foster stockbroking report , page-30

CAZ is a good example of buying/accumulating on weakness after DD has been completed/reviewed and then waiting for the business plan to play out.

Regarding the recently announced pre-feasibilty study announced last week, it's important to note that drilling has been continuing at the Parker Range iron ore Project to upgrade and infill the current resource. Results are still pending.

* Important to note we also have Hammersley iron ore Project where a metallurgical test programme is underway and due for completion. RC drilling was due to begin in November 2009. Results are still pending.

* We also have the Earaheedy iron ore Project. Prelim work is underway regarding rock chip sampling (already up to 62% fe)

* Continuing on, our West Kalgoorlie Gold Project. It's significant to note that Sowdens released a Scoping Ttudy stating that a potenital mine is viable (NPV $8.06m, IRR 69%, base don a gold price of US$850.00). CAPEX & OPEX is being reviewed before consinuing onto a BFS.

* We also have a JV with DOM (E51/290) which is prospective for copper/gold, a JV with MTH (EL25643 & EL 25653 in the NT), a JV with RMP (North Murchison Goldfields) close by SFR's find - rock chips returned 8.5% cu & 10.84% cu, & finally, an agreement with TKL (EL69/2229 & EL69/2230) which is in the vicinity of BHP's Nebo project.

How this one escaped keen eyes before the current re-rating was astounding.