anyone go to the agm, page-5

Both Wayne and Ross made the point that we have had very little share dilution over the course of the journey.

Wayne spoke of the 34 CAs we now have in place. BRM and UBS now have a pretty clear idea of the strategy going forward. They have parties interested in both JV and off-take arrangements and seemed very confident re how things were progressing on this front. Am expecting to see a JV deal at some point in the future – no clues as to when though.

Wayne said the state government had requested they make the six day visit to Japan a short time ago. They met with five or six companies including Mitsubishi and Mitsui.

Wayne again spoke of the huge asset Aning brings to the table in being able to speak the native language when in China. Likewise with Tim Fairhead (Marketing Manager). Tim lived in China for five years and did a degree there too. He understands the geo-political situation very well.

Wayne spoke about how China was back to strong growth. He said in the last quarter China had produced 617mtpa (annualised) and that the government was working to slow that down to a rate of 500-550mtpa. (Slides 26-27.)

Slide 35 – they visited this place while in China. This is a port which is being built as we speak and will be used for iron ore, oil, gas, you name it. Wayne said there was a massive building nearby in which there was a massive model (“as big as this room”) which laid out how the whole area would look when completed. His general point was that the development in China needs to be seen to be believed.

Slides 36-39 – this was another port. He noted how primitive the process still is even now. He wasn’t having a dig – more an observation of the way things are done. Massive ship, bucket takes a scoop, puts into truck, takes another scoop, puts into truck, truck takes off. And you unload an entire ship in that way.

Slide 40 – the NWIOA berths are going to be towards the right of that photo, just below centre.

Key out-takes:
- JV looking good
- China demand looking good
- Port development “not a walk in the park” but good to have the guy who worked on the FMG port development on our team now.
- Eyes are on Marillana, but other tenements being found in strategic locations (in terms of access to future port capacity). Port Hedland may be approaching all it can take in five years. I understand Cape Lambert has plenty of room for expansion.