Ann: Update on Mt Gordon Copper Payment, page-51

I personally think that at present MLX should use most of the extra cash to explore and develop the tin at Renison in classical mining strategy regarding higher prices. At present prices are higher but we are still high grading i.e. mining Area 5 etc. We will see whether those higher prices persist or whether there will be a supply-side response. I can see other like VRX tooling up to target Sn. Also traditionally at persistent higher prices the Indonesians and Malaysians come in with higher production often lower cost gravity un ground dredged tin from placer deposits.

Mining especially underground has two elements capital and operating expenses. In light of the potential competition for above, we should do some of the capital spend they are unlikely to have as much of.

1) Exploration spend at Reiosn on: drilling to prove up more of the pegmatite with deformed by carbonate intrusions and a major plus minor fault.
2) Development to put in the access drives first for lower cost and more accurate exploration and then extend them for stoping the ore my machine mining ( jumbo).

This is not a new question with MLX at Renison we've done it before when the choice was to build Rentals and or a smelter.

I did my Capstone unit in Geoscisene on the Sn mining alternatives and was helped by Dr Collins who was a director of MLX at the time he also did his PH D thesis on Renison but that was quite a while below.

I wonder if that exercise is why I have persisted with MLX despite the pain of the pat say fou]r years. We made a decision to go for Nifty now we have to live with the consequences till we rebuild. However, Renison is a prize asset way ahead of Mt. Bischoff, Collingwood , Taronga etc.

All IMVHO.