recovery operation suggestion, page-6

INL has been in this position before. In fact, it was in this position when it purchased the Hellyer mine from the receivers a few years ago.

Around that time the share price fell from the 10 cents to 15 cents trading range to below 5 cents. The price recovered in 2006 when zinc prices recovered and Polymetals proposed operating the joint venture.

Prior to the joint venture, INL was all about commercialising its technology. However, it never had the cash/resources to do so itself then.

It seems to me that INL has gone full circle and we are back in exactly the same position now. However, this need not have been the case if INL had taken out hedging 12 to 18 months ago.

However, Zinc Prices are forecast to rise over the period 2010 to 2012 to US$1.10 a lb in 2010 to US$1.40 a lb in 2012.

Consequently, I am hoping to reride the INL escalator again over the next 2 to 3 years. Hopefully, next time round INL management will not make the same misstake a second time and will take out appropriate hedging at the appropriate time.

If the forecast zinc prices happen, then INL will make good profits from 100% of Hellyer. If INL lock in hedging at the appropriate time in the cycle, they should lock in a certain amount of profit which can be used to partial fund the MRP.

In the mean time there is still the toll treatment options for other miners eg. Bass Metals and the Fossey zone. Also possible someone will want to fund the MRP when metal prices improve.

The last thing I would want is to see the assets sold off. INL is worth a lot more with its current assets.

The best advice is to place them in the bottom draw with no short term expectations.

Regards

SP