some sanity ?, page-2

Hi Garnev

You have raised some valid questions and I will do my best to answer them as I am sure other shareholders share your concerns

1.Bill Hayes was the original vendor. Bill is a coal geologist with over 30 years experience in the bowen Basin. Bill has a strong equity position in the company, saying that, he has a real incentive to make it work.

2. Shotover (1045) was purchased for $2.85 mil and under the JV, bowen will earn a minimum of $52 million once the mooted 350 million coking coal is proven and mining starts. Upside occurs on every tonne found before production begins.

If the company completed its proposed drilling last year instead of suspending drilling 6 weeks before the drilling season was over, shareholders would have had a JORC compliant resource.

3. The Bhushan directors were only voted in by a majority of shareholders bothered to vote. That majority was a small number of shareholders, a very small number.

4. COMBINED with the drilling that has already been done, only 3 coreed holes are needed to JORC each deposit. Highly qualified geologists have confirmed this point.

5. I would suggest, and I have my reasons/sources, that bhushan owe a very substantial amount in past drilling commitments that have not been paid

6. Yin's background will be stated in the letter to go to shareholders soon.

Large scale end users are waiting for the board to change before re-engaging with the new proposed board.

Savni are Bhushan are Savni etc

The tenaments that Bowen has were pegged many years ago before coal became sexy. They are certainly not left overs. BHP would like to take one back immediately and other groups are currently trying to negotiate with the company to get their hands on the tenaments that Bhushan have not got their claws in at the monent. Yes the current board are plain lazy and pupets of Bhushan.

You're right in saying the loan arrangements are a means for Bhushan to tighten their grip on our company. Perhaps these arrangements were the result of corporate bullying and the weak australian board memmbers have no real experience to call their bluff...