3b target 16 holes drilled so far, page-15

Lets clear up a few issues. Feel free to respond point by point.

1. MXR have other assets and projects besides Canegrass. Lets do some "Fully diluted" numbers.

MXR have approx 200M shares fully diluted. When fully diluted (i.e. Options exercised), they have approx $20M in cash. $8M in cash now and $12M for exercised options. This is equal to 10c a share in cash.

They have approx $8M worth of ERO shares/options. Worth 4c a share.

They have JV spending up to $18M (i.e. MXR free carried). MXR free carried vis about $6M, or 3c a share.

So minus the NTA, of 17c (Fully diluted status), MXR's projects are worth 4.5c (current share price is 21.5c), or approx $9M.

2. So currently ALL MXR projects are valued at $9M.

This includes 3 gold targets. Bird in hand, currently 160,000oz JORC with 300,000 target from current drilling. Sellhiem, alluvial gold with a 15,000oz target per annum to start later this year. Iron Stone Well with 73,000oz (90% share).

You also get a 7.5mlb Uranium JORC, which appears to be about 1/4 Drilled. This is only 1 of 2 targets in the Nardee complex.

There are also PGE and Nickel targets in the Narndee Complex.

Finally you get the Iron Ore / Vanadium target. Ignoring value in any other project, this is worth no more than $9M in market cap.

3. AXO has approx 215M shares fully diluted. At 89c, this gives a market cao of nearly $200M. Of which they have approx $72M in cash, and maybe another $10M from converted options.

This gives AXO's project a value of about $120M.

So lets get this clear, you are comparing projects worth $120M vs one less than $9M.

4. AXO's target is 650mt at 250m deep and 1.3B at 500m deep. Because the ore body is narrow, the target below 250M is useless.

AXO is NOT 650mt JORC as you state. It is currently 325mt with a Aug 08 target of 650mt. With the "deeps" target useless (too deep and narrow).

MXR has a target of 1.7B - 3B. The MXR target is wide and far less overburded and much better strip ratio. MXR's target is only from 1 of 5 nearby targets, with futher targets in the complex. A much bigger target than AXO will ever be.

5. MXR's target is NOT based on 16 drill holes. It is based on a comparison of the magnetics from these drill holes compared to the magnetics of the ore body.

6. CFE did sell there tenements for $400M. This is fact. CFE is near the coast. Correct.

7. Your infrastructure question, and continued statements say "middle of nowhere". Here are some "middle of nowhere" facts. MXR have a gas pipeline already going through their tenement. Roads etc already exist. These already exist for the WVL mine, which is next to Canegrass.

It is far from "middle of nowhere".

WVL already have offtake agreements in place with Noble, and production will be up and running this year.

8. You are just annoyed that you overpaid for AXO, If I had to guess, I would say over $1.20. You will also note, that AXO was worth more in September 06 than it is today. This is the nature of such finds.

Big projects usually re-rate when they are found, and then level out until production comes closer. CDU is a good example of this, as is AXO and TRO. You have become jaded watching AXO flounder for the last 2 years.

9. The more you post, the more I realise you have no idea how the market works. I'm the guy that buys CDU at 40c, you buy them at $6. I buy MAK at 20c, you buy at $2.50.

I get on the juniors early. I don't wait for production. I ride the first wave.... you flounder between the waves, and question why.... wait long enough and you will ride the second.

Don't hammer MXR because you don't understand the difference between a $9M project and a $120M project, or the difference between current market cap and fully diluted.

10. I actually like AXO. I think there are undervalued. but I would only buy them as a junior (looking for a target) and get on before the first re-rating, or just as production is about to start, to jump on the second re-rating. The 2nd re-rating will happen so, so keep holding them.