quarterly, page-10

I feel that it is a positive report, these following excerpts from the report sound good to me:

"The third operating interval occurred later in December once temporary repair and operating
improvements were made. Good temperature control was maintained throughout the operating
period and the phosphorus yield was moved up near the nominal range.


These plant modifications are now largely
complete as are procedural modifications designed to improve the reliability of the operation


Even though a number of problems interfered with operations three important milestones have been
demonstrated:

1. High yield of phosphate was extracted from the feed agglomerates (albeit without adequate
temperature control) and reported to the hydrator as phosphoric acid over a five-hour period.
2. The kiln was operated under a leveled, controlled temperature operation for several days.
3. A significant and controlled phosphorus reduction was obtained under a leveled and controlled
temperature operation for nine hours without melting or clinkering.
The repairs and adjustments made since the last run and targeted for completion in early February are intended to be sufficient to allow longer-term operation of the Demonstration
Plant at reduced rate under conditions that will make product phosphoric acid. T

Nothing that we have learned however diminishes our
confidence in achieving our ultimate goal of producing projected volumes of acid and at expected
yields.” "