e.mail from jill thomas

Hi All.

Dear Michael.

Over the weekend I had a Reuters article forwarded to me from an analyst in Sydney; we subsequently had our China-liaison officer go to the NDRC website and do a translation of the report. It certainly sounds very positive with the NDRC stating public policy that directly points to government support for projects such as ours. I thought you would find it interesting and perhaps would like to share with your colleagues on the Hot Copper forum. Kind Regards, Jill Thomas.

Iron Ore supply security strategy requires top level policy design (January 2014)"

As the demand for iron ore increases, (China's dependency on seaborne iron ore are growing on a year by year basis; with it, the price for seaborne iron ore continues to rise. Based on the positive correlation between (China's iron ore) import volume, degree of dependency and international iron ore price., experts think our country's lacking in power on iron ore pricing is becoming more prominent. As the largest steel producing country and the largest iron ore importer, to secure iron ore supply and increase Chinese companies bargaining power in iron ore trading and pricing, China should: 1) analyse and obtain a clear understanding of iron ore supply/demand current and future trend2) strengthen top level policy design.

Three elements would not change in regard the future iron ore supply:

1. China's future iron ore requirements will continue to grow;
2. In the long term, China will continue to depend on import seaborne iron ore.
3. The degree of monopolisation of global iron ore resources will continue to grow.

The experts suggest to strengthen the iron ore supply security strategy's top level policy design:

.In overseas iron ore resource development, we should seek to form a new model of upstream and downstream cooperation by way of equity participation, balancing profit between iron ore price and steel product price, form JV in mine and mill construction. The aim is to establish a long term,multi channelled, stable iron ore supply framework.

.Utilise market mechanism. Have financial institutions, domestic and international railway construction companies, port constructors and power suppliers and even private sector pooling resources to establish iron ore and industrial bulk commodity investment funds in order to assist Chinese companies' overseas iron ore resource developments.

.Consider to support Chinese companies to invest in building steel mills and other heavy industrial projects abroad to reduce domestic iron ore use"

http://www.ndrc.gov.cn/iixsfx.t20140127 577347.htm

Jill Thomas Investor Relations & Public Relations Manager.

Sundance Resources.

Regards
Westcott.