Surprise in store, page-14

Itis highly unlikely the Company will get any credit for the vanadium content,all values tied to iron grade, at a discount to the index they use (haveclaimed 65Platts).

The Companywill still be charged royalty on iron and vanadium content even if no value isrecovered (10% combined)

Tomake 1.5Mptpa of product they need to move around 20Mtpa across a publicroad for 20km

AVLcompletely surround the lease. No room for any waste, or any infrastructure andno rights outside licence

Capitalcost of a CMB “Crush, Milling and Beneficiation” circuit includinginfrastructure to make concentrate is around USD200M

Truckmovements from pit and up road excessive (57,000tpd) 570 truckloads a day! 23 loads an hour ! Bigger than BHP!

Orewill need to transfer from haul trucks to road trains and off (extra $2/ton)for 20m tonnes, not accounted here.

Assumptionis based on desktop test work, 5 samples, no detailed bulk process testing orvariability testing of near surface. Everything is based on a few samples –mass recovery, removal of gangue, mass recovery, etc.

Top5 to 10m is cap rock and weathered. Will deliver much lower yield in first yearat least, plant will not operate to spec until deeper.

Capexis going to be a hurdle at $250M AUD, this is in line with other magnetiteprojects.

Waterbalance – drawdown of saline water and access to low salinewater.

Enviro– Stygofauna and PEC’s. very limited work has been done there as far as Ican tell, meaning water drawdown will be a big challenge in upperaquifer.

Findingtrucks for 20MT/yr

Minewaste plan, plant layout. They have to cart waste over the SandstoneMeeka road or buildone.

Noway anyone would do this without huge due diligence. High risk, lowreward.

Ifthe plan is to build the CMB for the V plant and use this to generate revenue(which will be negative by the way), that means that they will definitelylocate the CMB on their ground to their ground to the north. Just too faraway to make sense.

Goodluck with this as it seems a long shot.

AllIMO

DYOR