Ann: Lake Torrens IOCG Project - Drilling Update, page-32

Hi whytee,

with all respect, FMG did exhausting homework about the Vulcan deposit, as well as due dilligence, before entering into the Vulcan JV with TAS i.e. they know the risk/reward situation very well.

A major part of FMG's decision to proceed at Vulcan, was based on the fact that 15 holes had already been drilled at Vulcan, with highly encouraging results!

Vulcan is also a huge area and shares the same geology as OD i.e. a discovery of massive tonnages and good grades would easily justify FMG spending billions of dollars to develop the various deposits with the Vulcan area eg. Vulcan North and Vulcan West, as a producing mine with a lifetime of well over 20 years. It is also very comforting to know, that FMG could fund this large amount of CAPEX out of their own pocket.

With regard to infrastructure, the SA Government have already announced that they will support the building of the necessary infrastructure.

In addition, I assume that you are aware of the Andrew Forrest/FMG story, where together, they developed an Iron Ore mine, built a processing plant, constructed a railway line, and the other required infrastucture, in the middle of nowhere, and in record time.

The following video clearly shows AF's and FMG's resolve to develop a major mineral deposit from scratch. I suggest all TAS investors watch this video from start to finish.

"The Fortescue Metals Group (FMG) Story: "Never, Ever Give Up":



It is a given that both base and precious metals prices rise and fall, which means that all major mining projects carry an element of risk. However, in TAS's case, having FMG on board, with their huge amount of experience, contacts, and financial clout. significantly derisks the Vulcan Project.

RIO exited Vulvan primarily due to the falling Iron Ore price. In addition they were on a cost cutting mission at the time. I believe RIO made a major mistake of not continung at Vulcan. Within the next 1-2 months, we will probably know how big a mistake this really was.

Finally, GS raised $4.8m last week, as he knows, even though FMG are sole funding the current drilling program at Vulcan, that cash may be required to support both EDE and CNJ. Particularly in EDE's case, this is excellent news, as it provides EDE with an addition financing facility shouid sales income from EdenCrete and OptiBlend continue to remain sluggish. The suggestion by you that "GS took the $4.8m cold hard cash" is questionable to say the very least.

Cheers.