Ann: FYI & ALCOA SIGN BINDING JV TERM SHEET FOR FYI HPA PROJECT, page-273

I think investors did not fully understand the Ann and the market has taken time to digest it. I know I did not fully grasp the change immediately .

Some short term sacrifice to move from a potential single project to a potential HPA business with a global giant. Note the continual references to the HPA flowsheet. That is where the real value lies in my view. Its the process as much as the feedstock.

The 8000tpa may be scaled down... It may also be scaled up. It might be left at 7000tpa and the 1000tpa plant could be built in the states and scaled up.

The possibilities are there, its all about the market development now. This Koalin based HPA is a new commodity, success here for FYI (and A4N/ATC) is as much about developing the market as the individual projects. It is now about getting customer interest for off-take, which I believe is going to be far smoother with Aloca on board. If people think customers are going to be choosing a solo Aussie minors over a project owned and financed by global aluminium player, I'm sorry but you're dreaming.

I've said it before, I'll say it again. If the HPA market evolves as expected, FYI/Alcoa are set as first cab off the rank. This deal sets us up for potential market leadership.

Are there hurdles still? Sure. But the leadership and flowsheet have taken us this far, and the path is laid out, and Aloca wouldn't be wasting their time and reputation if they had no intention of proceeding. Someone is lying to you if they are saying you invest at this end of the market without risks. Maybe they do walk, but if they do the whole HPA sector is in for some hurt as it will smash confidence in the commodity. Not just FYI.

I would also remind people of the initial lack of enthusiasm with with the Alcoa MOU was initially received. Before the slow steady SP appreciation as instos started to take positions.

IMO, DYOR

MJ