pluton to get into production. If finance was more ready available in Australia maybe we could have gone this way.... but it isn't. The market is China and China has the money. Period.

7) Pluton has yet to prove it can actually operate a mine... again that is a call. Pluton has to prove couple of months that we can actually operate a mine. We have recruited very well recently with people from within the industry who have been operating iron ore mines for a long time.

I'm sure there are other reasons why people have sold and why people are waiting on the side lines, but thought I would list a few.

Anyway the next couple of months will be very interesting, Pluton has to prove it deserves to be classified as a producer and the Chinese have to prove that they are good partners. Raising US$12.7m and a $20m bond is a very good start.

Cheers, Tony.