wow, page-94

Hi Timeto

I was the other person at the meeting. Did not have time to check onto HC yesterday, as I don't post often. I think you have covered most points well. The only other points I would like to add are:

- Angolans bringing the money and projects to the deal. CVI providing management, skills and contacts. End result will probably leave it being 20% held by Australians and 80% held by the Angolans. But when you consider the end result it will be a huge pie, when you look at the giant size of these projects and the fact that almost a billion dollars will be sunk into this, CVI will basically become an Angolan BHP which will largely be owned by Angolans.

- refinery approx 12 months to get into production. Approx $10 barrel profit, which is likely to be a 40% stake for CVI is pretty healthy.

- MS not concerned about cash position. Reason, finance facility of 900 m will be used to fund project commitment, and minimal money will be required for admin functions of CVI office.

-CVI and partners already have legal title through Portugese Mining law, but they will also be seeking government sign off aswell over next few months. This is not required as they effectively have title, but government sign off, provides a double check.

- the 4 Offshore permits which CVI is taking a stake in, already have funding commitments of $16 billion. These are huge oil fields and amongst the most valuable oil acreage in the world. Just getting 40% of Falcon's 5-10% stakes in these fields would be hugely valuable. Think about what it would be worth if CVI had to but these through open tender process.

-Basically, we don't have a lot of the details, but from what seems to be happening CVI has the potential to become a huge company. i get the impression there will be dilution through the SPV. I guess we don't know how much, but if the current share holders end up owning 20% of a 10 billion company, as opposed to owning 100% of 40 million dollar company, I would be much happier with the former. I don't know the exact numbers, but it looks like some type of transformation along these lines is on the cards for CVI.

All the best

Scott