The Chinese Takeover Furphy

For those of two minds...

1) FIRB: The National Interest clause,see 'China Challenge' AFR June/14. Further, the U.S. would not
allow a T/O. (14249-U.S.-Australia-to-discuss-rare-earths-in-security-talks) This confers further weight
to the significance of GBs address to Parliamentarians in Canberra last month. And now we have GB
in New York waiving a terms sheet in that quarter.

2) Timing: The Maiden JORC was announced Dec/2012.The AUD58m funding package was announced
Feb/2013 and sold to shareholders at capital city briefings in that month. A T/O would logically have been
timed 'after' the JORC announcement and 'before' the funding roadshow and its subsequent revelations.

3) The Share Price: You do a takeover when the price is,at best,Sub-10 cents. At second best Sub -20 c.
And a T/O is not worth the thought six months after the SP has bottomed. Last May the SP was around
11 cents that was the last chance for a T/O.

4) NTU management is aligned with the 'mission' to establish a free market RE supply chain in the West.
The executive chairman presides over a board that ratified that mission and is evidenced by the Sumitomo
MOU.

5) Chinese investment in Aus has learnt the hard way,that a successful resource junior requires excellent
'local management structure'- and playing poker with the current chairman's invested principle-the risk for
the foreign investor, is lost management skills and know-how. (As well as invested capital)

6) A good example...Chinese management learnt a bitter lesson with Focus Minerals. (ASX. FML)

Finally..Rick Rule's recent comments. 'There is a Big Bull Market coming.Don't waste it.The best opportunities
are in beaten and forgotten places.Don't miss the opportunity.'

HM.