Ann: Trading Halt , page-36

Hi (occasionaltrader)

March 2009.
Projects have the following characteristics.
(a) Reported Resource,supported by both current and historical exploration data and reported to the Geological Survey of India and the Indian Bureau of Mines.

(e) Financial Parameters,- sub 2 year payback on purchase price using SPOT prices at historical lows.

April 1st 2009.
(d) Potential upside in the resources potential due to historical exploration activities only supporting proposed production, to shallow depths (LESS then 30 meters) and not identifying the extremities of the ore zone within the Mining lease area.

May 7th 2009.
The target site has a granted lease,a resource is supported by both current and historical exploration data.

September 2009 Exploration target of 11-15 Mt at 57 to 67%Fe.
Broadly,the mining model is intended to be an outsourcing approach,with local mine management,earth moving,crushing and screening,and road transport to established rail infrastructure 25km from the mine gate.There are two rail sidings equidistant from the mine gate with infrastructure in place to handle loading of iron ore directly into trains.

NSL extensive drilling to JORC Code anticipated to indicated status for the project prior to settlement,will require 29 holes at 2,595 metres of drilling.

October 2009 Net present value range of US$94m to US$105m over a mine life of 12 to 17 years.
This NPV is based on ASSUMED production ramping up to the optimal mining rate of 960,000 tonnes per annum from 2011 until 2025. with exploration target of 11Mt to 15Mt.

Normally Indian iron ore is sold on spot market but pricing inputs calculated the NPV on a price of $60 per tonne for 63.5%Fe.
NSL intends to use road transport to established rail infrastructure 25km from the mine gate.ESTIMATED cost of mining to ship loading (FOB) at US$33 per tonne.
We expect that the mine will provide us with cash flow early in the FIRST quarter of 2010.Cash Flow generated from the project to be predominately used to fund the settlement schedule.
The cash flow will support our ambition of building a portfolio of quality ready-to-operate assets.

November2009.
Accelerate the strategy for site 2 where mining is due to start in late 2009 for early 2010 shipment and cash flow.
Sample return has been inhibited by broken ground below 50m,which has prevented the majority of drilling from reaching its design depth.
Initial information gathered from the drilling program has suggested NSL's target mineralisation will be BELOW previously ANTICIPATED estimates based on historical information supplied by the vendor and the Indian Bureau of Mines..
An updated estimate will be generated upon completion of the drilling program,which is expected in the new year,post commencement of operations. (

I have not seen any such update on resource figures for
this project which has been drilling and stock piling ore.)

November 2009.
Under the off-take agreement,NSL will commence shipment of ore in January 2010,with the FINAL shipment to be supplied by the end of MAY 2010.
Shipments to be pre-paid under one letter of credit.
Letter of credit provides NSL with the opportunity to leverage the letter of credit to source additional funds for our development program.

December 2009.
NSL Consolidated is pleased to announce that it has commenced mining iron ore in India and is on track to make its first shipment to a Chinese customer in January 2010.

We have been able to adequately understand the ore body to allow commencement of mining ahead of definition of a JORC compliant resource.Surface exposure and UNDERSTANDING of the FLOAT ore stratigraphy has allowed the development of initial mining plans.We are pleased to report that our first ore has now been mined.December 2009.March 2010,3000 tonnes at port.

January 18th 2010 Letter of credit with Chinese offtake customer.
Material available for first shipment by end of January 2010.
Negotiating rail contract.

January 29th 2010.
Drilling across both sites done of 1,519 metres.
Technical ISSUES have arisen during the Mangal drilling program. Very little FLOAT ore was recovered.
Cash flow to fund bolt on acquisitions.

December they said they understood the FLOAT ORE stratigraphy and put in place the mining plans.

How much money is being paid to PODAR?
How much money is being paid to Natural Resources Consulting Pvt?
They are identifying resources,doing due diligence,feasibility studies,project negotiations,regulatory compliance,post acquisition activities management and financing activities.
Sales agent for iron ore sales and a facilitator on behalf of NSL in the establishment of all mine service contracts,recruitment,statutory compliance and further acquisition services.Also manage logistics,approvals and contracting arrangements.
What do NSL Directors and staff do?

The estimates and Assumptions are subject to significant uncertainties and,accordingly,the actual costs may materially differ from these estimates and assumptions,NSL said.

Assays being done through SGS Australia.
How many tonnes resource are at each tenement?What are the impurities levels?what are the grade of the iron ore assays that have been done?
Without the assay results,how can they be sure of the grade of the iron ore they are digging up and sending to port?

Because of the technical issues associated with the initial drilling program and sample collection process,NSL now intends to undertake further resource definition work in the first quarter of 2010.

Both of NSL's projects are in close proximity to established road and rail systems that have available capacity and reliable third party access.
How come they have no rail deal contact?
NSL say the rail system to be used will only have capacity to rail 3,480 tonnes in each trip.This does not sound like an up to date system of rail infrastructure.

NSL say they will only take on board projects that have records of previous mining data.
One announcement said the project has no previous data.

There are other things I could say but will leave it at that.

Regards
Westcott.