Ann: Chairman's Address to Shareholders , page-8

Hi Gindalian

I was at the meeting yesterday and came away very very confident,it was standing room only.

While everybody can read the minutes or press releases it is some of the comments and insights that are the real gold.

Here are some of them and I will be as accurate as my memory allows.

GG "there will never be another attempt at a merger between Sundance and GBG while he sits on the board of GBG Hooray!!!!!!!!

GG believes fairly confidently there could be a further 1 billion tons of magnetite to come. He said this will make the Geologists in the room cringe,but he belives it and said there could be reserves for 200 years. He said it!!!

GG does not see any problem with the FIRB with regard to the placement by Ansteel as it sits within the current guidelines.

G Dixon They expect with some certainty EPA approval late this year or early next year and the news to be postive.
There has been a dynamic shift in the process since the change of goverment. It should be remembered that Colin Barnett in the previous Court Liberal governments got this midwest region off the ground.

Spoke to Mike O'neil who said they expect that the final stage of funding by the CDB to be in place before next June and do not expect any problems as the Chinese would not of pumped $500,000,000 in already.

GG Long term they would if possible like to see a pellet plant at Oakagee.

G Dixon said in some repects the downturn has helped the development of GBG as it has freed up a lot of the big infrastructure manufacturers.GBG has leapforgged ahead of other companies who have deferred projects or cancelled all together. IE Alcoa 3 billion expansion at Wagerup in W.A.

G Dixon says the company has gone from explorer, to developer, and is now very close to becoming a producer They hope they will be paying substantial dividends to share holders in the next few years.

Question time was good and there was certainly no animosity towards the company or the board. As everybody knows the current share price does not reflect the companies efforts in developing value for shareholders.In fact strong applause at the end of the presentation by everybody.

I went out and bought another 20,000 @ 0.36 yeaterday as I am a sucker I suppose and know this current crisis will pass. I would say to shareholders see the road show in your capital if you can because it is worth the effort.

R&R