d&d update 120310, page-12

Hi Pete,

You say:
Either
1.)these X employees are very very loyal and dont wanna make extra money, or
2.) xstrata insiders are very smart and know they will be caught insider trading,
3.) or theres still a big IF inside xstrata wheather this will go ahead or not.
which one do u guys think it is?

This is a very good question and I do not know the answer. However I expect the employees that do have this inside information may not know any Australians or could have no interest in owning shares. Any shares in NKP bought from Switzerland could look a bit suspect?!

I did talk to an employee of Silver Lake Resources in September 2008, who said SLR had a rich resource and believed the sp was very much undervalued at 18c. However he said he had no interest in buying shares. Stupidly I didn't buy them either! You can see that it is quite possible that any leakage around Mick Davis may not be put into action and if there was a leak it's significance could be lost in all the other information concerning XS affairs. This is just a guess and as I say I do not know the answer.

There is certainly no inbuilt price ATM for an XS JV. In fact if the $11/oz in-ground resource value that NKP is paying IGC is fair value then the sp is still undervalued by more than half. This calculation is without any speculation about the intentions of XS.

In conclusion, at 50c this stock looks too good to be true and I've asked many investors and brokers what could be wrong? To date no one has been able to come up with any satisfactory answers.