Ann: Chairman's Address to Shareholders , page-48

Hi Kacy, this is a reply I received from Thomas on 29/09/2008 regarding some questions put to him about logistics and Besalco.

Quote:

Hi Phil, could you possibly answer a couple a questions please?



1. Will we be making any shipments of Iron ore from CMSB and how many? 2 in october



2. Is Santa Barbara mining ore at the moment? Yes but not much given they have an $83m writ that’s getting closer every day



3. Do we still have Besalco on board for logistics etc.? Yes but we also have others bidding as well. Plan is for us to takeover the plant 30 Dec and use SV for mine till our 130 tonne trucks arrive on second round of funding.



Kind regards,

I followed that up with "what does SV stand for"?

to which he replied:

" Subject: RE: Iron Ore CMSB



Sorry,



It’s the initials of our new contractor.



Big day on the ASX tomorrow.

and you can guess what happened on the 'ASX tomorrow"

sfa!!!!!!!

cheers,
Ray.