Assessment, page-24

Hi jayneen,

What sort of understanding do you have of the legal side of things if SDL goes into administration?

Would note holders assume ownership of CamIron and CongoIron, and therefore all leases and licences?

Or, upon administration, does the Cameroon Government have the power to revoke all leases and licences?

I think the above question could be fairly critical in answering whether note holders allow the company to fold at this point.

I'd question why note holders bothered bringing along SDL shareholders to this point instead of allowing it to fold some time ago if they effectively end up taking over the leases and licences.

I don't have a good enough understanding of legal points to know with any certainty the answers to the above.

I don't think there was ever any intention of paying back the $90m+ in notes, the company would've been hoping infrastructure/mine finance was secured and the note holders ended up converting to shares.

As an aside, if SDL folds and note holders effectively take over leases and licences, the Chinese do lose their 19% shareholding in the parent company via Hanlong.

Cheers!