ECT - Q&A Session - India Update, page-28

SatinTape;

Qu1 - They were spent on staff (to build basic designs, CAD work, addiitonal R&D, meeting key directors at eahc company etc), techno economic feasibility studies, lawyers (in drafting the agreements), accountants (in preparing the tax impact and managing the deal structure accordingly).
Its expensive to develop a first of a kind steel technology. We have got to where we are a lot cheaper than most other steel techs (see HiSmelt as an example but there are others.)

Qu2 - The upgrades are being financed by three finance componants. 1) The insurance, 2) an R&D loan and 3) the capital raising.
In prior years, we had been comitted to the India strategy and so we didnt focus our efforts or resources to developing the test plant into a commercial demonstration. We have been clear in prior announcements that our focus now changes to delivering earbnings with what we have invested in to date. And yes, it is a no brianer to spend on upgrades to deliver $3m earnings and is only available to us because we have invested into know-how and plant to date which allows us to leverage quickly into commercial contracts. I think its too simplistic to look back into the past and say, "we should have upgraded then". We're doing it now and thats what counts.