hdr - eritrea

All
i have copied below the text from an update that Sub-Sahara Resources has posted on the ASX in relation to their activities. It may have relevance to teh progression of the Eritrea PSC Agreement that I understood was virtually settled but not yet signed bewteen HDR, PCL and someone else (can't remember). But HDR has 30% of this offshore acreage under a Memorandum of Understanding (MOU) with teh Eritrean Government. So far I do not believe they have spent any material amount of money, but it does amplify policitcal risks in that jurisdiction at least.

regards
DF

"Eritrea Update
On Monday 6 September 2004, Sub-Sahara Resources NL announced that the Government of Eritrea had directed that they, and all other foreign companies
operating in Eritrea, halt all mineral prospecting and exploration work related activities in Eritrea until further notice.

Sub-Sahara has complied with this directive. The Company has sought clarification of the reasons behind this action and Sub-Sahara’s representative in Eritrea has been in contact with the Department of Mines
and has held meetings with the Minister of Energy and Mines. The Ministry has advised that it is at this stage unable to provide a final response. Sub-Sahara is
doing everything possible to obtain an understanding of the issues at hand.

For an on behalf of
Sub-Sahara Resources NL"