Ann: Proposal from Wesfarmers, page-463

I should clarify, unless I wasn't clear in my previous post, that I actually believe that the refinery plant will cost $300M more with all sorts of contingencies included. KDR would not have been surprised by WES's increased assessment. It was in KDR's interest to previously prepare a low estimate and WES's interest to work on a generous estimate. Nothing dodgy with that but I also believe that the real possibility that the plant contribution could realistically be $300M more was a big factor in convincing the KDR board to support this offer, and it would also have relieved SQM that WES was interested, as WES would not hold up the financing. Be clear here that SQM bought 50% of the hard rock Mt Holland to exploit it ASAP to make up for any potential brine issues they may have. They have no desire to warehouse this resource. So the WES offer needs to be seen with the obstacle of a big financing hurdle in front of KDR. WES have addressed that. Having said that, are WES getting a great price? Absolutely they are, even at $300M more for the plant contribution the resource size will easily justify them paying more. The real value of Mt Holland is that there are very few others like it in Australia that are not already taken and WES is now out of the coal business. Simple really, and WES need to pay more for this very rare asset IMO. When the voting papers come out, we must all vote NO.