Ann: Update of Operations Underground Mine at Nifty, page-94

Hi Kotare

We should hear more from MLX in April re Nifty's Reset Plan (see announcement 12 March) - this plan is to be a strategic roadmap for the Nifty operation going forward.

Personally, a significant capital raising would not surprise me - reading between the lines it seems that Nifty was starved of capital investment, adequate maintenance etc under its previous ownership. Also, it seems that significant capital may be required to improve ventilation etc in the new mining areas. Whilst another capital raising is not ideal, I'd rather they bite the bullet and do this, the sooner the better, and obtain the required funds to fix Nifty and set the operation up as a strong cashflow generator going forward. I'm sure the market would prefer this to persevering with an undercapitalised operation, constant threat of capital raise overhanging the market etc.

Re Wingellina, whilst this is a large and world class Ni/Co resource, the development cost is huge ($1 billion+), so personally I cant see much happening on this in the current environment.

The Patterson region is very prospective, however management is pre-occupied with fixing Nifty (as they should be), so I don't see much happening here in the short term.