Ann: Quarterly Cashflow Report, page-42

The problem with that is that LOM is the operator, and the one actually spending the exploration money. The Angolan government is not going to hand a 30+ million dollar cheque to LOM for their exploration efforts....and now that they are mining the alluvials with the appropriate license - my understanding is that LOM will not be paying taxes on the sale of those diamonds mined - until their alluvial exploration costs are recovered - as simple tax breaks. The other two partners - not having spent anything....get to share in the sales profits, minus LOM's tax break...I think that makes sense, as much as it can....and you're right the whole relationship in this 'JV' is as clear as mud. Thurd world.