Ann: Trading Halt , page-12

Landzt, Are you being facetious in your comment 'this is looking good.' I assume so, but please forgive me if I am wrong.

Assuming that you are saying that the walking away from the Hamelin lease deal is not good, my question is why do you see this as a negative short term tactic in order to get the deal done?

As we know, Gunson must meet ‘a commercial condition’ by end Feb 13, and if/once this is done, POSCO will presumably ‘promptly execute the Coburn Joint Venture Agreement.’

The commercial conditions, as I understand it, is to... ‘revise the Project operating budget to meet an agreed financial return hurdle.’

To my understanding, the final resolution of the operating budget for the project is key to all this. Cost reductions are therefore imperative.

I would think that Gunson has to consider every possible option for cost reduction in their operating cost review. I am not surprised that the lapsing of the conditional agreement to purchase the Hamelin pastoral lease would be an area to achieve short-term savings. Notwithstanding that there are longer term benefits in purchasing this lease, it is just another cost that can, reluctantly, be foregone in the short term. It seems consistent with the aim of achieving, by end Feb 13, a reduced project operating budget.

Maybe I am wrong in interpreting your comments...'this is looking good... as being a negative. I apologise if so.

Mind you, I am not implying that I am at all happy with progress. Who knows what will unfold in the coming weeks/month or so, and I guess we all wish, fingers crossed, that the deal will be done.