pfs calculations, page-7

Galaxy Resources. GXY.

Hi Lenin,

Liked your threee valuation options---on the three Projected forward Revnues cases; namely:- $50m, $60m & $70 Millions; and your extrapolated 3 Net Present Values (NPV's); with the appropriate 10% discount rate.

Guess Lenin; I'll plump with the middle one, given waht the Feasibility Study says.....And even that is on conservative side, but heh that is also a bit subjective.

Also agree Lenin; with your 50/50.... Debt/Equity Finance Assumption, yep 100% would be nicer;..... but......

And of course Lenin; I note that your translation of extrapolated fair value corresponding GXY share prices; stillomits the Value of the Other Mining Projects, !!!---so I guess we add 25-28 cents.....a GXY share to your Base Case; ???.

Just quickly too Lenin; One other just as compelling element as: "Proof in the Pudding" --and as compelling as the PFS in a way; was the increase in State One's Equity's own GXY Holding by an additional 5% of the Register; from 9.96% of the GXY register, to 13.25^ of their register, announced on 29/10/07.

Many thanks Lenin for your Mt Cattlin--GXY--Spreadsheet and the work you did with this.

Regards,

Robbo.

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