Ann: Outstanding cobalt and nickel results, Goongarrie South, page-88

AFU, I'm currently waiting for the 2nd quarterly's from all company's re Co. to be provided - later this month. Then we can also make an assessment regarding cash on hand, and current costing activities. This is very important in any exploration company, I like to know where my $'s are being spent. Is it company admin. or exploration/ development etc. Currently I'm looking at only Australian Co. plays, I do not like the majority of Canadian junior plays and I'm quite negative on the DRC situation - unfortunately the situation is deepening. There are certainly a few standouts at present, this of course does not mean discounting any of the other junior potential - we can not be biased, simply look at the facts provided. Although I have been negative on some of the market juniors at present this certainly does not mean they are down and out. That being said I believe life of mine and relatively good grade (as well as competent mgt.) are the keys to structuring ones portfolio presently. Evidently CLQ is the leader of the pack regarding timing and is the best comparison for all other junior company's; they have established a long life of mine (re Cobalt), relatively high grade, well funded/ backed, competent mgt. et. al. This should form the basis for all other juniors. My concern at present for most Co. juniors is resource size, many of them have very attractive grade yet the life of mine concept regarding resource size is not viable. The majority are HPAL models, only a few have the low temperature leaching ability, and of those only a couple have a decent resource size. (Not to sound like Rick Rule)... the question I ask is : Does the mine have a life over 10 years with a Payback period of less than 3? If the answer is yes then it should be investigated further. Company's I either hold or currently like regarding Cobalt are as follows (no particular order) - ARL, CLQ, CNJ, PGM (needs additional Cobalt resource upgrade), AML (needs to improve Vardy), HAV, NZC (located in DRC, questionable).

Hope this helps in the short term.

Regards, NL.