Ann: Project Update, page-123

I am from SA, and follow both these companies ( WCC and RES) RES has a better chance and have a sound business case and off course their management has more credibility than WCC, their disclosures are much better than WCC. With regards to the yields, they have taken that into consideration in their business case, hence the stage two of the project to make it much more economical.

There are other challenges in that region, like water which Res addressed for the stage 1. WCC for me has not disclosed enough to prove they are on the ball like RES. A lot of infighting as well at WCC. RES is definately not a medium play but a long term one, especially if you understand how mining projects go.

WCC does have politicians as directors, which they should be using to their advantage but they are not. The eskom deal will go through, estimated volumes at 10million and WCC looking to increase it to 30 million tons/ year.

With the Mpumalanga Province coalfields being depleted the next big resource about (45+% ) of coal in SA is in the Waterberg Region where WCC and RES are going to mine. Exxaro Resources are already mining in the area for decades.

We have a power station as well coming online year end or whenever they finish it, my guess is for the next ten years we will burn the black stuff for energy to sustain our economy which is already under strain due to energy shortages. So you decide